Q1 2025 Red Violet Inc Earnings Call
It isn't only mode. Later, we will conduct a question and answer session and instructions will follow at that time as a reminder, this call is being recorded.
Operator: This concludes the question and answer session.
Derek Dubner: I would now like to turn it back over to Derek Dubner for closing remarks. In closing, we're proud of our performance this quarter and encouraged by the momentum we're seeing across the business. As we continue to execute upon our strategic priorities, we remain focused on delivering long-term value for our customers, our employees, and our shareholders.
Michael Nichols, Michael Nichols, Daniel MacLachlan
Speaker Change: I'd now like to introduce your host for today's conference Camilo Ramirez Senior Vice President Finance and Investor Relations. Please go ahead.
Michael Nichols, Michael Nichols, Michael Nichols
Speaker Change: Good afternoon and welcome. Thank you for joining us today to discuss our first quarter 2025 financial results with me today is Derek Dubner, our chairman and Chief Executive Officer, and Dan Mclaughlin, Our Chief Financial Officer, our call today will begin with comments from Derek and Dan followed by a question and answer session.
Derek Dubner: Thank you for your continued support and for joining us today. Thank you for your participation in today's conference.
Operator: This does conclude the program. You may now disconnect.
Speaker Change: I would like to remind you that this call is being webcast live and recorded a replay of the event will be available following the call on our website to access the webcast. Please visit our investors page on our website www dot red Violet Dot com before we begin I would like to advise listeners that certain information.
Speaker Change: <unk> discussed by management. During this conference call are forward looking statements covered under the Safe Harbor provisions of the private Securities Litigation Reform Act of 1095.
Speaker Change: Actual results could differ materially from those stated or implied by our forward looking statements due to risks and uncertainties associated with the Companys business.
Speaker Change: The company undertakes no obligation to update the information provided on this call for a discussion of risks and uncertainties associated with Red Violet <unk> business I encourage you to review the company's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K, and the subsequent 10-Qs Darrin.
Speaker Change: The call we may present, certain non-GAAP financial information relating to adjusted gross profit adjusted gross margin adjusted EBITDA adjusted EBITDA margin adjusted net income adjusted earnings per share and free cash flow.
For more information visit www.FEMA.gov
Speaker Change: Reconciliations of these non-GAAP financial measures to their most directly comparable U S. GAAP financial measure are provided in the earnings press release issued earlier today. In addition, certain supplemental metrics that are not necessarily derived from any underlying financial statement amounts may be discussed and these metrics and their definitions can also be found.
Speaker Change: The earnings press release issued earlier today.
Speaker Change: With that I am pleased to introduce Red Violet, Chairman and Chief Executive Officer, Derek Dubner.
Speaker Change: Good afternoon.
Speaker Change: Afternoon, everyone and thank you for joining us today to discuss our first quarter financial results.
Speaker Change: We are pleased to report another strong quarter marked by solid execution and continued demand across our business.
Speaker Change: Our results reflect sustained strength across our diversified customer base with performance driven by both existing relationships and new customer wins.
Speaker Change: Despite the persistent volatility in the macroeconomic environment volumes have remained solid underscoring the durability and relevance of our solutions.
Speaker Change: Now, let's briefly run through the numbers.
Speaker Change: Revenue for the quarter was up 26% to a record $22 million.
Speaker Change: <unk> a record adjusted gross profit of $18 3 million.
Speaker Change: And our record adjusted gross margin of 83%.
Speaker Change: Adjusted EBITDA for the quarter was up 47% to a record $8 4 million.
Speaker Change: Producing a record adjusted EBITDA margin of 38% up six percentage points.
Speaker Change: Adjusted net income increased 53% to a record $4 8 million for the quarter.
Speaker Change: Resulting in a record adjusted earnings of 33.
Speaker Change: Per diluted share.
Speaker Change: Our IDI billable customer base increased by 315 customers sequentially from the fourth quarter ending the first quarter at 9241 customers.
Speaker Change: Within four warrant we added 21918 users during the first quarter.
Speaker Change: Ending the quarter with 325336 users.
Speaker Change: Over 545 realtor associations are now contracted to use for ward.
Speaker Change: We continue to experience strong receptivity from prospective customers, which reinforces the value proposition of our platform.
Speaker Change: Clients are increasingly turning to us not just for innovation, but for cost effective scalable solutions that address mission critical needs.
Speaker Change: Our ability to simultaneously deliver innovation and efficiency is clearly resonating.
Speaker Change: As we look at the broader environment, specifically, the economic volatility and uncertainty beginning in the first quarter.
Speaker Change: It is important to again underscore the durability of our business model.
Speaker Change: Which has consistently proven its strengths through multiple economic cycles.
Speaker Change: From the Dot com bubble, the housing crisis and the great recession.
Speaker Change: To the unprecedented challenges of the pandemic.
Speaker Change: This model has proven resilient and even opportunistic during times of stress.
Speaker Change: This.
Speaker Change: <unk> is driven by the diversity of the industries, we serve and the critical nature of our solutions.
Speaker Change: And a strong economic environment, many of our customers, particularly within corporate sectors and financial services rely on our technology and solutions to support front end growth use cases, such as new account openings.
Speaker Change: On boarding and customer engagement.
Speaker Change: Conversely in a more challenging economic climate, when financial pressures Mount for consumers and businesses alike.
Speaker Change: Other segments of our customer base become more active.
Speaker Change: In such times, we see heightened demand from clients focused on legal workflows investigations collections process, serving repossession and related functions.
Speaker Change: Additionally, in times of uncertainty the need for fraud prevention and risk mitigation only increases and our solutions are essential in helping organizations across the spectrum protect their operations.
Speaker Change: This counter cyclical balance and demand ensures that we remain relevant and mission critical regardless of market conditions.
Speaker Change: It also gives us strong confidence in our ability to continue performing through economic fluctuations, while supporting our customers' evolving needs.
Speaker Change: Over the last few years, we've observed a structural shift in consumer dynamics, where the middle class is no longer anchored in the center, but rather drawn towards the financial extremes that are traditionally defined our core use cases.
Speaker Change: It is the first time in decades that ive seen this level of activity from both ends of the economic spectrum converge to this degree.
Speaker Change: Where a rising tide is lifting nearly all boats with our business positioned right at the intersection of these trends.
Speaker Change: Today, our focus remains on a set of strategic priorities, which we've touched on previously designed to drive long term value.
Speaker Change: These include increasing productivity across the organization.
Speaker Change: Analyzing and implementing automation to streamline operations as we scale.
Speaker Change: And intensifying our efforts around proprietary data generation and aggregation.
Speaker Change: Which includes our continued use of AI to derive insights from our core identity graph.
Speaker Change: We believe these initiatives will further leverage our business model strengthen our competitive position and support even stronger financial performance in the medium to long term.
Speaker Change: Thank you again to our employees partners and customers for your continued trust and collaboration.
Speaker Change: We look forward to building on this momentum in the quarters ahead.
Dan Mclaughlin: Now I'll turn it over to Dan to discuss the financials.
Speaker Change: Thank you Derek and good afternoon, everyone. We are excited to kick off 2025 with another record quarter building on the momentum we established throughout 2024.
Speaker Change: Our first quarter performance reflects solid execution broad based demand across our verticals and the efficiency of our operating model.
Speaker Change: As we move into the year, we remain focused on our priorities.
Speaker Change: Delivering consistent results.
Speaker Change: Deepening customer relationships.
Speaker Change: And continuing to invest where we see the greatest return.
Speaker Change: With a strong foundation and growing leverage in the business, we are well positioned to deliver another year of healthy sustainable growth.
Speaker Change: Over the last few years, we've observed a structural shift in consumer dynamics, where the middle class is no longer anchored in the center, but rather drawn towards the financial extremes that are traditionally defined our core use cases.
Speaker Change: Turning now to our first quarter results for clarity all the comparisons I will discuss today will be against the first quarter of 2024 unless noted otherwise.
Speaker Change: Total revenue was a record $22 million representing.
Speaker Change: It is the first time in decades that ive seen this level of activity from both ends of the economic spectrum converge to this degree.
Representing a 26% increase over the prior year.
Speaker Change: We generated a record $18 3 million and adjusted gross profit, resulting in a record adjusted gross margin of 83% up four percentage points.
Speaker Change: Where a rising tide is lifting nearly all boats with our business positioned right at the intersection of these trends.
Speaker Change: Adjusted EBITDA for the quarter was also a record at $8 4 million.
Today, our focus remains on a set of strategic priorities, which we've touched on previously designed to drive long term value.
Speaker Change: An increase of 47% over the prior year.
Speaker Change: These include increasing productivity across the organization.
Speaker Change: Adjusted EBITDA margin reached a record 38% up six percentage points.
Speaker Change: Analyzing and implementing automation to streamline operations as we scale.
Speaker Change: Adjusted net income increased 53% to a record $4 8 million.
Speaker Change: And intensifying our efforts around proprietary data generation and aggregation.
Speaker Change: Resulting in record adjusted earnings of 30 <unk> per.
Speaker Change: Per diluted share.
Speaker Change: Which includes our continued use of AI to derive insights from our core identity graph.
Speaker Change: Moving through the details of our P&L as mentioned revenue was $22 million for the first quarter.
Speaker Change: This total includes $1 2 million in one time transactional revenue associated with two significant opportunity wins from two new customers.
Speaker Change: We believe these initiatives will further leverage our business model strengthen our competitive position and support even stronger financial performance in the medium to long term.
Speaker Change: Excluding this one time transactional revenue first quarter revenue growth would have still been a healthy 19%.
Speaker Change: Thank you again to our employees partners and customers for your continued trust and collaboration.
Speaker Change: Within <unk>, we saw growth across verticals.
Speaker Change: We look forward to building on this momentum in the quarters ahead.
Speaker Change: Billable customer base increased by over 300 customers sequentially from the fourth quarter ending the quarter at over 9200 customers.
Speaker Change: Now I'll turn it over to Dan to discuss the financials.
Dan: Thank you Derek and good afternoon, everyone. We are excited to kick off 2025 with another record quarter building on the momentum we established throughout 2024.
Speaker Change: Our emerging markets vertical led all verticals on a percentage basis, delivering strong double digit revenue growth inclusive of the $1 2 million in one time transactional revenue.
Dan: Our first quarter performance reflects solid execution broad based demand across our verticals and the efficiency of our operating model.
Speaker Change: Our investigated vertical continues to perform well driven by law enforcement, which has now grown sequentially in every quarter since Q4 of 2021.
Dan: As we move into the year, we remain focused on our priorities.
Dan: Oliver and consistent results.
Speaker Change: We also saw strong double digit revenue growth and our financial and corporate risk vertical led by the banking and financial industry.
Deepening customer relationships.
Dan: And continuing to invest where we see the greatest return.
Dan: With a strong foundation and growing leverage in the business, we are well positioned to deliver another year of healthy sustainable growth.
Speaker Change: The collections vertical delivered mid single digit growth.
Speaker Change: Note that the prior year quarter included outsized transactional revenue related to our IDI verified product.
Dan: Turning now to our first quarter results for clarity all the comparisons I will discuss today will be against the first quarter of 2024 unless noted otherwise.
Speaker Change: Normalizing for that impact this quarter's growth would have been in the mid teens, representing the highest year over year revenue growth rate in the collections vertical since 2020.
Dan: Total revenue was a record $22 million representing.
Speaker Change: We continue to see healthy trends and improving performance in the collections industry.
Dan: Representing a 26% increase over the prior year.
Dan: We generated a record $18 3 million and adjusted gross profit, resulting in a record adjusted gross margin of 83% up four percentage points.
Speaker Change: <unk> real estate vertical, which excludes footworn declined by low single digits still impacted by affordability issues of strong home prices and elevated interest rates.
Dan: Adjusted EBITDA for the quarter was also a record at $8 4 million.
Speaker Change: With over 545 really tour association's under contract across the U S.
Dan: An increase of 47% over the prior year.
Speaker Change: For worn delivered another.
Dan: Adjusted EBITDA margin reached a record 38% up six percentage points.
Speaker Change: Quarter of strong double digit revenue growth, adding more than 20000 users during the quarter.
Dan: Adjusted net income increased 53% to a record $4 8 million.
Speaker Change: This marks four warns 20th consecutive quarter of sequential revenue growth.
Dan: <unk> and record adjusted earnings of 30 theory.
Speaker Change: Contractual revenue represented 74% of total revenue for the quarter down four percentage points from the prior year.
Dan: Per diluted share.
Dan: Moving through the details of our P&L as mentioned revenue was $22 million for the first quarter.
Speaker Change: This decline was attributable to the $1 $2 million in one time transactional revenue referenced earlier.
Dan: This total includes $1 2 million in onetime transactional revenue associated with two significant opportunity wins from two new customers.
Speaker Change: Gross revenue retention was 96% for the quarter, an increase of three percentage points over the prior year.
Dan: Excluding this one time transactional revenue first quarter revenue growth would have still been a healthy 19%.
Speaker Change: Moving back to the P&L, our cost of revenue exclusive of depreciation and amortization decreased $1 million or 3% to $3 7 million.
Dan: Within <unk>, we saw growth across verticals.
Dan: Billable customer base increased by over 300 customers sequentially from the fourth quarter ending the quarter at over 9200 customers.
Speaker Change: Adjusted gross profit increased 33% to $18 3 million.
Speaker Change: Resulting in an adjusted gross margin of 83% a four percentage point increase over the prior year.
Dan: Our emerging markets vertical, let all verticals on a percentage basis, delivering strong double digit revenue growth inclusive of the $1 2 million in one time transactional revenue.
Speaker Change: Sales and marketing expenses increased $1 7 million or <unk>, 46% to $5 4 million for the quarter, driven primarily by higher personnel related expenses.
Dan: Our investigated vertical continues to perform well driven by law enforcement, which has now grown sequentially in every quarter since Q4 of 2021.
Speaker Change: General and administrative expenses increased $4 million or 7% to $6 2 million for the quarter.
Dan: We also saw strong double digit digit revenue growth and our financial and corporate risk vertical led by the banking and financial industry.
Speaker Change: Also driven primarily by higher personnel related expenses.
Speaker Change: Depreciation and amortization increased <unk> 3 million or 12% to $2 6 million for the quarter.
Dan: The collections vertical delivered mid single digit growth.
Dan: Note that the prior year quarter included outsized transactional revenue related to our IDI verified product.
Speaker Change: Our net income increased $1 $6 million or 93% to $3 4 million for the quarter.
Dan: Normalizing for that impact this quarter's growth would have been in the mid teens, representing the highest year over year revenue growth rate in the collections vertical since 2020.
Speaker Change: Adjusted net income for the quarter increased $1 6 million or 53% to $4 8 million.
Speaker Change: Resulting in adjusted earnings of 33 per diluted share.
Dan: We continue to see healthy trends and improving performance in the collections industry.
Speaker Change: Moving on to the balance sheet cash and cash equivalents were $34 6 million at March 31, 2025% compared to $36 5 million at December 31, 2024.
Dan: <unk> real estate vertical, which excludes footworn declined by low single digits still impacted by affordability issues of strong home prices and elevated interest rates.
Speaker Change: Current assets totaled $45 9 million compared to $46 2 million at year end.
Dan: With over 545 really to our association's under contract across the U S.
Dan: For worn delivered another.
Speaker Change: While current liabilities were $5 1 million compared to $10 3 million.
Dan: Quarter of strong double digit revenue growth, adding more than 20000 users during the quarter.
Speaker Change: We generated $5 million in cash from operating activities in the first quarter compared to $4 3 million for the same period in 2024.
Dan: This marks four warns 20th consecutive quarter of sequential revenue growth.
Dan: Contractual revenue represented 74% of total revenue for the quarter down four percentage points from the prior year.
Speaker Change: We generated $2 $5 million in fee and free cash flow in the first quarter compared to $1 9 million for the same period in 2024.
Dan: This decline was attributable to the $1 2 million in one time transactional revenue referenced earlier.
Speaker Change: We did not purchase any shares of company stock under our stock repurchase program during the first quarter.
Dan: Gross revenue retention was 96% for the quarter, an increase of three percentage points over the prior year.
Speaker Change: We paid out a special cash dividend of <unk> 30 per share on the company's common stock to shareholders of record as of January 31, 2025.
Dan: Moving back to the P&L, our cost of revenue exclusive of depreciation and amortization decreased $1 million or 3% to $3 $7 million.
Speaker Change: The dividend totaling $4 2 million was.
Speaker Change: <unk> on February 14, 2025.
Speaker Change: To wrap up 2025 is off to a great start.
Dan: Adjusted gross profit increased 33% to $18 3 million.
Speaker Change: This quarter reflects solid execution across the business and reinforces the strength of our model one that delivers profitable growth strong cash flow and high levels of customer retention.
Dan: Resulting in an adjusted gross margin of 83% a four percentage point increase over the prior year.
Dan: Sales and marketing expenses increased $1 7 million or 46% to $5 4 million for the quarter, driven primarily by higher personnel related expenses.
Speaker Change: We are investing with intention leaning into the areas of greatest opportunity, while maintaining the operational discipline that underpins our performance.
Dan: General and administrative expenses increased $4 million or 7% to $6 2 million for the quarter.
Speaker Change: As we progress through 2025, we remain focused on sustaining our momentum expanding our reach and creating long term value for our shareholders.
Also driven primarily by higher personnel related expenses.
Speaker Change: With that operator, we'll now open the line for Q&A.
Dan: Depreciation and amortization increased $3 million or 12% to $2 6 million for the quarter.
Speaker Change: Thank you as a reminder to ask a question you will need to press Star One line on your telephone and wait for your name to be announced.
Dan: Our net income increased $1 $6 million or 93% to $3 4 million for the quarter.
Speaker Change: Please standby, while we compile the Q&A.
Speaker Change: Yeah.
Dan: Adjusted net income for the quarter increased $1 6 million or 53% to $4 $8 million, resulting in adjusted earnings of 33 cents per diluted share.
Speaker Change: The first question comes from the line of Josh Nichols and B Riley Josh. Please go ahead.
Dan: Moving onto the balance sheet cash and cash equivalents were $34 $6 million at March 31, 2025, compared to $36 $5 million at December 31, 2024.
Speaker Change: Okay.
Josh Nichols: Yeah. Thank you for taking my question and great to see another quarter with a lot of records being set yet again.
Speaker Change: Quick question for me.
Speaker Change: Quite strong growth when you look at like the Abi customers. This quarter is there any color that you can provide with a little bit more granularity on what's driving that specifically or how you think that those trends are going to play out through the remainder of the year.
Dan: Current assets totaled $45 $9 million compared to $46 2 million at year end.
Dan: While current liabilities were $5 1 million compared with $10 $3 million.
Dan Mclaughlin: Yes, Josh Hi, this is Dan and thanks for the questions.
Dan Mclaughlin: It kind of just builds on what we talked about last quarter that in the fourth quarter. We saw just strong consistent volume across the customer base and across verticals, whether that be financial and corporate risk collections for worn investigative or emerging markets and in the first quarter we saw.
Dan: We generated $5 million in cash from operating activities in the first quarter compared to $4 3 million for the same period in 2024.
Dan: We generated $2 $5 million in fee and free cash flow in the first quarter compared to $1 9 million for the same period in 2024.
Dan Mclaughlin: The same thing again.
Dan Mclaughlin: Obviously there is.
Dan: We did not purchase any shares of company stock under our stock repurchase program during the first quarter.
Dan Mclaughlin: A bit of uncertainty in the broader economic activity, but from our businesses perspective.
Dan: We paid out a special cash dividend of <unk> 30 per share on the company's common stock to shareholders of record as of January 31, 2025.
Dan Mclaughlin: We didn't see any impact from that whatsoever, we continued to see good onboarding across customer verticals and customer size, including medium and larger enterprises. So.
Dan: The dividend totaling $4 2 million was distributed on February 14, 2025.
We expect that to continue over the remainder of the year and again, just very excited about the opportunity pipeline that has built and our ability to can.
Dan: To wrap up 2025 is off to a great start this.
Dan Mclaughlin: To convert that pipeline.
Dan: This quarter reflects solid execution across the business and reinforces the strength of our model one that delivers profitable growth strong cash flow and high levels of customer retention.
Dan Mclaughlin: Thanks, just to follow up because you mentioned it just I know the.
Dan Mclaughlin: Companies been securing a growing number of larger customers.
Speaker Change: Data or highlights that you can provide are they slowing down or are they picking up with the macro uncertainty or what are you seeing in terms of large customers, whether it's government or more some of these public sector awards that youre still in the early days going after.
Dan: We are investing with intention leaning into the areas of greatest opportunity, while maintaining the operational discipline that underpins our performance.
Dan: As we progress through 2025, we remain focused on sustaining our momentum expanding our reach and creating long term value for our shareholders.
Speaker Change: Yes, I mean from a pure kind of metric perspective, we gave some color in fourth quarter.
Speaker Change: Just being right around 96 customers that were generating in excess of 100000 and revenue a year I can say after the first quarter that has grown nicely.
Dan: With that operator, we'll now open the line for Q&A.
Dan: Thank you as a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced please standby, while we compile the Q&A.
Speaker Change: To well in excess of 100 close to 110 customers today.
Speaker Change: And the trailing 12 months are spending over $100000. So we continue to see that dynamic of the medium and larger enterprise customers and our investment to move up tier significantly pay off.
Dan: Hi.
Speaker Change: The first question comes from the line of Josh Nichols of B Riley Josh. Please go ahead.
Speaker Change: Okay.
I appreciate the context. So then last question for me.
Dan: Okay.
Josh Nichols: Yeah. Thank you for taking my question and great to see another quarter with a lot of records being set yet again.
Dan Mclaughlin: Derek maybe you could provide a little bit more color on this since you've talked about it specifically if you had to touch on one or two of the areas that you think for like internal or external technology investments that you think could really help grow the business longer term beyond just like a quarter or two what is it that you're most focused on.
Josh Nichols: Quick question for me I mean quite strong growth when you look at like the Abi customers. This quarter is there any color that you can provide with a little bit more granularity on what's driving that specifically or how you think that those trends are going to play out through the remainder of the year.
Speaker Change: On doing as you continue.
Speaker Change: Continue to build out this core identity graph for the consumer.
Josh Nichols: Yes, Josh Hi, this is Dan and thanks for the questions.
Speaker Change: Yeah. Thanks, Josh Great question, well, we have a <unk>.
Josh Nichols: It kind of just builds on what we talked about last quarter that in the fourth quarter. We saw just strong consistent volume across the customer base and across verticals, whether that be financial and corporate risk collections for worn investigative or emerging markets and in the first quarter we saw the.
Speaker Change: Multi year product roadmap that we're working on.
Speaker Change: We continue to invest in not only financially, but human resource in expanding the moat around the capabilities around our platform is highly differentiated against anything we've created in the past and against competition and I think thats, what youre seeing its translating to customer wins and <unk>.
Josh Nichols: Same thing again.
Josh Nichols: Obviously there is.
Josh Nichols: A bit of uncertainty in the broader economic activity, but from our businesses perspective.
Speaker Change: <unk> around what we can bring.
Speaker Change: Remarked that in a time of volatility.
Josh Nichols: We didn't see any impact from that whatsoever, we continued to see good onboarding across customer verticals and customer sites, including medium and larger enterprises. So.
Speaker Change: Seeing greater receptivity from prospective customers wanting to understand how we can process their workflows, which we can do and we believe better than the competition, but we can do so because of the construct of our platform cloud et cetera, and a much more efficient manner and so they are definitely less.
We expect that to continue over the remainder of the year and again, just very excited about the opportunity pipeline that has built and our ability to can to convert that pipeline.
Speaker Change: <unk> and wanting to understand the opportunity there. So we continue to invest in our identity graph, we're looking to enhance as I mentioned some of the strategic priorities enhance the proprietary data generation and aggregation internally and that includes with some of our initiatives around artificial intelligence.
Josh Nichols: Okay.
Josh Nichols: Thanks, and then just to follow up because you mentioned it just I know the company's been securing a growing number of larger customers.
Josh Nichols: Data or highlights that you can provide are they slowing down or are they picking up with the macro uncertainty or what are you seeing in terms of large customers, whether it's government or more some of these public sector awards that youre still in the early days going after.
Speaker Change: <unk>.
Speaker Change: We continue to expand our capabilities to be in bringing new solutions out in the way of knowing your business <unk> account monitoring and really driving more risks signals out of the data that we see which is extremely helpful and informative for our customers.
Josh Nichols: Yeah look I mean from a pure kind of metric perspective, we gave some color in fourth quarter.
Josh Nichols: <unk> being right around 96 customers that were generating in excess of 100000 in revenue a year I can say after the first quarter that has grown nicely.
Speaker Change: <unk>.
Speaker Change: Wanted to be able to teach them, what we're seeing and we believe those are insights that they are not seeing perhaps at that time.
Josh Nichols: To well in excess of 100 close to 110 customers today.
Speaker Change: So really very current risk.
Josh Nichols: And the trailing 12 months are spending over $100000. So we continue to see that dynamic of the medium and larger enterprise customers and our investment to move up tier significantly pay off.
Speaker Change: Risk signals that alert them to risks and so we're very excited and we continue to invest also in the strategic priorities I mentioned of enhancing our productivity and really increasing automation across the enterprise. So that as we scale in the out years youre going to see even.
Josh Nichols: I appreciate the context. So then last question for me.
Josh Nichols: Derek maybe you could provide a little bit more color on this.
Speaker Change: Greater financial performance, even greater than what we're performing today.
Josh Nichols: You've talked about it specifically if you had to touch on one or two of the areas that you think are like internal or external technology investments that you think could really help grow the business longer term beyond just like a quarter or two what is it that you're most focused on doing as you continue.
Speaker Change: Great to hear and look forward to seeing you guys in a couple of weeks I'll jump back in the queue.
Speaker Change: Likewise, thanks Raj.
Speaker Change: This concludes the question answer session I would now like to turn it back over to Derek Dubner for closing remarks.
Josh Nichols: Continue to build out this core identity graph for the consumer.
Derek Dubner: In closing, we're proud of our performance this quarter and encouraged by the momentum we're seeing across the business.
Speaker Change: Yeah. Thanks, Josh Great question, well, we have a multiyear product roadmap that we're working on.
As we continue to execute upon our strategic priorities, we remain focused on delivering long term value for our customers our employees and our shareholders.
Speaker Change: Continue to invest in not only financially, but human resource in expanding the moat around the capabilities around our platform is highly differentiated against anything we've created in the past and against competition and I think thats, what youre seeing its translating to customer wins and <unk>.
Derek Dubner: For your continued support and for joining us today.
Derek Dubner: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Speaker Change: Captivity around what we can bring.
Speaker Change: I would remark that in a time of volatility.
Speaker Change: Seeing greater receptivity from prospective customers wanting to understand how we can process their workflows, which we can do and we believe better than the competition, but we can do so because of the construct of our platform cloud et cetera, and a much more efficient manner and so they are definitely list.
Speaker Change: Fitting and wanting to understand the opportunity there. So we continue to invest in our identity graph, we're looking to enhance as I mentioned some of the strategic priorities enhance the proprietary data generation and aggregation internally and that includes some of our initiatives around artificial intelligence.
Speaker Change: <unk>.
Speaker Change: We continue to expand our capabilities to be and bring new solutions out in the way of knowing your business K Y B account monitoring and really driving more risks signals out of the data that we see which is extremely helpful and informative for our customers and.
Speaker Change: We wanted to be able to teach them, what we're seeing and we believe those are insights that they are not seeing perhaps at that time.
Speaker Change: So really very current risk.
Speaker Change: Risk signals that alert them to risks and so we're very excited and we continue to invest also in the strategic priorities I mentioned of enhancing our productivity and really increasing automation across the enterprise. So that as we scale in the out years youre going to see even.
Speaker Change: Greater financial performance, even greater than what we're performing today.
Speaker Change: Great to hear and look forward to seeing you guys in a couple of weeks I'll jump back in the queue.
Speaker Change: Likewise, thanks, Josh.
Speaker Change: This concludes the question and answer session I would now like to turn it back over to Derek Dubner for closing remark.
Derek Dubner: In closing, we're proud of our performance this quarter and encouraged by the momentum we're seeing across the business.
Derek Dubner: As we continue to execute upon our strategic priorities, we remain focused on delivering long term value for our customers our employees and our shareholders.
Derek Dubner: For your continued support and for joining us today.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Derek Dubner: Yes.
Derek Dubner: Okay.
Derek Dubner: [music].