Riskified Ltd. · NYSE:RSKD
Riskified — Q4 2021 Earnings Presentation
18 slides from Riskified's earnings presentation, Feb 23, 2022
Slide 1: Q4 2021 Financial Results Supplemental Slides
Q4 2021 Financial Results Supplemental Slides February 23, 2022
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: Riskified Mission
Riskified Mission Increased sales approval rates To empower by up to 20%1 businesses to realize the full potential of Reduced costs by up to 60%1 eCommerce by making it safe, Eliminate significant customer accessible and friction, power omnichannel frictionless. commerce and open new, global markets 1
Slide 5: We Operate in Massive Markets With Strong Tailwinds
We Operate in Massive ~$6.4 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: 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 7: 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 8: Q4 and 2021 Business Highlights
Q4 and 2021 Business Highlights Expanding the reach of our core chargeback guarantee offering: Expanded chargeback guarantees to support Automated Clearing House (“ACH”) payments. We can now guarantee a broader range of payment types in addition to credit cards, debit cards, and PayPal. Adding severa
Slide 9: Revenue Model Flow Recap
Revenue Model Flow Recap 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
Slide 10: Q4 2021 Financial Highlights
Q4 2021 Financial Highlights GMV $27.8B, up 23% YoY Revenue $69.8M, up 22% YoY Gross Profit $36.8M, up 11% YoY Adjusted EBITDA $(7.0M), down from $8.5M in Q4’20
Slide 11: Outlook
Outlook Full Fiscal Year 2022 Guidance Updated Guidance Revenue $254M - $257M Adjusted EBITDA ($69M) - ($66M) # FY’22 YTD GAAP and Non-GAAP weighted average shares of approximately 166.0M
Slide 12: 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 13: 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 14: Industry and Geo Billings Trends
Industry and Geo Billings Trends Diversification across industries continued due to We continued 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 15: Investor Relations Contact
Investor Relations: Chris Mammone, The Blueshirt Group for Riskified ir@riskified.com Corporate Communications: press@riskified.com
Slide 16: Appendix
Appendix
Slide 17: Q4'21 GAAP Financial Results
Q4’21 GAAP Financial Results $ in thousands Q4'21 Q4'20 Revenue 69,833 57,049 Cost of revenue 33,075 23,856 Gross profit 36,758 33,193 Operating expenses: Research and development 16,917 9,890 Sales and marketing 23,169 9,964 General and administrative 19,481 5,921 Total operating expenses 59,567 25,
Slide 18: Q4'21 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA
Q4’21 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA $ in thousands Q4'21 Q4'20 GAAP Net profit (loss) (23,057) 4,348 Non GAAP expenses: Share-based compensation expense 15,056 639 Payroll taxes related to share-based compensation 153 Depreciation and amortization 649 445 Interest income,