Good day, ladies and gentlemen. And welcome to Red Violet's Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Camilo Ramirez, Vice President, Finance and Investor Relations. Please go ahead.

Good afternoon, and welcome. Thank you for joining us today to discuss our third quarter 2022 financial results. With me today is Derek Dubner, our Chairman and Chief Executive Officer; and Dan MacLachlan, our Chief Financial Officer. Our call today will begin with comments from Derek and Dan, followed by a question-and-answer session. 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.redviolet.com. Before we begin, I would like to advise listeners that certain information 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 1995. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the company's business. The company undertakes no obligation to update the information provided on this call. For a discussion of risks and uncertainties associated with Red Violet's 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 subsequent 10-Qs. During the call, we may present certain non-GAAP financial information relating to adjusted gross profit, adjusted gross margin, adjusted EBITDA and adjusted EBTIDA margin. reconciliations of these non-GAAP financial measures to their most directly comparable 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 in these metrics and their definitions can also be found in the earnings press release issued earlier today. With that, I am pleased to introduce Red Violet’s Chairman and Chief Executive Officer, Derek Dubner.

Thank you, Camilo. Good afternoon to all and thank you for joining us today to discuss the results of our third quarter 2022. We are very pleased to report yet another strong quarter, setting records in nearly every key financial metric, driven by continued strong demand for our innovative identity and fraud solutions. We are delivering on a growing sales pipeline, winning head-to-head tests against the competition and have re-accelerated our investment in our sales and product teams to capitalize on opportunities and to drive our robust product roadmap. With that, let us dive into the quarter. For the quarter, total revenue was a record $15 million, a 29% increase over prior year. We produce a record $12 million in adjusted gross profit, resulting in a record margin of 80% for the third quarter. Adjusted EBITDA for the quarter was a record $5.2 million, producing a record 35% margin. Our net income was a record $2.3 million for the third quarter, an 80% increase over prior year. This resulted in record earnings of $0.16 per diluted share. IDI added over 50 customers sequentially from the second quarter, ending the third quarter at 6,873 customers and FOREWARN added over 8,700 users sequentially from the second quarter, ending the third quarter at 1,10,051 users. Over 225 realtor associations are now contracted to use FOREWARN. During last quarter’s earnings call we noted that we had multiple pipeline opportunities in play that we thought would perhaps land in Q2 were delayed due to ordinary course budgeting and procurement processes, and that we expected to land them in Q3, and Q4. As expected, we landed a few of those opportunities here in the third quarter. We're very proud of these wins, as they are a result of prospects, testing our solutions and capabilities against the…

Thank you, Derek and good afternoon. It was a great quarter for the company hitting records in nearly every key financial metric. Despite the challenging economic environment, our team executed extremely well. We continue to see increasing demand for our solutions, driving strong growth in the third quarter leading to records in revenue, adjusted gross profit, adjusted EBITDA, net income and EPS. This was all accomplished while continuing to tactically invest in expanding the capabilities, depth and efficiency of our product development, sales and go-to-market teams. Our higher tier opportunity pipeline continues to expand, and you are seeing the conversion of those opportunities to wins reflected in our third quarter results. With that, let's dive in. For clarity all the comparisons I will discuss today will be against the third quarter of 2021 unless noted otherwise. Total Revenue was a record of $15 million, a 29% increase over prior year, platform revenue increased 31% to $14.8 million. Services revenue decreased 29% to $0.2 million. We produced a record $12 million in adjusted gross profit, resulting in a record margin of 80% for the third quarter, up four percentage points. Adjusted EBITDA for the quarter was a record $5.2 million, up 43% from prior year. Our adjusted EBITDA margin for the quarter was a record 35% compared to 31% in prior year, continuing through the details of our P&L, as mentioned, revenue was $15 million for the third quarter, consisting of revenue from new customers of $2 million, base revenue from existing customers of $10.8 million and growth revenue from existing customers of $2.2 million. Our IDI billable customer base grew by 56 customers sequentially from the second quarter, ending the third quarter at 6,873 customers. FOREWARN added 8,790 users during the quarter, ending the third quarter at 1,10,051 users. Over…

[Operator Instructions] : :

At this time, I would like to turn it back to Derek Dubner for any further comments.

Thanks again to everyone who joined us today. We delivered a strong third quarter in a challenging economic environment. We are excited about our growing pipeline and deep product roadmap. We remain focused on the execution of our long-term plan, driving top line growth and healthy cash flow enabling us to invest in our business. We believe we are very well positioned for the remainder of the year and 2023. Goodbye.