Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
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 | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 13,939,405 | |
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, $0.001 par value per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 34,210 | $ 31,810 |
Accounts receivable, net of allowance for doubtful accounts of $109 and $60 as ofSeptember 30, 2023 and December 31, 2022, respectively | 6,805 | 5,535 |
Prepaid expenses and other current assets | 1,178 | 771 |
Total current assets | 42,193 | 38,116 |
Property and equipment, net | 627 | 709 |
Intangible assets, net | 33,992 | 31,647 |
Goodwill | 5,227 | 5,227 |
Right-of-use assets | 2,589 | 1,114 |
Deferred tax assets | 10,021 | 0 |
Other noncurrent assets | 627 | 601 |
Total assets | 95,276 | 77,414 |
Current liabilities: | ||
Accounts payable | 1,989 | 2,229 |
Accrued expenses and other current liabilities | 372 | 1,845 |
Current portion of operating lease liabilities | 548 | 692 |
Deferred revenue | 527 | 670 |
Total current liabilities | 3,436 | 5,436 |
Noncurrent operating lease liabilities | 2,149 | 598 |
Deferred tax liabilities | 0 | 287 |
Total liabilities | 5,585 | 6,321 |
Shareholders' equity: | ||
Preferred stock-$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock-$0.001 par value, 200,000,000 shares authorized, 13,920,370 and 13,956,404 shares issued, and 13,912,390 and 13,956,404 shares outstanding, as of September 30, 2023 and December 31, 2022 | 14 | 14 |
Treasury stock, at cost, 7,980 and 0 shares as of September 30, 2023 and December 31,2022 | (168) | 0 |
Additional paid-in capital | 96,648 | 92,481 |
Accumulated deficit | (6,803) | (21,402) |
Total shareholders' equity | 89,691 | 71,093 |
Total liabilities and shareholders' equity | $ 95,276 | $ 77,414 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 109 | $ 60 |
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 | 13,920,370 | 13,956,404 |
Common stock, shares outstanding | 13,912,390 | 13,956,404 |
Treasury stock shares | 7,980 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenue | $ 15,837 | $ 15,026 | $ 45,143 | $ 40,249 | |
Costs and expenses: | |||||
Sales and marketing expenses | 3,365 | 2,623 | 10,332 | 7,836 | |
General and administrative expenses | 5,223 | 5,465 | 15,539 | 16,118 | |
Depreciation and amortization | 2,171 | 1,713 | 6,141 | 4,860 | |
Total costs and expenses | 14,072 | 12,868 | 41,744 | 37,971 | |
Income from operations | 1,765 | 2,158 | 3,399 | 2,278 | |
Interest income, net | 346 | 125 | 947 | 126 | |
Income before income taxes | 2,111 | 2,283 | 4,346 | 2,404 | |
Income tax (benefit) expense | (10,384) | 25 | (10,253) | 244 | |
Net income | $ 12,495 | $ 2,258 | $ 14,599 | $ 2,160 | |
Earnings per share: | |||||
Basic | $ 0.9 | $ 0.16 | $ 1.05 | $ 0.16 | |
Diluted | $ 0.87 | $ 0.16 | $ 1.03 | $ 0.16 | |
Weighted average number of shares outstanding: | |||||
Basic | 13,952,426 | 13,748,587 | 13,970,317 | 13,690,309 | |
Diluted | [1] | 14,329,878 | 13,764,262 | 14,207,673 | 13,872,596 |
Service [Member] | |||||
Costs and expenses: | |||||
Cost of revenue (exclusive of depreciation and amortization) | $ 3,313 | $ 3,067 | $ 9,732 | $ 9,157 | |
[1] For the three and nine months ended September 30, 2023 and 2022, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs"). |
CONDENSED CONSOLIDATED STATEM_2
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, 2021 | $ 69,429 | $ 13 | $ 91,434 | $ (22,018) | |
Beginning balances, shares at Dec. 31, 2021 | 13,488,540 | ||||
Vesting of restricted stock units | $ 1 | (1) | |||
Vesting of restricted stock units, Shares | 605,899 | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes | (4,310) | $ (4,310) | |||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (200,033) | ||||
Retirement of treasury stock | 4,675 | $ 4,675 | (4,675) | ||
Retirement of treasury stock, Shares | (220,033) | 220,033 | |||
Common stock repurchased | (383) | $ (383) | |||
Common stock repurchased, shares | (21,000) | ||||
Share-based compensation | 5,259 | 5,259 | |||
Net income | 2,160 | 2,160 | |||
Ending balance at Sep. 30, 2022 | 72,155 | $ 14 | $ (18) | 92,017 | (19,858) |
Ending balances, shares at Sep. 30, 2022 | 13,874,406 | (1,000) | |||
Beginning balance at Jun. 30, 2022 | 69,942 | $ 14 | $ (134) | 92,178 | (22,116) |
Beginning balances, shares at Jun. 30, 2022 | 13,702,796 | (7,031) | |||
Vesting of restricted stock units, Shares | 285,389 | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes | (1,539) | $ (1,539) | |||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (93,779) | ||||
Retirement of treasury stock | $ 1,904 | (1,904) | |||
Retirement of treasury stock, Shares | (113,779) | 113,779 | |||
Common stock repurchased | (249) | $ (249) | |||
Common stock repurchased, shares | (13,969) | ||||
Share-based compensation | 1,743 | 1,743 | |||
Net income | 2,258 | 2,258 | |||
Ending balance at Sep. 30, 2022 | 72,155 | $ 14 | $ (18) | 92,017 | (19,858) |
Ending balances, shares at Sep. 30, 2022 | 13,874,406 | (1,000) | |||
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 | $ 0 | ||||
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) | ||||
Retirement of treasury stock | 1,280 | $ 1,280 | (1,280) | ||
Retirement of treasury stock, Shares | (71,927) | 71,927 | |||
Common stock repurchased | (1,251) | $ (1,251) | |||
Common stock repurchased, shares | (70,037) | ||||
Share-based compensation | 5,447 | 5,447 | |||
Net income | 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) | ||||
Retirement of treasury stock | $ 342 | (342) | |||
Retirement of treasury stock, Shares | (17,014) | 17,014 | |||
Common stock repurchased | (311) | $ (311) | |||
Common stock repurchased, shares | (15,019) | ||||
Share-based compensation | 1,886 | 1,886 | |||
Net income | 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) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 14,599 | $ 2,160 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,141 | 4,860 | |
Share-based compensation expense | 4,058 | 4,066 | |
Write-off of long-lived assets | 4 | 6 | |
Provision for bad debts | 913 | 96 | |
Noncash lease expenses | 444 | 406 | |
Deferred income tax (benefit) expense | (10,308) | 207 | |
Changes in assets and liabilities: | |||
Accounts receivable | (2,183) | (2,833) | |
Prepaid expenses and other current assets | (407) | (250) | |
Other noncurrent assets | (26) | 0 | |
Accounts payable | (240) | (9) | |
Accrued expenses and other current liabilities | (1,473) | 149 | |
Deferred revenue | (143) | (302) | |
Operating lease liabilities | (512) | (456) | |
Net cash provided by operating activities | 10,867 | 8,100 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (98) | (271) | |
Capitalized costs included in intangible assets | (6,921) | (6,139) | |
Net cash used in investing activities | (7,019) | (6,410) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Taxes paid related to net share settlement of vesting of restricted stock units | (197) | (4,310) | |
Repurchases of common stock | (1,251) | (365) | |
Net cash used in financing activities | (1,448) | (4,675) | |
Net increase (decrease) in cash and cash equivalents | 2,400 | (2,985) | |
Cash and cash equivalents at beginning of period | 31,810 | 34,258 | |
Cash and cash equivalents at end of period | 34,210 | 31,273 | |
SUPPLEMENTAL DISCLOSURE INFORMATION | |||
Cash paid for interest | 0 | 0 | |
Cash paid for income taxes | 55 | 37 | |
Share-based compensation capitalized in intangible assets | 1,389 | 1,193 | |
Retirement of treasury stock | 1,280 | 4,675 | |
Right-of-use assets obtained in exchange for operating lease liabilities | [1] | 1,919 | 0 |
Operating lease liabilities arising from obtaining right-of-use assets | $ 1,919 | $ 0 | |
[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"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023. 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, 2022 filed with the SEC on March 8, 2023 (“Form 10-K”). The condensed consolidated balance sheet as of December 31, 2022 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 As an emerging growth company, the Company has left open the opportunity to take advantage of the extended transition period provided to emerging growth companies in Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), however, it is the Company’s present intention to adopt any applicable new accounting standards timely. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | 2. 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) 2023 2022 2023 2022 Numerator: Net income $ 12,495 $ 2,258 $ 14,599 $ 2,160 Denominator: Weighted average shares outstanding: Basic 13,952,426 13,748,587 13,970,317 13,690,309 Diluted (1) 14,329,878 13,764,262 14,207,673 13,872,596 Earnings per share: Basic $ 0.90 $ 0.16 $ 1.05 $ 0.16 Diluted $ 0.87 $ 0.16 $ 1.03 $ 0.16 (1) For the three and nine months ended September 30, 2023 and 2022, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs"). |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | 3. Intangible assets, net Intangible assets other than goodwill consist of the following: September 30, 2023 December 31, 2022 (In thousands) Amortization Gross amount Accumulated amortization Net Gross amount Accumulated amortization Net Software developed for internal use 5 - 10 years $ 60,988 $ ( 26,996 ) $ 33,992 $ 52,678 $ ( 21,031 ) $ 31,647 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 $ 2,112 and $ 1,659 for the three months ended September 30, 2023 and 2022, respectively, and $ 5,965 and $ 4,682 for the nine months ended September 30, 2023 and 2022, respectively, were included in depreciation and amortization expense. As of September 30, 2023, intangible assets of $ 5,370 , 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 $ 2,929 and $ 2,716 during the three months ended September 30, 2023 and 2022, respectively, and $ 8,310 and $ 7,332 during the nine months ended September 30, 2023 and 2022, respectively . As of September 30, 2023, estimated amortization expense related to the Company’s intangible assets for the remainder of 2023 through 2028 and thereafter are as follows: (In thousands) Year September 30, 2023 Remainder of 2023 2,168 2024 9,002 2025 7,836 2026 6,383 2027 4,767 2028 and thereafter 3,836 Total $ 33,992 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and December 31, 2022, 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 no t record a goodwill impairment loss during the three and nine months ended September 30, 2023 and 2022, and as of September 30, 2023, there was no accumulated goodwill impairment loss. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023, the current and noncurrent portion unbilled accounts receivable of $ 778 and $ 481 , respectively, were included within accounts receivable and other noncurrent assets, respectively, on the condensed consolidated balance sheets . As of December 31, 2022, the current and noncurrent portion unbilled accounts receivable of $ 923 and $ 464 , respectively, were included within accounts receivable and other noncurrent assets, respectively, on the condensed consolidated balance sheet . The Company's revenue arrangements do not contain significant financing components. For the three months ended September 30, 2023 and 2022, 79 % and 68 % of total revenue was attributable to customers with pricing contracts, respectively, versus 21 % and 32 % attributable to transactional customers, respectively. For the nine months ended September 30, 2023 and 2022, 78 % and 74 % of total revenue was attributable to customers with pricing contracts, respectively, versus 22 % and 26 % 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, 2023 and December 31, 2022, the balance of deferred revenue was $ 527 and $ 670 , 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, 2022, $ 102 and $ 502 was recognized into revenue during the three and nine months ended September 30, 2023, respectively. As of September 30, 2023, $ 11,823 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, $ 2,367 of revenue will be recognized in the remainder of 2023, $ 6,063 in 2024, $ 2,237 in 2025, $ 850 in 2026, and $ 306 in 2027. 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
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. During the three months ended September 30, 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 the deferred tax assets as of September 30, 2023 is more likely than not. The Company’s effective income tax rate was ( 492 %) and 1 % for the three months ended September 30, 2023 and 2022, respectively, and ( 236 %) and 10 % for the nine months ended September 30, 2023 and 2022, respectively, differing from the U.S. corporate statutory federal income tax rate of 21 %. T he difference is primarily the result of the release of the valuation allowance, recognition of credit for increasing research activities, 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 no t have any material unrecognized tax benefits as of September 30, 2023 and December 31, 2022. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Common Stock and Treasury Stock | 7. Common stock and treasury stock As of September 30, 2023 and December 31, 2022, the number of issued shares of common stock was 13,920,370 and 13,956,404 , respectively, which included shares of treasury stock of 7,980 and 0 , respectively. The changes in the number of issued shares of common stock and treasury stock were due to the following factors: • An aggregate of 35,893 shares of common stock were issued as a result of the vesting of RSUs, of which, 9,870 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock, with a cost of $ 197 . Related treasury stock of 9,870 shares was then retired during the nine months ended September 30, 2023. • 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 (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, 2023, the Company repurchased 70,037 shares of common stock under the Stock Repurchase Program, which was reflected in treasury stock, with a cost of $ 1,251 . Related treasury stock of 62,057 shares, with a cost of $ 1,083 , was retired during the nine months ended September 30, 2023, which resulted in a treasury stock balance of $ 168 as of September 30, 2023. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
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. On June 3, 2020, the Company’s stockholders approved an amendment to the 2018 Plan to increase the number of shares of common stock authorized for issuance under the 2018 Plan from 3,000,000 shares to 4,500,000 shares, and on May 25, 2022, the Company's stockholders approved an amendment to the 2018 Plan to increase the number of shares of common stock authorized for issuance under the 2018 Plan from 4,500,000 shares to 6,500,000 shares. 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, 2023, there were 2,331,868 shares of common stock available for future issuance under the 2018 Plan, as amended. To date, all stock incentives issued under the 2018 Plan have been in the form of RSUs. RSUs granted under the 2018 Plan 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 three months ended September 30, 2023 were as follows: Number of units Weighted average Unvested as of December 31, 2022 1,044,132 $ 20.64 Granted (1) 36,000 $ 19.22 Vested and delivered ( 26,023 ) $ 18.94 Withheld as treasury stock (2) ( 9,870 ) $ 18.15 Forfeited ( 78,511 ) $ 22.01 Unvested as of September 30, 2023 965,728 $ 20.39 (1) In September 2023, the Company granted 12,000 RSUs, subject to performance-based requirements, to one non-executive employee at a grant date fair value of $ 20.39 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, 2023, the achievement date deadline. No amortization of share-based compensation expense has been recognized for these RSUs, because, as of September 30, 2023, the Company determined that it is not probable that such performance criteria will be met. In addition to the 12,000 RSUs discussed above, the Company granted, during the nine months ended September 30, 2023, an aggregate of 24,000 RSUs to certain employees at grant date fair values ranging from $ 16.17 to $ 20.77 per share, with a vesting period ranging from three 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. As of September 30, 2023, unrecognized share-based compensation expense associated with the granted RSUs amounted to $ 11,402 , which is expected to be recognized over a remaining weighted average period of 2.0 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, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Sales and marketing expenses $ 116 $ 92 $ 348 $ 247 General and administrative expenses 1,253 1,181 3,710 3,819 Share-based compensation expense 1,369 1,273 4,058 4,066 Capitalized in intangible assets 517 470 1,389 1,193 Total $ 1,886 $ 1,743 $ 5,447 $ 5,259 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
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 the corporate headquarters lease agreement to exercise the extension option for an additional 60 months up to 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, 2023 and 2022, a summary of the Company’s lease information is shown below: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Lease cost: Operating lease costs $ 168 $ 168 $ 504 $ 504 Other information: Cash paid for operating leases $ 192 $ 186 $ 573 $ 555 Right-of-use assets obtained in exchange for operating (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) The Company used 10.0 %, 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. As of September 30, 2023, the weighted average remaining operating lease term was 5.1 years. As of September 30, 2023, scheduled future maturities and present value of the operating lease liabilities are as follows: (In thousands) Year September 30, 2023 Remainder of 2023 192 2024 790 2025 580 2026 519 2027 535 2028 and thereafter 830 Total maturities $ 3,446 Present value included in condensed consolidated balance sheet: Current portion of operating lease liabilities $ 548 Noncurrent operating lease liabilities 2,149 Total operating lease liabilities $ 2,697 Difference between the maturities and the present value of operating lease liabilities $ 749 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and contingencies (a) Capital commitment The Company incurred data costs of $ 2,367 and $ 2,332 for the three months ended September 30, 2023 and 2022, respectively , and $ 7,086 and $ 6,832 for the nine months ended September 30, 2023 and 2022, respectively, under certain data licensing agreements. As of September 30, 2023, material capital commitments under certain data licensing agreements were $ 22,141 , shown as follows: (In thousands) Year September 30, 2023 Remainder of 2023 2,339 2024 8,150 2025 7,702 2026 3,950 Total $ 22,141 (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. 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023. 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, 2022 filed with the SEC on March 8, 2023 (“Form 10-K”). The condensed consolidated balance sheet as of December 31, 2022 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 As an emerging growth company, the Company has left open the opportunity to take advantage of the extended transition period provided to emerging growth companies in Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), however, it is the Company’s present intention to adopt any applicable new accounting standards timely. |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 2023 2022 Numerator: Net income $ 12,495 $ 2,258 $ 14,599 $ 2,160 Denominator: Weighted average shares outstanding: Basic 13,952,426 13,748,587 13,970,317 13,690,309 Diluted (1) 14,329,878 13,764,262 14,207,673 13,872,596 Earnings per share: Basic $ 0.90 $ 0.16 $ 1.05 $ 0.16 Diluted $ 0.87 $ 0.16 $ 1.03 $ 0.16 (1) For the three and nine months ended September 30, 2023 and 2022, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs"). |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets Other than Goodwill | Intangible assets other than goodwill consist of the following: September 30, 2023 December 31, 2022 (In thousands) Amortization Gross amount Accumulated amortization Net Gross amount Accumulated amortization Net Software developed for internal use 5 - 10 years $ 60,988 $ ( 26,996 ) $ 33,992 $ 52,678 $ ( 21,031 ) $ 31,647 |
Schedule of Estimated Amortization Expense | As of September 30, 2023, estimated amortization expense related to the Company’s intangible assets for the remainder of 2023 through 2028 and thereafter are as follows: (In thousands) Year September 30, 2023 Remainder of 2023 2,168 2024 9,002 2025 7,836 2026 6,383 2027 4,767 2028 and thereafter 3,836 Total $ 33,992 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Unvested Restricted Stock Units | Details of unvested RSU activity during the three months ended September 30, 2023 were as follows: Number of units Weighted average Unvested as of December 31, 2022 1,044,132 $ 20.64 Granted (1) 36,000 $ 19.22 Vested and delivered ( 26,023 ) $ 18.94 Withheld as treasury stock (2) ( 9,870 ) $ 18.15 Forfeited ( 78,511 ) $ 22.01 Unvested as of September 30, 2023 965,728 $ 20.39 (1) In September 2023, the Company granted 12,000 RSUs, subject to performance-based requirements, to one non-executive employee at a grant date fair value of $ 20.39 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, 2023, the achievement date deadline. No amortization of share-based compensation expense has been recognized for these RSUs, because, as of September 30, 2023, the Company determined that it is not probable that such performance criteria will be met. In addition to the 12,000 RSUs discussed above, the Company granted, during the nine months ended September 30, 2023, an aggregate of 24,000 RSUs to certain employees at grant date fair values ranging from $ 16.17 to $ 20.77 per share, with a vesting period ranging from three 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. |
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, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Sales and marketing expenses $ 116 $ 92 $ 348 $ 247 General and administrative expenses 1,253 1,181 3,710 3,819 Share-based compensation expense 1,369 1,273 4,058 4,066 Capitalized in intangible assets 517 470 1,389 1,193 Total $ 1,886 $ 1,743 $ 5,447 $ 5,259 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Summary of Company's Lease Information | For the three and nine months ended September 30, 2023 and 2022, a summary of the Company’s lease information is shown below: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Lease cost: Operating lease costs $ 168 $ 168 $ 504 $ 504 Other information: Cash paid for operating leases $ 192 $ 186 $ 573 $ 555 Right-of-use assets obtained in exchange for operating (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) The Company used 10.0 %, 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. |
Scheduled Future Maturities and Present Value of Operating Lease Liabilities | As of September 30, 2023, scheduled future maturities and present value of the operating lease liabilities are as follows: (In thousands) Year September 30, 2023 Remainder of 2023 192 2024 790 2025 580 2026 519 2027 535 2028 and thereafter 830 Total maturities $ 3,446 Present value included in condensed consolidated balance sheet: Current portion of operating lease liabilities $ 548 Noncurrent operating lease liabilities 2,149 Total operating lease liabilities $ 2,697 Difference between the maturities and the present value of operating lease liabilities $ 749 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Capital Payments under Certain Data Licensing Agreements | The Company incurred data costs of $ 2,367 and $ 2,332 for the three months ended September 30, 2023 and 2022, respectively , and $ 7,086 and $ 6,832 for the nine months ended September 30, 2023 and 2022, respectively, under certain data licensing agreements. As of September 30, 2023, material capital commitments under certain data licensing agreements were $ 22,141 , shown as follows: (In thousands) Year September 30, 2023 Remainder of 2023 2,339 2024 8,150 2025 7,702 2026 3,950 Total $ 22,141 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 Segment | |
Accounting Policies [Abstract] | |
Operating segments | 1 |
Earnings per share - Schedule o
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Earnings Per Share [Abstract] | |||||
Net income | $ 12,495 | $ 2,258 | $ 14,599 | $ 2,160 | |
Weighted average shares outstanding: | |||||
Basic | 13,952,426 | 13,748,587 | 13,970,317 | 13,690,309 | |
Diluted | [1] | 14,329,878 | 13,764,262 | 14,207,673 | 13,872,596 |
Earnings per share: | |||||
Basic | $ 0.9 | $ 0.16 | $ 1.05 | $ 0.16 | |
Diluted | $ 0.87 | $ 0.16 | $ 1.03 | $ 0.16 | |
[1] For the three and nine months ended September 30, 2023 and 2022, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs"). |
Intangible Assets, Net - Intang
Intangible Assets, Net - Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Net | $ 33,992 | $ 31,647 |
Software Developed for Internal Use | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Amount | 60,988 | 52,678 |
Intangible Assets, Accumulated Amortization | (26,996) | (21,031) |
Intangible Assets, Net | $ 33,992 | $ 31,647 |
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 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expenses | $ 2,112 | $ 1,659 | $ 5,965 | $ 4,682 |
Intangible assets that have not started amortization | 5,370 | 5,370 | ||
Software Developed for Internal Use | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Capitalized costs of internally-developed software | $ 2,929 | $ 2,716 | $ 8,310 | $ 7,332 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Liability Disclosure [Abstract] | ||
Remainder of 2023 | $ 2,168 | |
2024 | 9,002 | |
2025 | 7,836 | |
2026 | 6,383 | |
2027 | 4,767 | |
2028 and thereafter | 3,836 | |
Intangible Assets, Net | $ 33,992 | $ 31,647 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
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 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue Recognition [Line Items] | |||||
Deferred revenue | $ 527 | $ 527 | $ 670 | ||
Deferred revenue realization period | 12 months | ||||
Deferred revenue recognized | 502 | $ 502 | 102 | ||
Revenue For Future Outstanding Performance Obligations | $ 11,823 | ||||
Period over which subscription contract terms exceed | 12 months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |||||
Revenue Recognition [Line Items] | |||||
Revenue For Future Outstanding Performance Obligations | $ 2,367 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||||
Revenue Recognition [Line Items] | |||||
Estimated revenue expected to be recognized in the future | $ 6,063 | $ 6,063 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||||
Revenue Recognition [Line Items] | |||||
Estimated revenue expected to be recognized in the future | $ 2,237 | $ 2,237 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |||||
Revenue Recognition [Line Items] | |||||
Estimated revenue expected to be recognized in the future | $ 850 | $ 850 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |||||
Revenue Recognition [Line Items] | |||||
Estimated revenue expected to be recognized in the future | $ 306 | $ 306 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year | |||
Customers With Pricing Contracts | |||||
Revenue Recognition [Line Items] | |||||
Percentage of Revenue | 79% | 68% | 78% | 74% | |
Transactional Customers | |||||
Revenue Recognition [Line Items] | |||||
Percentage of Revenue | 21% | 32% | 22% | 26% | |
Related Party Current [Member] | |||||
Revenue Recognition [Line Items] | |||||
Accounts Receivable Related parties | $ 778 | $ 778 | 923 | ||
Related Party Non Current [Member] | |||||
Revenue Recognition [Line Items] | |||||
Accounts Receivable Related parties | $ 481 | $ 481 | $ 464 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate, percentage | (492.00%) | 1% | (236.00%) | 10% | |
Statutory federal income tax rate | 21% | 21% | |||
Percentage of tax benefits likelihood of being realized upon settlement of tax authority | greater than 50% | ||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Common Stock and Treasury Sto_2
Common Stock and Treasury Stock - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | May 02, 2022 | |
Equity [Line Items] | ||||||
Common stock, shares issued | 13,920,370 | 13,920,370 | 13,956,404 | |||
Treasury stock, issued shares | 7,980 | 7,980 | 0 | |||
Treasury stock balance | $ 168 | $ 168 | $ 0 | |||
Retirement of treasury stock, Shares | 62,057 | |||||
Related treasury stock cost | $ 1,083 | |||||
Stock repurchase program, authorized amount | $ 5,000 | |||||
Treasury stock shares | 7,980 | 7,980 | 0 | |||
Stock Repurchase Program | ||||||
Equity [Line Items] | ||||||
Treasury stock shares | 70,037 | 70,037 | ||||
Treasury stock cost | $ 1,251 | $ 1,251 | ||||
Common Stock | ||||||
Equity [Line Items] | ||||||
Vesting of restricted stock units, Shares | 25,693 | 285,389 | 35,893 | 605,899 | ||
Treasury stock | ||||||
Equity [Line Items] | ||||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (7,237) | (93,779) | (9,870) | (200,033) | ||
Treasury stock balance | $ 197 | $ 197 | ||||
Retirement of treasury stock, Shares | 9,870 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | May 25, 2022 | Jun. 03, 2020 | Mar. 22, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of common stock authorized | 3,000,000 | |||
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 | $ 11,402 | |||
Unrecognized share-based compensation remaining weighted average period | 2 years | |||
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 | 2,331,868 | |||
2018 Stock Incentive Plan | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of common stock authorized | 4,500,000 | |||
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 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Unvested RSU Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended | |
Sep. 30, 2023 $ / shares shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested, Number of units Beginning balance | shares | 1,044,132 | |
Granted, Number of units | shares | 36,000 | [1] |
Vested and delivered, Number of units | shares | (26,023) | |
Withheld as treasury stock, Number of units | shares | (9,870) | [2] |
Forfeited, Number of units | shares | (78,511) | |
Unvested, Number of units Ending balance | shares | 965,728 | |
Unvested, Weighted average grant-date fair value, Beginning balance | $ / shares | $ 20.64 | |
Granted, Weighted average grant-date fair value | $ / shares | 19.22 | [1] |
Vested and delivered, Weighted average grant-date fair value | $ / shares | 18.94 | |
Withheld as treasury stock, Weighted average grant-date fair value | $ / shares | 18.15 | [2] |
Forfeited, Weighted average grant-date fair value | $ / shares | 22.01 | |
Unvested, Weighted average grant-date fair value, Ending balance | $ / shares | $ 20.39 | |
[1] In September 2023, the Company granted 12,000 RSUs, subject to performance-based requirements, to one non-executive employee at a grant date fair value of $ 20.39 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, 2023, the achievement date deadline. No amortization of share-based compensation expense has been recognized for these RSUs, because, as of September 30, 2023, the Company determined that it is not probable that such performance criteria will be met. In addition to the 12,000 RSUs discussed above, the Company granted, during the nine months ended September 30, 2023, an aggregate of 24,000 RSUs to certain employees at grant date fair values ranging from $ 16.17 to $ 20.77 per share, with a vesting period ranging from three to four years . 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. |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Restricted Stock Units Granted (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 1,369 | $ 1,273 | $ 4,058 | $ 4,066 | |
Retirement of treasury stock | $ 1,280 | $ 4,675 | |||
Restricted Stock Units (RSUs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted, Number of units | [1] | 36,000 | |||
Grant date fair value | [1] | $ 19.22 | |||
Withheld as treasury stock, Number of units | [2] | (9,870) | |||
Performance Based Restricted Stock Units | Employees And Directors | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted, Number of units | 24,000 | ||||
Performance Based Restricted Stock Units | Employees And Directors | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Grant date fair value | $ 16.17 | ||||
Performance Based Restricted Stock Units | Employees And Directors | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Grant date fair value | $ 20.77 | ||||
Performance Based Restricted Stock Units | Non Executive Employee | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted, Number of units | 12,000 | ||||
Grant date fair value | $ 20.39 | ||||
[1] In September 2023, the Company granted 12,000 RSUs, subject to performance-based requirements, to one non-executive employee at a grant date fair value of $ 20.39 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, 2023, the achievement date deadline. No amortization of share-based compensation expense has been recognized for these RSUs, because, as of September 30, 2023, the Company determined that it is not probable that such performance criteria will be met. In addition to the 12,000 RSUs discussed above, the Company granted, during the nine months ended September 30, 2023, an aggregate of 24,000 RSUs to certain employees at grant date fair values ranging from $ 16.17 to $ 20.77 per share, with a vesting period ranging from three to four years . 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. |
Share-based Compensation - Summ
Share-based Compensation - Summary of Allocated Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based compensation recognized | ||||
Share-based compensation expense | $ 1,369 | $ 1,273 | $ 4,058 | $ 4,066 |
Capitalized in intangible assets | 517 | 470 | 1,389 | 1,193 |
Total | 1,886 | 1,743 | 5,447 | 5,259 |
Sales and Marketing Expenses | ||||
Share-based compensation recognized | ||||
Share-based compensation expense | 116 | 92 | 348 | 247 |
General and Administrative Expenses | ||||
Share-based compensation recognized | ||||
Share-based compensation expense | $ 1,253 | $ 1,181 | $ 3,710 | $ 3,819 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Related Party Transaction [Line Items] | |||||
Share-based compensation expense | $ 1,369 | $ 1,273 | $ 4,058 | $ 4,066 | |
Restricted Stock Units (RSUs) | |||||
Related Party Transaction [Line Items] | |||||
Unvested shares granted in accordance with 2018 RSU agreement | [1] | 36,000 | |||
[1] In September 2023, the Company granted 12,000 RSUs, subject to performance-based requirements, to one non-executive employee at a grant date fair value of $ 20.39 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, 2023, the achievement date deadline. No amortization of share-based compensation expense has been recognized for these RSUs, because, as of September 30, 2023, the Company determined that it is not probable that such performance criteria will be met. In addition to the 12,000 RSUs discussed above, the Company granted, during the nine months ended September 30, 2023, an aggregate of 24,000 RSUs to certain employees at grant date fair values ranging from $ 16.17 to $ 20.77 per share, with a vesting period ranging from three to four years . |
Leases - Additional Information
Leases - Additional Information (Details) - ft² | Sep. 30, 2023 | 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 | 5 years 1 month 6 days |
Leases - Summary of Company's L
Leases - Summary of Company's Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Lease cost: | |||||
Operating lease costs | $ 168 | $ 168 | $ 504 | $ 504 | |
Other information: | |||||
Cash paid for operating leases | 192 | 186 | 573 | 555 | |
Right-of-use assets obtained in exchange for operating lease liabilities | [1] | $ 1,919 | $ 0 | $ 1,919 | $ 0 |
Weighted average discount rate for operating leases | [2] | 10% | 0% | 10% | 0% |
[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"). The Company used 10.0 %, 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. |
Leases - Summary of Company's_2
Leases - Summary of Company's Lease Information (Parenthetical) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 20, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating lease liability | $ 2,697 | $ 1,919 | |
Right-of-use assets | $ 2,589 | $ 1,919 | $ 1,114 |
Incremental borrowing rate | 10% |
Leases - Scheduled Future Matur
Leases - Scheduled Future Maturities and Present Value of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 20, 2023 | Dec. 31, 2022 |
Leases [Abstract] | |||
Remainder of 2023 | $ 192 | ||
2024 | 790 | ||
2025 | 580 | ||
2026 | 519 | ||
2027 | 535 | ||
2028 and thereafter | 830 | ||
Total maturities | 3,446 | ||
Present value included in consolidated balance sheet: | |||
Current portion of operating lease liabilities | 548 | $ 692 | |
Noncurrent operating lease liabilities | 2,149 | $ 598 | |
Total operating lease liabilities | 2,697 | $ 1,919 | |
Difference between the maturities and the present value of operating lease liabilities | $ 749 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Data cost incurred | $ 2,367 | $ 2,332 | $ 7,086 | $ 6,832 |
Total capital commitment under certain data licensing agreements | $ 22,141 | $ 22,141 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Capital Payments under Certain Data Licensing Agreements (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2023 | $ 2,339 |
2024 | 8,150 |
2025 | 7,702 |
2026 | 3,950 |
Total | $ 22,141 |