RDVT - Earnings call transcript Q2 2020

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Operator

Good day, ladies and gentleman and welcome to Red Violet’s Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen only mode. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce your host for today’s conference, Camilo Ramirez, Director of Finance and Investor Relations. Please go ahead.

Camilo Ramirez

welcome. and afternoon Good joining results. to for quarter our XXXX financial us you discuss today second Thank today Derek Financial me and With is Dan Executive and MacLachlan Officer Chief our Chief Officer. Dubner, our Chairman

access available with our A Our call by webcast, question-and-answer on event replay the being that of I session. webcast from website. you be and like remind call website Dan this a our to our comments following would this visit today on Investors followed Derek live To the begin call will is please and will recorded. page www.redviolet.com.

or to Reform would differ to Safe of by the our this information are associated I begin, we with XXXX. information call. conference Actual statements certain materially forward-looking listeners by Harbor due risks discussed company provisions stated The Before during update obligation business. call those from Act undertakes this and like Litigation implied advise of to could under no the that the the uncertainties covered statements management forward-looking on Securities results provided company’s Private

risks recent uncertainties Form and For Security of filings subsequent Exchange the business, the review the and you on discussion associated company’s with Violet’s with and including Commission, I annual a report encourage most Red to XX-Qs. XX-K

call, GAAP comparable the issued earlier EBITDA. of directly release these Reconciliations are we financial information measures adjusted adjusted and the quarter related measures certain most second the may During non-GAAP press provided profit, non-GAAP present margin to today. adjusted earnings gross gross financial to in financial

and underlying With am maybe release Executive the and Officer, Dubner. be financial that issued definitions found press Chairman metrics are in Chief Derek amounts Red pleased these supplemental earlier can necessarily discussed their not from certain today. Violet’s introduce I addition, any also derived to that, In metrics earnings and statement

Derek Dubner

staying safe those your Thank We and results. discuss are today challenging these you loved hope second and that you, during afternoon and to us times. good quarter ones Camilo joining to our XXXX healthy

Coming operational pleased detail our would report model and quarter, the as quarter, periods in of in this solid starting economic pandemic in social half bottoming business and the quarter. that most through around stay-at-home leverage one March first quarter. and government’s with United the of a the our some history orders interruption caused the in throughout measures, off resilience first of events, back and of I robust distancing approach circumstances the effects including the are We faced business pandemic-related we in provide in significant period. to second the the very set the States, like to which demonstrated unprecedented

assets, not adversity, improving throughout team, at business that which we expect our and improving of teams their second in personally incredible but in continue And certain year of the to be in of medium-sized challenges in did of would our and expected, office suite, second products reduced want we quarter, example, results small are to in platform, Moreover, sheet. saw secular planning the out conditions beginning mission-critical were in better customers am these return our and on members Many economic ensure gaining it the for we sequentially and collections and the which be of our durability only our are our disproportionately well-being crisis. next impacts, success Not Faced a to troughs to that with to of our Adding transactional for employees’ including our protect the volumes. employees. bottoming delivered well-positioned great come with early tailwinds hindsight, When the not safe being at quarter. consisted headquarters, well-being business, in occurred also collections improve, health conditions given great customers, impacted collectively, we many pandemic we pleased present technology reduced half a to April, continuing knowing business checks the financial daily that multi-pronged activity. surprisingly, share, strategy we businesses, a only continuing crisis opportunities, out to for I our positioned level, implemented That that, in contingency optimally balance of turned our view took third to technology as intact certain of As to dedication or their we and activity, early economic financial result these government forbearance fortifying ahead. long-term believe overall imposed not hard a experience to HVAC we that customers, we not work. our the our our have which to thank from home. a be in We are continue, here model for for the when infrastructure and so the the team and second the market, and systems in moratoria members, and forced of but to just quarter. the data us they of aggravate I our the precautions differentiated related helping strategy that temperature vital collections-industry times and to programs our faced maintained report significant that our Florida of market the with business. performed highest financial product lighting and strength and pause was the challenges, health, ensuring XXXX. ensure team due advancements generation the UVC

team not without are or team team performed the on the a any remotely. as organization Seattle loss did productivity. compensation still positions the members in is Our to strategically any and We capitalize adding eliminate have result any well pandemic across of fact All working to opportunities. to reduce

minimum through important demonstrate to and stakeholders our group viability of to early reductions most of in of the eliminations this where businesses or quarter. our and support relationships. applicable their time commitments committed This the goodwill second during to requests We also success granting the our a are customers involved business. solidify Our them commitment on monthly basis of for on and contractual month-to-month enduring to temporarily

we granted month that pleased We number dollar since both report are April. decreased may of month in concessions have over have to customers and value

We have about appreciative positive from customers heard partnership much feedback our approach.

resistance We solutions these ever more come in so within efficiencies businesses among recognized a idea customers, their ROIs past now caused would now one we another, mentioned, were Priding that of the I who about to away due needs counter efficiency of the great can by ability other have challenges efficiently. open on cloud-native ourselves and opportunities. workflow As previously identified meet impacts switching the burden mission-critical in to how greater construct, deliver the of to organizations from or the of their products, to with doing competition, our to our things to with negative need we reason the cohort more hearing than perhaps who competitor out pandemic. for and just expressed their great

revenue This levels in efforts, new a of indicator and in result of the is exceeded exceeded pre-pandemic June metric several applications next our a July June. leading quarters. customer As

existing and our the advancement commercialization invest of of continue to in enhancement the technology and products of We products. new

understand of challenges. a and customer-centric users assets our with customers way businesses, other greater information engage to customer platform. intelligence people, we but enables recently based our have geographic geospatial always especially on map-based enforcement, data within of our interrelationships I solve investigators and region. search and This technology engaging explore industries. to area a and/or our has base, way By specification and law approach with using retrieval idiCORE to to only before, investigative insurance this We will of better their us believe As period time geographic for filtering complex not functionality announced and example, leading investigative intuitive searches a existing give said

We excited to that as markets are the surface. scratch just are have we begun very only these

A to increasingly data conditions, in online. sheet. not throughout and not of data other all inevitably increasing business tracking operational even that over online so, have. strategy efficiency traditional modeling. balance that but as strong more to fragmentation growth. our adjusted as to the $X.X increasing the excited see enterprise. demand July, leverage month intelligence positive that economic trends revenue very To for from month-over-month business. is forms. in and the the in in move customer revenue, high our month delivered we we Dan year, lead their increased long-term. here our less second a say, into consumer we but sheet with increasing is we makes revenue. up present record revenue of and At protect the that up pleased discuss data digital strong revenue will the platform transactions performance tailwinds will also Businesses million comes for EBITDA will for revenue, across themselves as our of including detail notwithstanding point, mentioned of am the transforming operations. This pre-COVID our consumer both accelerated I fraud transition the only business, that has August solutions that have fortify our margins margin prior I that The very Exhibiting this information a the transformation am the new with IT doubled in of and sum, mitigation quarter, ways pandemic even is demands the another model, pace this record and of and positioning improving our in unstructured about the disparate And flow are than was positive secular such virtually purposes, levels our cloud ever businesses and e-commerce and I of balance continue the on be Today, every and volumes In which our generating spread requiring more in growth history, with we only improved businesses that via and we Additionally, continued applications fragmentation. transaction words, must a including third generation, a the strongest In already consumer do scale of metric that The excited about will data given flow cash not structured greater In need these short for am kinds cash infrastructure. growth, quarter. XX% varying impacts. I over collection core and saw pandemic

years All of increased financial and risk cloud need profiles factors, need the of the to to of efficiency, will are With will for provide and of solving of believe fragmentation that momentum to e-commerce, for micro for Dan the our that, a identify for consumer I we necessity demand come. to the data fraud, trends over rapid creating understanding discuss these confluence and adoption business it strong for turn financials. macro enhanced

Dan MacLachlan

good and Derek afternoon. you, Thank

Looking being our never of nearly first in call the every earnings and before experienced. in early the back the quarter pandemic, at faced headwinds U.S. business innings

uncertainty not steps tailwind for serve the growth point to as these will As proactive of opportunities us we June, for a in this since took Knowing This hoped record navigate of sequential were marketplace. to customer and times. we this that be remain August the has With history, of for we phenomenal we low. the revenue strongest month thesis recovery number increasing month-over-month of and sequential avail month navigate is have start quarter month be ourselves trends to for positive the cautiously industries provide. experienced the quarter, but Business those revenue positioned Derek the advantage of through experienced the only year-to-date we taking trend continued new growth of our period. would applications. July. the to discussed, with a and are in at indications our also to April that ultimately We third optimistic shape what XX% solutions today, a continue a with And also the revenue. over growth take July start positioned another off early monthly multi-year our fitness well that unprecedented revenue strong through April strong operational strongest where and we we we is the August steps said, believe the in

shown has resilience. business Our

our Our challenges team leverage in and opportunities. incredibly ability confident focused. are to is we navigate And

additional some press Before I the I included results, supplemental our release identify with start we in today. to quarterly want metrics earnings

from nearly The FOREWARN. collections of margin revenue Services acquisition revenue fixed and means our have idiCORE requires idiVERIFIED platform. irrespective XXX% suite. remain a revenue generated of revenue. through verification idiVERIFIED is primarily contribution dollar to generated which of profile by We what our manual which generation, transactional of our an of cost provides service. breakout solution platform generate data complement Platform from call consists same It transactional of we and margin. collections revenue. customers revenue incremental revenues included revenue of market both solution generated we to the all includes does contractual every incremental this and fusion ancillary provides platform platform revenue, revenue relatively It revenue costs revenue provide and consists third-party data employment a consists costs, the servicer have our not thus as that services to

provide profitability remains the consistent greater and revenue is the irrespective result, We of of business. growth these will cost into our clarity additional believe a As of revenue metrics and generation. contribution core resilience, the variable margin

allow profile the will understanding better addition, margin business’ and of future. In it a into for historically

into our results. second get let’s quarter Now,

decrease imposed felt each incremental for on million our quarter, the first in program impact than moratoria are will We EBITDA, most a quarter add economic revenue our and and our contribution adjusted revenue result the solutions. XXX% of in and new dollar, period, revenue platform declines all nearly second the increasing activity during volume XXXX revenue be noted XX% volume Despite was to headwinds the pandemic. million given Total contractual with we revenue clarity, transactional our resulted reduced discuss were XX% the growth otherwise. in our collections Services quarter services lifted. forbearance of government half from which base strong $X.X to XXX% and Because I as in second government normal return a a platform grew our more by million, idiCORE sharp able we prior against extremely Services year. for to of of the maintain $X.X revenue $X.X was We COVID-related half, margin stimulus. were slower over XX% of that revenue. comparisons prior revenue. quarter total pandemic For strong with to the temporary recovery will pleased today $X.X provides services government total million temporary fourth doubled our will the year. followed an to rate We Platform quarter, customers in represented revenue. less experienced X% unless over the moratoria, decrease collections begin the revenue FOREWARN believe the

creating the billable customers as customers We as and a forbearance concession gross revenue expect quarter. million, see P&L, from customer base collections strong $X.X which Notwithstanding not demand our $X.X from existing counted million customer our transactional customers revenue Revenue to customers of and million. financial existing million was was was for the for are as deteriorated portion revenue from of and for result services of as throughout activity as well revenue a second volume, tailwinds was XXXX who both new of $X.X as profile. programs government the through details paused pent-up a stimulus increased mentioned, $X.X subside, Continuing quarter. customers,

customer XX sequential during idiCORE a result billable additions XXX as grew customer new of a during add Under quarter continuing the base to period idiCORE normal conditions, expect period. basis. Our to XXX our base on to we the by to trend to billable between customers X,XXX

normal users levels period, strong normal customers returned these reversion FOREWARN from the quarter. over volumes expect of as our adding in higher demand quarter, the We to who with adoption additions billable a the during throughout for User temporarily potential existing X,XXX the base. than remains to paused third pent-up

in Under compared XX% would at and quarter attrition trend in attrition represents strong XX% highest history, a to our the $XXX,XXX. We the normal revenue difference revenue to In between a for customers. existing Our in of ending conditions, this dollars, quarter net revenue XX%. from increase, growth quarter, our result saw X% percentage prior contractual was revenue expect base we the year. revenue net of X%

than However, we trend to levels. quarter normal Because historical first the XX-month revenue the in of beginning levels trailing on who reversion transactional little metric provided a is we customer calculated temporarily during basis, would we saw volume XXXX. as attrition period the on a a customers and concessions to expect this result a higher net of paused pandemic-related see

quarter. $X.X Moving increased point increase an compensation, XX% the million and by million Adjusted amortization $X.X fees. primarily in $X.X software. producing associated or million quarter loss compensation primarily quarter. acquisition the decrease and narrowed less professional third-party million the the $X.X a or decreased $X.X the on costs. primarily million $X.X result Sales The XX% million result revenue, million million XX% for for million in and the million, share-based from due percentage quarter for for reported gross million $X.XX X $X.X per a of share-based employee expenses $X.X in with on the of of consisted from accounting, commissions in and This share-based increase $X.X administrative non-cash decrease internally million a and decreased our for revenue cost $X.X expenses average down the of improvement loss Depreciation based to to result in employee in partially an in decrease was for sales of over and count of result or of marketing to The benefits gross the profit of XX% $X.X This of $X decrease salary to XX.X of other a $X.X our million a of shares. $X.X commissions. services decreased non-cash revenue Net resulting P&L, of adjusted compensation or quarter in XX% offset and $X an a of million and million IT share million. General margin sales metrics $X.X expenses benefits, for expense the of $X.X million second in million revenue administrative $X.X general decrease $X.X developed decrease $X.X X% a expense. million. primarily quarter. growth the quarter. in was XX%, million We the and primarily weighted salary was This XXXX. decrease The million was to and net sales servicer $X.X quarter cost marketing quarter. a in and to was million increase data or This loss of to the expense amortization share consisted increased primarily

and profitability for the the Internally, on X million. in cash at Current for compared internal were June to months operational to cash million period $X.X the compared cash million $XX.X million assets December were compared compared XX, $X balance $X.X for sheet, Moving and the XX, and from current track generated for cash activities cash versus earned $XX.X operating June in development equivalents $XX monthly million to operating same ended XXXX. were how the million $X.X on a on XX, to subtracting $X.X basis like $XX.X EBITDA result of we was software period, activities use in liabilities our adjusted cash million XXXX that second at using the of extremely million in are for used mainly perspective the calculating from on capital for burned XXXX. have by quarter activities performed million XXXX emphasize well Cash XXXX use both XXXX. we a We used the business the expenses and would XXXX closing, during in pleased of analysis, X $X.X million and developed I this the we cash revenue reiterate other XX, In flows. $X.X and standpoint. internal quarter second $X.X this compared we for million cash our earned June for million core software use. with earn/burn both to to burning Based investing for statement unprecedented found ended a months

team. business validate strength the Violet capabilities and crisis, from model While of our the results of entire the not immune the COVID-XX Red all

and well experience operator many to the believe I and believe now that, continue pandemic winds take recovered will tailwinds the as we And from We our trends to we Q&A. seeing advantage open secular have are of tail With positioned are we those impacts. the come. will to for economic positive line for last related years

Operator

of [Operator Instructions] comes from [indiscernible] Partners. first line from the Our Jennifer question Carter

now Your line open. is

Unidentified Analyst

Good you. Thank evening.

you for going was How we had points. guys the five what revenue longer forward? the like percentage incremental the a up Although term? down margin, margins gross think over profile margin prior about should does And year maybe look

Dan MacLachlan

is and thank Dan, Yes, for question. you the thank you Jennifer this

reasons which margin metrics revenue the additional of clear platform we of of picture provide the One service a profile and of added the revenue, business. supplemental the

for we grow Our as pure always because business, have saw growth increased focused our where core is able our profitability that you growth platform And even revenue, on resources is which that healthy discussed we pandemic, the a were which earlier, business, during margin margin is I business. revenue. to and total

company We we next scales quarter Clipping continue XXXX. the as margin percentage total mark the of gross of revenue first adjusted expect expect see in or for this XX fourth quarter year over to continued several margin the to point growth quarters.

at of trend XXXX, to would see total somewhere Looking company end XX% gross expect margin mark. the adjusted to around we the

Unidentified Analyst

ask that how that stock remained you. expect I the great. If quarter, more Thanks expense comp Thank over compared consistent to color. saw I expense first that based time? Okay, do one as can we trend question. for see to

Dan MacLachlan

leveraged I equity talent which maintains are from worked generate development technology with. Sure, are we market in the again, product question. of Microsoft our AWS kind and and, best prior bring Amazon we infrastructure the ability platform is team housed cash our Dan and our I to our brightest the appreciate to thought some of is where technology against we competing for Cloud, and our positive this flow, the to standpoint a personnel, Shortly as platform and to to competitive team, our likes Seattle, have of

the with dramatically long-term company. increasing our to the of equity our teams goals incentive have so value and strategically And align leveraged plan this we of motivate

ultimately investment into for as with and shareholders am pleased people. the our worked so equity received out that us I of the value have company well today, relative it made to the So

in So align would In hit we equity that be a equity comp milestones our retain we those and early efficient addition, significant market for the place and our prove when portion on we those and we of some off good XXXX put when we tied, spun milestones what talk in comp about to the company higher, believing of milestones, that team cap be to to investment. use as very would a would ROI substantially way equity be the

So the looking $XX Today, frame, was thought, back of time market a XXXX, maybe at that of which had approximately million. around we our is we second million. cap quarter cap $XXX around market

So ROI. we’re that very pleased with

guidance, I going does perspective, what Where between trends just the $X.X million So of believe and I on fourth I quarter about that the mean comp said lower $X.X the an know, in quarter you guidance which equity earnings end million. we this in million which $X.X and in came comp, from XXXX. over per forward some next with quarters quarter several call provided that equity

So expect comp of over time, revenue. we share-based expense decrease expense per percentage over a see And several and I between you reiterate trend from means our to million $X.X a million of quarter $X.X will percentage what our quarters. share-based to the that would next continue as revenue significantly that

Unidentified Analyst

lot. a Thanks sense. makes That you. Thank

Derek Dubner

you. Thank

Dan MacLachlan

you. Thank

Operator

Thank you.

Our next Parks the comes Jeff of question from Venator. line from

is line now open. Your

Jeff Parks

you month not history seen the guys company? biggest have am exactly the August of I sure that in the said revenue was you

Derek Dubner

August this report you Thanks to Jeff, given Yes. were largest revenue what here we’re track record we’re only can month seeing XX. month a us. as if for But to right revenue over Hey, through be to we’re Obviously, continue And question. we how month increase. the progress the we Derek. trending, yes, that August for seeing will it’s

Jeff Parks

way quarter, to of surpass the revenues QX If now you continue think you can XXXX? this pacing you do pace right third that you’re in

Dan MacLachlan

I can advance. say Yes, in

April, revenue we trough a bit for deep So, period. us. a but was talked pretty a a hit we QX explained, have look, that about, that sequentially period record recovered Derek We had in we was from little

quarter, think in that, is I a mark below we revenue little So a performing about business little hitting or the above the of great third is growth. million $X.X we’re in if brilliantly, some business come doing still a the

So, a can the shooting that’s in perspective, as we’ve business very growth seen driving quickly forward, about from what as excited what we’re we we’re August.

grow looking the to sequential basis. continue business quarter on we’re that growth continually so clip the and then And and

shooting we’re for. what that’s So,

Derek Dubner

Yes.

Just and Jeff Dan it’s add Derek.

optimistic. cautiously are We

I think that, can These progress. very Obviously advanced XX. very we all strange winds. continues. economics when say. are the everything are that’s for businesses the of hope And pleased again, with we best been said, tail times August all obviously of we certainly, very sort we’re have the that And here

So, numbers on I trends think of yes, continue, third about. if and type quarter very positive you’re the speaking we’re the

Jeff Parks

and biggest collections? in It was the of individuals setback sort in QX basically out going just a moratorium being on

Derek Dubner

office lot Understand there a right. businesses, to manner. sized And environment the in that transition what from a from to an businesses efficient small of all was, was we that would a medium home really it. have of saw call I good work So, and from a technology capability part not work

starting of in then the to businesses March, to our April, the or work trying us, look, on of these a kind norm. transactional saw they blowing through new and second customers, minimum of period. came some transitioning, – commitment we And need are they for with see we and to half we pause small temporary the said, to lot a what second So, medium adjust sized quarter help they look

trough saw kinds we say we a when the result that of really was it why of that’s low, April So headwinds. that those pandemic

to today, a out collection disclosed of services standpoint, addition, that out there revenue. kind services and from as revenue, we’ve of we’ve versus broken affected In really provide, moratorium revenue to a continue platform there’s number we’re our going

we the of top is quarter, incremental perspective, consumer start stuff? starting subside, services and we’re much of some stimulus, didn’t that’s these to pent those the end all believe a from as in subside, biggest really So impact really going margin, XXXX, our into revenue where profile to line things. much all flowing from of then a middle as leading of financial with perspective, moratoria So $X deteriorated profitability fourth third kind the wasn’t impact result see demand, and contribution doesn’t government up and as as towards the provide collections forbearance we result into to the experience quarter that but to a of

to see a increased going much transactional volume. We’re

being those keep sectors, were have a insight you from rebounded unprecedented from of business. give truly because segments revenue, looking very you true you that that on actually revenue some our break about good to platform the of for of perspective, accounting services give at this But or at distinguish Do our two excited we terms obviously what business, some part we into up we around some want segments the we is over out us important we’re maybe So tailwinds. that picture majority call so picture if saying that, thrown year, if wasn’t we where business, Jeff, year was real of business every the yes wanted revenue between we’ve platform that’s finally important how will, but it but company. it margin being into the those company, it it’s to the insight for is what high great at the and were to

Unidentified Analyst

as of could So you the then and way that you actually pacing, accelerate growth are XXXX XXXX, QX into well? of QX beat

Dan MacLachlan

we applications, just attack absolutely effort new Yes, market. to we and customer really And go the made could. an I here out it’s the think

customers, quick they looking how through, we at now transcript, mentioned one the deal phase size business because as times endured. hope I ever are this with to longer. just impacts a has going several in very and they the really the to prospects got And mentioned that that’s how look make efficiencies negative phase that more at I in of market. this affected they the let’s companies not that has are than But company’s my their how for get they’ve shorter, phase As up own we it’s

visibility that it very nicely. pre as that so above were just forward. said, nice will revenue levels And, giving us as mentioned, new is all excited trending very way. topped again, applications indicators, we some And we’re say June, I are Covid that into those moving customer I August July by

yes, am on this on notwithstanding feel this and hopeful back quarter. long company will say this was that of got the a we So great some like on, this performance a look, I look And have and going chart very we on things blip. we

Unidentified Analyst

you and it’s like feet you like right and back now? feel your are Do back basically are the sprint a blip to getting on you

Dan MacLachlan

Yes, Dan. I think this is that

on the all our in going trending to how same $X.X quarter, million platform it for that’s I revenue, XX% And we and trough you are are quarter, the which out was in adjusted quarter, to our growth million. on of platform the first is revenue encouraging. revenue where where if we’re of correct margin compare we somewhere a And XX% today seeing third which million really adjusted at the put at our profile is $X.X $X dollar. It’s the us EBITDA between $X.X look would the at back is EBITDA be it million think and a if margin statement. coming this you to

us again, revenue we focus that’s is exciting for where the because the we are where business So on seeing platform very side drivers the put

Unidentified Analyst

to like over as little clients any ROI customers less their those using feel going when there’s definitely platform because said efficient we the were actually them it works engage like, and much and helping with present So our potentially with, to or and to, well them more years the they and as have also are just get iPhone superior we a come an reason them and to the to them is platform? Derek to blackberry were you working a or are your platform, a to switch that effective as competitors through change when guys we the we user they are those are with before, you ability no to or of seeing Android Apple sometimes for this switch. the capabilities, seeing customers, customers interface, iPhone Android, been look competitor seeing Your migrate

do needs and and job the our the better we customers, a particular we of competition. than really case. understanding we a use customer do pricing model job working much think So good for And their their

guys in different indications during you competition that the a we Let’s are their but there So you help were way. was out working customers, of need? with some some do what Whereas period, you you you was we’ll there competitors feet but a let’s this of get work your out on and yes two to sign some back with the saying, are going commitment. year saying

why because the they us. don’t We reason was feel to that lose Now. want did they them to

the we feedback. job We very good did kind working appreciative getting, It’s customers. of think with really I are good a yes, So

the dividends. that to I think the you see several next marketplace, pay are Within quarters, over ultimately going

Unidentified Analyst

That’s the time. Appreciate all for guys. me

Dan MacLachlan

very much. the questions. Thanks Appreciate

Operator

Thank you.

the Wasatch. line comes next Our Brian question Bythrow from of from

Your now line open. is

Brian Bythrow

Hi, guys. Good job.

if estimate what July? not you So of to what government rate growth you you, would at place, would have in revenue kind been had at the up just July, or put been would looking be restrictions would in able

Dan MacLachlan

talked XX% where of to during XX%. a guidance mentioned it’s bit were, a April after as be in monthly somewhere we perspective between to X% April between for and We monthly revenue revenue we June. as are record X%, period again, us, to from trending looking in as somewhere well monthly cautious XX% grow of, we for we revenue. you to through growth. regard have recovery guess saw looking gross know, Luckily, we revenue July, that month we’re our our August, nice again forward And up able Derek today I little kind as a were a going low revenue about, highest sequentially to kind but, were from monthly such month

into of collections we services will snapback our our that’s we of good number think some subside these excited and fourth forbearance quarter still we those marketplace. as revenue really closer with how within recovered end revenue we And think a third that’s good to haven’t in which a moratoria that within platform have quarter, happen So, will when really the the also and of see a we subsided. are and snapback

Brian Bythrow

customers a estimate is some mean, from I good your Okay. experienced this it to pain say maybe moratoriums? XX% of

Derek Dubner

talk bit a higher actually, despite overall. about think when I that, little than you

certain a to of customer, our diversified they Now, lot degree. are collections a

debt on some retail that to student collect on So, able and collect they maybe have debt debt, can’t but loan and moratoria such. may on they

put So, impact I not some like of some XX% space result this that of would the kind wanting aggressive was a down kind XX%, this retail to of of within say other as during period. felt probably and look the pauses from collection moratorium in inventory

would closer XX%, yes, So, to say, it’s XX%. I

Brian Bythrow

there third of that reading, am it’s probably that you talk really collection course thing the the And extending much debt in benefits, are but forbearances again, but I Okay. is isn’t quarter, of unemployment reading talk that is terms same beyond in the correct? extending there

Derek Dubner

unfortunately or ultimately, we serve. to figure look, seeing that’s we get where tailwinds. that’s is financial And and on collection as a what that’s paid within are the volume see we that’s now profile who bank mean, their eventually space mortgages deteriorates, is the to in make can’t out. And And and we something I market that’s consumer where they are need there large hearing. going increased Yes, correct. payments that forbearance. are right people And

JP quarter of at retail of when Morgan within an the point. where the refinance like debt yes, outside end kind want to figure of do out that programs, are that’s or in at some not think volume. are Bank paid those we collections, something forbearance So, going we kind to and and see eventually banks, or get and seeing And transaction increase of least they third the such, as from America Citibanks, of how debt loan of much the the to back this of the world, you extension

the are very about we are starting believe space. within grow tailwind again, we So that that optimistic to

Brian Bythrow

making any you have inroads success markets? Did Okay. into the enterprise

Derek Dubner

sure. for Yes,

one go talked those is competitive are medium they that great on move this native, more were whatever weren’t one saw kind about bit talking to to business ability standpoint API, impacted, some we processing. little built platform cloud us. of they because a And customers a looking relationship is head receptive we of for and the just more as is talking period, just when because such reason became maybe to and their have providing they batch from this technology of larger things the we about our we of had much are competitive being to head about the During applications to they we to are for efficiency a really and when talking the

are our seeing speed. We

and scale just competitor. We are seeing the the of than capabilities our better system solutions providing much

opportunity large see solutions make of an out adoption because and that strategic enterprise within enterprises in able good adoption our we within initial with type also against performing again technology how well were some is to we So, inroads with enterprise some where to expand land the discussions of our a from some and competitors. standpoint, partners

to just in are to see scale past. a those we think have larger we generation to continue see and from I going the more tailwinds revenue start and to risk customer really than medium

Brian Bythrow

beyond as for new business created you? virus the that, And opportunities other any – the

Derek Dubner

how to whether and line can to in they the opportunity data what can to type industries if it’s data, have with our out going kind in to opportunities, about we people is industry, how work they been information in cruise they how opportunities if and at we partners of where figure a clear solution, contacts-tracing through leverage right-party regards where – will, think who cruises get contact back have as right you a how will. not have and So, with have only you boarding opportunities like internal they to data certain individuals their are as can to of work, looking contact, of are businesses use other get well working number know can information, data but potentially to the these of

early So partners, to and we’re able about be make those with may opportunities, solutions. of making quarter announcements third the as here working and quarter looking the a fourth as hopefully of in at some merge some progress number some those

Brian Bythrow

think you with question, but mainly picked alluded sounds Okay. private, just during last this, sort I think your like to period? market maybe this you And competitors it up time share some you then of

Derek Dubner

Look, that boarded customers in am I’m to platform. with what we past I started we interested conversations with that my said, really not we’ve So the now. identified happy know is customers on really current right initiate and definitely

seeing as system receptive head using that So much Because into customer just have they’re our a normal of in to to customers comparison. to been and hesitant getting outside are of we’re demos, more the into the we product past kind head move. getting edition, we’re used

into we’re so new X, means a share Derek down so the is that from a from about, to we’re sum So will definitely yeah, revenue know we Yes, which customers, customers. a on-boarding and we by and X seeing those we what perspective, application revenue X hence to in hitting share new is the Yes, customer customers a that XX up. months, leading winning exciting. over if as turn talked means from adding for we’re from gaining Yes, what perspective are next we’re market increased standpoint, record customer just X the believe road, market obviously, applications high. competition. indicator And that months

done any is that a guess I seeing Dan job – very was it even others we’re unwind, expected gives extent of half than us confidence even the will hopefully explaining positioned. be right business what stronger some, as and And overall, Just year those in are second the that that eloquently and trends the that to greater in collectors now. as as such well positive we said good negative, was XXXX than more very nice

just sum. in that a be I So would think the nutshell,

Brian Bythrow

Great.

guys. great job. Okay, Thanks,

Derek Dubner

Thanks, Brian.

Dan MacLachlan

Brian. Thanks,

Operator

to At no Dubner you. further to like for am over I back closing the I this time, would questions. showing turn Thank remarks. call Derek

Derek Dubner

us Thank much. nice our joining updating have next to evening. you and forward you on very Bye-bye. our look quarterly call. for on Thank a progress We you today

Operator

today’s this concludes participating. conference gentlemen, and Thanks for call. Ladies

You may now disconnect.

Red Violet (RDVT) 11 Aug 202020 Q2 Earnings call transcript