RDVT 8-K

Red Violet, Inc. (RDVT)

8-K 2022-05-06 For: 2022-05-04

Added on April 12, 2026


Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	RDVT	The NASDAQ Stock Market LLC



		Red Violet, Inc.

Date: May 6, 2022	By:	/s/ Derek Dubner
		Derek Dubner
		Chief Executive Officer (Principal Executive Officer)


	March 31, 2022			December 31, 2021
ASSETS:
Current assets:
Cash and cash equivalents	$	34,775		$	34,258
Accounts receivable, net of allowance for doubtful accounts of $22 and $28 as of March 31, 2022 and December 31, 2021, respectively		4,561			3,736
Prepaid expenses and other current assets		1,081			599
Total current assets		40,417			38,593
Property and equipment, net		625			577
Intangible assets, net		28,804			28,181
Goodwill		5,227			5,227
Right-of-use assets		1,529			1,661
Other noncurrent assets		137			137
Total assets	$	76,739		$	74,376
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable	$	2,233		$	1,605
Accrued expenses and other current liabilities		442			395
Current portion of operating lease liabilities		636			617
Deferred revenue		713			841
Total current liabilities		4,024			3,458
Noncurrent operating lease liabilities		1,124			1,291
Deferred tax liabilities		373			198
Total liabilities		5,521			4,947
Shareholders' equity:
Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of March 31, 2022 and December 31, 2021		-			-
Common stock—$0.001 par value, 200,000,000 shares authorized, 13,523,067 and 13,488,540 shares issued and outstanding, as of March 31, 2022 and December 31, 2021		14			13
Additional paid-in capital		93,115			91,434
Accumulated deficit		(21,911	)		(22,018	)
Total shareholders' equity		71,218			69,429
Total liabilities and shareholders' equity	$	76,739		$	74,376


	Three Months Ended March 31,
	2022		2021
Revenue	$	12,729	$	10,217
Costs and expenses(1):
Cost of revenue (exclusive of depreciation and amortization)		3,170		2,761
Sales and marketing expenses		2,391		2,221
General and administrative expenses		5,353		4,550
Depreciation and amortization		1,534		1,258
Total costs and expenses		12,448		10,790
Income (loss) from operations		281		(573	)
Interest income (expense), net		1		(5	)
Income (loss) before income taxes		282		(578	)
Income tax expense		175		-
Net income (loss)	$	107	$	(578	)
Earnings (loss) per share:
Basic	$	0.01	$	(0.05	)
Diluted	$	0.01	$	(0.05	)
Weighted average number of shares outstanding:
Basic		13,543,607		12,207,193
Diluted		14,047,635		12,207,193


(1) Share-based compensation expense in each category:
Sales and marketing expenses	$	47	$	156
General and administrative expenses		1,340		1,890
Total	$	1,387	$	2,046


	Three Months Ended March 31,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	107		$	(578	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		1,534			1,258
Share-based compensation expense		1,387			2,046
Write-off of long-lived assets		3			19
Provision for bad debts		37			59
Noncash lease expenses		132			121
Interest expense		-			5
Deferred income tax expense		175			-
Changes in assets and liabilities:
Accounts receivable		(862	)		(440	)
Prepaid expenses and other current assets		(482	)		(392	)
Other noncurrent assets		-			2
Accounts payable		628			(101	)
Accrued expenses and other current liabilities		47			(583	)
Deferred revenue		(128	)		(51	)
Operating lease liabilities		(148	)		(133	)
Net cash provided by operating activities		2,430			1,232
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(113	)		(46	)
Capitalized costs included in intangible assets		(1,794	)		(1,247	)
Net cash used in investing activities		(1,907	)		(1,293	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Taxes paid related to net share settlement of vesting of restricted stock units		(6	)		-
Net cash used in financing activities		(6	)		-
Net increase (decrease) in cash and cash equivalents	$	517		$	(61	)
Cash and cash equivalents at beginning of period		34,258			12,957
Cash and cash equivalents at end of period	$	34,775		$	12,896
SUPPLEMENTAL DISCLOSURE INFORMATION
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-
Share-based compensation capitalized in intangible assets	$	301		$	351
Retirement of treasury stock	$	6		$	-


	Three Months Ended March 31,
(In thousands)	2022			2021
Net income (loss)	$	107		$	(578	)
Interest (income) expense, net		(1	)		5
Income tax expense		175			-
Depreciation and amortization		1,534			1,258
Share-based compensation expense		1,387			2,046
Litigation costs		15			120
Write-off of long-lived assets and others		3			20
Adjusted EBITDA	$	3,220		$	2,871
Revenue	$	12,729		$	10,217

Net income (loss) margin		1	%		(6	%)
Adjusted EBITDA margin		25	%		28	%


	(Unaudited)
(Dollars in thousands)	Q2'20			Q3'20			Q4'20			Q1'21			Q2'21			Q3'21			Q4'21			Q1'22
Customer metrics
IDI - billable customers(1)		5,375			5,758			5,726			5,902			6,141			6,314			6,548			6,592
FOREWARN - users(2)		40,857			44,927			48,377			58,831			67,578			74,377			82,419			91,490
Revenue metrics
Contractual revenue %(3)		79	%		68	%		77	%		80	%		81	%		80	%		79	%		77	%
Revenue attrition %(4)		11	%		10	%		11	%		7	%		6	%		5	%		4	%		3	%
Revenue from new customers(5)	$	916		$	726		$	877		$	967		$	929		$	876		$	920		$	1,014
Base revenue from existing customers(6)	$	5,047		$	5,797		$	6,678		$	7,351		$	8,354		$	9,187		$	9,114		$	9,721
Growth revenue from existing customers(7)	$	1,093		$	2,744		$	1,408		$	1,899		$	1,596		$	1,605		$	1,224		$	1,994
Platform financial metrics
Platform revenue(8)	$	6,856		$	8,968		$	8,603		$	9,813		$	10,588		$	11,296		$	10,787		$	12,217
Cost of revenue (exclusive of depreciation and amortization)	$	2,428		$	2,489		$	2,448		$	2,488		$	2,529		$	2,525		$	2,606		$	2,822
Adjusted gross margin		65	%		72	%		72	%		75	%		76	%		78	%		76	%		77	%
Services financial metrics
Services revenue(9)	$	200		$	299		$	360		$	404		$	291		$	372		$	471		$	512
Cost of revenue (exclusive of depreciation and amortization)	$	159		$	214		$	246		$	273		$	191		$	262		$	320		$	348
Adjusted gross margin		21	%		28	%		32	%		32	%		34	%		30	%		32	%		32	%
Other metrics
Employees - sales and marketing	53			52			53			56			57			49			54			59
Employees - support	8			9			9			9			9			10			10			10
Employees - infrastructure	12			12			14			15			16			16			18			23
Employees - engineering	27			27			32			31			33			35			37			50
Employees - administration	14			15			18			16			19			20			22			26