Red Violet, Inc. · NASDAQ:RDVT
Red Violet — Investor Presentation (March 2024)
30 slides from Red Violet's investor presentation, Mar 7, 2024
Slide 1: Company Presentation March 2024
Company Presentation March 2024
Slide 2: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are in addition to, and not a
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipate," "believes," "shou
Slide 4: Revolutionizing risk management with advanced identity intelligence solutions
Revolutionizing risk management with advanced identity intelligence solutions We develop AI/ML-driven identity intelligence and fraud prevention solutions that make the world a safer place and reduce the cost of doing business.
Slide 5: red violet is an Industry-Leading Identity Intelligence Solutions Provider
red violet is an Industry-Leading Identity Intelligence Solutions Provider Actionable Analytics Proprietary Technology Data Insights Dedicated to making the world a safer place through delivery of industry-leading identity solutions Most Advanced Identity Intelligence Platform AI/ML-driven, cloud-na
Slide 6: red violet's Journey to Providing Leading Identity Intelligence Solutions
red violet’s Journey to Providing Leading Identity Intelligence Solutions January 2015 Builds cloud-native, AI/ML platform December 2015 Acquires several marketing companies to enhance consumer data assets during development phase March 2018 red violet spins off from parent company, cogint August 20
Slide 7: Key Growth Drivers
Key Growth Drivers Digital Transformation has Accelerated the Multi-Decade Online Migration Requirements for real-time customer / counterparty verification throughout the customer journey driving demand for automated and scalable identity solutions Emerging Technologies Continue to Drive Business an
Slide 8: Identity Intelligence Presents a Large and Growing Challenge
Identity Intelligence Presents a Large and Growing Challenge Mobile E-Commerce Social Digital Transformation The Proliferation of Data... ...Creates Complex Problems for Organizations to Navigate
Slide 9: Fraud Continues to Evolve, Significantly Impacting All Types of Organizations
Fraud Continues to Evolve, Significantly Impacting All Types of Organizations 98% of financial institutions globally experienced fraud in 2023 with 25% of them losing more than $1M in that time. 2024 State of Fraud Benchmark Report, Alloy 91% of organizations are planning to boost their investment i
Slide 10: Our Intelligent Platform – CORE
Our Intelligent Platform – CORETM Disparate Data Identity Intelligence Identity verification Fraud detection and prevention Investigations and due diligence Legislative compliance Customer acquisition Frictionless commerce Risk management Consumer insights With massive data assets consisting of publ
Slide 11: Why We Win
Why We Win Intelligent Interface Design Dynamic & Seamless Scaling Cloud-Native Proprietary Platform Superior Data Fusion Customer-Tailored Pricing Customer-Centric Support Scalable and Customizable Solutions Robust operating leverage and efficiency leading to customer-centric, value pricing AI/ML-d
Slide 12: Significant Momentum Builds to Continued Success
Significant Momentum Builds to Continued Success Revenue ($M) Free Cash Flow ($M) Adj. EBITDA ($M) Expanding Cash Generation Adj. EBITDA Growth Driven by Strong Top-Line Performance & High Gross Margin Strong Retention and New Customers Driving Revenue Growth KPIs 7,850+ 2023 Ending IDI Customers 92
Slide 13: Highly Experienced Management Team
Highly Experienced Management Team Name and Title Biography Prior Experience Derek Dubner CEO Over 20 years of experience in the data and analytics industry Built leading information management companies which sold for an aggregate value of approximately $1 billion James Reilly President Over 20 yea
Slide 14: red violet Plays in a Large and Fast-Growing TAM
$0.7B $1.1B $2.7B red violet Plays in a Large and Fast-Growing TAM $10B red violet’s Bottom-Up TAM(4) ( ) $5k Avg. ACV 50% Avg. Penetration ( ) ( ) $26k Avg. ACV 37% Avg. Penetration ( ) ( ) $75k Avg. ACV 36% Avg. Penetration ( ) ( ) $180k Avg. ACV 35% Avg. Penetration ( ) # of Businesses(1) 282,000
Slide 15: red violet's Platform Differentiation
red violet’s Platform Differentiation Scalability & Availability Automated monitoring, flexible APIs, and industry-leading batch processing allows for virtually unlimited capacity and performance Technology AI/ML-driven cloud-native identity intelligence platform drives scale Unified Data Assets COR
Slide 16: AI/ML-Driven Platform
AI/ML-Driven Platform Data Analytics and Engineering 1 Proprietary, scalable, distributed memory, data processing platform Built upon table operator abstractions using a functional programming approach Superior to “map reduce” frameworks in performance and functionality Scalable / performant cloud-n
Slide 17: Leading Core Consumer Identity Graph
Behavioral Predictive red violet has the Leading Core Consumer Identity Graph to Address a Multitude of Use Cases Meta Death Social Public Record Location Criminal Phone Email & IP Automotive Foreclosures Employment Mobile Financial Property Military Relationships Demographic Bankruptcies, Liens, &
Slide 18: IDI Use Cases
Identity Verification Mobile Batch API IDI Use Cases Fraud Prevention Employ advanced analytics to detect and prevent fraud Skip Tracing Elevates persons and asset location efforts to the next level Background Screening Support Investigations and Due Diligence Conduct thorough investigations utilizi
Slide 19: IDI Case Studies
Multinational Financial Services Company Comprehensive identity data and insights are needed to reduce friction, improve conversions, and combat fraud This customer, a $350 billion financial services company, required robust, comprehensive, and highly accurate verification solutions in-house to serv
Slide 20: IDI Case Studies (Cont'd)
IDI Case Studies (Cont’d) Leading Global Data & Analytics Company Timely and accurate information is critical to keeping workplaces and businesses safe Customer needed a high-volume performant information solution to validate identity and fully inform applicant location histories in support of backg
Slide 21: FOREWARN: Truly differentiated B2B offering
Truly differentiated B2B offering which can be expanded to serve multiple industries / use cases Platform Capabilities Competitors Only PROACTIVE Safety Solution Powered by the Most Advanced Identity Intelligence Platform Market Leader with High Brand Awareness FOREWARN Identity Verification Verifie
Slide 22: Numerous Opportunities to Accelerate Organic Growth
Numerous Opportunities to Accelerate Organic Growth Penetration Expanded spend from customer base through cross-sell and upsell of offerings Current under-penetration of market provides opportunity for additional growth Adoption Proven, scalable business model with track-record of winning and retain
Slide 23: Scalable Go-To-Market Strategy
Scalable Go-To-Market Strategy New Customer Acquisition New opportunities are sourced from each of the 3 primary channels below Once an opportunity is qualified and credentialed for a use case, the customer generally begins with a free trial The free trial is followed either by contracting for a min
Slide 24: red violet by the Numbers
red violet by the Numbers $60.2M 2023 Revenue 38% 2017 – 2023 Revenue CAGR 78% 2023 Adj. Gross Margin 27% 2023 Adj. EBITDA Margin 79% 2023 Contractual Revenue 92% 2023 Gross Revenue Retention
Slide 25: Revenue Highlights
Revenue Highlights Robust Top-Line Momentum ($ in millions) Revenue and Adj. Gross Margin Revenue Adj. Gross Margin(1) ’17 – ’23 CAGR: 38% Consistent revenue growth with a 38% CAGR from 2017 – 2023 Revenue growth and incremental margin continues to expand, with strong pipeline and market tailwinds s
Slide 26: Adj. EBITDA and Adj. EBITDA Margin
($ in millions) Adj. EBITDA and Adj. EBITDA Margin Adj. EBITDA Adj. EBITDA Margin(1) Adjusted EBITDA Highlights ’19 – ’23 CAGR: 71% Substantial Operating Leverage Continuously proves the unique capabilities and leverage of the business model, maintaining strong top line growth while expanding margin
Slide 27: All things identity.
oles. | All things identity.”
Slide 28: Appendix
Appendix
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures
Slide 30: Supplemental Metrics and Definitions
Supplemental Metrics and Definitions The following metrics are intended as a supplement to the financial information found in this presentation and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amount