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red violet Announces Third Quarter 2024 Financial Results

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red violet Announces Third Quarter 2024 Financial Results - GlobeNewswire

Quick Summary:

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in thousands)(unaudited)   Nine Months Ended September 30,   2024  2023 CASH FLOWS FROM OPERATING ACTIVITIES:        Net income $6,140  $14,599 Adjustments to reconcile net income to net cash provided by operating activities:        Depreciation and amortization  7,081   6,141 Share-based compensation expense  4,452   4,058 Write-off of long-lived assets  82   4 Provision for bad debts  323   913 Noncash lease expenses  412   444 Deferred income tax expense (benefit)  2,051   (10,308) Changes in assets and liabilities:        Accounts receivable  (1,647)   (2,183) Prepaid expenses and other current assets  (617)   (407) Other noncurrent assets  (470)   (26) Accounts payable  1,156   (240) Accrued expenses and other current liabilities  (1,150)   (1,473) Deferred revenue  (125)   (143) Operating lease liabilities  (419)   (512) Net cash provided by operating activities  17,269   10,867 CASH FLOWS FROM INVESTING ACTIVITIES:        Purchase of property and equipment  (152)   (98) Capitalized costs included in intangible assets  (7,118)   (6,921) Net cash used in investing activities  (7,270)   (7,019) CASH FLOWS FROM FINANCING ACTIVITIES:        Taxes paid related to net share settlement of vesting of restricted stock units  (431)   (197) Repurchases of common stock  (5,853)   (1,251) Net cash used in financing activities  (6,284)   (1,448) Net increase in cash and cash equivalents $3,715  $2,400 Cash and cash equivalents at beginning of period  32,032   31,810 Cash and cash equivalents at end of period $35,747  $34,210 SUPPLEMENTAL DISCLOSURE INFORMATION:        Cash paid for interest $-  $- Cash paid for income taxes $524  $55 Share-based compensation capitalized in intangible assets $1,210  $1,389 Retirement of treasury stock $6,428  $1,280 Right-of -use assets obtained in exchange of operating lease liabilities $-  $1,919 Operating lease liabilities arising from obtaining right-of-use assets $-  $1,919  Use and Reconciliation of Non-GAAP Financial Measures Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF.

The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit:   Three Months Ended September 30,  Nine Months Ended September 30, (Dollars in thousands) 2024  2023  2024  2023 Revenue $19,057  $15,837  $55,624  $45,143 Cost of revenue (exclusive of depreciation and amortization)  (3,314)   (3,313)   (10,525)   (9,732) Depreciation and amortization of intangible assets  (2,382)   (2,112)   (6,918)   (5,965) Gross profit  13,361   10,412   38,181   29,446 Depreciation and amortization of intangible assets  2,382   2,112   6,918   5,965 Adjusted gross profit $15,743  $12,524  $45,099  $35,411                  Gross margin  70%   66%   69%   65% Adjusted gross margin  83%   79%   81%   78%  The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP financial measure, to FCF:   Three Months Ended September 30,  Nine Months Ended September 30, (Dollars in thousands) 2024  2023  2024  2023 Net cash provided by operating activities $7,247  $5,789  $17,269  $10,867 Less:                Purchase of property and equipment  (35)   (47)   (152)   (98) Capitalized costs included in intangible assets  (2,380)   (2,412)   (7,118)   (6,921) Free cash flow $4,832  $3,330  $9,999  $3,848  In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance.

The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted EBITDA:   Three Months Ended September 30,  Nine Months Ended September 30, (Dollars in thousands) 2024  2023  2024  2023 Net income $1,719  $12,495  $6,140  $14,599 Interest income, net  (353)   (346)   (1,032)   (947) Income tax expense (benefit)  1,132   (10,384)   2,441   (10,253) Depreciation and amortization  2,434   2,171   7,081   6,141 Share-based compensation expense  1,657   1,369   4,452   4,058 Litigation costs  7   1   7   49 Write-off of long-lived assets and others  82   56   89   58 Adjusted EBITDA $6,678  $5,362  $19,178  $13,705 Revenue $19,057  $15,837  $55,624  $45,143                  Net income margin  9%   79%   11%   32% Adjusted EBITDA margin  35%   34%   34%   30%  The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted net income:   Three Months Ended September 30,  Nine Months Ended September 30, (Dollars in thousands, except share data) 2024  2023  2024  2023 Net income $1,719  $12,495  $6,140  $14,599 Share-based compensation expense  1,657   1,369   4,452   4,058 Amortization of share-based compensation capitalized in intangible assets  292   249   853   706 Discrete tax items(1)  -   (10,272)   -   (10,272) Tax effect of adjustments(2)  (518)   (1,275)   (1,251)   (1,275) Adjusted net income $3,150  $2,566  $10,194  $7,816 Earnings per share:                Basic $0.12  $0.90  $0.44  $1.05 Diluted $0.12  $0.87  $0.43  $1.03 Adjusted earnings per share:                Basic $0.23  $0.18  $0.74  $0.56 Diluted $0.22  $0.18  $0.72  $0.55 Weighted average shares outstanding:                Basic  13,782,476   13,952,426   13,852,947   13,970,317 Diluted  14,311,575   14,329,878   14,224,285   14,207,673  (1)   During the three months ended September 30, 2023, $10.3 million of income tax benefit was recognized as a result of the release of the valuation allowance previously recorded on our deferred tax asset and the cumulative research and development tax credit, which were excluded to calculate the adjusted net income.(2)   The tax effect of adjustments is calculated using the expected federal and state statutory tax rate.

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Article Details

Author / Journalist: Red Violet, Inc.

Category: Technology

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Published On: 2024-11-06 @ 21:05:00 (2 weeks ago)

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