Riskified Ltd. · NYSE:RSKD
Riskified — Investor Presentation (May 2022)
22 slides from Riskified's investor presentation, May 2022
Slide 1: Investor Presentation
May 2022 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Priv
Slide 3: Key Performance Indicators and Non-GAAP Metrics
Key Performance Indicators and Non-GAAP Metrics This presentation contains key performance indicators including GMV and CTB Ratio as well as non-GAAP metrics, including Adjusted EBITDA and non-GAAP operating expenses. We define GMV as the gross total dollar value of orders received by our merchants a
Slide 4: Meet Riskified
Meet Riskified Increased sales approval rates Our mission is to by up to 20%1 empower businesses to realize the full Reduced costs by up to 60%1 potential of eCommerce by Eliminate significant customer making it safe, friction, power omnichannel accessible and commerce and open new, frictionless. glob
Slide 5: We Operate in Massive Markets With Strong Tailwinds
We Operate in Massive ~$6.8 trillion global Markets With Strong eCommerce GMV in 20241 Tailwinds Solving Problems That Touch All eCommerce Orders $4.9 trillion global eCommerce GMV in 20211 Online merchants with more than $75 million in annual online sales make up 85% of eCommerce sales made directl
Slide 6: Segments of focus
Direct Sales Force Focused on the World’s Largest Merchants Online merchants with more than $75 million in annual eCommerce sales make up 85% of sales made directly from Segments of focus Strategic the retailer’s online (>$3B online sales) storefront.1 Super Enterprise GMV (>$500M to $3B online sale
Slide 7: eCommerce Has Massive Friction Points
eCommerce Has Massive Friction Points Friction & Lost Sales • Customer Frustration Leads to Lost Merchant Fraud & Sales Chargebacks Banking & Payments • Numerous, Complicated Abuse & Policy Enforcement and Expensive Pain Points Account Security
Slide 8: Riskified Enables Frictionless eCommerce
Riskified Enables Frictionless eCommerce Before Riskified: With Riskified: 3rd Party Data Merchant.com Homegrown Tools & Reporting Registered Guest Merchant.com Successful Sale Customers Customers Require Is This The Authenticated Additional Customer That I Log On Credentials? Think It Is? Successful S
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 ROI(A) Our solutions convert bank declines and fa
Slide 10: 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 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 merchant level data Performance Management – Active monitoring, segmentation and optimization
Slide 12: Innovative Technology Platform
Innovative Fraud & Chargeback Abuse & Policy Enforcement Account Security Banking and Payments Technology PRODUCTS Chargeback Guarantee Policy Protect Account Secure Deco PSD2 Optimize Platform RISK Constant Optimization & ● Automated, real-time Realtime Training Data Exposure Modeling Active Monito
Slide 13: Our Platform Gets Stronger with Each Dollar Processed and Merchant Added
Our Platform Gets Stronger with Each Dollar Processed and Boost Merchant Added Merchant Revenue Attract New Merchants Product Innovation More Data, Improved Accuracy
Slide 14: Revenue Model Flow
Revenue Model Flow Riskified’s GMV Total eCommerce volume submitted to Riskified for review Transforming GMV into Revenue 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 GM
Slide 15: Industry and Geo Billings Trends
Industry and Geo Billings Trends Diversification across industries continues due to We continue to diversify across the globe, with accelerated penetration in emerging industries accelerated growth in both EMEA and APAC and the addition of new ones ~70%
Slide 16: Q1'22 Financial Highlights
Q1’22 Financial Highlights GMV $22.7B Revenue $58.8M Gross Profit $30.4M Adjusted EBITDA $(13.4M)
Slide 17: 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 upsell opportunity. (1) Each cohort includes all of the accounts that onboarded to the Riskified platform in a gi
Slide 18: CTB Cohorts Over Time
CTB Cohorts CTB Ratio by Cohort(1)Outlook Over Time Over the last three years, we have been able to consistently improve the CTB ratio 2018 Cohort 2020 Cohort for each cohort, demonstrating the 2013-2016 Cohorts strength of our AI and our scalable financial 2019 Cohort 2017 Cohort model (1) For the p
Slide 19: Appendix
Appendix
Slide 20: Q1'22 GAAP Financial Results
Q1’22 GAAP Financial Results $ in thousands Q1'22 Q1'21 Revenue 58,845 51,083 Cost of revenue 28,477 22,455 Gross profit 30,368 28,628 Operating expenses: Research and development 18,113 11,694 Sales and marketing 23,129 12,672 General and administrative 21,952 7,611 Total operating expenses 63,194 3
Slide 21: Q1'22 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA
Q1’22 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA $ in thousands Q1'22 Q1'21 GAAP Net profit (loss) (33,264) (43,652) Non-GAAP Adjustments: Share-based compensation expense 18,387 2,549 Payroll taxes related to share-based compensation 13 0 Depreciation and amortization 979 504 Interes
Slide 22: Investor Relations Contact
Investor Relations: Chett Mandel, Head of Investor Relations ir@riskified.com Corporate Communications: Rowena Kelley, Head of Communications and Brand press@riskified.com