Red Violet (RDVT) 15th Annual Midwest IDEAS Investor Conference summary

Management team and company history

• Leadership team has over 25 years of experience, having built three companies focused on data assimilation and technology platforms.

• Previous ventures included Accurint, sold to LexisNexis in 2004, and a second company sold to TransUnion in 2013.

• Each platform iteration improved scalability, data accuracy, and addressed market needs, with the latest built natively in the cloud and leveraging machine learning.

• Early focus was on law enforcement, government, and insurance for risk mitigation and anti-fraud.

• The current company spun off in 2018, focusing on identity verification and risk management.

Business model and technology

• Operates a fixed cost model, investing heavily upfront in platform and data acquisition, then scaling with high contribution margins.

• Gross profit margins have increased from low 60s% to about 80%, with operational leverage as the business scales.

• Data is licensed under multi-year, unlimited-use contracts, with a focus on bringing all data in-house for analytics.

• Proprietary data assets have been built through acquisitions, especially targeting underrepresented demographics like 18-24 year-olds.

• Machine learning and cloud-native architecture enable superior scalability, accuracy, and customer-specific solutions.

Products, customers, and use cases

• Core products include idiCORE for investigative and risk management, and FOREWARN for real estate identity verification.

• Powers seven of the ten leading identity verification platforms, serving both private and public sectors.

• Use cases span law enforcement, banking, retail, marketing, background screening, and more.

• FOREWARN is sold to over 450 real estate associations, providing app-based identity verification for agent safety.

• Platform supports online, batch, and API access, with highly customizable and rapid deployment for clients.