Red Violet (NASDAQ:RDVT) Posts Earnings Results, Misses Expectations By $0.04 EPS

Red Violet (NASDAQ:RDVT) issued its quarterly earnings results on Wednesday. The company reported $0.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.04), Zacks reports. Red Violet had a return on equity of 16.12% and a net margin of 16.54%.

Here are the key takeaways from Red Violet’s conference call:

• Red Violet reported record third-quarter revenue of $27.8 million, up 20%, and adjusted EBITDA of $11 million, up 22%, with a 40% margin. Operating cash flow also reached a record $12.7 million, and trailing 12-month revenue exceeded $100 million.
• Growth was broad across customer groups and industries, with 383 new IDI billable customers and continued strength in financial services, background screening, law enforcement, and collections. Contractual revenue rose to 78% of the total, while gross revenue retention held at 96%.
• IDI’s real estate business declined at a high-single-digit rate year over year, and management expects softness to persist until housing market conditions improve. FOREWARN’s growth partly offset the weakness, with double-digit revenue growth and nearly 20,000 users added.
• The company plans to keep investing in its platform, AI, product development, and sales capacity while pursuing strategic acquisitions. It ended the quarter with $165.7 million in cash and U.S. Treasury investments and no debt, following an offering that generated about $109 million in net proceeds.

Red Violet Price Performance

Shares of NASDAQ:RDVT traded up $0.42 during midday trading on Wednesday, hitting $80.00. The company had a trading volume of 219,707 shares, compared to its average volume of 170,174. Red Violet has a twelve month low of $33.40 and a twelve month high of $83.15. The stock has a market cap of $1.28 billion, a price-to-earnings ratio of 71.43 and a beta of 1.73. The business’s 50-day simple moving average is $76.95 and its 200-day simple moving average is $57.37.

Insiders Place Their Bets

In related news, Director William Livek acquired 2,000 shares of the stock in a transaction on Thursday, August 27th. The shares were bought at an average price of $71.49 per share, with a total value of $142,980.00. Following the completion of the purchase, the director owned 22,733 shares of the company’s stock, valued at approximately $1,625,182.17. This represents a 9.65% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 8.90% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on RDVT shares. Weiss Ratings upgraded Red Violet from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, October 13th. Wall Street Zen raised shares of Red Violet from a “hold” rating to a “buy” rating in a research note on Saturday, October 10th. Zacks Research lowered shares of Red Violet from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 20th. Raymond James Financial started coverage on shares of Red Violet in a report on Thursday, September 17th. They set an “outperform” rating and a $90.00 target price for the company. Finally, Needham & Company LLC began coverage on shares of Red Violet in a research report on Tuesday, September 1st. They issued a “buy” rating and a $90.00 target price for the company. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $83.50.

About Red Violet

Red Violet, Inc (NASDAQ: RDVT) is a technology company that develops cloud-based identity intelligence and information solutions. Its platform helps organizations access, analyze and connect data to support investigations, risk management, fraud prevention, compliance and other decision-making activities.

The company’s products include idiCORE, an investigative and information services platform designed for users such as law enforcement agencies, government organizations, corporate security teams, insurance companies, financial institutions, collection agencies and other businesses.