Investment Memo: RDVT

Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, and telecommunication companies; law enforcement and government agencies; and collections, corporate security, and investigative firms, as well as solutions used for purposes, such as risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. Red Violet, Inc. was incorporated in 2017 and is headquartered in Boca Raton, Florida.

🏛️ Investment Memo: RDVT

Recommendation: {{ACTION}} (Target: ${{PRICE}}) Current Price: ${{CURRENT_PRICE}} Implied Upside: {{UPSIDE}}%

1. The Executive Thesis (The "Elevator Pitch")

The Opportunity: [Focus on asymmetry. e.g. "A mispriced compounder trading at 12x FCF despite 20% growth."]
The Portfolio Fit: [Explain correlation. e.g. "This asset provides exposure to AI growth but with Utility-like defensive cash flows."]

2. The "Quality" Scorecard

Capital Allocation: [Does management buy back stock or waste money? Recent M&A track record?]
ROIC Trend: [Is it >15%? Is it rising or falling? Why?]
The "Moat" Durability: [Why will margins remain high for 5 years? Switching costs or Network effects?]

3. Valuation & Margin of Safety

Base Case: [Assumptions: {{GROWTH}}% growth, {{MULTIPLE}}x multiple = ${{PRICE}}/share]
Bear Case (The "Kill" Criteria): [What happens if growth hits 0%? e.g. "Even with 0% growth, the 5% dividend yield provides a floor."]

4. Key Risks (Pre-Mortem)

Risk 1: [Customer Concentration (>10% of revenue)]
Risk 2: [Regulatory headwinds]
Risk 3: [Management turnover]

Disclaimer: This is for informational purposes only and does not constitute financial advice.

Investment Memo: RDVT

🏛️ Investment Memo: RDVT

1. The Executive Thesis (The "Elevator Pitch")

2. The "Quality" Scorecard

3. Valuation & Margin of Safety

4. Key Risks (Pre-Mortem)

RDVT Valuation Model

Investment Memo: RDVT