0000950170-24-122438 | 10-Q | XBRL Viewer

Common Stock and Treasury Stock	9 Months Ended
Sep. 30, 2024
Equity [Abstract]
Common Stock and Treasury Stock	7. Common stock and treasury stock As of September 30, 2024 and December 31, 2023, the number of issued shares of common stock was 13,735,387 and 13,980,274, respectively, which included shares of treasury stock of 0 and 9,428, respectively. The changes in the number of issued shares of common stock and treasury stock were due to the following factors: • An aggregate of 80,187 shares of common stock were issued as a result of the vesting of RSUs, of which, 22,902 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock, with a cost of $431. Related treasury stock of 22,902 shares was then retired during the nine months ended September 30, 2024. • On May 2, 2022, the board of directors of the Company authorized the repurchase of up to $5.0 million of the Company's common stock from time to time, and subsequently on each of December 19, 2023 and March 28, 2024, the board of directors authorized the repurchase of an additional $5.0 million of the Company's common stock (the "Stock Repurchase Program"). The Stock Repurchase Program does not obligate the Company to repurchase any shares and may be modified, suspended, or terminated at any time and for any reason at the discretion of the board of directors. During the nine months ended September 30, 2024, the Company repurchased 292,744 shares of common stock under the Stock Repurchase Program, which was reflected in treasury stock, with a cost of $5,809. Related treasury stock of 302,172 shares as a result of the repurchases, with a cost of $5,997, was retired during the nine months ended September 30, 2024, resulting in no treasury stock balance as of September 30, 2024. The Company has $4,577 remaining under the Stock Repurchase Program as of September 30, 2024.

Common Stock and Treasury Stock

9 Months Ended

Sep. 30, 2024

7. Common stock and treasury stock

As of September 30, 2024 and December 31, 2023, the number of issued shares of common stock was 13,735,387 and 13,980,274, respectively, which included shares of treasury stock of 0 and 9,428, respectively. The changes in the number of issued shares of common stock and treasury stock were due to the following factors:

•

An aggregate of 80,187 shares of common stock were issued as a result of the vesting of RSUs, of which, 22,902 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock, with a cost of $431. Related treasury stock of 22,902 shares was then retired during the nine months ended September 30, 2024.

•

On May 2, 2022, the board of directors of the Company authorized the repurchase of up to $5.0 million of the Company's common stock from time to time, and subsequently on each of December 19, 2023 and March 28, 2024, the board of directors authorized the repurchase of an additional $5.0 million of the Company's common stock (the "Stock Repurchase Program"). The Stock Repurchase Program does not obligate the Company to repurchase any shares and may be modified, suspended, or terminated at any time and for any reason at the discretion of the board of directors. During the nine months ended September 30, 2024, the Company repurchased 292,744 shares of common stock under the Stock Repurchase Program, which was reflected in treasury stock, with a cost of $5,809. Related treasury stock of 302,172 shares as a result of the repurchases, with a cost of $5,997, was retired during the nine months ended September 30, 2024, resulting in no treasury stock balance as of September 30, 2024. The Company has $4,577 remaining under the Stock Repurchase Program as of September 30, 2024.

- Definition

The entire disclosure for equity.

+ References

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+ Details

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Capital Payments under Certain Data Licensing Agreements

The Company incurred data costs of $2,328 and $2,367 for the three months ended September 30, 2024 and 2023, respectively, and $7,168 and $7,086 for the nine months ended September 30, 2024 and 2023, under certain data licensing agreements. As of September 30, 2024, material capital commitments under certain data licensing agreements were $15,215, shown as follows:


(In thousands)
Year	September 30, 2024
Remainder of 2024	$	2,183
2025		8,349
2026		4,512
2027		171
Total	$	15,215

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 6,140

$ 14,599

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

7,081

6,141

Share-based compensation expense

4,452

4,058

Write-off of long-lived assets

Provision for bad debts

323

913

Noncash lease expenses

412

444

Deferred income tax expense (benefit)

2,051

(10,308)

Changes in assets and liabilities:

Accounts receivable

(1,647)

(2,183)

Prepaid expenses and other current assets

(617)

(407)

Other noncurrent assets

(470)

(26)

Accounts payable

1,156

(240)

Accrued expenses and other current liabilities

(1,150)

(1,473)

Deferred revenue

(125)

(143)

Operating lease liabilities

(419)

(512)

Net cash provided by operating activities

17,269

10,867

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment

(152)

(98)

Capitalized costs included in intangible assets

(7,118)

(6,921)

Net cash used in investing activities

(7,270)

(7,019)

CASH FLOWS FROM FINANCING ACTIVITIES:

(431)

(197)

Repurchases of common stock

(5,853)

(1,251)

Net cash used in financing activities

(6,284)

(1,448)

Net increase in cash and cash equivalents

3,715

2,400

Cash and cash equivalents at beginning of period

32,032

31,810

Cash and cash equivalents at end of period

35,747

34,210

SUPPLEMENTAL DISCLOSURE INFORMATION

Cash paid for interest

Cash paid for income taxes

524

Share-based compensation capitalized in intangible assets

1,210

1,389

Retirement of treasury stock

6,428

1,280

Right-of-use assets obtained in exchange for operating lease liabilities

^[1]

1,919

Operating lease liabilities arising from obtaining right-of-use assets

$ 0

$ 1,919

[1]	The Amended Lease resulted in an addition of $1,919 to right-of-use assets and operating lease liabilities, as of September 20, 2023 (the "Remeasurement Date").

Intangible assets, net (Tables)

9 Months Ended

Sep. 30, 2024

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets Other than Goodwill

Intangible assets other than goodwill consist of the following:


		September 30, 2024							December 31, 2023
(In thousands)	Amortization period	Gross amount		Accumulated amortization			Net		Gross amount		Accumulated amortization			Net
Software developed for internal use	5-10 years	$	71,712	$	(35,981	)	$	35,731	$	63,545	$	(29,142	)	$	34,403

Schedule of Estimated Amortization Expense

As of September 30, 2024, estimated amortization expense related to the Company’s intangible assets for the remainder of 2024 through 2029 and thereafter are as follows:


(In thousands)
Year	September 30, 2024
Remainder of 2024	$	2,448
2025		9,748
2026		8,361
2027		6,745
2028		4,313
2029 and thereafter		4,116
Total	$	35,731

Share-based Compensation - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	May 25, 2022	Jun. 03, 2020	Mar. 22, 2018
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized share-based compensation costs in respect of granted RSUs	$ 12,770
Unrecognized share-based compensation remaining weighted average period	2 years 8 months 12 days
2018 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized				3,000,000
Common stock available for future issuance	1,908,864
2018 Stock Incentive Plan \| Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized		6,500,000	4,500,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and contingencies

(a) Capital commitment


(In thousands)
Year	September 30, 2024
Remainder of 2024	$	2,183
2025		8,349
2026		4,512
2027		171
Total	$	15,215

(b) Contingencies

The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and it discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements to not be misleading. To estimate whether a loss contingency should be accrued by a charge to income, the Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of the loss. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated.

In addition to the foregoing, the Company may be involved in litigation from time to time in the ordinary course of business. The Company does not believe that the ultimate resolution of any such matters will have a material adverse effect on its business, financial condition, results of operations or cash flows. However, the results of such matters cannot be predicted with certainty and the Company cannot assure you that the ultimate resolution of any legal or administrative proceeding or dispute will not have a material adverse effect on its business, financial condition, results of operations and cash flows.

Leases - Summary of Company's Lease Information (Parenthetical) (Details) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 20, 2023

Leases [Abstract]

Right-Of-use assets and operating lease liabilities

$ 1,919

Estimated incremental borrowing rate

10.00%

Weighted average discount rate for operating leases

^[1]

0.00%

10.00%

[1]

The Company used 10%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the Amended Lease to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of the Remeasurement Date.

Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

6. Income taxes

The Company is subject to federal and state income taxes in the United States. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter, unless a reliable estimate of ordinary income or the related tax expense/benefit cannot be made or the Company is in cumulative losses for which the benefit cannot be realized. In each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. Prior to the third quarter of 2023, primarily due to cumulative pre-tax losses, management determined a full valuation allowance was necessary to reduce the deferred tax assets to the amount that is more likely than not to be realized. During the third quarter of 2023, the Company released the valuation allowance previously recorded on its deferred tax assets. The Company concluded that, due to its established historical cumulative positive income before income taxes plus permanent differences for the recent years, projections of future taxable income, and the reversal of taxable temporary differences, the realization of deferred tax assets as of September 30, 2024 was more likely than not.

The Company’s effective income tax rate was 40% and (492%) for the three months ended September 30, 2024 and 2023, respectively, and 28% and (236%) for the nine months ended September 30, 2024 and 2023, respectively, differing from the U.S. corporate statutory federal income tax rate of 21%. The difference for the three and nine months ended September 30, 2024 was primarily the effect of state income taxes and certain nondeductible permanent differences, partially offset by the utilization of research and development tax credits. The difference for the three and nine months ended September 30, 2023 was primarily the result of release of the valuation allowance, recognition of research and development tax credit, state income taxes and permanent differences.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the Company’s financial statements.

The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. Due to the existence of net operating loss carryforwards since inception, all of the Company’s income tax filings remain open for tax examinations.

The Company does not have any material unrecognized tax benefits as of September 30, 2024 and December 31, 2023.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
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-Name Accounting Standards Codification
-Section 55
-Paragraph 231
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-Paragraph 12C
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-Paragraph 2
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Goodwill - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Goodwill Disclosure [Abstract]
Goodwill	$ 5,227		$ 5,227		$ 5,227
Date of annual goodwill impairment test			October 1
Goodwill impairment charges	0	$ 0	$ 0	$ 0
Accumulated goodwill impairment loss	$ 0		$ 0

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 49
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-URI https://asc.fasb.org/1943274/2147482785/280-10-55-49

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Reference 3: http://www.xbrl.org/2003/role/exampleRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

+ Details

Intangible assets, net - Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]
Total	$ 35,731	$ 34,403
Software Developed for Internal Use
Finite Lived Intangible Assets [Line Items]
Intangible Assets, Gross Amount	71,712	63,545
Intangible Assets, Accumulated Amortization	(35,981)	(29,142)
Total	$ 35,731	$ 34,403
Software Developed for Internal Use \| Minimum
Finite Lived Intangible Assets [Line Items]
Amortization Period	5 years
Software Developed for Internal Use \| Maximum
Finite Lived Intangible Assets [Line Items]
Amortization Period	10 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Summary of significant accounting policies	9 Months Ended
Summary of significant accounting policies	Sep. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of significant accounting policies (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements of Red Violet, Inc., a Delaware corporation, and its consolidated subsidiaries (collectively, “red violet” or the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to those rules and regulations. The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for any future interim periods or for the full year ending December 31, 2024. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 7, 2024 (“Form 10-K”). The condensed consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date included in the Form 10-K, but does not include all disclosures required by US GAAP. The Company has only one operating segment, as defined by Accounting Standards Codification (“ASC”) 280, “Segment Reporting.” Principles of consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions among the Company and its subsidiaries have been eliminated upon consolidation. (b) Recently issued accounting standards In November 2023, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standard Updates (“ASU”) No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07")," which requires a public entity to disclose significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), a description of other segment items by reportable segment, and an explanation of any additional measures the CODM uses in deciding how to allocate resources, and extend nearly all annual segment reporting requirements to quarterly reporting requirements. In addition, entities with a single reportable segment must now provide all segment disclosures required in Accounting Standard Codification ("ASC") 280, including the new disclosures for reportable segments under the amendments in ASU 2023-07. The new guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The guidance will be applied on a retrospective basis, with such disclosures to be made in regard to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this ASU on its condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09)," which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning after December 31, 2024. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently evaluating the guidance to determine its impact on our condensed consolidated financial statements and related disclosures.

Commitments and Contingencies - Future Minimum Capital Payments under Certain Data Licensing Agreements (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2024	$ 2,183
2025	8,349
2026	4,512
2027	171
Total	$ 15,215

Share-based Compensation - Schedule of Unvested RSU Activity (Details) - Restricted Stock Units (RSUs)

9 Months Ended

Sep. 30, 2024

$ / shares

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Unvested, Number of units Beginning balance | shares

1,017,718

Granted, Number of units | shares

263,985

^[1]

Vested and delivered, Number of units | shares

(57,285)

Withheld as treasury stock, Number of units | shares

(22,902)

^[2]

Forfeited, Number of units | shares

(175,394)

Unvested, Number of units Ending balance | shares

1,026,122

Unvested, Weighted average grant-date fair value, Beginning balance | $ / shares

$ 20.1

Granted, Weighted average grant-date fair value | $ / shares

19.14

^[1]

Vested and delivered, Weighted average grant-date fair value | $ / shares

24.93

Withheld as treasury stock, Weighted average grant-date fair value | $ / shares

25.19

^[2]

Forfeited, Weighted average grant-date fair value | $ / shares

17.68

Unvested, Weighted average grant-date fair value, Ending balance | $ / shares

$ 19.88

[1]

In March 2024, the Company granted 130,000 RSUs, subject to performance-based requirements, to one non-executive employee at a grant date fair value of $18.30 per share. Such RSU grant shall not vest unless and until the Company has achieved certain revenue for a portion of its business prior to December 31, 2030, the last achievement date deadline. No amortization of share-based compensation expense has been recognized for 95,000 RSUs among the above-mentioned grant, because, as of September 30, 2024, the Company determined that it is not probable that related performance criteria will be met. In addition to the 130,000 RSUs discussed above, the Company granted, during the nine months ended September 30, 2024, an aggregate of 133,985 RSUs to certain employees and directors at grant date fair values ranging from $17.00 to $28.50 per share, with a vesting period ranging from one to four years.

[2]

Withheld as treasury stock represents shares withheld to pay statutory taxes upon the vesting of RSUs. Refer to Note 7, "Common stock and treasury stock," for details.

Leases - Scheduled Future Maturities and Present Value of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Remainder of 2024	$ 201
2025	580
2026	519
2027	535
2028	551
2029 and thereafter	279
Total maturities	2,665
Present value included in consolidated balance sheet:
Current portion of operating lease liabilities	469	$ 569
Noncurrent operating lease liabilities	1,680	$ 1,999
Total operating lease liabilities	2,149
Lessee Operating Lease Liability Undiscounted Excess Amount, Total	$ 516

Intangible assets, net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Finite Lived Intangible Assets [Line Items]
Amortization expenses	$ 2,382	$ 2,112	$ 6,918	$ 5,965
Software Developed for Internal Use
Finite Lived Intangible Assets [Line Items]
Intangible assets that have not started amortization	5,939		5,939
Capitalized costs of internally-developed software	$ 2,708	$ 2,929	$ 8,328	$ 8,310

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Goodwill

9 Months Ended

Sep. 30, 2024

Goodwill Disclosure [Abstract]

Goodwill

4. Goodwill

Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. As of September 30, 2024 and December 31, 2023, the balance of goodwill of $5,227 was as a result of the acquisition of Interactive Data, LLC, a wholly-owned subsidiary of red violet, effective on October 2, 2014.

In accordance with ASC 350, “Intangibles - Goodwill and Other,” goodwill is tested at least annually for impairment, or when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that its fair value exceeds the carrying value. The measurement date of the Company’s annual goodwill impairment test is October 1.

The Company did not record a goodwill impairment loss during the three and nine months ended September 30, 2024 and 2023, and there was no accumulated goodwill impairment loss as of September 30, 2024.

Revenue recognition - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Revenue Recognition [Line Items]
Unbilled accounts receivable, current	$ 918		$ 918			$ 829
Unbilled accounts receivable, non current	892		892			371
Deferred revenue	565		$ 565			$ 690
Deferred revenue realization period			12 months
Deferred revenue recognized	$ 147		$ 577
Revenue For Future Outstanding Performance Obligations			$ 22,098
Period over which subscription contract terms exceed			12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue Recognition [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period					1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue Recognition [Line Items]
Revenue For Future Outstanding Performance Obligations			$ 3,284
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue Recognition [Line Items]
Revenue For Future Outstanding Performance Obligations			9,946
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period					1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue Recognition [Line Items]
Revenue For Future Outstanding Performance Obligations			5,207
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period					1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue Recognition [Line Items]
Revenue For Future Outstanding Performance Obligations			3,252
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period					1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue Recognition [Line Items]
Revenue For Future Outstanding Performance Obligations			364
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01
Revenue Recognition [Line Items]
Revenue For Future Outstanding Performance Obligations			$ 45
Customers With Pricing Contracts
Revenue Recognition [Line Items]
Percentage of Revenue	77.00%	79.00%	76.00%	78.00%
Transactional Customers
Revenue Recognition [Line Items]
Percentage of Revenue	23.00%	21.00%	24.00%	22.00%

Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Unvested Restricted Stock Units

Details of unvested RSU activity during the nine months ended September 30, 2024 were as follows:


	Number of units			Weighted average grant-date fair value
Unvested as of December 31, 2023		1,017,718		$	20.10
Granted(1)		263,985		$	19.14
Vested and delivered		(57,285	)	$	24.93
Withheld as treasury stock(2)		(22,902	)	$	25.19
Forfeited		(175,394	)	$	17.68
Unvested as of September 30, 2024		1,026,122		$	19.88

(1)

(2)

Withheld as treasury stock represents shares withheld to pay statutory taxes upon the vesting of RSUs. Refer to Note 7, "Common stock and treasury stock," for details.

Summary of Allocated Share-based Compensation

Share-based compensation was allocated to the following accounts in the condensed consolidated financial statements for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Sales and marketing expenses	$	148	$	116	$	444	$	348
General and administrative expenses		1,509		1,253		4,008		3,710
Share-based compensation expense		1,657		1,369		4,452		4,058
Capitalized in intangible assets		328		517		1,210		1,389
Total	$	1,985	$	1,886	$	5,662	$	5,447

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 238	$ 159
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	13,735,387	13,980,274
Common stock, shares outstanding	13,735,387	13,970,846
Treasury stock shares	0	9,428

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Revenue

$ 19,057

$ 15,837

$ 55,624

$ 45,143

Costs and expenses:

Sales and marketing expenses

4,817

3,365

12,935

10,332

General and administrative expenses

5,994

5,223

17,534

15,539

Depreciation and amortization

2,434

2,171

7,081

6,141

Total costs and expenses

16,559

14,072

48,075

41,744

Income from operations

2,498

1,765

7,549

3,399

Interest income, net

353

346

1,032

947

Income before income taxes

2,851

2,111

8,581

4,346

Income tax expense (benefit)

1,132

(10,384)

2,441

(10,253)

Net income

$ 1,719

$ 12,495

$ 6,140

$ 14,599

Earnings per share:

Basic

$ 0.12

$ 0.9

$ 0.44

$ 1.05

Diluted

$ 0.12

$ 0.87

$ 0.43

$ 1.03

Weighted average shares outstanding:

Basic

13,782,476

13,952,426

13,852,947

13,970,317

Diluted

^[1]

14,311,575

14,329,878

14,224,285

14,207,673

Service [Member]

Costs and expenses:

Cost of revenue (exclusive of depreciation and amortization)

$ 3,314

$ 3,313

$ 10,525

$ 9,732

[1]	For the three and nine months ended September 30, 2024 and 2023, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate, percentage	40.00%	492.00%	28.00%	236.00%
Statutory federal income tax rate			21.00%
Percentage of tax benefits likelihood of being realized upon settlement of tax authority			greater than 50%
Unrecognized tax benefits	$ 0		$ 0		$ 0

Share-based Compensation - Summary of Allocated Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based compensation recognized
Share-based compensation expense	$ 1,657	$ 1,369	$ 4,452	$ 4,058
Capitalized in intangible assets	328	517	1,210	1,389
Total	1,985	1,886	5,662	5,447
Sales and Marketing Expenses
Share-based compensation recognized
Share-based compensation expense	148	116	444	348
General and Administrative Expenses
Share-based compensation recognized
Share-based compensation expense	$ 1,509	$ 1,253	$ 4,008	$ 3,710

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Nov. 01, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Trading Symbol	RDVT
Entity Registrant Name	RED VIOLET, INC.
Entity Central Index Key	0001720116
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-38407
Entity Tax Identification Number	82-2408531
Entity Address, Address Line One	2650 North Military Trail
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33431
City Area Code	561
Local Phone Number	757-4000
Entity Information, Former Legal or Registered Name	None
Document Transition Report	false
Document Quarterly Report	true
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common Stock, $0.001 par value per share
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		13,791,652

Earnings per share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and is calculated using the treasury stock method for unvested shares.


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except share data)	2024		2023		2024		2023
Numerator:
Net income	$	1,719	$	12,495	$	6,140	$	14,599
Denominator:
Weighted average shares outstanding:
Basic		13,782,476		13,952,426		13,852,947		13,970,317
Diluted(1)		14,311,575		14,329,878		14,224,285		14,207,673
Earnings per share:
Basic	$	0.12	$	0.90	$	0.44	$	1.05
Diluted	$	0.12	$	0.87	$	0.43	$	1.03

(1)

For the three and nine months ended September 30, 2024 and 2023, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

Share-based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-based Compensation

8. Share-based compensation

On March 22, 2018, the board of directors of the Company and Cogint, Inc. (“cogint”) (now known as Fluent, Inc.), in its capacity as sole stockholder of the Company prior to the Company’s spin-off from cogint on March 26, 2018 (the “Spin-off”), approved the Red Violet, Inc. 2018 Stock Incentive Plan (the “2018 Plan”), which became effective immediately prior to the Spin-off. A total of 3,000,000 shares of common stock were authorized to be issued under the 2018 Plan. Subsequently on June 3, 2020 and May 25, 2022, the Company’s stockholders approved amendments to the 2018 Plan to increase the number of shares of common stock authorized for issuance under the 2018 Plan to 4,500,000 shares and 6,500,000 shares, respectively.

The primary purpose of the 2018 Plan, as amended, is to attract, retain, reward and motivate certain individuals by providing them with an opportunity to acquire or increase a proprietary interest in the Company and to incentivize them to expend maximum effort for the growth and success of the Company, so as to strengthen the mutuality of the interests between such individuals and the stockholders of the Company.

As of September 30, 2024, there were 1,908,864 shares of common stock available for future issuance under the 2018 Plan, as amended.

To date, all stock incentives issued under the 2018 Plan, as amended, have been in the form of RSUs. RSUs granted under the 2018 Plan, as amended, vest and settle upon the satisfaction of a time-based condition or with both time- and performance-based conditions. The time-based condition for these awards is generally satisfied over three or four years with annual vesting. Details of unvested RSU activity during the nine months ended September 30, 2024 were as follows:


	Number of units			Weighted average grant-date fair value
Unvested as of December 31, 2023		1,017,718		$	20.10
Granted(1)		263,985		$	19.14
Vested and delivered		(57,285	)	$	24.93
Withheld as treasury stock(2)		(22,902	)	$	25.19
Forfeited		(175,394	)	$	17.68
Unvested as of September 30, 2024		1,026,122		$	19.88

(1)

(2)

Withheld as treasury stock represents shares withheld to pay statutory taxes upon the vesting of RSUs. Refer to Note 7, "Common stock and treasury stock," for details.

As of September 30, 2024, unrecognized share-based compensation expense associated with the granted RSUs amounted to $12,770, which is expected to be recognized over a remaining weighted average period of 2.7 years.

Share-based compensation was allocated to the following accounts in the condensed consolidated financial statements for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Sales and marketing expenses	$	148	$	116	$	444	$	348
General and administrative expenses		1,509		1,253		4,008		3,710
Share-based compensation expense		1,657		1,369		4,452		4,058
Capitalized in intangible assets		328		517		1,210		1,389
Total	$	1,985	$	1,886	$	5,662	$	5,447

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Summary of Company's Lease Information

For the three and nine months ended September 30, 2024 and 2023, a summary of the Company’s lease information is shown below:


	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2024		2023			2024		2023
Lease cost:
Operating lease costs	$	194	$	168		$	583	$	504
Other information:
Cash paid for operating leases	$	199	$	192		$	589	$	573
Right-of-use assets obtained in exchange for operating lease liabilities(1)	$	-	$	1,919		$	-	$	1,919
Weighted average discount rate for operating leases(2)		-		10	%		-		10	%

(1)

The Amended Lease resulted in an addition of $1,919 to right-of-use assets and operating lease liabilities, as of September 20, 2023 (the "Remeasurement Date").

(2)

Scheduled Future Maturities and Present Value of Operating Lease Liabilities

As of September 30, 2024, scheduled future maturities and present value of the operating lease liabilities are as follows:


(In thousands)
Year	September 30, 2024
Remainder of 2024		201
2025		580
2026		519
2027		535
2028		551
2029 and thereafter		279
Total maturities	$	2,665
Present value included in condensed consolidated balance sheet:
Current portion of operating lease liabilities	$	469
Noncurrent operating lease liabilities		1,680
Total operating lease liabilities	$	2,149
Difference between the maturities and the present value of operating lease liabilities	$	516

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,719	$ 12,495	$ 6,140	$ 14,599

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Share-based Compensation - Schedule of Restricted Stock Units Granted (Parenthetical) (Details) - $ / shares

3 Months Ended

9 Months Ended

Mar. 31, 2024

Sep. 30, 2024

Employees And Directors | Minimum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

1 year

Employees And Directors | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

4 years

Restricted Stock Units (RSUs) [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

^[1]

263,985

Grant date fair value

^[1]

$ 19.14

Restricted Stock Units (RSUs) [Member] | Non Executive Employee

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

130,000

Performance Based Restricted Stock Units | Employees And Directors

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

133,985

Performance Based Restricted Stock Units | Employees And Directors | Minimum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Grant date fair value

$ 17

Performance Based Restricted Stock Units | Employees And Directors | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Grant date fair value

$ 28.5

Performance Based Restricted Stock Units | Non Executive Employee

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

130,000

95,000

Grant date fair value

$ 18.3

[1]

Common Stock and Treasury Stock - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 28, 2024	Dec. 31, 2023	Dec. 19, 2023	May 02, 2022
Equity [Line Items]
Common stock, shares issued	13,735,387		13,735,387			13,980,274
Treasury stock, issued shares	0		0			9,428
Increase in treasury stock resulting from shares withheld to cover statutory taxes	$ 28	$ 147	$ 431	$ 197
Treasury stock, value	$ 0		$ 0			$ 188
Stock repurchase program, authorized amount					$ 5,000		$ 5,000	$ 5,000
Treasury stock shares	0		0			9,428
Stock Repurchase Program
Equity [Line Items]
Retirement of treasury stock, Shares			302,172
Related treasury stock cost			$ 5,997
Treasury stock shares	292,744		292,744
Treasury stock cost	$ 5,809		$ 5,809
Share repurchase program, remaining amount	$ 4,577		$ 4,577
Common Stock
Equity [Line Items]
Vesting of restricted stock units, Shares	5,078	25,693	80,187	35,893
Treasury stock
Equity [Line Items]
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares	1,076	7,237	22,902	9,870
Increase in treasury stock resulting from shares withheld to cover statutory taxes	$ 28	$ 147	$ 431	$ 197
Retirement of treasury stock, Shares			22,902

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 35,747	$ 32,032
Accounts receivable, net of allowance for doubtful accounts of $238 and $159 as of September 30, 2024 and December 31, 2023, respectively	8,459	7,135
Prepaid expenses and other current assets	1,730	1,113
Total current assets	45,936	40,280
Property and equipment, net	581	592
Intangible assets, net	35,731	34,403
Goodwill	5,227	5,227
Right-of-use assets	2,045	2,457
Deferred tax assets	7,463	9,514
Other noncurrent assets	987	517
Total assets	97,970	92,990
Current liabilities:
Accounts payable	2,787	1,631
Accrued expenses and other current liabilities	795	1,989
Current portion of operating lease liabilities	469	569
Deferred revenue	565	690
Total current liabilities	4,616	4,879
Noncurrent operating lease liabilities	1,680	1,999
Total liabilities	6,296	6,878
Shareholders' equity:
Preferred stock-$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of September 30, 2024 and December 31, 2023	0	0
Common stock-$0.001 par value, 200,000,000 shares authorized, 13,735,387 and 13,980,274 shares issued, and 13,735,387 and 13,970,846 shares outstanding, as of September 30, 2024 and December 31, 2023	14	14
Treasury stock, at cost, 0 and 9,428 shares as of September 30, 2024 and December 31, 2023	0	(188)
Additional paid-in capital	93,393	94,159
Accumulated deficit	(1,733)	(7,873)
Total shareholders' equity	91,674	86,112
Total liabilities and shareholders' equity	$ 97,970	$ 92,990

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Data cost incurred	$ 2,328	$ 2,367	$ 7,168	$ 7,086
Total capital commitment under certain data licensing agreements	$ 15,215		$ 15,215

Related Party Transactions - Additional Information (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Share-based compensation expense

$ 1,657

$ 1,369

$ 4,452

$ 4,058

Restricted Stock Units (RSUs)

Unvested shares granted in accordance with 2018 RSU agreement

^[1]

263,985

[1]

Revenue recognition

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

5. Revenue recognition

The Company recognized revenue in accordance with ASC 606, “Revenue from Contracts with Customers” (“Topic 606”). Under this standard, revenue is recognized when control of goods or services is transferred to the Company’s customers, in an amount that reﬂects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s performance obligation is to provide on demand information and identity intelligence solutions to its customers by leveraging its proprietary technology and applying machine learning and advanced analytics to its massive data repository. The pricing for the customer contracts is based on usage, a monthly fee, or a combination of both.

Available within Topic 606, the Company has applied the portfolio approach practical expedient in accounting for customer revenue as one collective group, rather than individual contracts. Based on the Company’s historical knowledge of the contracts contained in this portfolio and the similar nature and characteristics of the customers, the Company has concluded the financial statement effects are not materially different than if accounting for revenue on a contract by contract basis.

Revenue is recognized over a period of time. The Company’s customers simultaneously receive and consume the benefits provided by the Company’s performance as and when provided. Furthermore, the Company has elected the “right to invoice” practical expedient, available within Topic 606, as its measure of progress, since it has a right to payment from a customer in an amount that corresponds directly with the value of its performance completed-to-date. In some arrangements, a right to consideration for the Company's performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled accounts receivable. As of September 30, 2024, the current and noncurrent portion unbilled accounts receivable of $918 and $892, respectively, were included within accounts receivable and other noncurrent assets, respectively, on the condensed consolidated balance sheets. As of December 31, 2023, the current and noncurrent portion unbilled accounts receivable of $829 and $371, respectively, were included within accounts receivable and other noncurrent assets, respectively, on the consolidated balance sheets. The Company's revenue arrangements do not contain significant financing components.

For the three months ended September 30, 2024 and 2023, 77% and 79% of total revenue was attributable to customers with pricing contracts, respectively, versus 23% and 21% attributable to transactional customers, respectively. For the nine months ended September 30, 2024 and 2023, 76% and 78% of total revenue was attributable to customers with pricing contracts, respectively, versus 24% and 22% attributable to transactional customers, respectively. Pricing contracts are generally annual contracts or longer, with auto renewal.

If a customer pays consideration before the Company transfers services to the customer, those amounts are classified as deferred revenue. As of September 30, 2024 and December 31, 2023, the balance of deferred revenue was $565 and $690, respectively, all of which is expected to be realized in the next 12 months. In relation to the deferred revenue balance as of December 31, 2023, $147 and $577 was recognized into revenue during the three and nine months ended September 30, 2024, respectively.

As of September 30, 2024, $22,098 of revenue is expected to be recognized in the future for performance obligations that are unsatisfied or partially unsatisfied, related to pricing contracts that have a term of more than 12 months, of which, $3,284 of revenue will be recognized in the remainder of 2024, $9,946 in 2025, $5,207 in 2026, $3,252 in 2027, $364 in 2028, and $45 in 2029. The actual timing of recognition may vary due to factors outside of the Company’s control. The Company excludes variable consideration related entirely to wholly unsatisfied performance obligations and contracts and recognizes such variable consideration based upon the right to invoice the customer.

Sales commissions are incurred and recorded on an ongoing basis over the term of the customer relationship. These costs are recorded in sales and marketing expenses.

In addition, the Company elected the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Earnings per share - Schedule of Basic and Diluted Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Earnings Per Share [Abstract]

Net income

$ 1,719

$ 12,495

$ 6,140

$ 14,599

Weighted average shares outstanding:

Basic

13,782,476

13,952,426

13,852,947

13,970,317

Diluted

^[1]

14,311,575

14,329,878

14,224,285

14,207,673

Earnings per share:

Basic

$ 0.12

$ 0.9

$ 0.44

$ 1.05

Diluted

$ 0.12

$ 0.87

$ 0.43

$ 1.03

[1]	For the three and nine months ended September 30, 2024 and 2023, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Leases - Additional Information (Details) - ft²	Sep. 30, 2024	Sep. 20, 2023	Apr. 30, 2017	Jan. 31, 2017
Leases [Abstract]
Operating leases rentable square feet			6,003	21,020
Operating lease agreement			90 months	89 months
Operating lease, extended term		60 months	60 months	60 months
Weighted average remaining operating lease	4 years 6 months

Leases - Summary of Company's Lease Information (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Lease cost:

Operating lease costs

$ 194

$ 168

$ 583

$ 504

Other information:

Cash paid for operating leases

199

192

589

573

Right-of-use assets obtained in exchange for operating lease liabilities

^[1]

$ 0

$ 1,919

$ 0

$ 1,919

Weighted average discount rate for operating leases

^[2]

0.00%

10.00%

0.00%

10.00%

[1]	The Amended Lease resulted in an addition of $1,919 to right-of-use assets and operating lease liabilities, as of September 20, 2023 (the "Remeasurement Date").
[2]	The Company used 10%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the Amended Lease to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of the Remeasurement Date.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of significant accounting policies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 Segment
Accounting Policies [Abstract]
Operating segments	1

Summary of significant accounting policies (Policies)	9 Months Ended
Summary of significant accounting policies (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Preparation	(a) Basis of preparation The accompanying unaudited condensed consolidated financial statements of Red Violet, Inc., a Delaware corporation, and its consolidated subsidiaries (collectively, “red violet” or the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to those rules and regulations. The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for any future interim periods or for the full year ending December 31, 2024. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 7, 2024 (“Form 10-K”). The condensed consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date included in the Form 10-K, but does not include all disclosures required by US GAAP. The Company has only one operating segment, as defined by Accounting Standards Codification (“ASC”) 280, “Segment Reporting.” Principles of consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions among the Company and its subsidiaries have been eliminated upon consolidation.
Recently Issued Accounting Standards	(b) Recently issued accounting standards In November 2023, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standard Updates (“ASU”) No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07")," which requires a public entity to disclose significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), a description of other segment items by reportable segment, and an explanation of any additional measures the CODM uses in deciding how to allocate resources, and extend nearly all annual segment reporting requirements to quarterly reporting requirements. In addition, entities with a single reportable segment must now provide all segment disclosures required in Accounting Standard Codification ("ASC") 280, including the new disclosures for reportable segments under the amendments in ASU 2023-07. The new guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The guidance will be applied on a retrospective basis, with such disclosures to be made in regard to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this ASU on its condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09)," which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning after December 31, 2024. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently evaluating the guidance to determine its impact on our condensed consolidated financial statements and related disclosures.

Intangible assets, net - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Intangible Liability Disclosure [Abstract]
Remainder of 2024	$ 2,448
2025	9,748
2026	8,361
2027	6,745
2028	4,313
2029 and thereafter	4,116
Total	$ 35,731	$ 34,403

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Treasury stock	Additional Paid- in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2022	$ 71,093	$ 14		$ 92,481	$ (21,402)
Beginning balances, shares at Dec. 31, 2022		13,956,404
Vesting of restricted stock units, Shares		35,893
Increase in treasury stock resulting from shares withheld to cover statutory taxes	(197)		$ (197)
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares			(9,870)
Common stock repurchased	(1,251)		$ (1,251)
Common stock repurchased, shares			(70,037)
Retirement of treasury stock	1,280		$ 1,280	(1,280)
Retirement of treasury stock, Shares		(71,927)	71,927
Share-based compensation	5,447			5,447
Net Income (Loss)	14,599				14,599
Ending balance at Sep. 30, 2023	89,691	$ 14	$ (168)	96,648	(6,803)
Ending balances, shares at Sep. 30, 2023		13,920,370	(7,980)
Beginning balance at Jun. 30, 2023	75,768	$ 14	$ (52)	95,104	(19,298)
Beginning balances, shares at Jun. 30, 2023		13,911,691	(2,738)
Vesting of restricted stock units, Shares		25,693
Increase in treasury stock resulting from shares withheld to cover statutory taxes	(147)		$ (147)
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares			(7,237)
Common stock repurchased	(311)		$ (311)
Common stock repurchased, shares			(15,019)
Retirement of treasury stock			$ 342	(342)
Retirement of treasury stock, Shares		(17,014)	17,014
Share-based compensation	1,886			1,886
Net Income (Loss)	12,495				12,495
Ending balance at Sep. 30, 2023	89,691	$ 14	$ (168)	96,648	(6,803)
Ending balances, shares at Sep. 30, 2023		13,920,370	(7,980)
Beginning balance at Dec. 31, 2023	86,112	$ 14	$ (188)	94,159	(7,873)
Beginning balances, shares at Dec. 31, 2023		13,980,274	(9,428)
Vesting of restricted stock units, Shares		80,187
Increase in treasury stock resulting from shares withheld to cover statutory taxes	(431)		$ (431)
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares			(22,902)
Common stock repurchased	(5,809)		$ (5,809)
Common stock repurchased, shares			(292,744)
Retirement of treasury stock	6,428		$ 6,428	(6,428)
Retirement of treasury stock, Shares		(325,074)	325,074
Share-based compensation	5,662			5,662
Net Income (Loss)	6,140				6,140
Ending balance at Sep. 30, 2024	91,674	$ 14		93,393	(1,733)
Ending balances, shares at Sep. 30, 2024		13,735,387
Beginning balance at Jun. 30, 2024	87,998	$ 14	$ (236)	91,672	(3,452)
Beginning balances, shares at Jun. 30, 2024		13,744,189	(12,804)
Vesting of restricted stock units, Shares		5,078
Increase in treasury stock resulting from shares withheld to cover statutory taxes	(28)		$ (28)
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares			(1,076)
Retirement of treasury stock			$ 264	(264)
Retirement of treasury stock, Shares		(13,880)	13,880
Share-based compensation	1,985			1,985
Net Income (Loss)	1,719				1,719
Ending balance at Sep. 30, 2024	$ 91,674	$ 14		$ 93,393	$ (1,733)
Ending balances, shares at Sep. 30, 2024		13,735,387

Earnings per share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings per share

2. Earnings per share


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except share data)	2024		2023		2024		2023
Numerator:
Net income	$	1,719	$	12,495	$	6,140	$	14,599
Denominator:
Weighted average shares outstanding:
Basic		13,782,476		13,952,426		13,852,947		13,970,317
Diluted(1)		14,311,575		14,329,878		14,224,285		14,207,673
Earnings per share:
Basic	$	0.12	$	0.90	$	0.44	$	1.05
Diluted	$	0.12	$	0.87	$	0.43	$	1.03

(1)

For the three and nine months ended September 30, 2024 and 2023, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

9. Leases

The Company leases its corporate headquarters of 21,020 rentable square feet in accordance with a non-cancellable 89-month operating lease agreement as amended and effective in January 2017, with an option to extend for an additional 60 months. On September 20, 2023, the Company entered into an amendment to its corporate headquarters lease agreement to exercise the extension option for an additional 60 months through June 30, 2029 (the "Amended Lease"), with an option to further extend for an additional 60 months. The Company also leases an additional office space of 6,003 rentable square feet in accordance with a non-cancellable 90-month operating lease agreement entered into in April 2017, with an option to extend for an additional 60 months. The extension option is not included in the determination of the lease term as it is not reasonably certain to be exercised.

For the three and nine months ended September 30, 2024 and 2023, a summary of the Company’s lease information is shown below:


	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2024		2023			2024		2023
Lease cost:
Operating lease costs	$	194	$	168		$	583	$	504
Other information:
Cash paid for operating leases	$	199	$	192		$	589	$	573
Right-of-use assets obtained in exchange for operating lease liabilities(1)	$	-	$	1,919		$	-	$	1,919
Weighted average discount rate for operating leases(2)		-		10	%		-		10	%

(1)

The Amended Lease resulted in an addition of $1,919 to right-of-use assets and operating lease liabilities, as of September 20, 2023 (the "Remeasurement Date").

(2)

As of September 30, 2024, the weighted average remaining operating lease term was 4.5 years.

As of September 30, 2024, scheduled future maturities and present value of the operating lease liabilities are as follows:


(In thousands)
Year	September 30, 2024
Remainder of 2024		201
2025		580
2026		519
2027		535
2028		551
2029 and thereafter		279
Total maturities	$	2,665
Present value included in condensed consolidated balance sheet:
Current portion of operating lease liabilities	$	469
Noncurrent operating lease liabilities		1,680
Total operating lease liabilities	$	2,149
Difference between the maturities and the present value of operating lease liabilities	$	516

Intangible assets, net

9 Months Ended

Sep. 30, 2024

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets, Net

3. Intangible assets, net

Intangible assets other than goodwill consist of the following:


		September 30, 2024							December 31, 2023
(In thousands)	Amortization period	Gross amount		Accumulated amortization			Net		Gross amount		Accumulated amortization			Net
Software developed for internal use	5-10 years	$	71,712	$	(35,981	)	$	35,731	$	63,545	$	(29,142	)	$	34,403

The gross amount associated with software developed for internal use represents capitalized costs of internally-developed software, including eligible salaries and staff benefits, share-based compensation, travel expenses incurred by relevant employees, and other relevant costs.

Amortization expenses of $2,382 and $2,112 for the three months ended September 30, 2024 and 2023, respectively, and $6,918 and $5,965 for the nine months ended September 30, 2024 and 2023, respectively, were included in depreciation and amortization expense. As of September 30, 2024, intangible assets of $5,939, included in the gross amounts of software developed for internal use, have not started amortization, as they are not ready for their intended use.

The Company capitalized costs of software developed for internal use of $2,708 and $2,929 during the three months ended September 30, 2024 and 2023, respectively, and $8,328 and $8,310 during the nine months ended September 30, 2024 and 2023, respectively.

As of September 30, 2024, estimated amortization expense related to the Company’s intangible assets for the remainder of 2024 through 2029 and thereafter are as follows:


(In thousands)
Year	September 30, 2024
Remainder of 2024	$	2,448
2025		9,748
2026		8,361
2027		6,745
2028		4,313
2029 and thereafter		4,116
Total	$	35,731