Q3 2024 Red Violet Inc Earnings Call Transcript
Key Points
- Red Violet Inc (RDVT) achieved record revenue, gross profit, and cash flow in the third quarter of 2024.
- Revenue for the quarter increased by 20% to a record $19.1 million, with a record adjusted gross profit of $15.7 million and a margin of 83%.
- The company added 266 new customers sequentially, reflecting strong demand across various verticals.
- Forewarn, a proactive safety tool, added 21,091 users during the quarter and is now contracted with over 500 realtor associations.
- Red Violet Inc (RDVT) generated a record $4.8 million in free cash flow during the quarter, adding approximately $5 million of cash to the balance sheet sequentially from the second quarter.
- The real estate vertical, excluding Forewarn, experienced a decline of approximately 10% in the third quarter.
- Net income for the quarter decreased by 86% to $1.7 million, primarily due to a one-time deferred income tax benefit in the prior year.
- Sales and marketing expenses increased by 43% to $4.8 million, driven by higher salaries, benefits, and sales commissions.
- General and administrative expenses rose by 15% to $6 million for the quarter.
- Contractual revenue was down by 2% points from the prior year, indicating a slight decrease in long-term revenue stability.
Good day. Ladies and gentlemen and welcome to Red Violet's third quarter, 2024 earnings conference call. At this time. All participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session to ask a question during the session. You will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised to withdraw your question. Please press star 11 again. Please be advised that today's conference call is being recorded. I would now like to introduce your host for today's conference. Camilo Ramirez, Senior Vice President, Finance and investor relations. Please go ahead.
Good afternoon and welcome. Thank you for joining us today to discuss our third quarter, 2024 financial results with me. Today is Derek Dubner, our Chairman and Chief Executive Officer and Dan mclaughlin, our Chief Financial Officer. Our call today will begin with comments from Derek and Dan followed by a question and answer session. I would like
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