Good day ladies and gentlemen and welcome to Red Violet's Fourth Quarter and Full Year 2023 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. As a reminder, this call is being recorded. I would now like to introduce your host for today's call, Camilo Ramirez, Senior Vice President of Finance and Investor Relations. Please go ahead.

Good afternoon and welcome. Thank you for joining us today to discuss our fourth quarter and full year 2023 financial results. With me today is Derek Dubner, our Chairman and Chief Executive Officer and Dan MacLachlan, our Chief Financial Officer. Our call today we'll 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 this and 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, adjusted EBITDA margin, adjusted net income, adjusted earnings per share and free cash flow. Reconciliations of these non-GAAP financial measures and their most directly comparable U.S. GAAP financial measures 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 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.

Thanks, Camilo. Good afternoon to those joining us today to discuss our fourth quarter and full year 2023 results. We are pleased to announce a strong fourth quarter capping off another record year for Red Violet. It was a year of producing higher financial metrics across the board, reflecting on the prior year in an economic climate that certainly experienced its ebbs and flows, but found its footing as the year progressed. We grew revenue in the mid-teens, generated very strong margins and cash flow, and invested in our business while returning capital to shareholders via our stock repurchase program. Our industry-leading AI/ML-powered platform, proprietary linking algorithms, and core identity graph continue to be recognized by industry and as time passes, more and more customers and prospects are realizing that we do entity resolution better than anybody else. And entity resolution is essential for identity verification, fraud detection and prevention, and risk mitigation across industries and across transactions. Case in point, our solutions are now an integral component of the solutions of a number of the leading identity verification platform companies in the market today. These companies rely on our entity resolution capabilities to serve their many end markets. Our differentiated assets and capabilities have us very well positioned for 2024 and beyond. Given the continuing expansion of our product suite and with 2024 revenue to date off to a record start, we are very optimistic and highly focused on accelerating our business and continuing to deliver exceptional customer and shareholder value. Now, turning to the numbers, total revenue for the fourth quarter was $15.1 million, a 15% increase over prior year. We produced $11.7 million in adjusted gross profit, resulting in a margin of 78% in the fourth quarter, up 1 percentage point. Adjusted EBITDA for the quarter was…

Thank you Derek, and good afternoon. 2023 was a strong year for Red Violet, again producing yearly records in revenue, gross profit, net income, adjusted EBITDA and free cash flow. Reflecting back to the first quarter of 2023, in the shadow of some broader economic uncertainty, our goals were to advance our long-term strategic plan by converting our healthy cash flow and solid balance sheet into innovative solutions, enhanced capabilities, entry into new markets and increasing market penetration. I'm happy to report that we executed well against those goals with several product releases in 2023, including enhanced KYC functionality with fraud signals and scoring for the broader identity market, a robust background screening support suite that now includes idiTRACE, idiCrim, and idiALIAS [ph] and enhanced criminal information capabilities for law enforcement and our investigative vertical that includes map-based criminal search functionality, real-time arrest search and arrest monitoring. We are now hitting the market with our IDI marketing solution, providing more than 400 attributes across more than 260 million U.S. consumers. IDI marketing, along with our CORE identity solution, allows us the opportunity to capture the entire identity journey and corresponding wallet share from our customers, through protecting and acquisition, verification and onboarding, and protecting and personalizing. These combined solutions encompass the full customer identity lifecycle. Closing out the year, we launched several AI initiatives including enhanced AI-driven entity resolutions, predictive analytics driven by deep learning and improved data extraction using large language models. Moving into 2024, we are extremely excited about our solutions suite and the expanding applicability to the markets we serve. And as Derek discussed, our opportunity to lean in a bit to accelerate our revenue in 2024, because of our incremental margin on every growth dollar, we believe we can accomplish this acceleration while still generating increasing…

Thank you. [Operator Instructions] As there are no questions in queue, I would like to turn the conference back to Derek Dubner for closing remarks. Sir?

Thank you. We are pleased to have reported another strong quarter and a record year for Red Violet. We are executing upon our strategic plan, which includes our robust product roadmap. We are well positioned to accelerate the business and to deliver exceptional customer and shareholder value. Good afternoon.

This concludes today's conference call. Thank you for participating. You may now disconnect. : :