Red Violet (RDVT) Q4 2024 earnings summary

Executive summary

• Achieved record revenue for every quarter in 2024, with Q4 revenue up 30% year-over-year to $19.6 million and full-year revenue up 25% to $75.2 million, defying typical seasonality.

• Generated $6.7 million in Q4 and $24.0 million in full-year cash flow from operations, reflecting strong operational performance.

• Adjusted gross margin reached 81% for the year and 82% in Q4; adjusted EBITDA margin was 31% for the year and 23% in Q4.

• Adjusted net income for Q4 increased 390% to $1.3 million, with adjusted EPS of $0.09; full-year adjusted EPS rose 44% to $0.82.

• Ended 2024 with 8,926 IDI customers and 303,418 FOREWARN users, with continued expansion in customer base and product adoption.

Financial highlights

• Q4 adjusted gross profit was $16.1 million, up 37% year-over-year, with a margin of 82%.

• Q4 adjusted EBITDA was $4.5 million, up 68% year-over-year, with a margin of 23%; full-year adjusted EBITDA up 44% to $23.6 million (31% margin).

• Net income for Q4 was $0.9 million, or $0.06 per diluted share, compared to a net loss of $1.1 million in the prior year; full-year net income $7.0 million, down from $13.5 million due to a one-time $10.3 million tax benefit in 2023.

• Cash and cash equivalents at year-end were $36.5 million, up from $32 million a year earlier.

• Q4 free cash flow was $4.4 million, compared to $2.1 million in Q4 2023; full-year free cash flow was $14.4 million, up 143% from 2023.

Outlook and guidance

• Management expects continued momentum in 2025, with a strong sales pipeline, ongoing investments in go-to-market and product development, and confidence in innovation and market leadership.

• EBITDA margins for 2025 are expected to remain consistent with 2024, around 31%, as investments continue.

• Long-term target remains 40% adjusted EBITDA margin at $100 million in revenue.