Red Violet (RDVT) 17th Annual Southwest IDEAS Conference summary

Business model and platform differentiation

• Operates a cloud-native identity intelligence platform aggregating vast data sets for risk, fraud, and compliance solutions.

• Management team has decades of experience, with prior successful exits in the identity space.

• Platform scales efficiently compared to legacy competitors, offering real-time, high-confidence data aggregation.

• Serves five main verticals: collections, financial/corporate risk, real estate, investigative, and emerging markets.

• Penetration in real estate via Forewarn brand, with about 50% of U.S. associations using the product.

Key use cases and customer relationships

• Provides actionable data for collections, background screening, and fraud detection, with flexible access via online, batch, or API.

• Long-term customer retention demonstrated by clients renewing after failed attempts to replace the platform.

• Public sector contracts, such as toll authority owner identification, represent significant growth opportunities.

• Background screening vertical includes major payroll processors, with new contracts expected to ramp to seven figures.

• No single customer accounts for 10% or more of revenue; customer base is broad and growing.

Financial performance and capital allocation

• Nearly 100% contribution margin on incremental revenue due to fixed data costs.

• Free cash flow of $7 million and adjusted EBITDA of $9 million last quarter.

• $150 million shelf filed for M&A optionality, targeting unique data assets or complementary technologies.

• Active share repurchase program and a one-time dividend issued earlier in the year.

• Gross profit margins in the low 80s, with adjusted EBITDA margin approaching 40%.