The following is a summary of the Red Violet, Inc. (RDVT) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Red Violet reported a record Q2 revenue of $19.1 million, a 30% increase year-over-year.

• Adjusted gross profit reached $15.6 million with a margin of 82%.

• Adjusted EBITDA rose to a record $6.8 million, up 47% year-over-year, with a margin increase to 36%.

• Adjusted net income grew by 33% to $3.9 million, resulting in adjusted earnings per share of $0.28.

Business Progress:

• The company showcased a broad-based demand across various verticals with significant contributions from law enforcement and financial and corporate risk sectors.

• Notably, the law enforcement vertical within the investigative sector demonstrated strong double-digit revenue growth for the 10th consecutive quarter.

• Key strategic initiatives over the past 18 months are significantly accelerating business growth.

• Investments are ongoing in enhancing the cloud-native technology platform and expanding market penetration through heightened marketing efforts and product development.

Opportunities:

• Expansion into new verticals such as government, background screening, and marketing services is proving lucrative, with increasing transaction volumes and customer growth.

• Continued investment in strategic initiatives is driving growth, particularly in sectors underrepresented in the past.

Risks:

• Despite overall strong performance, the real estate vertical saw a decline of approximately 10% due to tough market conditions including limited housing inventory, high mortgage rates, and elevated home prices.

More details: Red Violet IR

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