Tuesday, August 18, 2020

Watchlist: Red Violet (RDVT)

A Big Data / Analytics company. 

Market Cap $200M

Software company focused on big data analytics. They provide intelligence and make sense of it. 

Main products:

1. IDI - Selling data to insurers, bail bondsmen, private investigators - Have attracted so far 5,000 customers.

2. ForWarn - Designed for realtors. This product allows you to take that phone numbers and see if he has a criminal background, bankruptcies etc. Have signed 40,000 realtors in the last two years.


2019 - $30M in sales up from $9M in 2017.

Margins are huge. Gross margin is 59%. Management thinks it will grow to 80%

Free cash flow positive - $1.8 last quarter.

Zero debt.

Current addressable market - $10B

There are several competitors - Palentire, Lexus Nexus, Thompson Reuters.

40% of their data comes from one source.

Phil Frost and Michael Browser are co-founders have been accused of pump and dump schemes.

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