Shawn Boyd's questions to Red Violet Inc (RDVT) leadership • Q4 2024
Question
Shawn Boyd asked for clarification on the revenue contribution from Red Violet's different market verticals and questioned the company's EBITDA margin trajectory, specifically asking if the long-term 40% target at $100 million in revenue is still valid and what to expect for 2025.
Answer
CFO Daniel MacLachlan stated that while specific breakdowns are not disclosed, revenue is distributed fairly consistently across the five key verticals. He emphasized that the company is in the 'early innings' in all markets, including financial services, collections, and government, with significant growth ahead. MacLachlan reaffirmed the long-term target of a 40% adjusted EBITDA margin at $100 million in revenue but guided that for 2025, margins would remain consistent with 2024 levels (around 31%) to support continued investment in strategic growth initiatives.