Red Violet, Inc. (NASDAQ:RDVT) Q1 2024 Earnings Call Transcript

Derek Dubner: Yeah. Josh, it’s Derek. Just adding to that as you probably know and as many see that the consumer a certain section of the consumer is challenged. Government subsidies have worn off and they’re now having to pay their bills forbearance is gone. And therefore, first what we saw were the autos going back where many bought autos rates have peaked or not peaked, but at least hit a high level. It looks like we’re going to be higher for longer perhaps or at least until that changes. And so consumers have definitely been challenged there. After autos credit card delinquencies have moved up. They’re at the highest they’ve been since probably 2012 or so. And so given those indications and the fact that inflation at least as of right now seems to be a little sticky as the deceleration has slowed.

It appears that the consumer will continue to be challenged or at least a good number of consumers. And as we know, it takes a little bit of a process, where a consumer goes through that process and it ends up being a collection effort. Now given that unemployment is still relatively low and as long as the consumer is working and able to pay some bills and continue to be the American consumer who’s always been a robust vendor that may continue for some time. So jury’s out a little bit on collections, but it’s certainly showing durability over the last few quarters.

Josh Nichols: I appreciate the update. Glad to see everything off to such a good start for the first quarter. Thanks guys.

Derek Dubner: Thank you, Josh.

Dan MacLachlan: Thanks, Josh.

Operator: I am showing no further questions at this time. I would now like to turn it back to Derek Dubner for closing remarks.

Derek Dubner: Thank you all for joining us today to report our first quarter financial results. We reported another record revenue quarter, the highest in our company history and a reacceleration of our business. The investments we’ve made over the past 18 months are translating to better market awareness, better use and volumes of our solutions, enhancing our product suite and increasing our go-to-market capabilities, as we continue to execute upon our strategic plan. Given our highly leverageable fixed cost model and healthy cash generation, we are well positioned to continue investing in our business and enhancing shareholder value. We’re excited about the remainder of 2024 and beyond. Good afternoon.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.