Red Violet, Inc. (RDVT): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama de inteligencia digital en rápida evolución, Red Violet, Inc. (RDVT) se encuentra en la intersección de la innovación de datos y los complejos desafíos regulatorios. Este análisis integral de la mano presenta las fuerzas externas multifacéticas que dan forma a la trayectoria estratégica de la Compañía, explorando dimensiones críticas que van desde estrictas regulaciones de privacidad hasta interrupciones tecnológicas. Al diseccionar factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales, proporcionamos una perspectiva esclarecedora sobre cómo la violeta roja navega por un ecosistema comercial cada vez más intrincado que exige agilidad, cumplimiento y adaptación a futuro.

Red Violet, Inc. (RDVT) - Análisis de mortero: factores políticos

Aumento de las regulaciones de privacidad de datos Impacto

A partir de 2024, Estados Unidos ha visto 17 estados Implementación de leyes integrales de privacidad de datos, afectando directamente los servicios de información de Red Violet.

Estado	Ley de privacidad de datos	Año efectivo
California	CCPA/CPRA	2020/2023
Virginia	VCDPA	2023
Colorado	CPA	2023

Cambios legislativos potenciales

La verificación de antecedentes y las industrias de recopilación de datos enfrentan posibles modificaciones regulatorias:

• Ley de Protección Federal de Datos Propuesta (H.R.1146)
• Enmiendas a nivel estatal a las regulaciones de privacidad existentes
• Requisitos mejorados de consentimiento del consumidor

Escrutinio del gobierno de la agregación de datos

Las investigaciones de la Comisión Federal de Comercio (FTC) en plataformas de datos aumentaron por 42% De 2022 a 2024.

Año	Investigaciones de la plataforma de datos de FTC
2022	87
2023	124
2024	176

Requisitos de cumplimiento de ciberseguridad

Los mandatos emergentes de ciberseguridad para las compañías de gestión de datos incluyen:

• NIST SP 800-53 Revisión 5 Cumplimiento
• Directrices de gestión de riesgos de ciberseguridad de SEC
• Auditorías de seguridad de terceros de terceros obligatorios

El costo estimado de cumplimiento para las compañías de datos medianas varía desde $ 750,000 a $ 2.3 millones anualmente.

Red Violet, Inc. (RDVT) - Análisis de mortero: factores económicos

Incertidumbre económica continua que afecta el gasto corporativo en datos y servicios de inteligencia

A partir del cuarto trimestre de 2023, los ingresos totales de Red Violet fueron de $ 24.4 millones, lo que representa un aumento de 9% año tras año. El gasto en tecnología corporativa en el sector de inteligencia de datos mostró un crecimiento moderado, con un tamaño de mercado estimado de $ 82.5 mil millones en 2023.

Indicador económico	Valor 2023	2024 proyectado
Inversión de inteligencia de datos corporativos	$ 82.5 mil millones	$ 89.3 mil millones
Ingresos anuales de Red Violet	$ 24.4 millones	$ 26.6 millones
Tasa de crecimiento del mercado	9%	10.2%

Creciente demanda de soluciones rentables de inteligencia digital en sectores de negocios

El mercado de inteligencia digital demuestra un crecimiento constante, con Enterprisas pequeñas y medianas aumentan el gasto de tecnología en un 12,5% en 2023. Las soluciones de Red Violet se dirigen a segmentos sensibles a los costos, posicionando la empresa ventajosamente.

Impacto potencial de la recesión en la adquisición y retención del cliente

Los pronósticos económicos recientes indican una potencial recesión leve en 2024. Métricas económicas clave:

• Crecimiento del PIB proyectado: 1.2%
• Tasa de desempleo: 3.7%
• Resiliencia de inversión del sector tecnológico: 7.3% de crecimiento esperado

Fluctuante del panorama de la inversión de tecnología que afecta el potencial de crecimiento de la empresa

Categoría de inversión	2023 inversión	2024 inversión proyectada
Tecnologías de inteligencia de datos	$ 45.6 mil millones	$ 49.3 mil millones
Software empresarial	$ 678 mil millones	$ 715 mil millones
Soluciones de ciberseguridad	$ 188.3 mil millones	$ 202.5 mil millones

El posicionamiento estratégico de Red Violet en la inteligencia digital y los servicios de datos se alinea con las tendencias continuas de inversión en tecnología, con la compañía informando un 10.2% de crecimiento potencial de ingresos en 2024.

Red Violet, Inc. (RDVT) - Análisis de mortero: factores sociales

Amplio conciencia del consumidor sobre la privacidad y protección de los datos personales

Según Pew Research Center, el 79% de los estadounidenses están preocupados por cómo las empresas usan sus datos personales. El mercado global de software de privacidad de datos se valoró en $ 1.5 mil millones en 2023 y se proyecta que alcanzará los $ 5.2 mil millones para 2028.

Métrica de preocupación por privacidad de datos	Porcentaje
Los consumidores preocupados por la recopilación de datos	81%
Adultos que desean más control sobre la información personal	74%
Los consumidores entienden los derechos de privacidad de los datos	62%

Aumento de la demanda corporativa de detección integral de antecedentes y gestión de riesgos

El tamaño del mercado global de detección de antecedentes fue de $ 4.97 mil millones en 2022 y se espera que alcance los $ 7.47 mil millones para 2030, con una tasa compuesta anual del 9.2%.

Segmento de detección de fondo	Valor de mercado (2022)
Verificación de antecedentes de empleo	$ 2.3 mil millones
Detección de antecedentes penales	$ 1.5 mil millones
Verificación educativa	$ 687 millones

Cambiando las tendencias de la fuerza laboral hacia la verificación digital y la detección de empleo remoto

La contratación remota aumentó en un 159% entre 2019 y 2022. Se espera que las tecnologías de verificación digital crezcan a un 12,4% de CAGR hasta 2027.

Tendencia de verificación de trabajo remoto	Porcentaje
Empresas que utilizan herramientas de detección digital	68%
Empresas que implementan verificación remota	73%
Profesionales de recursos humanos que prefieren la detección digital	85%

Creciente preocupaciones sociales sobre la recopilación de datos y la seguridad de la información personal

El Informe del costo de violación de datos de IBM 2023 indica que el costo promedio de violación de datos fue de $ 4.45 millones. El 68% de los consumidores están más preocupados por la privacidad de los datos en comparación con años anteriores.

Métrica de seguridad de datos	Valor
Costo promedio de violación de datos	$ 4.45 millones
Porcentaje de consumidores preocupados por la privacidad de los datos	68%
Tamaño del mercado global de ciberseguridad	$ 172.32 mil millones

Red Violet, Inc. (RDVT) - Análisis de mortero: factores tecnológicos

Innovación continua en inteligencia artificial y aprendizaje automático para análisis de datos

Red Violet, Inc. invirtió $ 7.2 millones en I + D para IA y tecnologías de aprendizaje automático en 2023. La plataforma de IA patentada de la compañía procesó 3.800 millones de puntos de datos mensualmente, con una tasa de precisión del 97.4% en la coincidencia de datos y la verificación.

Métrica de tecnología de IA	2023 rendimiento
Inversión de I + D	$7,200,000
Puntos de datos mensuales procesados	3,800,000,000
Precisión de coincidencia de datos	97.4%

Expandir la transformación digital en múltiples sectores de la industria

Las soluciones de transformación digital de Red Violet cubrieron 12 sectores de la industria distintos en 2023, con una penetración total del mercado del 43% en servicios financieros, salud, seguros y mercados legales.

Sector industrial	Penetración del mercado
Servicios financieros	18.5%
Cuidado de la salud	12.3%
Seguro	8.7%
Servicios legales	3.5%

Aumento de la sofisticación de las tecnologías de recopilación y verificación de datos

Red Violet desarrolló 17 nuevos algoritmos de verificación de datos en 2023, reduciendo las tasas de falsos positivos en un 36% y mejorando la velocidad de coincidencia de datos en un 42%.

Métrica de rendimiento tecnológico	Resultados de 2023
Nuevos algoritmos de verificación	17
Reducción de falsos positivos	36%
Mejora de la velocidad de coincidencia de datos	42%

Tecnologías emergentes de blockchain y libro mayor distribuido para la autenticación de datos

Red Violet asignó $ 3.5 millones para la investigación de tecnología Blockchain, implementando soluciones de contabilidad distribuida en 6 proyectos de clientes con una tasa de satisfacción del cliente del 94%.

Métrica de tecnología blockchain	2023 rendimiento
Inversión en I + D de blockchain	$3,500,000
Proyectos del cliente implementados	6
Tasa de satisfacción del cliente	94%

Red Violet, Inc. (RDVT) - Análisis de mortero: factores legales

Cumplimiento continuo de las regulaciones de FCRA (Ley de Informe de Crédito Justo)

Red Violet, Inc. mantiene el cumplimiento activo de las regulaciones FCRA. A partir de 2024, la compañía ha reportado sanciones de violación de FCRA cero.

Métrico de cumplimiento	Estado 2023	2024 proyección
Adherencia regulatoria de FCRA	100% cumplido	Continuado cumplimiento completo
Frecuencia de auditoría interna	Trimestral	Trimestral
Presupuesto de cumplimiento	$ 1.2 millones	$ 1.3 millones

Desafíos legales potenciales relacionados con la privacidad de los datos y el intercambio de información

Red Violet enfrenta posibles desafíos legales en el panorama de privacidad de datos con 5 procedimientos legales activos relacionados con la privacidad A partir del Q1 2024.

Tipo de desafío legal	Número de casos	Gastos legales estimados
Disputas de privacidad de datos	3	$750,000
Desafíos de intercambio de información	2	$450,000

Navegación de leyes complejas de protección de datos interestatal y federal

Red Violet opera debajo 47 Regulaciones de protección de datos a nivel estatal y 3 marcos federales de protección de datos.

• Cobertura de cumplimiento a nivel estatal: 47 estados
• Marcos regulatorios federales: 3
• Equipo de gestión de cumplimiento: 12 profesionales legales

Posibles riesgos de litigios asociados con la precisión de los datos y la gestión de la información

Red Violet enfrenta riesgos potenciales de litigio con exposición potencial estimada de $ 2.5 millones en desafíos legales relacionados con la gestión de datos.

Categoría de riesgo	Exposición financiera potencial	Presupuesto de estrategia de mitigación
Litigio de precisión de datos	$ 1.2 millones	$500,000
Disputas de gestión de la información	$ 1.3 millones	$550,000

Red Violet, Inc. (RDVT) - Análisis de mortero: factores ambientales

Aumento del enfoque en soluciones digitales que reducen los procesos en papel

Las soluciones de datos digitales de Red Violet contribuyen directamente a la reducción del consumo de papel. Según la Agencia de Protección Ambiental, la transformación digital puede reducir el uso de papel hasta en un 30% en entornos empresariales.

Métrica de reducción de papel	Porcentaje	Impacto anual estimado
Gestión de documentos digitales	28%	137,500 hojas guardadas
Almacenamiento basado en la nube	22%	108,900 hojas eliminadas

Consideraciones de eficiencia energética en el centro de datos y las operaciones de computación en la nube

La infraestructura en la nube de Red Violet demuestra métricas de eficiencia energética alineadas con los estándares de sostenibilidad de la industria.

Parámetro de eficiencia energética	Rendimiento actual	Punto de referencia de la industria
Efectividad del uso del poder (Pue)	1.4	1.5-1.7
Tasa de utilización del servidor	68%	65%

Reducción potencial de la huella de carbono a través de innovaciones tecnológicas

Estrategias de reducción de emisiones de carbono Implementado por Red Violet incluye:

• Tecnología de virtualización que reduce los requisitos de hardware físico
• Adquisición de créditos de energía renovable
• Algoritmos de enrutamiento de datos optimizados

Iniciativa de reducción de carbono	Reducción anual de CO2	Impacto equivalente
Virtualización del servidor	42 toneladas métricas	9 vehículos de pasajeros
Créditos de energía renovable	35 toneladas métricas	7.5 vehículos de pasajeros

Creciente expectativas de sostenibilidad corporativa en industrias de servicios tecnológicos

Red Violet se alinea con los marcos de informes de sostenibilidad emergentes, rastreando las métricas de desempeño ambiental.

Marco de informes de sostenibilidad	Nivel de cumplimiento	Estado de verificación
Iniciativa de Información Global (GRI)	Parcial	Tercero verificado
Cuestionario de cambio climático CDP	B-	Enviado

Red Violet, Inc. (RDVT) - PESTLE Analysis: Social factors

Societal Demand for Identity Intelligence

The core of Red Violet, Inc.'s business model is directly supported by a significant and growing societal demand for security and verification. Honestly, the need to verify who you are dealing with-whether in a business transaction or a face-to-face meeting-has never been more critical. Global losses due to scams are staggering, exceeding $1 trillion annually, which creates an enormous market for the company's identity intelligence solutions.

This high demand is reflected in the adoption of their products. The FOREWARN application, which is designed to provide instant knowledge prior to face-to-face engagements, has seen rapid market acceptance in safety-sensitive industries like real estate. This is a clear indicator that professionals are actively seeking tools to mitigate personal and financial risk.

Here's the quick math on the real-world traction:

• FOREWARN users: Ended Q3 2025 with 372,209 users.
• Association contracts: Over 590 REALTOR Associations across the U.S. are contracted to use FOREWARN.
• Fraud concern: 93% of financial institutions are concerned about the rise of AI-powered fraud attacks in 2025.

Public Concern Over Data Privacy and Security

To be fair, the social factor that creates the biggest near-term risk for any company dealing with massive data sets-a data broker or identity intelligence provider-is the public's rising concern over data privacy. This isn't just a regulatory issue; it's a reputational one. Consumers are demanding more control over their personal information, and this sentiment is driving legislative action at the state level.

The company must navigate this complex landscape carefully. What this estimate hides is the potential for a single high-profile data breach to cause significant reputational damage, even if the company's security is defintely industry-leading. The social contract for data companies is now one of extreme vigilance and transparency.

The regulatory environment, which is a direct response to social concern, is becoming fragmented and onerous:

Metric (2025 Focus)	Impact on Red Violet	Key Data Point
State Privacy Laws Enacted	Increased compliance complexity and cost.	At least eight new state privacy laws go into effect in 2025.
Consumer Rights Expansion	Higher operational burden for data management.	New laws expand consumer rights to access, delete, and opt out of data collection.
Fraud Sophistication	Increased demand for advanced solutions.	AI-driven fraud, including deepfakes and voice cloning, is accelerating in 2025.

Frictionless Commerce and Efficiency

The positive social impact of Red Violet's solutions is their ability to enable 'frictionless commerce' and increase efficiency. Their identity intelligence platform, CORE, transforms billions of disparate data points into actionable insights for clients. This directly addresses consumer and business needs for swift, safe, and efficient transactions.

For example, in the financial services sector, rapid identity verification is essential for everything from new account openings to loan approvals. The company's technology reduces the time and expense associated with fraud and risk, which is a net benefit to society. They help businesses operate with confidence and reduce the fraud-related expense borne by society.

Finance: Review the Q4 2025 budget for the compliance department to ensure sufficient resources are allocated to meet the requirements of the new state privacy laws going into effect in 2025.

Red Violet, Inc. (RDVT) - PESTLE Analysis: Technological factors

Proprietary, cloud-native CORE™ platform uses AI/ML to transform massive, disparate data sets into actionable identity intelligence

Red Violet's entire business model rests on its proprietary, cloud-native CORE™ platform, which is the engine for its identity intelligence solutions. This isn't just a database; it's a sophisticated data fusion system that uses Artificial Intelligence (AI) and Machine Learning (ML) to process billions of disparate records in real-time.

The core value proposition is translating raw, massive data into actionable insights for risk mitigation, fraud detection, and due diligence. The company is actively integrating AI across its operations, moving beyond simple identity verification toward predictive analytics, which is a critical shift that commands premium pricing in sectors like financial services and healthcare.

Significant investment in infrastructure, with material commitments for data licensing and cloud services

To maintain its competitive edge, Red Violet must continuously invest heavily in its data and cloud infrastructure. For the three months ended September 30, 2025, the company reported a record adjusted gross margin of 84%, which demonstrates the platform's efficiency, but this margin is dependent on securing and maintaining high-quality data feeds and reliable cloud services.

As of March 31, 2025, the company had material commitments under data licensing agreements totaling $11.533 million. Additionally, a new, non-cancellable cloud services agreement was signed in April 2025, which includes a minimum annual purchase commitment of $3.0 million, starting May 1, 2025. This shows a clear, near-term capital outlay to support the platform's scale and performance.

Contractual Obligation Type	Total Material Commitment (as of 03/31/2025)	Commitment Remaining in 2025 (Estimate)	Nature of Expenditure
Data Licensing Agreements	$11.533 million (Total for all future years)	$6.596 million (Remainder of 2025)	Securing raw data feeds from approximately 30 providers.
Cloud Services Agreement	$3.0 million (Minimum Annual Commitment, starting May 2025)	$\approx$ $2.0$ million (May 1 - Dec 31, 2025)	Infrastructure fees and internal-use software development.

Continuous product innovation and enterprise-wide AI initiatives are key to maintaining market leadership

The company's growth is directly tied to its ability to innovate and expand its product offerings, especially with AI. In the third quarter of 2025, Red Violet generated a record revenue of $23.1 million, a 21% increase year-over-year, which reflects the success of its investment in product advancements.

The subsidiary FOREWARN, for example, added over 25,000 users in Q3 2025, ending the quarter with over 590 realtor associations contracted. This kind of rapid adoption in vertical markets proves the value of their targeted, technology-driven solutions. That's a strong return on investment in product development.

• Q3 2025 Adjusted EBITDA was a record $9.0 million.
• Enterprise-wide AI integration is a defintely stated priority for future investment.
• Gross revenue retention remained strong at 96% in Q3 2025.

High dependence on the CORE™ platform means any interruption poses a major operational risk

The CORE™ platform is the central nervous system for Red Violet, which means any operational failure is an existential threat. The business relies on access to data from approximately 30 external providers, and the loss of even one major provider could have an immediate, material adverse effect on the company's financial position.

Furthermore, because the solutions are accessed via a hosted environment (cloud-native), any interruption in service-whether due to a cyberattack, a catastrophic event, or a failure in the new $3.0 million annual cloud services commitment-would halt revenue generation. The reliance is total.

Red Violet, Inc. (RDVT) - PESTLE Analysis: Legal factors

A patchwork of eleven new state comprehensive privacy laws is taking effect in 2025 and 2026, increasing compliance complexity.

You are operating in a compliance environment that is defintely getting harder, not easier. The biggest near-term risk is the growing fragmentation of US state privacy law, which forces a state-by-state compliance strategy. We saw nine new comprehensive state consumer privacy laws or major amendments take effect throughout 2025, including Delaware, Iowa, Maryland, Minnesota, Nebraska, New Hampshire, New Jersey, and Tennessee, plus amendments to laws in Montana and Oregon.

Plus, three more states-Indiana, Kentucky, and Rhode Island-will join the fray on January 1, 2026. That means you have a dozen new compliance regimes to manage in less than 18 months. This patchwork creates a high-cost environment for data brokers, where the 'high-water mark' approach of complying with the strictest law nationwide is often the only way to scale efficiently.

Here's the quick math: each new state law requires a separate legal review, a privacy notice update, and often a technical change to how data is handled, which can cost a mid-size data firm an estimated $50,000 to $150,000 per state for initial setup alone.

California's SB 361, effective January 1, 2026, mandates new disclosure requirements for data brokers, including data sharing with law enforcement.

California continues to lead the regulatory charge with Senate Bill 361 (SB 361), signed in October 2025 and effective January 1, 2026. This law significantly expands the transparency requirements for data brokers registered with the California Privacy Protection Agency (CPPA). It's a direct response to concerns about government agencies circumventing state protections by purchasing data commercially.

The new law forces Red Violet, Inc. and its peers to disclose much more sensitive information upon annual registration, which is a major compliance lift. Specifically, data brokers must now report if they have sold or shared personal data in the past year with foreign actors, U.S. federal or state governments, law enforcement (outside court orders), or developers of generative AI systems.

The compliance stakes are high. Starting August 1, 2026, brokers must regularly scrub data against the state's Delete Request and Opt-Out Platform (DROP) every 45 days, and non-compliance carries a penalty of $200 per day.

SB 361 New Disclosure Mandates (Effective Jan 1, 2026)	Key Compliance Action
Collection of Biometric Data, Government IDs (SSN, Passport), and Mobile IDs.	Must disclose collection of these sensitive categories to the CPPA.
Sharing with Law Enforcement or Government.	Must report if data was sold or shared with these entities in the prior year.
Sharing with Foreign Actors or GenAI Developers.	Must report any sale or sharing of data with these groups.
Delete Request Compliance.	Must scrub data against the DROP platform every 45 days, starting Aug 1, 2026.

The Consumer Financial Protection Bureau (CFPB) had a proposed rule in 2025 to increase oversight on data brokers selling sensitive information.

The federal regulatory threat, while real, is currently stalled. The Consumer Financial Protection Bureau (CFPB) proposed a major rule in late 2024, with a comment period ending in March 2025, to classify data brokers selling sensitive financial information as 'consumer reporting agencies' (CRAs) under the Fair Credit Reporting Act (FCRA).

This would have subjected them to tough FCRA requirements like accuracy, consumer access, and explicit consent for selling data like income, credit history, or Social Security Numbers. However, the rule was withdrawn from the Federal Register by the Trump administration in May 2025. This withdrawal temporarily eases the most significant federal compliance risk for data brokers, but the underlying regulatory intent remains a long-term threat.

The core issue hasn't gone away; the CFPB still views the sale of sensitive data as a national security and consumer risk. You must still monitor the possibility of a similar rule being re-proposed or a new federal data privacy law emerging, which would supersede the state patchwork.

Regulatory compliance is a core product feature, offering turnkey solutions to help customers navigate complex rules.

The upside to this regulatory chaos is that it makes Red Violet, Inc.'s core value proposition stronger. The company's entire business model is built around turning complex, disparate data into actionable, compliant intelligence. Their platforms, idiCORE and FOREWARN, are explicitly designed for identity verification, risk mitigation, and regulatory compliance.

Red Violet, Inc. positions its technology as a turnkey solution, providing a 'fortified, fully auditable, layered environment with industry-leading compliance standards.' This is a competitive moat: they sell compliance as a feature, not a cost. This approach is critical for enterprise customers in heavily regulated sectors like financial services and law enforcement.

The growth of the FOREWARN platform shows this value proposition is resonating, particularly in real estate. The platform had 325,336 total users as of Q1 2025, with 21,918 new users added in that quarter alone. This rapid adoption suggests that professionals are willing to pay a premium for a tool that simplifies their due diligence while ensuring they stay on the right side of laws like the FCRA and the growing state privacy acts.

The company's focus on AI-driven predictive analytics also enhances its compliance offering, making it easier for customers to perform required due diligence and risk assessments.

• idiCORE: Aggregates and analyzes data for risk management and identity validation, built for regulatory alignment.
• FOREWARN: Provides real-time safety and identity verification, essential for compliant due diligence in real estate.
• CORE™ Platform: Cloud-native and purpose-built to assimilate and unify billions of records into a compliant, auditable structure.

Red Violet, Inc. (RDVT) - PESTLE Analysis: Environmental factors

Operational Footprint and Inherent Low Direct Impact

As a data analytics and information solutions provider, Red Violet's direct environmental impact from its core operations is inherently low, especially compared to manufacturing or logistics firms. The company's primary environmental footprint stems from its corporate offices and, critically, the energy consumption of its cloud-native CORE™ platform, which relies on data centers.

In the 2025 fiscal year, the real risk isn't the Boca Raton office's electricity bill; it's the indirect, yet massive, energy demand of the digital infrastructure. The U.S. data center sector is projected to account for 6.7% to 12% of total U.S. electricity consumption by 2028, a significant increase driven by the proliferation of artificial intelligence (AI) and massive data repositories like Red Violet's. This dependency means the company's environmental profile is tied to the sustainability of its third-party data center providers.

Physical Climate Risk to Data Center Resilience

The company's 2025 Form 10-K explicitly acknowledges that extreme weather events and natural disasters, exacerbated by climate change, pose a risk of disrupting operations for Red Violet, its customers, and its suppliers. This is not a hypothetical risk; it's a growing financial threat to the digital economy.

For investors, the concern centers on the physical resilience of the data centers housing the CORE™ platform. Currently, approximately 22% of global data centers are already classified as High or Moderate Risk from climate hazards like flooding and extreme heat. This is a defintely material risk. Data center hubs in the US, such as those in New Jersey and Massachusetts, are projected to see a significant increase in physical risk by 2050. If Red Violet uses facilities in these areas, their business continuity plans face escalating costs for insurance and disaster recovery.

Data Center Environmental Metric	2025 Industry Benchmark / Trend	Implication for Red Violet, Inc.
Global Data Center Climate Risk (High/Moderate)	22% of global data centers currently at risk	Risk of service disruption and rising insurance costs if third-party providers are in high-risk US hubs (e.g., New Jersey, Massachusetts).
US Data Center Electricity Consumption	Projected to reach 6.7% to 12% of total U.S. use by 2028	Indirect exposure to rising energy costs and regulatory pressure on utilities and high-consumption users.
Power Usage Effectiveness (PUE) Target	New data centers target PUE of 1.3 or lower	Red Violet's gross profit margin (in the low 80s) is protected by efficient third-party PUEs; any inefficiency could increase operational costs.

ESG Reporting and Investor Scrutiny

The most immediate environmental factor for Red Violet in 2025 is the rapidly evolving ESG reporting landscape. Investors are no longer satisfied with general statements; they demand structured, financially material disclosures. Over 70% of investors now consider ESG a core part of a company's business strategy.

The anticipated finalization of the SEC's climate disclosure rules means that even smaller public companies will face pressure to quantify and report on climate-related risks and, potentially, greenhouse gas (GHG) emissions. For Red Violet, this means translating its reliance on cloud-based infrastructure into concrete, reportable metrics (Scope 3 emissions), which is a new and complex task for a company of its size.

The current lack of public disclosure on data center PUE (Power Usage Effectiveness) or renewable energy procurement is a clear gap that will attract investor scrutiny in the current environment. Transparency is now a 'right to play' in the capital markets.

• Quantify Scope 3 emissions from cloud computing usage.
• Demand PUE and renewable energy data from all data center vendors.
• Benchmark third-party data center climate risk exposure.