Red Violet, Inc. (RDVT): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Red Violet, Inc. (RDVT) achieved a 16% year-over-year revenue increase to $15.4 million in the first quarter of 2024, solidifying its role in the data fusion analytics space? This company leverages powerful identity intelligence and analytical solutions, making significant strides in fraud prevention and digital identity verification across numerous demanding sectors. What is the story behind their technology, who steers the ship, and how exactly do they turn complex data into consistent revenue streams?

Red Violet, Inc. (RDVT) History

Red Violet, Inc.'s Founding Timeline

Year established

Red Violet, Inc. officially commenced operations as an independent public company on March 26, 2018. This followed its spin-off from its parent company, Cogint, Inc. (which subsequently rebranded as Fluent, Inc.). The move was designed to separate the data and analytics business from the digital marketing segment.

Original location

The company established its headquarters in Boca Raton, Florida, where it remains based as of late 2024.

Founding team members

While not a startup in the traditional sense, the initial leadership team guiding Red Violet post-spin-off was crucial. Key figures included Derek Dubner as Chief Executive Officer, James Reilly as President, and Daniel MacLachlan as Chief Financial Officer. This team largely transitioned from roles within the predecessor business segment at Cogint.

Initial capital/funding

As a result of the spin-off, Red Violet was capitalized with the assets and liabilities of the data and analytics business previously under Cogint. It began trading on the NASDAQ Capital Market immediately following the separation. No major external funding round was announced concurrent with the spin-off itself; its initial balance sheet reflected the spun-off assets.

Red Violet, Inc.'s Evolution Milestones

Red Violet, Inc.'s Transformative Moments

The Strategic Spin-Off

The decision in 2018 to separate from Cogint (Fluent) was fundamentally transformative. It allowed Red Violet to sharpen its focus exclusively on the high-growth data and analytics market, shedding the complexities of the digital marketing business. This strategic clarity enabled dedicated resource allocation to its core platforms like idiCORE.

Launch and Acquisition of FOREWARN

Identifying the need for enhanced safety measures in the real estate industry led to the launch of FOREWARN in 2019. This product quickly became a significant contributor. Fully acquiring FOREWARN in 2021 cemented its importance to the company's strategy and growth trajectory, proving Red Violet could successfully identify and penetrate niche markets.

Achieving Sustained Profitability

Transitioning from a growth-focused entity to achieving consistent GAAP profitability, notably marked in 2022, was a major milestone. It signaled operational maturity and financial discipline. Understanding this shift is key when you are Breaking Down Red Violet, Inc. (RDVT) Financial Health: Key Insights for Investors. This achievement built investor confidence and demonstrated the long-term potential of its subscription-based revenue model.

Red Violet, Inc. (RDVT) Ownership Structure

Understanding who owns and controls Red Violet provides crucial insight into its governance and strategic direction. As a publicly traded entity, its ownership is distributed among various parties, influencing decision-making.

Red Violet, Inc.'s Current Status

Red Violet, Inc. operates as a public company. Its shares are traded on the Nasdaq stock exchange under the ticker symbol RDVT, making its ownership information accessible through public filings as of the close of 2024.

Red Violet, Inc.'s Ownership Breakdown

The distribution of ownership significantly impacts corporate governance and shareholder value. Below is an approximate breakdown based on data available towards the end of the 2024 fiscal year. For a deeper dive into the company's financial standing, consider this analysis: Breaking Down Red Violet, Inc. (RDVT) Financial Health: Key Insights for Investors.

Red Violet, Inc.'s Leadership

The company's strategic direction and day-to-day operations are guided by its executive leadership team as of the end of 2024. Key figures include:

• Derek Dubner: Chief Executive Officer
• Daniel MacLachlan: Chief Financial Officer

This team's experience and decisions are central to navigating the competitive landscape and driving growth.

Red Violet, Inc. (RDVT) Mission and Values

Red Violet aims to leverage its data fusion technology not just for business success, but to contribute positively by providing critical insights for risk mitigation and safety. The company culture is built around harnessing complex data analytics for practical, real-world applications that can help organizations and society. You can explore the Mission Statement, Vision, & Core Values of Red Violet, Inc. (RDVT).

Red Violet's Core Purpose

Official mission statement

While a single, formally published mission statement isn't prominently featured, Red Violet consistently communicates its purpose: to provide innovative data and analytical solutions that empower organizations to make informed decisions, manage risk, and uncover opportunities, ultimately contributing to a safer environment.

Vision statement

The company envisions a world where data-driven intelligence plays a crucial role in preventing fraud, solving complex societal challenges, and enhancing public safety through responsible information use.

Company slogan

Red Violet often operates under the guiding principle or theme of using 'Data Fusion for Good,' highlighting the positive application of their technology.

Red Violet, Inc. (RDVT) How It Works

Red Violet operates by aggregating vast amounts of data, applying proprietary analytics through its cloud-based platform CORE™, to provide actionable intelligence for identity verification, risk assessment, and fraud prevention. This technology enables real-time insights derived from complex data connections, serving diverse industries.

Red Violet's Product/Service Portfolio

Red Violet's Operational Framework

The company's operations revolve around its powerful CORE™ platform, a purpose-built data fusion architecture hosted in the cloud. This framework continuously ingests, cleanses, and links billions of records from thousands of disparate sources. Machine learning algorithms then analyze this fused data to identify non-obvious relationships and generate predictive insights delivered through its product interfaces. This operational engine is central to the company's value proposition, aligning with its broader goals detailed in the Mission Statement, Vision, & Core Values of Red Violet, Inc. (RDVT). The process generally involves:

• Continuous data acquisition from public records, credit headers (non-FCRA), and proprietary sources.
• Proprietary data cleansing, standardization, and entity resolution technology.
• Massive-scale data linking and graph database creation within the CORE™ platform.
• Application of machine learning and analytical models for specific use cases (fraud, risk, identity).
• Secure, real-time delivery of insights via APIs or dedicated product applications like idiCORE and FOREWARN.

This efficient processing allowed the company to manage growing demand, reflected in revenues reaching approximately $15 million in Q3 2024.

Red Violet's Strategic Advantages

Red Violet possesses several key advantages that contribute to its market position as of late 2024.

• Proprietary CORE™ Technology: The custom-built data fusion platform offers speed, scalability, and analytical depth that is difficult for competitors to replicate quickly.
• Differentiated Data Assets: Access to and unique linking of diverse data sources, including proprietary datasets, provide more comprehensive identity profiles and risk signals.
• Real-Time Capabilities: The ability to deliver complex insights almost instantaneously is crucial for fraud prevention and time-sensitive verification needs.
• Market Focus: Specialization in identity verification, fraud, and risk analytics allows for tailored solutions meeting specific industry pain points effectively.

These elements combine to create a strong competitive moat in the data intelligence landscape.

Red Violet, Inc. (RDVT) How It Makes Money

Red Violet generates the vast majority of its revenue through subscription and usage-based fees for its cloud-based data fusion and analytics platforms, primarily IDI and FOREWARN. Customers across various sectors pay to access actionable intelligence for identity verification, fraud detection, risk mitigation, and due diligence.

Red Violet's Revenue Breakdown

Red Violet's Business Economics

The company's economic engine relies on a scalable data-as-a-service model. Pricing typically involves recurring subscriptions combined with transactional fees tied to the volume of queries or data accessed. Significant operational costs stem from acquiring and processing vast amounts of data, maintaining a robust and secure cloud infrastructure (built around its CORE™ technology), ongoing research and development to refine algorithms and expand product features, and sales and marketing activities to attract and retain clients. A key strength is its high gross margin, estimated around 78% for fiscal year 2024, reflecting the value derived from its proprietary data assets and technology once deployed.

Red Violet's Financial Performance

Financial results through 2024 indicated continued progress towards sustainable growth and profitability. The business demonstrated operational leverage as revenues scaled.

• Total revenue for the full year 2024 was anticipated to reach approximately $68 million, showing consistent year-over-year growth.
• Gross Profit Margin remained robust, consistently staying near the 78% mark, highlighting the efficiency of its platform delivery.
• Focus on cost management alongside revenue growth led to improved operating results, with the company showing positive adjusted EBITDA trends during 2024.

Analyzing the company's strategic goals provides context for its financial trajectory; delve deeper into the Mission Statement, Vision, & Core Values of Red Violet, Inc. (RDVT). Continued investment in platform enhancement and market expansion are central to its strategy for driving future financial performance.

Red Violet, Inc. (RDVT) Market Position & Future Outlook

Red Violet holds a specialized position in the data fusion and analytics market, focusing on identity verification and fraud prevention, with a positive outlook driven by increasing digital transaction volumes and regulatory demands. The company leverages its proprietary technology platform to serve sectors requiring robust risk mitigation solutions, aiming for continued growth into 2025.

Competitive Landscape

The identity verification and data analytics space is competitive, featuring large established players and specialized firms. RDVT differentiates itself through its CORE platform and targeted solutions.

Note: Market share percentages are illustrative estimates reflecting relative scale within the specific identity verification and risk analytics segments where RDVT competes, based on 2024 industry observations.

Opportunities & Challenges

Industry Position

Red Violet operates as a niche innovator within the large and expanding data analytics and identity solutions industry. While significantly smaller than giants like LexisNexis or the major credit bureaus, the company has carved out a valuable position by focusing on real-time data fusion and analytics for identity verification, fraud detection, and digital investigations. Its growth, evidenced by reported 2024 revenues tracking towards guidance of $63.5 million to $64.0 million, underscores demand for its specialized FOREWARN and IDI platforms. The company's strategy hinges on technological differentiation and addressing specific client pain points unmet by broader solutions. Understanding the company's core principles is also key; explore the Mission Statement, Vision, & Core Values of Red Violet, Inc. (RDVT). Continued innovation and market adaptation will be crucial for sustaining momentum against larger competitors in 2025 and beyond.