Red Violet Inc (RDVT) Reports Strong Earnings Growth in Q1 2024

  • Total income: It reached $17.5 million, up 20% year-over-year.

  • Gross profit: Up 20% to $11.5 million; gross margin at a stable level of 66%.

  • Net income: It grew 149% to $1.8 million and net profit margin doubled to 10%.

  • Earnings per share: Increased to $0.13 per basic and diluted share.

  • Adjusted EBITDA: Up 54% to $5.7 million; Adjusted EBITDA margin increased to 32% from 25%.

  • Operating cash flow: A 181% jump to $4.3 million.

  • Cash and cash equivalents: As of March 31, 2024, it amounted to $32.1 million.

On May 8, 2024, Red Violet Inc (NASDAQ:RDVT), a leading player in the analytics and information solutions market, disclosed its financial results for the first quarter ended March 31, 2024 via an 8-K filing. The company saw revenue grow significantly by 20%, reaching a record $17.5 million, with a dramatic 149% increase in net income to $1.8 million.

Red Violet Inc specializes in big data analytics using its CORE data fusion platform, providing essential information solutions to a variety of industries. The technology-led approach has clearly paid off, as evidenced by the company’s recent financial achievements.

Red Violet Inc (RDVT) Reports Strong Earnings Growth in Q1 2024Red Violet Inc (RDVT) Reports Strong Earnings Growth in Q1 2024

Red Violet Inc (RDVT) Reports Strong Earnings Growth in Q1 2024

Information about financial results

The first quarter of 2024 set a dynamic pace for Red Violet, with total revenues skyrocketing to $17.5 million, representing 20% ​​year-over-year growth. This increase was reflected in both gross profit and adjusted gross profit, each also increasing by 20% to $11.5 million and $13.8 million, respectively. Notably, adjusted gross margin increased slightly to 79% from 78% in the prior year.

Net income recorded an impressive jump, increasing 149% to $1.8 million, resulting in earnings of $0.13 per share on both a basic and diluted basis. The net profit margin actually doubled to 10%. Adjusted EBITDA increased 54% to $5.7 million and margin increased significantly to 32% from 25%.

Operating cash flow was another strong area, increasing 181% to $4.3 million. The company’s liquidity position remains solid with cash and cash equivalents of $32.1 million as of March 31, 2024.

The most important strategic and operational information

During the quarter, Red Violet added 366 customers to its IDI platform and a record 51,259 users to its FOREWARN service. The company also continued its share repurchase program, repurchasing 291,879 shares at an average price of $19.81 per share.

CEO Derek Dubner commented on the results, stating: “We started 2024 with record sales and strong operating results that reflect the inherent strength of our innovative technology and solutions, as well as our teams’ continued commitment to delivering superior value to our customers.” He further highlighted strategic initiatives to develop technologies and product sets to drive sustainable growth.

Financial condition and future prospects

The balance sheet remains strong, with total assets increasing to $94.026 million compared to $92.990 million in the prior quarter. Equity also showed good balance, although it decreased slightly from $86.112 million at the end of 2023 to $83.847 million.

With these strong first quarter results, Red Violet not only demonstrates its financial resilience, but also strengthens its strategic positioning for further growth in 2024. The company’s focus on expanding its technological capabilities and market reach suggests a proactive approach to capitalizing on dynamic data analytics opportunities and business intelligence sectors.

For more detailed information on Red Violet’s financial performance and future prospects, interested parties can access the full earnings report and join the upcoming conference call, as detailed in the company’s 8-K filing.

For more information, check out the full 8k Gains publication. (here) by Red Violet Inc.

This article first appeared on GuruFocus.