Riskified Ltd. · NYSE:RSKD
Riskified — Q1 2025 Earnings Presentation
38 slides from Riskified's earnings presentation, May 14, 2025
Slide 1: Investor Presentation
May 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 companies AI-powered fraud fraud and risk among our clients management in ecommerce intell
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 Merchants GMV +950 million Unique consumers in network Riskified Flywheel +480 Data attributes of models More More Global +185 ROI Consumers Countries with unique consumers Note: Intern
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: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights GMV $34.2B Revenue $82.4M Gross Profit $40.5M Adjusted EBITDA1 $1.3M 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 Q1 2025 Earnings Release issued on
Slide 21: Annual Financial Highlights
Annual 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 financia
Slide 22: Q1 2025 Financial Performance Highlights
Q1 2025 Financial Performance Highlights Achieved Record Q1 Revenues Continued Expense Discipline First quarter revenues of $82M, an increase of 8% Our non-GAAP operating expenses as a percentage year-over-year driven by strong new business wins of revenue declined year-over-year from 53% to 48%, an
Slide 23: 2025 Guidance Outlook
2025 Guidance Outlook Maintained Revenue & Adjusted EBITDA Guidance Low Midpoint High Revenue $333M $339.5M $346M Adjusted EBITDA $18M $22M $26M Annual Non-GAAP Weighted Average 163-167M Shares Outstanding
Slide 24: Q1 2025 Business Highlights
Q1 2025 Business Highlights Further Vertical and Landed New Account in Multi-Product Platform Geographic Diversification Money Transfer & Payments Expansion with the Addition of New Category Merchants During the first quarter we onboarded a Revenue growth from products outside We continued to have suc
Slide 25: Q1 2025 Business Highlights
Q1 2025 Business Highlights Share Repurchase Program Launched Ascend 2025 Named Most Innovative Fraud Update Prevention Solution We recently kicked off our global In the first quarter of 2025, we merchant event series, Ascend 2025, Riskified was recently named the Most repurchased an aggregate of 4.1 m
Slide 26: Industry and Geography Billings Trends
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 industries1 and geographies1, with growth across all geographies in 2024 APAC 1 Geography of billings determine
Slide 27: Adjusted EBITDA Over Time
Adjusted EBITDA Over Time $1.3M in Adjusted EBITDA, the sixth consecutive quarter of positive Adjusted EBITDA IPO Adj EBITDA Margin Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP metrics. A reconciliation of these metrics to the most directly comparable GAAP financial measure is provid
Slide 28: Strong Free Cash Flow Model
Strong Free Cash Flow Model IPO ● Meaningfully improved our Free Cash Flow (“FCF”) since IPO ● Expect approximately $30M in 2025 ● $357M of cash, deposits and investments as of March 31, 2025 ● Zero Debt Note: Free cash flow is a non-GAAP metric. A reconciliation of Free Cash Flow to its most directl
Slide 29: Continuous Customer Penetration
Continuous Billings Growth by Cohort 1 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 plat
Slide 30: 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 31: 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 32: Appendix
03 Appendix
Slide 33: 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 34: Q1 2025 Income Statement
Q1 2025 Income Statement $ in thousands Q1'24 Q1'25 Revenue 76,408 82,387 Cost of revenue 34,288 41,933 Gross profit 42,120 40,454 Operating expenses: Research and development 17,772 18,077 Sales and marketing 23,214 22,782 General and administrative 17,047 16,653 Total operating expenses 58,033 57,5
Slide 35: Q1 2025 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA
Q1 2025 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA $ in thousands Q1'24 Q1'25 GAAP Net profit (loss) (11,630) (13,886) Non GAAP expenses: Share-based compensation expense 15,522 14,316 Payroll taxes related to share-based compensation 201 261 Depreciation and amortization 1,265 956 In
Slide 36: Q1 2025 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Q1 2025 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow $ in thousands Q1'24 Q1'25 Net cash provided by (used in) operating activities 10,661 3,844 Purchases of property and equipment (178) (208) Free Cash Flow 10,483 3,636
Slide 37: Q1 2025 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
Q1 2025 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit $ in thousands Q1'24 Q1'25 GAAP Gross Profit 42,120 40,454 Non GAAP expenses: Share-based compensation expense 211 192 Payroll taxes related to share-based compensation 5 4 Depreciation and amortization 427 325 Restructuring costs 139
Slide 38: Q1 2025 Balance Sheet
Q1 2025 Balance Sheet Riskified BS - March 31, 2025 - USD in thousands Riskified BS - March 31, 2025 - USD in thousands CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents 286,858 Accounts payable 1,968 Short-term Deposits 5,000 Accrued compensation and benefits 18,329 Short-term investments