I thought a dedicated thread could be opened for this small but growing US technology company. On the Sijoitustieto website, @Heikki_Keskivali has written a really good text about the company, which is definitely worth reading.
Briefly about the company’s background for this introduction.
Red Violet (RDVT) was listed in 2018, and its shares are traded on NASDAQ. According to ChatGPT, it is a spin-off from Spindle, Inc. The Delaware-based company’s goal is to reduce business costs in commerce and business life through data collection, a vast database, and analytics, while making it safer. The company sells this analytics to various customer segments primarily through two brands, IDI and FOREWARN.
If three things had to be associated with Red Violet, in my opinion, they would be:
- Identity verification
- Predictive analytics
- Data mining
Red Violet is thus a software and service company. Its solutions enable the real-time identification of people and businesses, assets, and their interrelationships. These solutions are used for risk reduction, due diligence, fraud detection, and prevention. Additionally, their services can be used for regulatory compliance and corporate customer acquisition.
Their data database is named CORE. And from there, data is retrieved for IDI and FOREWARN products.
IDI is an analytics and data solutions product through which companies receive data from CORE in a usable format to assist with identity verification, authentications, fraud prevention, and compliance with various regulations. The service is particularly used in the financial sector, healthcare sector, and retail industry.
FOREWARN is currently an app-based solution tailored for the real estate industry. It provides information before face-to-face discussions with clients and helps identify and mitigate risks.
Q3/24
FOREWARN had 284,967 customers at the end of Q3/24. The figure a year ago was 168,356, so growth was approximately 41%. IDI, correspondingly, had 8,743 customers in Q3/24 and 7,769 a year ago, representing approximately 11%. Good growth also compared to the last quarter. These services are sold to customers on a license basis, both consumption-based and with monthly billing.
Q3/24 revenue grew by 20% to approximately $19 million compared to a year ago. Adjusted Gross Margin was 83%, which also increased. In my opinion, this indicates that the business model is starting to work and annual revenue is converting well into gross profit. Red Violet thus continues on a 20% growth curve. The company’s market capitalization is approximately $540 million, which still makes it a very small company. This is a summarized thread starter for others interested in continuing the discussion. Finally, attached is Red Violet’s latest Q3
