Red Violet, Inc. reported significant financial developments in its 10-Q filing for the third quarter and nine months ended September 30, 2024. The company achieved revenue of $19,057,000 for Q3 2024, marking a 20% increase from $15,837,000 in Q3 2023. For the nine-month period, revenue rose to $55,624,000, up 23% from $45,143,000 in the same period last year. This growth was driven by a 19% increase in revenue from new customers and a 23% increase in base revenue from existing customers.
Despite the revenue growth, net income for Q3 2024 was $1,719,000, a significant decline from $12,495,000 in Q3 2023, which included a one-time deferred income tax benefit of $10.3 million. For the nine months, net income decreased to $6,140,000 from $14,599,000 in the prior year. The earnings per share for Q3 2024 were $0.12, down from $0.90 in Q3 2023, while for the nine months, earnings per share were $0.44 compared to $1.05.
The company's total costs and expenses for Q3 2024 were $16,559,000, up from $14,072,000 in Q3 2023. Notably, sales and marketing expenses increased by 43% to $4,800,000, and general and administrative expenses rose by 15% to $6,000,000. The effective income tax rate for Q3 2024 was 40%, contrasting sharply with a tax benefit in the previous year.
As of September 30, 2024, Red Violet's total assets were $97,970,000, an increase from $92,990,000 at the end of 2023. Total shareholders' equity also rose to $91,674,000 from $86,112,000. The company reported cash and cash equivalents of $35,747,000, up from $32,032,000 at the end of 2023.
Strategically, Red Violet continues to expand its customer base, with the number of billable customers for its IDI product increasing from 7,769 to 8,743 year-over-year. The user base for its FOREWARN application also grew significantly, from 168,356 to 284,967 users. The company has been actively repurchasing shares, having bought back 292,744 shares at an average price of $19.81 per share, with approximately $4.6 million remaining under its stock repurchase program.
Overall, while Red Violet experienced revenue growth, profitability was impacted by increased expenses and a lack of one-time tax benefits seen in the previous year.
About Red Violet, Inc.
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