Slide 1: Investor Presentation
February 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 Metrics
Key Performance Indicators and Non-GAAP Metrics This presentation contains key performance indicators including GMV as well as non-GAAP metrics, including Adjusted EBITDA and constant currency revenues. “Gross Merchandise Volume” or “GMV” is defined as the gross total dollar value of orders reviewed
Slide 4: Meet Riskified
Meet Riskified Increase sales approval rates by Our mission is to up to 20%1 empower businesses to realize the full Reduce 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. global
Slide 5: We Operate in Massive Markets With Strong Tailwinds
We Operate in Massive ~$7.6 trillion global Markets With Strong eCommerce GMV in 20261 Tailwinds Solving Problems That Touch eCommerce Orders $5.4 trillion global eCommerce GMV in 20221 2022: $100B+2 1 Source: eMarketer (December 2022). 2 GMV reviewed by Riskified during the twelve months ending Dece
Slide 6: 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 85% of sales made directly from Segments of focus Strategic the retailer’s website or (>$3B online sales) mobile app.1 Super Enterprise (>$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 Abuse & Policy Enforcement • Numerous, Complicated Banking & and Expensive Pain Payments 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 Our solutions convert bank declines and false
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 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: Our Platform Gets Stronger with Each Transaction Reviewed
Our Platform Gets Stronger with Each Transaction Reviewed(1) Boost and Merchant Added Merchant Revenue Attract New Merchants Product Innovation More Data, Improved Accuracy 1 including whether or not those transactions result in eligible chargebacks.
Slide 14: Take Rate (%) 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 15: Outlook
Outlook Initial Guidance for 2023 Revenue $297M - $303M Implies 14-16% Year-Over-Year Growth Adjusted EBITDA ($27M) - ($22M) YTD Weighted Implies 26-40% Year-Over-Year Average Shares 175.4 Million Improvement Outstanding
Slide 16: Q4 & FY 2022 Business Highlights
Q4 & FY 2022 Business Highlights Success Winning New Logos During Competitive Processes: Our accuracy and positioning as one of the largest fraud-related guarantors of eCommerce transactions in the world has created a distinct competitive advantage for us. This is a key reason why we have disproport
Slide 17: Q4 & FY 2022 Business Highlights (continued)
Q4 & FY 2022 Business Highlights (continued) Improved Cash Flow Model: Our cash used in operating activities and free cash flow both meaningfully improved by approximately 70% in the fourth quarter of 2022. We feel great about our ability to manage our cash position and ended the year with approximat
Slide 18: Q4 2022 Financial Highlights
Q4 2022 Financial Highlights GMV $32.2B Revenue $79.3M Gross Profit $41.4M Adjusted EBITDA(1) $(0.1M) (1) A reconciliation of Adjusted EBITDA to it most directly comparable GAAP financial measure, Net Profit (Loss), is provided in the Appendix.
Slide 19: FY 2022 Financial Highlights
FY 2022 Financial Highlights GMV $105.6B Revenue $261.2M Gross Profit $135.1M Adjusted EBITDA(1) $(36.4M) (1) A reconciliation of Adjusted EBITDA to it most directly comparable GAAP financial measure, Net Profit (Loss), is provided in the Appendix.
Slide 20: Industry and Geo Billings Trends
Industry and Geo Billings Trends We continue to diversify across industries and geographies, with accelerated growth in both EMEA and APAC ~60%
Slide 21: 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 22: 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 23: Appendix
Appendix
Slide 24: Q4 and FY 2022 GAAP Financial Results
Q4 and FY 2022 GAAP Financial Results $ in thousands Q4'21 Q4'22 FY'21 FY'22 Revenue 69,833 79,298 229,141 261,247 Cost of revenue 33,075 37,854 106,170 126,150 Gross profit 36,758 41,444 122,971 135,097 Operating expenses: Research and development 16,917 18,502 55,301 72,014 Sales and marketing 23,1
Slide 25: Q4 and FY 2022 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA
Q4 and FY 2022 Reconciliation of GAAP Net Profit (Loss) to Adjusted EBITDA $ in thousands Q4'21 Q4'22 FY'21 FY'22 GAAP Net profit (loss) (23,057) (11,828) (178,885) (103,989) Non GAAP expenses: Share-based compensation expense 15,056 15,233 33,358 67,467 Payroll taxes related to share-based compensati
Slide 26: 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