Red Violet, Inc. (NASDAQ: RDVT) has just released its financial results for the third quarter of 2024, showcasing impressive growth and record-breaking performance. The company's total revenue surged by 20% to reach a new high of $19.1 million, while gross profit increased by 28% to $13.4 million, with a notable rise in gross margin from 66% to 70%.
Adjusted gross profit also saw substantial growth, climbing 26% to $15.7 million, and the adjusted gross margin increased to 83% from 79%. Net income for the quarter was reported at $1.7 million, down from $12.5 million in the same period last year, partly due to a one-time deferred income tax benefit of $10.3 million. Adjusted EBITDA increased by 25% to $6.7 million, with the adjusted EBITDA margin expanding to 35% from 34%. Adjusted net income also saw a healthy uptick, rising by 23% to $3.2 million.
The company's cash flow from operations hit a new record, reaching $7.2 million, reflecting a 25% increase over the same period last year. As of September 30, 2024, Red Violet held $35.7 million in cash and cash equivalents.
In addition to the financial highlights, the company also achieved significant business milestones during the third quarter. It added 266 customers to its IDI™ platform, bringing the total customer count to 8,743. The user base for its Forewarn® solution grew by 21,091 during the quarter, reaching a total of 284,967 users, with over 500 realtor® associations in the U.S. now contracted to use Forewarn.
Red Violet also made strategic moves in its capital structure, repurchasing 292,744 shares of its common stock year-to-date at an average price of $19.81 per share. The company still has $4.6 million remaining under its stock repurchase program.
Derek Dubner, the CEO of Red Violet, expressed his excitement about the record-breaking quarter and emphasized the company's commitment to leveraging this performance for sustained growth and innovation.
For those interested in learning more about these results and the company's future plans, Red Violet will be hosting a conference call and webcast at 4:30 pm ET today.
Red Violet, Inc. is a leading analytics and information solutions provider, specializing in identity intelligence and offering critical solutions for identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. The company's intelligent platform, Core™, is designed to deliver clarity to massive datasets and is used by organizations of all sizes to enable frictionless commerce, ensure safety, and reduce fraud. The market has reacted to these announcements by moving the company's shares 0.2% to a price of $34.88. Check out the company's full 8-K submission here.
