Red Violet : Company Presentation November 2023

Company Overview

November 2023

© R e d V i o l e t , I n c . A l l R i g h t s R e s e r v e d .

Cautionary Statement

This presentation contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipate," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements include non-historical statements about our expectations, beliefs or intentions regarding our business, technologies and products, financial condition, strategies or prospects. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the risks set forth under the heading "Forward-Looking Statements" and "Risk Factors" in red violet's Form 10-K for the year ended December 31, 2022 filed on March 8, 2023, as may be supplemented or amended by red violet's other SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

You are cautioned not to place undue reliance on these forward-looking statements, which are based on red violet's expectations as of the date of this presentation and speak only as of the date of this presentation. red violet undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Without limiting the foregoing, the inclusion of the financial projections in this presentation should not be regarded as an indication that the Company considered, or now considers, them to be a reliable prediction of the future results. The financial projections were not prepared with a view towards public disclosure or with a view to complying with the published guidelines of the Securities Exchange Commission, the guidelines established by the American Institute of Certified Public Accountants with respect to prospective financial information, or with U.S. generally accepted accounting principles. Neither the Company's independent auditors, nor any other independent accountants, have compiled, examined or performed any procedures with respect to the financial projections, nor have they expressed any opinion or any other form of assurance on such information or its achievability. Although the financial projections were prepared based on assumptions and estimates that the Company's management believes are reasonable, the Company provides no assurance that the assumptions made in preparing the financial projections will prove accurate or that actual results will be consistent with these financial projections. Projections of this type involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved.

Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, adjusted gross margin and FCF. Adjusted EBITDA is a financial measure equal to net (loss) income, the most directly comparable financial measure based on US GAAP, excluding interest (income) expense, net, income tax (benefit) expense, depreciation and amortization, share-based compensation expense, gain on extinguishment of debt, litigation costs, and write-off of long-lived assets and others, as noted in the tables below. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We define adjusted gross profit as revenue less cost of revenue (exclusive of depreciation and amortization), and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment and capitalized costs included in intangible assets.

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red violet at a Glance

March 26, 2018	$58M
Initial Listing	TTM Revenue(1)

NASDAQ: RDVT	79%
Ticker Symbol	Adj. Gross Margin(1)

7,750+	78%
Customers	TTM Contractual Revenue(1)

(1) For the quarter ended September 30, 2023.

Most Advanced Identity Intelligence Platform

Cloud-native platform delivering greater intelligence and unparalleled insight for decision-making capabilities

Scalable and Efficient

Quick and cost-effective deployment that is scalable to virtually unlimited capacity and performance

Large and Growing Market

Numerous expansion and increased penetration opportunities

Designed with Security in Mind

Built in a secure payment card industry (PCI) compliant environment

Proven Management Team

Highly experienced management team with track record of scaling businesses

Our Brands

Leading analytics and information solutions	Instant knowledge to help Real
provider delivering actionable intelligence	Estate professionals better
to the risk management industry	understand and address risk

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Seasoned Management Team With Deep Data and Analytics Industry Experience

Name and Title	Biography	Prior Experience
		Derek Dubner	▪ Over 20 years of experience in the data and analytics industry
		CEO	▪ Built leading information management companies which sold for an
			aggregate value of approximately $1 billion
		James Reilly	▪ Over 20 years of executive experience in data markets
		President
		Dan MacLachlan	▪ Over 15 years of experience as the CFO of data-driven technology
		CFO	companies
		Jeff Dell	▪ Over 20 years of experience in Information Security as an executive in
		CIO	data-driven technology companies
		Angus Macnab	▪ Over 15 years of experience in data science, engineering, and scientific
		CTO	computing
		Jim Greenwell	▪ Over 20 years of experience in the digital identity and mobility space,
		working as an executive and adviser to leading identity management and
		GM, Identity
		information solutions providers

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Challenges That Businesses Are Facing Today

Organizations are challenged by the structure, volume and disparity of data. Our platform and applications transform the way customers interact with

information, presenting connections and relevance of information otherwise unattainable, which drives actionable insights and better outcomes.

Managing	Identity
Risk	Verification
red violet's advanced	In a world of omnichannel
analytics and enterprise	engagement, verifying a
solutions drive successful	consumer's identity is a top
business decisions in	challenge. red violet
real-time, providing	provides identity
organizations the ability to	intelligence that meets a
make informed decisions	business's specific identity
and mitigate risk.	needs and workflow.

Legislative

Compliance

red violet simplifies

compliance with turn-key

solutions that drive

actionable insights and

better outcomes, allowing businesses to comply with government and industry

regulations.

Consumer

Modeling

Understanding the consumer

is more important than ever in a digital economy. red violet's consumer identity graph provides connections and

relevant characteristics,

allowing businesses to build

strong relationships.

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Our Intelligent Platform - CORETM

Disparate Data

With massive data assets consisting of public record, proprietary and publicly- available data, our differentiated information and innovative platform and solutions deliver intelligence relating to all things identity.

Data

Sources

FinancialEmployment

Location

▪ Scalable / performant cloud-native

infrastructure that is fully automated

▪ Proprietary, scalable, distributed

memory, data processing platform

▪ Distributed supervised and

Identity Intelligence

Financial:

• Identity Verification / Fraud Prevention
• Collections Activity
• AML, KYC, BSA Efforts
• Due Diligence

Real Estate:

• Consumer Data Appends
• Consumer Modeling / Segmentation
• Identity Verification / Risk Assessment

Collections:

• Collections Activity / Right-party contact
• Compliance
• Employment Verification/Bank Account Locate

Retail:

▪ Identity Verification / Fraud Prevention

▪ Collection Activity

Demographic

Phone

Property

unsupervised machine learning

▪ Low latency / high throughput search

and information retrieval solutions

using Boolean and inverted indices

▪ Frictionless Commerce

Investigative:

▪	Investigative Support
▪ Subject / Asset Locate
▪ Identity Verification / Fraud Prevention
▪	Compliance

RelationshipsSocial

6

▪ Scalable to virtually unlimited

capacity and performance

© R e d V i o l e t , I n c . A l l R i g h t s R e s e r v e d .

Background Screening:

• Identity Verification / Fraud Prevention
• Criminal Record Research

red violet Plays in a Large and Fast-Growing TAM

	$10B
# of Businesses(1)	red violet's Bottom-Up TAM(4)

	35% Avg.	$180k
90,000	(Penetration)	(Avg. ACV)		$5.7B

	36% Avg.	$75k
100,000	(Penetration)	(Avg. ACV)		$2.7B

120,000	(Penetration)	(Avg. ACV)	$1.1B
	37% Avg.	$26k

282,000	(Penetration)	(Avg. ACV)
	50% Avg.	$5k		$0.7B

1. Represents serviceable market for verticals in which the company currently operates.
2. Gartner Forecast Analysis: Analytics and Business Intelligence Software, Worldwide, September 2020. Represents 2021 figure.
3. IDC Worldwide Big Data and Analytics Software Forecast, 2022 - 2026, July 2022. Represents 2022 figure.
4. Management's Estimates Based on Public Sources and Industry Knowledge.

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$90B

Global Big Data & Analytics Software Revenue(3)

$30B

Global Analytics and

Business Intelligence

Software Revenue(2)

$10B

Bottom-Up

TAM Analysis(4)

Our Business Model Provides a Compelling Investment Opportunity

Next-Generation Technology Platform

✓ Proprietary data and industry agnostic platform drives cost efficient solutions across industries

Differentiated Owned Data Asset

✓ Massive proprietary datasets of alternative and internally generated data unified by proprietary algorithms and analytic processes

✓

✓

✓

Subscription-Based

78% of revenue attributable to customer contracts, generally annual contracts or longer, with auto renewal(1)

Fixed-Cost Model

We acquire data using flat-rate, unlimited use long-term contracts, so as revenue scales, our cost of revenue does not

Large and Growing Market

$10B+ serviceable market today with $90B+ in total addressable market(2)

✓	Strong Operating Leverage
$4.3M increase in adjusted gross profit in Q3'23 YTD provided $2.4M improvement adjusted EBITDA over Q3'22 YTD, ~55%
	contribution

Experienced Management Team

✓ Team previously built current industry competitors which were acquired for an aggregate value of approximately $1B

	(1)	For the TTM quarter ended September 30, 2023.
8	(2)	IDC Worldwide Big Data and Analytics Software Forecast, 2022 - 2026, July 2022.
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Our Brands

coreIDENTITY™ is a comprehensive	idiTRACE™ is a premier source of
suite of identity solutions that	applicant address and alias history,
encompasses the full customer identity	maximizing match rates while reducing
lifecycle, from acquisition to onboarding	false positives for background screening
and beyond, with turn-key APIs and	organizations.
customizable workflows.

Together with the industry's most advanced and performant identity intelligence platform, idiCORE™ provides unparalleled insight into people, businesses, assets, and their interrelationships.

idiVERIFIED™ combines proprietary data	idiCRIM™ is a leading solution to the
sources with sophisticated manual	background screening industry, providing
verification to help locate bank account	the ability to search a comprehensive
and place of employment information for	database of national criminal, court,
elusive targets.	arrest, and sex offender records in
	support of the screening process.

The Value of Instant Due

Diligence with FOREWARN:

Using as little as an incoming phone number, FOREWARN can positively identify over 80% of prospects

Identify if your prospect has a criminal history

Verify current property and vehicle ownership

Verify financial risks (bankruptcies / liens)

Verify additional phone numbers and full address history

Agents can properly and safely plan for showings with a higher level of confidence

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Growth Drivers

MACRO TAILWINDS

RAPIDLY GROWING AMOUNTS OF DISPARATE DATA

WORLDWIDE DIGITAL TRANSFORMATION

INCREASING
RATES OF FRAUD	Expansion

Adoption

• Proven, scalable sales model

		Custom Solutions
	▪	Solve complex problems for
		enterprise customers
Penetration	▪	Tailor solutions to meet unique
	needs of each customer

• Expanded spend from customer base through cross-sell and upsell

GROWTH INITIATIVES

• Expanding product suite will allow for entrance into new verticals and geographic markets
• Introduction of additional sales channels will reach nontraditional customers

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