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red violet . red violet Announces Second Quarter 2021 Financial Results August 11 , 2021 Record Revenue of $ 10.9 Million Drives Record Gross Profit and Cash Flow from Operations BOCA RATON , Fla . , Aug. 11 , 2021 ( GLOBE NEWSWIRE ) -- Red Violet , Inc. ( NASDAQ : RDVT ) , a leading analytics and information solutions provider , today announced financial results for the quarter ended June 30 , 2021 . " In the second quarter , we continued to demonstrate that as economic conditions improve , so does demand for our innovative solutions , " stated Derek Dubner , red violet's CEO . " I'm extremely proud of the team's execution expanding customer relationships both up and across markets . As a result , second quarter proved to be another record quarter for us , with revenue increasing 54 % to $ 10.9 million , net income of $ 1.8 million and adjusted EBITDA increasing 245 % to $ 3.1 million . Our strong balance sheet and cash generation from record revenue continue to drive expansion of our capabilities . " Second Quarter Financial Results For the three months ended June 30 , 2021 as compared to the three months ended June 30 , 2020 : • Total revenue increased 54 % to $ 10.9 million . Platform revenue increased 54 % to $ 10.6 million . Services revenue increased 46 % to $ 0.3 million . • Net income was $ 1.8 million , inclusive of a one - time gain of $ 2.2 million on the extinguishment of debt from the forgiveness of our Cares Act Loan , compared to a loss of $ 2.5 million . • Adjusted EBITDA increased 245 % to $ 3.1 million . • Gross profit increased 95 % to $ 6.9 million . Gross margin increased to 63 % from 50 % . • Adjusted gross profit increased 83 % to $ 8.2 million . Adjusted gross margin increased to 75 % from 63 % . • Generated $ 2.3 million in cash from operating activities in the second quarter . • Cash and cash equivalents were $ 13.9 million as of June 30 , 2021 . Second Quarter and Recent Business Highlights • Revenue attributable to customer contracts reached a record 81 % . Customer contracts are generally annual contracts or longer with auto renewal . • Added over 230 new customers to idiCORE ™ during the second quarter , ending the quarter with 6,141 customers . • Added over 8,700 users to FOREWARNⓇ during the second quarter , ending the quarter with 67,578 users . Over 150 REALTOR® Associations throughout the U.S. are now contracted to use FOREWARN . • Continued expansion of leadership talent and depth , with the addition of Jim Greenwell , GM - Identity , and James Frasche , EVP - Property Solutions . • Appointed Lisa Stanton as an independent director of the Board of Directors , strengthening our corporate governance and providing deep expertise in FinTech , identity and security . Use 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 gross profit and adjusted gross margin . Adjusted EBITDA is a financial measure equal to net income ( loss ) , the most directly comparable financial measure based on US GAAP , excluding interest expense ( income ) , net , depreciation and amortization , share - based compensation expense , gain on extinguishment of debt , litigation costs and write - off of long - lived assets and others . We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue . We define adjusted gross profit as revenue less cost of revenue ( exclusive of depreciation and amortization ) , and adjusted gross margin as adjusted gross profit as a percentage of revenue . Conference Call In conjunction with this release , red violet will host a conference call and webcast today at 4:30 pm ET to discuss its quarterly results and provide a business update . To listen to the call , please dial ( 877 ) 665-6635 for domestic callers or ( 602 ) 563-8608 for international callers , using the passcode 7739599. To access the live audio webcast , visit the Investors section of the red violet website at www.redviolet.com . Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required . Following the completion of the conference call , a replay will be available for approximately one week by dialing ( 855 ) 859-2056 or ( 404 ) 537-3406 with the replay passcode 7739599. An archived webcast of the conference call will be available on the Investors section of the red violet website at www.redviolet.com .