Riskified Ltd. · NYSE:RSKD
Riskified — Q4 2024 Earnings Presentation
39 slides from Riskified's earnings presentation, Mar 5, 2025
Slide 1: Investor Presentation
March 2025 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking st
Slide 3: Key Performance Indicators and Non-GAAP Measures
Key Performance Indicators and Non-GAAP Measures This presentation contains key performance indicators including GMV, as well as non-GAAP measures, including Adjusted EBITDA and Free Cash Flow. “Gross Merchandise Volume” or “GMV” is defined as the gross total dollar value of orders reviewed through o
Slide 4: Agenda
01 Company Overview Agenda 02 Financial Overview 03 Appendix
Slide 5: Company Overview
01 Company Overview
Slide 6: Unleash your eCommerce Growth
Unleash your eCommerce Growth Leading ecommerce merchants trust Riskified to maximize revenue and profit with our AI-powered fraud management and risk intelligence platform.
Slide 7: Riskified is a Leader in eCommerce Risk Intelligence
Riskified is a Leader in eCommerce Risk Intelligence 2013 RSKD 33%+ 50+ Established more than a IPO in July 2021; Over ⅓ of the team Publicly held decade ago as a pioneer in only publicly held AI devoted to R&D 1 companies AI-powered fraud fraud and risk among our clients 1 management in ecommerce in
Slide 8: Attacking a Massive Market
Attacking a Massive Market ~$6 trillion ~$8.0 trillion global ecommerce global ecommerce GMV in 20242 GMV in 20282 FY’2024: $140B+1 1. GMV reviewed by Riskified in the twelve months ended December 31, 2024, 2. Source: eMarketer (July 2024)
Slide 9: Ecommerce Has Numerous, Complicated Pain Points
Ecommerce Has Numerous, Complicated Pain Points Friction & Lost Sales +$525B in annual lost sales due to falsely declined orders 1 Fraud & Chargebacks Abuse & Policy +$52B in fraudulent eCommerce Enforcement orders each year 2 Account Security +$100B in abusive refunds & returns annually 3 1. eMarke
Slide 10: Riskified Unleashes AI on eCommerce Decisioning
Riskified Unleashes AI on eCommerce Decisioning Separating Risky & Legitimate …Driving Superior Business Identities… Outcomes Increased Revenue Legitimate Fraud & Abuse Decreased Costs ? Better Customer Experiences
Slide 11: Covering the Entire Checkout Journey with AI-Powered Products
Covering the Entire Checkout Journey with AI-Powered Products Account Creation & Account Log-In Account Secure Order Approval & Fraud Review Chargeback Guarantee & Adaptive Checkout Bank Payment Authorization Policy Enforcement & Claims Authorization Policy Protect Chargeback Management Dispute Reso
Slide 12: Riskified helps the world's leading enterprise merchants unleash their ecommerce growth
Riskified helps the world’s leading enterprise merchants unleash their ecommerce growth by outsmarting risk
Slide 13: Consistently Beating Next Gen Competitors in Head-to-Head Pilots
Consistently Beating Next Gen Competitors in Head-to-Head Pilots Gift card retailer Travel merchant Fashion Retailer Lower chargeback rates Lower chargeback rates Lower chargeback rates 1.3% 0.35% 0.44% Competitor A 2.60% Competitor A 0.44% Competitor A 0.89% Competitor B 3.10% Competitor B 1.01% Hi
Slide 14: Automated Platform with Strong Network Effects
Automated Platform with Strong Network Effects +4 billion Historical full-lifecycle eCommerce More More transactions 1 Merchants GMV +950 million Unique consumers in network 1 Riskified Flywheel +480 Data attributes of models 1 More More Global +185 ROI Consumers Countries with unique consumers 1 1. I
Slide 15: The Riskified Platform
The Riskified Platform Deep Data Customized, Enterprise Robust AI-Powered Modular ML Capture Autonomously Scalability Identity Components Infrastructure Trained Models & Compliance Graph
Slide 16: Products Synergistically Improve Performance & ROI
Products Synergistically Improve Performance & ROI Multiple customer touch points all feed back into the Riskified platform Adaptive Chargeback Policy Account Secure Dispute Resolve Checkout Guarantee Protect Block Reduce false Prevent Stop abuse, Fight account declines & fraud, reward chargebacks, t
Slide 17: Enables Rapid Product Development as New Use Cases Arise
Enables Rapid Product Development as New Use Cases Arise Modular ML Infrastructure Products Chargeback Guarantee Policy Protect Dispute Resolve Account Secure Prevent fraud, Stop policy abuse, Fight chargebacks, Block account lift revenue reward loyalty recover revenue takeovers, build trust Managed
Slide 18: Multiple Opportunities For Growth
Multiple Opportunities For Growth Grow with our Win new Land and Geographic New Platform merchants merchants expand expansion categories Sale
Slide 19: Financial Overview
02 Financial Overview
Slide 20: Financial Highlights
Financial Highlights FY2024 GMV $141.2B Revenue $327.5M Gross Profit: $170.9M Adjusted EBITDA1 $17.2M Adjusted EBITDA Margin1 -2% 1% -8% -14% -3% 5% 1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP metrics. A reconciliation of these metrics to the most directly comparable GAAP financial measu
Slide 21: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights GMV $39.5B Revenue $93.5M Gross Profit $48.9M Adjusted EBITDA1 $11.2M 1 Adjusted EBITDA is a non-GAAP metric. A reconciliation of this metric to the most directly comparable GAAP financial measure can be found in the Appendix and/or in our Q4 2024 Earnings Release issued o
Slide 22: Q4 2024 Financial Performance Demonstrated Continued Execution
Q4 2024 Financial Performance Demonstrated Continued Execution Full Year of Positive Adjusted Exceeded High End of Revenue EBITDA1 Guidance Achieved positive Adjusted EBITDA1 in every quarter Achieved revenue growth of 10%, finishing the year throughout 2024 and achieved record positive Free with $32
Slide 23: 2025 Guidance Outlook
2025 Guidance Outlook Initial Revenue & Adjusted EBITDA Guidance Low Midpoint High Revenue $333M $339.5M $346M Adjusted EBITDA $18M $22M $26M YTD Non-GAAP Weighted Average 168-172M Shares Outstanding
Slide 24: Q4 & FY 2024 Business Highlights
Q4 & FY 2024 Business Highlights Further Vertical and Ongoing Success in Largest Execution with Large Geographic Diversification Verticals Enterprises with the Addition of New In addition to broadening our vertical In 2024, we surpassed our 2023 Merchants reach, we continued to have strong achievemen
Slide 25: Q4 & FY 2024 Business Highlights
Q4 & FY 2024 Business Highlights Continued Multi-Product Achieved Full Year of Positive Launched Adaptive Checkout Platform Expansion Adjusted EBITDA We recently launched Adaptive Revenue growth outside of our core We achieved Adjusted EBITDA margin Checkout, our All-in-One Fraud Chargeback Guarante
Slide 26: Q4 & FY 2024 Business Highlights
Q4 & FY 2024 Business Highlights Partnership with Apriss Retail Share Repurchase Program Update We recently partnered with Apriss Retail, a top provider of return and claim We continued to repurchase our shares authorization solutions. This innovative at attractive valuation levels. In 2024 we colla
Slide 27: Industry and Geography Billings
Industry and Geography Billings Payments, Money Transfer & Crypto Tickets & Travel Trends Electronics Home General 2 Over time, we have Fashion & Luxury Goods continued to diversify across industries 1 and geographies 1, with growth across all geographies in 2024 APAC 1 Geography of billings determi
Slide 28: Adjusted EBITDA Over Time
Adjusted EBITDA1 Over Time Q4’24 was a record with $11.2M in Adjusted EBITDA, fifth consecutive quarter of positive Adjusted EBITDA; ~2000 bps improvement over the last two years Adjusted EBITDA margin 49 bps YoY with 12% margin IPO 1. A reconciliation of Adjusted EBITDA to its most directly comparab
Slide 29: Strong Free Cash Flow Model
Strong Free Cash Flow1 Model IPO ● Meaningfully improved our Free Cash Flow (“FCF”) since IPO ● $39M in positive FCF in 2024 ● $376M of cash and deposits as of Dec. 31, 2024 ● Zero Debt 1. A reconciliation of Free Cash Flow to its most directly comparable GAAP financial measure, Net Cash Provided by
Slide 30: Continuous Customer Penetration
Continuous Billings Growth by Cohort1 Customer Penetration 2 Our recent 2022 and 2023 cohorts demonstrated exceptional growth, with the 2022 cohort tripling billings and the 2023 cohort growing nearly sixfold in 2024 2 1 Each “cohort” includes all of the accounts that onboarded to the Riskified platf
Slide 31: CTB Cohorts Over Time
CTB Cohorts Over Time CTB Ratio by Cohort 1 While CTB ratios fluctuate 2022 from period to period as Cohort 2024 Cohort starting point a result of various factors, including changes in 2018 2021 industry mix within Cohort 2020 Cohort 2023 cohorts, over the Cohort 2013-2017 Cohort long-term we have be
Slide 32: How We Drive Accuracy & CTB Improvements Over Time
How We Drive Accuracy & CTB1 Improvements Over Time 100% Performance Improvement Levers: ● More data: Merchant A Tomorrow ○ Vertical & geographic penetration Approval Rate ● More accurate models: Merchant B ○ More models per merchant Today ○ Continuous model retraining Merchant C ● Automated, real t
Slide 33: Appendix
03 Appendix
Slide 34: Chargeback Guarantee Revenue Model Flow
Chargeback Guarantee Revenue Model Flow Transforming GMV into Revenue Riskified’s GMV Total ecommerce volume submitted to Riskified for review Approval Rate (%) Varies by merchant based on a variety of inputs, including the industry of the merchant, the risk level of the end Take market, the percentag
Slide 35: Q4 & FY 2024 Income Statement
Q4 & FY 2024 Income Statement $ in thousands Q4'23 Q4'24 FY'23 FY'24 Revenue 84,065 93,529 297,610 327,516 Cost of revenue 35,550 44,668 145,091 156,577 Gross profit 48,515 48,861 152,519 170,939 Operating expenses: Research and development 17,122 16,543 71,577 68,065 Sales and marketing 21,344 19,70
Slide 36: Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA
Q4 & FY 2024 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA $ in thousands Q4'23 Q4'24 FY'23 FY'24 GAAP Net profit (loss) (3,265) (4,084) (59,035) (34,922) Non GAAP expenses: Share-based compensation expense 14,925 13,369 62,410 57,831 Payroll taxes related to share-based compensation 73
Slide 37: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Q4 & FY 2024 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow $ in thousands Q4'23 Q4'24 FY'23 FY'24 Net cash provided by (used in) operating activities 7,423 10,691 7,279 39,696 Purchases of property and equipment (281) (130) (1,355) (637) Free Cash Flow 7,142 10,561 5,
Slide 38: Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
Q4 & FY 2024 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit $ in thousands Q4'23 Q4'24 FY'23 FY'24 GAAP Gross Profit 48,515 48,861 152,519 170,939 Non GAAP expenses: Share-based compensation expense 196 171 770 765 Payroll taxes related to share-based compensation 3 2 11 17 Depreciation a
Slide 39: FY 2024 Balance Sheet
FY 2024 Balance Sheet $ in thousands $ in thousands CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents 371,063 Accounts payable 2,309 Short-term Deposits 5,000 Accrued compensation and benefits 26,365 Accounts receivables, net 47,803 Guarantee obligations 13,061 Prepaid expenses and other