We believe our key assets, combined with the natural language processing capabilities of large language models as well as the analytical advantages of deep learning, will prove invaluable to any business or organization in making more informed decisions, driving innovation and gaining a competitive edge in today’s data driven world. On the corporate governance front, it’s important to the company that as the company and the business landscape evolve, so must our Board of Directors to ensure that we can adapt to emerging opportunities and challenges, drive innovation, and solidify the long-term sustainability and growth of the Company. We recently announced the appointment of Bill Livek to our Board of Directors. Bill’s multi-decade career, building platform driven solutions to drive consumer insights has established him as a leading innovator in the information services space, and we are pleased to have Bill on the Red Violet Board of Directors.
Turning now to our stock repurchase program. As you may recall, on December 19, 2023, our Board of Directors authorized the repurchase of an additional $5 million of the Company’s common stock. During the fourth quarter, the company purchased 125,703 shares at an average price of $19.89 per share. Since inception in May of 2022 through February 29, 2024 the Company purchased a total of 289,340 shares at an average price of $18.73 per share. As of March 2024, the company had approximately $4.6 million remaining under the stock repurchase program. With that, I’ll turn it over to Dan to discuss the financials.
Dan MacLachlan: Thank you Derek, and good afternoon. 2023 was a strong year for Red Violet, again producing yearly records in revenue, gross profit, net income, adjusted EBITDA and free cash flow. Reflecting back to the first quarter of 2023, in the shadow of some broader economic uncertainty, our goals were to advance our long-term strategic plan by converting our healthy cash flow and solid balance sheet into innovative solutions, enhanced capabilities, entry into new markets and increasing market penetration. I’m happy to report that we executed well against those goals with several product releases in 2023, including enhanced KYC functionality with fraud signals and scoring for the broader identity market, a robust background screening support suite that now includes idiTRACE, idiCrim, and idiALIAS [ph] and enhanced criminal information capabilities for law enforcement and our investigative vertical that includes map-based criminal search functionality, real-time arrest search and arrest monitoring.
We are now hitting the market with our IDI marketing solution, providing more than 400 attributes across more than 260 million U.S. consumers. IDI marketing, along with our CORE identity solution, allows us the opportunity to capture the entire identity journey and corresponding wallet share from our customers, through protecting and acquisition, verification and onboarding, and protecting and personalizing. These combined solutions encompass the full customer identity lifecycle. Closing out the year, we launched several AI initiatives including enhanced AI-driven entity resolutions, predictive analytics driven by deep learning and improved data extraction using large language models. Moving into 2024, we are extremely excited about our solutions suite and the expanding applicability to the markets we serve.
And as Derek discussed, our opportunity to lean in a bit to accelerate our revenue in 2024, because of our incremental margin on every growth dollar, we believe we can accomplish this acceleration while still generating increasing profitability with adjusted EBITDA margin nearing 30% and producing strong free cash flow. At this time, I would like to discuss two updates we have made to our reporting. The first update is that we have started reporting two additional non-GAAP measures, adjusted net income and adjusted earnings per share. We believe adjusted net income and adjusted earnings per share provides additional means of evaluating period-over-period operating performance by eliminating certain noncash expenses and other items that might obscure trends in our operations and otherwise make comparisons of our ongoing business more difficult.
The second update relates to our supplemental metrics. Beginning with the first quarter of 2024, we will no longer provide revenue from new customers, base revenue from existing customers, and growth revenue from existing customers as supplemental metrics. As we periodically review and refine the definition, methodology, and appropriateness of our supplemental metrics, the way these supplemental revenue metrics are currently defined and tracked have become less relevant to management internally, and we believe they no longer provide meaningful information to understand or evaluate the trends in our business. Turning now to our fourth quarter results, for clarity, all the comparisons I will discuss today will be against the fourth quarter of 2022 unless noted otherwise.
Total revenue was $15.1 million, a 15% increase over prior year. We produced $11.7 million in adjusted gross profit, resulting in a margin of 78% in the fourth quarter, up 1 percentage point. Adjusted EBITDA for the quarter was $2.7 million, up 76% over prior year. Adjusted EBITDA margin was 18%, up 6 percentage points. Adjusted net income increased 157% to $0.3 million for the quarter, resulting in adjusted earnings of $0.02 per share. Moving through the details of our P&L, as mentioned, revenue was $15.1 million for the fourth quarter. Digging in a bit to IDI’s revenue segments, we saw strong double-digit percentage revenue growth in financial and corporate risk, as well as within our investigative segment which was led by law enforcement where we continue to focus sales resources and are making nice traction.
Continuing the trend we saw last quarter collections revenue as a percentage over prior year grew in the high single digits. After a year of negative year-over-year quarterly growth, we have now had two consecutive quarters of year-over-year quarterly growth within our collections vertical. We remain cautiously optimistic regarding these recent trends as we are starting to see stronger, consistent volumes across our collections customer base. Rounding out IDI, both emerging markets, which is comprised of multiple industries, and real estate, which does not include FOREWARN, we’re down a few percentage points over prior year. Our IDI billable customer base grew by 106 customers sequentially from the third quarter, ending the fourth quarter at 7875 customers.
