Slide 1: Investor Presentation
August 2023 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 and Annual Dollar Retention Rate, 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 v
Slide 4: The eCommerce Risk Intelligence Leader
The eCommerce Risk Intelligence Leader RSKD 50+ IPO in July 2021; Only publicly Publicly held companies held next-generation among our clients eCommerce fraud and risk intelligence company. $115bn 99%+ One of the largest Annual dollar retention reviewers of eCommerce rate in 20222 volume (GMV) globa
Slide 5: Strong Q2'23 Financial Performance
Strong Q2’23 Financial Performance Continued Share Repurchase Revenue Growth Program YoY growth of 21% in Q2’23, an Up to $75 million share repurchase acceleration from 17% in Q1’23. program authorized by Board, subject to receipt of Israel court approval. Improved Approaching Bottom-Line Profitabili
Slide 6: We Operate in Massive Markets With Strong Tailwinds
We Operate in Massive ~$8.60 trillion Markets With Strong global eCommerce GMV in 20271 Tailwinds Solving Problems That Touch eCommerce Orders $5.8 trillion global eCommerce GMV in 20231 2023: $115B2 1 Source: eMarketer (June 2023). 2 GMV based on the actual GMV reviewed by Riskified over the last tw
Slide 7: Direct Sales Force Focused on the World's Largest Merchants
Direct Sales Force Focused on the World’s Largest Merchants Online merchants with more than $75 million in annual eCommerce sales make up approximately 85% of sales made directly Segments of focus Strategic from the retailer’s website (>$3B online sales) or mobile app.1 Super Enterprise (>$500M to $
Slide 8: eCommerce Has Massive Friction Points
eCommerce Has Massive Friction Points Friction & Lost Sales • Customer Frustration Leads to Lost Merchant Fraud & Sales Chargebacks Abuse & Policy Enforcement • Numerous, Complicated Banking & and Expensive Pain Payments Points Account Security
Slide 9: Riskified Value Proposition: Significant Sales Uplift and Attractive ROI
Riskified Value With Riskified Fewer declined orders builds Proposition: Before Riskified Declined Orders deeper customer loyalty and drives additional revenue for Significant Declined Prevented merchants False Declines Orders Sales Uplift and Attractive Our solutions convert bank declines and false dec
Slide 10: Partnering with Riskified makes merchants smarter & more profitable
Partnering with Riskified makes merchants smarter & more profitable “ Riskified is the best-in-class organization in eCommerce fraud management. I feel like I’m just picking up the phone Financial analysis found benefits to call someone I work with. I’ve dealt with vendors for over 594% ROI 26 years and
Slide 11: What Sets Riskified Apart
What Sets Riskified Apart Labelling – Closed loop system with high quality data purity Network – Scaled merchant network of pre-eminent eCommerce brands Integration – Deeply integrated delivery model driving strong retention Performance Management – Active monitoring, segmentation and optimization In
Slide 12: Innovative Technology Platform
Innovative Fraud & Chargeback Abuse & Policy Enforcement Account Security Banking and Payments Technology PRODUCTS Chargeback Guarantee Policy Protect Account Secure PSD2 Optimize Platform RISK Constant Optimization & ● Automated, real-time Realtime Training Data Exposure Modeling Active Monitoring
Slide 13: Guidance Outlook
Guidance Outlook Updated Revenue Guidance for 2023 Guidance as of Q1’23 Revenue $297M - $303M Adjusted EBITDA ($17M) - ($12M) $300.5M ~($15M) Revenue Adjusted EBITDA Midpoint Midpoint Updated Guidance as of Q2’23 Revenue $298M - $303M Adjusted EBITDA ($17M) - ($12M) YTD Weighted Average Shares 185.8
Slide 14: Q2 2023 Business Highlights
Q2 2023 Business Highlights Growth Outside and within Tickets & Travel: We continued to see strong growth in our Tickets and Travel vertical, propelled by the ongoing activity in live-events and experiences. Outside of this category, for the first time in several quarters our other verticals, in aggr
Slide 15: Q2 2023 Business Highlights (continued)
Q2 2023 Business Highlights (continued) Successful Cross-Sell of Policy Protect: During the second quarter of 2023, we went live with our Policy Protect product with an existing Enterprise level merchant in the electronics industry. Using Policy Protect, Riskified is able to help solve abusive return
Slide 16: Q2 2023 Business Highlights (continued)
Q2 2023 Business Highlights (continued) Board Authorizes Share Repurchase Program: Our Company's Board of Directors authorized the repurchase of up to $75 million of the Company’s ordinary shares, subject to receipt of approval by the Tel Aviv District Court Economic Department (the "Israeli court")
Slide 17: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights GMV $31.0B Revenue $72.8M Gross Profit $37.0M Adjusted EBITDA(1) $(4.6M) (1) A reconciliation of Adjusted EBITDA to it most directly comparable GAAP financial measure, Net Profit (Loss), is provided in the Appendix.
Slide 18: FY 2022 Financial Highlights
FY 2022 Financial Highlights GMV $105.6B Revenue $261.2M Gross Profit $135.1M Adjusted EBITDA(1) $(37.1M) (1) A reconciliation of Adjusted EBITDA to it most directly comparable GAAP financial measure, Net Profit (Loss), can be found in our Q4 2022 Earnings Release on Form 6-K, filed with the SEC on Febr
Slide 19: Industry and Geo Billings Trends
Industry and Geo Billings Trends Over time, we have continued to diversify across industries and geographies, with accelerated growth in both EMEA and APAC ~60%
Slide 20: Existing Customer Penetration
Existing Billings Growth by Cohort(1)Outlook Customer Penetration We have increased billings from our mature cohorts(2) by ~200%.(3) We believe our more recent cohorts represent a similar expansion opportunity. (1) Each “cohort” includes all of the accounts that onboarded to the Riskified platform in
Slide 21: CTB Cohorts Over Time
CTB Cohorts CTB Ratio by Cohort(1)Outlook Over Time While CTB ratios fluctuate from period to period as a result of various factors, including changes in industry mix within 2021 Cohort cohorts, over the long-term we have been able to consistently 2020 Cohort demonstrate 2013-2016 Cohorts improvement
Slide 22: Appendix
Appendix
Slide 23: Q2 and 1H 2023 GAAP Financial Results
Q2 and 1H 2023 GAAP Financial Results $ in thousands Q2'22 Q2'23 1H FY'22 1H FY'23 Revenue 59,932 72,766 118,777 141,673 Cost of revenue 29,326 35,743 57,803 68,809 Gross profit 30,606 37,023 60,974 72,864 Operating expenses: Research and development 17,947 18,264 36,060 37,058 Sales and marketing 23
Slide 24: Q2 and 1H 2023 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA
Q2 and 1H 2023 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA $ in thousands Q2'22 Q2'23 1H FY'22 1H FY'23 GAAP Net profit (loss) (33,193) (16,894) (66,606) (34,845) Non GAAP expenses: Share-based compensation expense 18,136 15,799 36,523 32,155 Payroll taxes related to share-based compen
Slide 25: Reconciliation of Operating Cash Flow to Free Cash Flow
Q2 and 1H 2023 Reconciliation of Net Cash Provided by (Used In) Operating Activities to Free Cash Flow $ in thousands Q2'22 Q2'23 1H FY'22 1H FY'23 Net cash provided by (used in) operating activities (12,346) (4,866) (19,372) (4,637) Purchases of property and equipment (434) (61) (2,979) (248) Capit
Slide 26: Chargeback Guarantee Revenue Model
Chargeback Guarantee Riskified’s GMV Total eCommerce volume submitted to Riskified for review Revenue Model Flow Approval Rate (%) Varies by merchant based on a variety of inputs, including the Take Rate (%) industry of the merchant, the risk level of the end market, the Take percentage of GMV we revi
Slide 27: We Increase Merchants' Revenue & Decrease Costs
We Increase Merchants’ Revenue & Decrease Costs Average of Ten 39% Largest Merchants 8% in Sample1 Company A 67% < $5.0 billion 14% Company B 51% < $5.0 billion 32% Company C 65% $5.0 - $10.0 billion 1% Company D 33% < $5.0 billion 6% Company E 57% > $10.0 billion 2% Merchant 50% 0% Online 0% 10% 20
Slide 28: Investor Relations Contacts
Investor Relations: Chett Mandel, Head of Investor Relations ir@riskified.com Corporate Communications: Cristina Dinozo, Senior Director of Communications press@riskified.com