Riskified Improves Adjusted EBITDA Guidance for Second Quarter in a Row
Riskified (NYSE: RSKD), an ecommerce fraud and risk intelligence leader, announced financial results for Q2 2024. Key highlights include:
- GMV increased 13% year-over-year to $34.99 billion
- Revenue grew 8% to $78.73 million
- Adjusted EBITDA improved to $2.34 million, with a 3% margin
- Non-GAAP gross profit margin rose to 53%
- Operating cash flow turned positive at $4.3 million
The company expanded its leadership in the Tickets and Live Events sector, diversified geographically with new merchants, and landed a key account in Japan. Riskified also repurchased 6.8 million shares for $39 million and was named to CNBC's 2024 List of Top Fintech Companies.
For FY2024, Riskified now expects revenue between $320-$325 million and Adjusted EBITDA between $13-$19 million.
Riskified (NYSE: RSKD), leader nel settore della prevenzione delle frodi e dell'intelligence sui rischi per l'ecommerce, ha annunciato i risultati finanziari per il secondo trimestre del 2024. Principali punti salienti includono:
- Il GMV è aumentato del 13% anno su anno, raggiungendo $34,99 miliardi
- I ricavi sono cresciuti dell'8%, raggiungendo $78,73 milioni
- L'EBITDA rettificato è migliorato a $2,34 milioni, con un margine del 3%
- Il margine di profitto lordo non-GAAP è salito al 53%
- Il flusso di cassa operativo è diventato positivo, attestandosi a $4,3 milioni
L'azienda ha ampliato la propria leadership nel settore dei biglietti e degli eventi dal vivo, si è diversificata geograficamente con nuovi commercianti, ed ha acquisito un importante cliente in Giappone. Riskified ha anche riacquistato 6,8 milioni di azioni per $39 milioni ed è stata inclusa nella lista delle migliori aziende fintech del 2024 di CNBC.
Per l'anno fiscale 2024, Riskified si aspetta ora ricavi compresi tra $320 e $325 milioni e un EBITDA rettificato tra $13 e $19 milioni.
Riskified (NYSE: RSKD), líder en inteligencia de riesgos y prevención de fraudes en comercio electrónico, anunció los resultados financieros para el segundo trimestre de 2024. Los aspectos clave incluyen:
- El GMV aumentó un 13% interanual, alcanzando $34,99 mil millones
- Los ingresos crecieron un 8%, totalizando $78,73 millones
- El EBITDA ajustado mejoró a $2,34 millones, con un margen del 3%
- El margen de ganancia bruta no GAAP aumentó al 53%
- El flujo de caja operativo se volvió positivo en $4,3 millones
La compañía amplió su liderazgo en el sector de entradas y eventos en vivo, diversificó geográficamente con nuevos comerciantes, y aseguró una cuenta clave en Japón. Riskified también recompró 6,8 millones de acciones por $39 millones y fue nombrada en la lista de CNBC de las mejores empresas fintech de 2024.
Para el año fiscal 2024, Riskified ahora espera ingresos entre $320 y $325 millones y un EBITDA ajustado entre $13 y $19 millones.
Riskified (NYSE: RSKD), 전자 상거래 사기 및 위험 정보의 선두주자가 2024년 2분기 재무 결과를 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- GMV가 전년 대비 13% 증가하여 349억 9천만 달러에 도달했습니다.
- 수익이 8% 증가하여 7873만 달러에 이르렀습니다.
- 조정된 EBITDA가 234만 달러로 개선되었으며, 3%의 마진을 기록했습니다.
- 비-GAAP 총 이익률이 53%로 상승했습니다.
- 운영 현금 흐름이 430만 달러로 긍정적으로 전환되었습니다.
회사는 티켓 및 라이브 이벤트 분야에서의 리더십을 확장하고, 새로운 상인들과의 지역적 다각화를 이룩했으며, 일본에서 중요한 고객을 확보했습니다. Riskified는 3900만 달러에 680만 주를 재구매했으며, CNBC의 2024년 최고의 핀테크 기업 목록에 이름을 올렸습니다.
2024 회계연도에 대해 Riskified는 이제 3억 2000만 달러에서 3억 2500만 달러 사이의 수익과 1300만 달러에서 1900만 달러 사이의 조정 EBITDA를 예상하고 있습니다.
Riskified (NYSE: RSKD), leader dans la prévention des fraudes et l'intelligence des risques pour le commerce électronique, a annoncé les résultats financiers pour le deuxième trimestre de 2024. Les points clés incluent :
- Le GMV a augmenté de 13 % par rapport à l'année précédente, atteignant 34,99 milliards de dollars
- Le chiffre d'affaires a augmenté de 8 % pour atteindre 78,73 millions de dollars
- L'EBITDA ajusté s'est amélioré à 2,34 millions de dollars, avec une marge de 3 %
- La marge brute non-GAAP a augmenté à 53 %
- Le flux de trésorerie d'exploitation est devenu positif à 4,3 millions de dollars
L'entreprise a élargi son leadership dans le secteur des billets et des événements en direct, s'est diversifiée géographiquement avec de nouveaux commerçants et a décroché un client clé au Japon. Riskified a également racheté 6,8 millions d'actions pour 39 millions de dollars et a été nommée dans la liste des meilleures entreprises fintech de 2024 par CNBC.
Pour l'exercice 2024, Riskified s'attend désormais à des revenus compris entre 320 et 325 millions de dollars et à un EBITDA ajusté compris entre 13 et 19 millions de dollars.
Riskified (NYSE: RSKD), führend im Bereich E-Commerce-Betrugsprävention und Risiko-Intelligenz, hat die Finanzergebnisse für das zweite Quartal 2024 bekannt gegeben. Wichtige Höhepunkte sind:
- Das GMV stieg im Jahresvergleich um 13 % auf 34,99 Milliarden US-Dollar
- Der Umsatz wuchs um 8 % auf 78,73 Millionen US-Dollar
- Das bereinigte EBITDA verbesserte sich auf 2,34 Millionen US-Dollar, mit einer Marge von 3 %
- Die nicht-GAAP Bruttogewinnmarge stieg auf 53 %
- Der operative Cashflow war mit 4,3 Millionen US-Dollar positiv
Das Unternehmen konnte seine Führungsposition im Sektor Tickets und Live-Events ausbauen, geografisch mit neuen Händlern diversifizieren und einen wichtigen Kunden in Japan gewinnen. Riskified hat außerdem 6,8 Millionen Aktien für 39 Millionen US-Dollar zurückgekauft und wurde in die Liste der besten Fintech-Unternehmen von CNBC für 2024 aufgenommen.
Für das Geschäftsjahr 2024 erwartet Riskified nun Einnahmen zwischen 320 und 325 Millionen US-Dollar sowie ein bereinigtes EBITDA zwischen 13 und 19 Millionen US-Dollar.
- GMV increased 13% year-over-year to $34.99 billion
- Revenue grew 8% to $78.73 million
- Adjusted EBITDA improved to $2.34 million, with a 3% margin
- Non-GAAP gross profit margin rose to 53%
- Operating cash flow turned positive at $4.3 million
- Landed a key account in Japan, a multinational fashion company
- Repurchased 6.8 million shares for $39 million
- Named to CNBC's 2024 List of Top Fintech Companies
- Improved Adjusted EBITDA guidance for the second quarter in a row
- GAAP Net loss of $9.51 million for Q2 2024
- Net loss margin of 12% for Q2 2024
Insights
Riskified's Q2 2024 results show promising signs of growth and improved profitability. The company's GMV increased by
The company's focus on geographic diversification and expansion into new verticals is paying off, with 7 out of 10 new Chargeback Guarantee logos coming from outside the US. The expansion in Japan and success in the Ticketing and Live Events sub-vertical are particularly promising for future growth.
Riskified's improved financial guidance for 2024, with Adjusted EBITDA now expected between
Riskified's introduction of new AI-powered capabilities, particularly the Policy Decisions tool within Decision Studio, represents a significant technological advancement. This self-service platform for managing customer-facing policies could be a game-changer in the e-commerce risk management space.
The company's "machine learning factory" approach to solving additional use cases beyond chargeback fraud demonstrates a commitment to innovation and expanding their addressable market. This strategy could potentially lead to increased customer retention and higher revenue per customer.
However, as AI and machine learning become more prevalent in the industry, Riskified will need to continuously innovate to maintain its competitive edge. The recognition in CNBC's Top Fintech Companies List validates their current position, but sustained investment in R&D will be important for long-term success.
Riskified's performance indicates a growing demand for advanced fraud prevention and risk management solutions in e-commerce. The company's success in landing new merchants across diverse geographies and verticals suggests a expanding market opportunity.
The focus on the Ticketing and Live Events sub-vertical is particularly noteworthy, as this sector has seen significant growth post-pandemic. Riskified's ability to cross-sell additional products like Dispute Resolve at initial contract signing demonstrates the strength of their product suite and potential for increasing revenue per customer.
The company's share repurchase program, with
Continues to Diversify Network of Global Merchants through New Logo Wins
“We believe that Riskified remains well positioned to gain market share by capturing a greater portion of the eCommerce whitespace in front of us. We have great demand for our products, and by continuously strengthening our machine learning factory to solve additional use cases beyond chargeback fraud, I am confident that our durable business will continue to execute for merchants and our shareholders.” said Eido Gal, Co-Founder and Chief Executive Officer of Riskified.
Q2 2024 Business Highlights
- Expanded Leadership Positioning in Tickets and Live Event Sub-Vertical: Similar to the first quarter, one of our top new logos won during the second quarter was in our Ticketing and Live Events sub-vertical. We launched our relationship with this merchant by capturing all of this merchant's Chargeback Guarantee volume from a competitor, and we successfully cross-sold our Dispute Resolve product at initial contract signing.
-
Further Geographic Diversification with the Addition of New Merchants: We continued to have success landing new merchants on the Riskified network, which in turn deepened our vertical and geographic reach. Our top ten new logos added during the second quarter represented five different verticals across three geographies, with seven of our top ten new Chargeback Guarantee logos located outside of
the United States .
-
Landed Key Account in
Japan : Landed a cornerstone account inJapan during the second quarter. This multinational fashion company owns several global brands. We view this new logo win as an important cornerstone merchant, as we seek to unlock further opportunities in the region.
-
Share Repurchase Program Update: During the second quarter we repurchased 6.8 million ordinary shares for
. Our total outstanding aggregate repurchase authorization was approximately$39.0 million as of August 5th. We remain committed to repurchasing our shares at what we believe are attractive valuation levels.$50 million
- Named to CNBC's 2024 List of the World's Top Fintech Companies: We were recently named to CNBC's Top Fintech Companies List. This recognition highlights our market-leading position in the ecommerce fraud and risk intelligence sector and underscores Riskified's ongoing success in empowering businesses to boost ecommerce revenues and profit by mitigating risks through our innovative AI-powered platform.
- Hosted Riskified’s Annual Merchant Summit, Ascend: Ascend 2024 gathered global enterprise merchants, leaders from payments and fraud advisories, and the Riskified team to discuss the latest strategies to unleash ecommerce growth. Themed “Ecommerce Champions,” Ascend 2024 set the stage for the debut of cutting-edge solutions as well as inspiring success stories from leading merchants in the ecommerce space.
- Introduced Slate of New AI-powered Capabilities: At Ascend 2024, we introduced new tools designed to empower merchants to win more customers, accept more orders, and retain more revenue. Among the new innovations we unveiled was Policy Decisions. As part of Riskified's Decision Studio, a suite of tools that enables merchants to fine-tune their ecommerce performance, Policy Decisions is designed to give merchants the power to exercise deep control over their refund, return, promo and resale policies through self-service capabilities for the creation, simulation, and management of customer-facing policies.
Q2 2024 Financial Summary & Highlights
The following table summarizes our consolidated financial results for the three and six months ended June 30, 2024 and 2023, in thousands except where indicated:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
||||||||||||
Gross merchandise volume ("GMV") in millions(1) |
$ |
34,987 |
|
|
$ |
30,955 |
|
|
$ |
67,006 |
|
|
$ |
58,223 |
|
Increase in GMV year over year |
|
13 |
% |
|
|
|
|
15 |
% |
|
|
||||
Revenue |
$ |
78,730 |
|
|
$ |
72,766 |
|
|
$ |
155,138 |
|
|
$ |
141,673 |
|
Increase in revenues year over year |
|
8 |
% |
|
|
|
|
10 |
% |
|
|
||||
|
|
|
|
|
|
|
|
||||||||
GAAP Gross profit |
$ |
41,002 |
|
|
$ |
37,023 |
|
|
$ |
83,122 |
|
|
$ |
72,864 |
|
GAAP Gross profit margin |
|
52 |
% |
|
|
51 |
% |
|
|
54 |
% |
|
|
51 |
% |
|
|
|
|
|
|
|
|
||||||||
Net profit (loss) |
$ |
(9,509 |
) |
|
$ |
(16,894 |
) |
|
$ |
(21,139 |
) |
|
$ |
(34,845 |
) |
Net profit (loss) margin |
|
(12 |
)% |
|
|
(23 |
)% |
|
|
(14 |
)% |
|
|
(25 |
)% |
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA(1) |
$ |
2,340 |
|
|
$ |
(4,586 |
) |
|
$ |
5,091 |
|
|
$ |
(9,755 |
) |
Adjusted EBITDA margin(1) |
|
3 |
% |
|
|
(6 |
)% |
|
|
3 |
% |
|
|
(7 |
)% |
Additional Financial Highlights:
-
Non-GAAP gross profit margin(1) of
53% for the three months ended June 30, 2024, improved from52% in the prior year. Non-GAAP gross profit margin of54% for the six months ended June 30, 2024, improved from52% in the prior year.
-
GAAP net loss per share was
for the three months ended June 30, 2024 compared to a loss of$(0.05) in the prior year. Non-GAAP net profit per share(1) for the three months ended June 30, 2024 was$(0.10) compared to$0.04 in the prior year. GAAP net loss per share was$0.00 for the six months ended June 30, 2024 compared to a loss of$(0.12) in the prior year. Non-GAAP net profit per share for the six months ended June 30, 2024 was$(0.20) compared to$0.08 in the prior year.$0.00
-
Operating cash flow of positive
for the three months ended June 30, 2024, improved from negative$4.3 million in the prior year. Free cash flow(1) of positive$4.9 million for the three months ended June 30, 2024, improved from negative$4.1 million in the prior year. Operating cash flow of positive$4.9 million for the six months ended June 30, 2024, improved from negative$15.0 million in the prior year. Free cash flow of positive$4.6 million for the six months ended June 30, 2024, improved from negative$14.6 million in the prior year.$4.9 million
-
Ended June 30, 2024 with approximately
of cash, deposits and investments on the balance sheet and zero debt.$422.2 million
“I am encouraged by our execution and financial discipline during the first six months of the year. Our consecutive quarters of improved Adjusted EBITDA guidance highlights our ongoing commitment to delivering continued margin expansion. I look forward to driving the business towards our long-term targets,” said Aglika Dotcheva, Chief Financial Officer of Riskified.
Financial Outlook:
For the year ending December 31, 2024, we now expect:
-
Revenue between
and$320 million $325 million
As a result of our disciplined approach to managing the business, for the year ending December 31, 2024, we now expect:
-
Adjusted EBITDA(2) between
and$13 million $19 million
(1) GMV is a key performance indicator. Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit margin, non-GAAP net profit (loss) per share, and free cash flow are non-GAAP measures of financial performance. See “Key Performance Indicators and Non-GAAP Measures” for additional information and “Reconciliation of GAAP to Non-GAAP Measures” for a reconciliation to the most directly comparable GAAP measure.
(2) We are not able to provide a reconciliation of Adjusted EBITDA guidance for the fiscal year ending December 31, 2024 to net profit (loss), the most directly comparable GAAP financial measure, because certain items that are excluded from Adjusted EBITDA but included in net profit (loss) cannot be predicted on a forward-looking basis without unreasonable effort or are not within our control. For example, we are unable to forecast the magnitude of foreign currency transaction gains or losses which are subject to many economic and other factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.
Conference Call and Webcast Details
The Company will host a conference call to discuss its financial results today, August 14, 2024 at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Riskified’s Investor Relations website at ir.riskified.com. A replay of the webcast will also be available for a limited time at ir.riskified.com. The press release with the financial results, as well as the investor presentation materials will be accessible on the Company’s Investor Relations website prior to the conference call.
Key Performance Indicators and Non-GAAP Measures
This press release and the accompanying tables contain references to Gross Merchandise Volume ("GMV"), which is a key performance indicator, and to certain non-GAAP measures which include non-GAAP measures of financial performance, including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP cost of revenue, non-GAAP operating expenses by line item, non-GAAP net profit (loss), and non-GAAP net profit (loss) per share, and non-GAAP measures of liquidity, including Free Cash Flow. Management and our Board of Directors use key performance indicators and non-GAAP measures as supplemental measures of performance and liquidity because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items that we believe do not directly reflect our core operations. We also use Adjusted EBITDA for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives, and to evaluate our capacity to expand our business. Free Cash Flow provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet.
These non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or other items. Non-GAAP measures of financial performance have limitations as analytical tools in that these measures do not reflect our cash expenditures, or future requirements for capital expenditures, or contractual commitments; these measures do not reflect changes in, or cash requirements for, our working capital needs; these measures do not reflect our tax expense or the cash requirements to pay our taxes, and assets being depreciated and amortized will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements. Free Cash Flow is limited because it does not represent the residual cash flow available for discretionary expenditures. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs.
In light of these limitations, management uses these non-GAAP measures to supplement, not replace, our GAAP results. The non-GAAP measures used herein are not necessarily comparable to similarly titled captions of other companies due to different calculation methods. Non-GAAP financial measures should not be considered in isolation, as an alternative to, or superior to information prepared and presented in accordance with GAAP. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. By providing these non-GAAP measures together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
We define GMV as the gross total dollar value of orders reviewed through our ecommerce risk intelligence platform during the period indicated, including the value of orders that we did not approve.
We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the below tables, adjusted for, as applicable, depreciation and amortization (including amortization of capitalized internal-use software as presented in our statement of cash flows), share-based compensation expense, payroll taxes related to share-based compensation, litigation-related expenses, restructuring costs, provision for (benefit from) income taxes, other income (expense) including foreign currency transaction gains and losses and gains and losses on non-designated hedges, and interest income (expense). Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of revenue. Non-GAAP Gross Profit Margin represents Non-GAAP Gross Profit expressed as a percentage of revenue. We define non-GAAP net profit (loss) per share as non-GAAP net profit (loss) divided by non-GAAP weighted-average shares. We define non-GAAP weighted-average shares, as GAAP weighted average shares, adjusted to reflect any dilutive ordinary share equivalents resulting from non-GAAP net profit (loss), if applicable.
We define Free Cash Flow as net cash provided by (used in) operating activities, less cash purchases of property and equipment.
Management believes that by excluding certain items from the associated GAAP measure, these non-GAAP measures are useful in assessing our performance and provide meaningful supplemental information due to the following factors:
Depreciation and amortization: We exclude depreciation and amortization (including amortization of capitalized internal-use software) because we believe that these costs are not core to the performance of our business and the utilization of the underlying assets being depreciated and amortized can change without a corresponding impact on the operating performance of our business. Management believes that excluding depreciation and amortization facilitates comparability with other companies in our industry.
Share-based compensation expense: We exclude share-based compensation expense primarily because it is a non-cash expense that does not directly correlate to the current performance of our business. This is because the expense is calculated based on the grant date fair value of an award which may vary significantly from the current fair market value of the award based on factors outside of our control. Share-based compensation expense is principally aimed at aligning our employees’ interests with those of our shareholders and at long-term retention, rather than to address operational performance for any particular period.
Payroll taxes related to share-based compensation: We exclude employer payroll tax expense related to share-based compensation in order to see the full effect that excluding that share-based compensation expense had on our operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business.
Litigation-related expenses: We exclude costs associated with the legal matter previously disclosed under the caption "Legal Proceedings" in our Form 6-K furnished with the Securities and Exchange Commission ("SEC") on August 15, 2023, because such costs are not reflective of costs associated with our ongoing business and operating results and are viewed as unusual and infrequent.
Restructuring costs: We exclude costs associated with the reduction in force previously disclosed in our Form 6-K furnished with the SEC on February 13, 2024, because these costs are related to one-time severance and benefit payments and are not reflective of costs associated with our ongoing business and operating results and are viewed as unusual and infrequent.
We are not able to provide a reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, and free cash flow guidance for the fiscal year ending December 31, 2024 to net profit (loss), gross profit, and net cash provided by (used in) operating activities, because certain items that are excluded from these non-GAAP metrics but included in the most directly comparable GAAP financial measures, cannot be predicted on a forward-looking basis without unreasonable effort or are not within our control. For example, we are unable to forecast the magnitude of foreign currency transaction gains or losses which are subject to many economic and other factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.
See the tables below for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the
Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: our ability to manage our growth effectively; continued use of credit cards and other payment methods that expose merchants to the risk of payment fraud, and other changes in laws and regulations, including card scheme rules, related to the use of these payment methods, and the emergence of new alternative payments products; our history of net losses and ability to achieve profitability; our ability to attract new merchants and retain existing merchants; the impact of macroeconomic conditions on us and on the performance of our merchants; our ability to continue to improve our machine learning models; fluctuations in our CTB Ratio and gross profit margin, including as a result of large-scale merchant fraud attacks or other security incidents; our ability to protect the information of our merchants and consumers; our ability to predict future revenue due to lengthy sales cycles; seasonal fluctuations in revenue; competition; our merchant concentration; the financial condition of our merchants, particularly in challenging macroeconomic environments; our ability to increase the adoption of our products and to develop and introduce new products; our ability to mitigate the risks involved with selling our products to large enterprises; our ability to retain the services of our executive officers, and other key personnel, including our co-founders; our ability to attract and retain highly qualified personnel, including software engineers and data scientists, particularly in
About Riskified
Riskified empowers businesses to unleash ecommerce growth by taking risk off the table. Many of the world’s biggest brands and publicly traded companies selling online rely on Riskified for guaranteed protection against chargebacks, to fight fraud and policy abuse at scale, and to improve customer retention. Developed and managed by the largest team of ecommerce risk analysts, data scientists and researchers, Riskified’s AI-powered fraud and risk intelligence platform analyzes the individual behind each interaction to provide real-time decisions and robust identity-based insights. Learn more at riskified.com.
RISKIFIED LTD.
|
|||||||
|
As of
|
|
As of
|
||||
|
|
||||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
388,694 |
|
|
$ |
440,838 |
|
Short-term deposits |
|
5,000 |
|
|
|
5,000 |
|
Accounts receivable, net |
|
40,077 |
|
|
|
46,886 |
|
Prepaid expenses and other current assets |
|
9,939 |
|
|
|
10,607 |
|
Short-term investments |
|
28,508 |
|
|
|
28,968 |
|
Total current assets |
|
472,218 |
|
|
|
532,299 |
|
Property and equipment, net |
|
14,171 |
|
|
|
15,639 |
|
Operating lease right-of-use assets |
|
27,408 |
|
|
|
29,742 |
|
Deferred contract acquisition costs |
|
14,406 |
|
|
|
15,562 |
|
Other assets, noncurrent |
|
8,202 |
|
|
|
8,690 |
|
Total assets |
$ |
536,405 |
|
|
$ |
601,932 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,771 |
|
|
$ |
2,573 |
|
Accrued compensation and benefits |
|
19,494 |
|
|
|
24,016 |
|
Guarantee obligations |
|
9,840 |
|
|
|
12,719 |
|
Provision for chargebacks, net |
|
11,065 |
|
|
|
12,092 |
|
Operating lease liabilities, current |
|
5,436 |
|
|
|
5,615 |
|
Accrued expenses and other current liabilities |
|
13,506 |
|
|
|
12,796 |
|
Total current liabilities |
|
61,112 |
|
|
|
69,811 |
|
Operating lease liabilities, noncurrent |
|
23,034 |
|
|
|
25,694 |
|
Other liabilities, noncurrent |
|
17,026 |
|
|
|
14,706 |
|
Total liabilities |
|
101,172 |
|
|
|
110,211 |
|
Shareholders’ equity: |
|
|
|
||||
Class A ordinary shares, no par value; 900,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 121,637,527 and 128,738,857 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
— |
|
|
|
— |
|
Class B ordinary shares, no par value; 232,500,000 shares authorized as of June 30, 2024 and December 31, 2023; 48,902,840 and 49,814,864 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
— |
|
|
|
— |
|
Treasury shares at cost, 16,238,464 and 3,038,865 ordinary shares as of June 30, 2024 and December 31, 2023, respectively |
|
(82,584 |
) |
|
|
(13,155 |
) |
Additional paid-in capital |
|
950,823 |
|
|
|
916,371 |
|
Accumulated other comprehensive profit (loss) |
|
(298 |
) |
|
|
74 |
|
Accumulated deficit |
|
(432,708 |
) |
|
|
(411,569 |
) |
Total shareholders’ equity |
|
435,233 |
|
|
|
491,721 |
|
Total liabilities and shareholders’ equity |
$ |
536,405 |
|
|
$ |
601,932 |
|
RISKIFIED LTD.
|
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
||||||||||||
Revenue |
$ |
78,730 |
|
|
$ |
72,766 |
|
|
$ |
155,138 |
|
|
$ |
141,673 |
|
Cost of revenue |
|
37,728 |
|
|
|
35,743 |
|
|
|
72,016 |
|
|
|
68,809 |
|
Gross profit |
|
41,002 |
|
|
|
37,023 |
|
|
|
83,122 |
|
|
|
72,864 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
17,079 |
|
|
|
18,264 |
|
|
|
34,851 |
|
|
|
37,058 |
|
Sales and marketing |
|
22,468 |
|
|
|
23,216 |
|
|
|
45,682 |
|
|
|
45,339 |
|
General and administrative |
|
15,650 |
|
|
|
17,629 |
|
|
|
32,697 |
|
|
|
35,542 |
|
Total operating expenses |
|
55,197 |
|
|
|
59,109 |
|
|
|
113,230 |
|
|
|
117,939 |
|
Operating profit (loss) |
|
(14,195 |
) |
|
|
(22,086 |
) |
|
|
(30,108 |
) |
|
|
(45,075 |
) |
Interest income (expense), net |
|
5,398 |
|
|
|
5,617 |
|
|
|
11,139 |
|
|
|
11,064 |
|
Other income (expense), net |
|
337 |
|
|
|
503 |
|
|
|
177 |
|
|
|
1,248 |
|
Profit (loss) before income taxes |
|
(8,460 |
) |
|
|
(15,966 |
) |
|
|
(18,792 |
) |
|
|
(32,763 |
) |
Provision for (benefit from) income taxes |
|
1,049 |
|
|
|
928 |
|
|
|
2,347 |
|
|
|
2,082 |
|
Net profit (loss) |
$ |
(9,509 |
) |
|
$ |
(16,894 |
) |
|
$ |
(21,139 |
) |
|
$ |
(34,845 |
) |
Other comprehensive profit (loss), net of tax: |
|
|
|
|
|
|
|
||||||||
Other comprehensive profit (loss) |
|
(169 |
) |
|
|
(20 |
) |
|
|
(372 |
) |
|
|
(968 |
) |
Comprehensive profit (loss) |
$ |
(9,678 |
) |
|
$ |
(16,914 |
) |
|
$ |
(21,511 |
) |
|
$ |
(35,813 |
) |
|
|
|
|
|
|
|
|
||||||||
Net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted |
$ |
(0.05 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.20 |
) |
Weighted-average shares used in computing net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted |
|
173,687,773 |
|
|
|
175,618,208 |
|
|
|
175,374,045 |
|
|
|
174,238,825 |
|
RISKIFIED LTD.
|
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net profit (loss) |
$ |
(9,509 |
) |
|
$ |
(16,894 |
) |
|
$ |
(21,139 |
) |
|
$ |
(34,845 |
) |
Adjustments to reconcile net profit (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
||||||||
Unrealized loss (gain) on foreign currency |
|
(431 |
) |
|
|
(522 |
) |
|
|
(443 |
) |
|
|
(1,408 |
) |
Provision for (benefit from) account receivable allowances |
|
154 |
|
|
|
54 |
|
|
|
365 |
|
|
|
194 |
|
Depreciation and amortization |
|
872 |
|
|
|
880 |
|
|
|
1,754 |
|
|
|
1,780 |
|
Amortization of capitalized internal-use software costs |
|
383 |
|
|
|
383 |
|
|
|
766 |
|
|
|
766 |
|
Amortization of deferred contract costs |
|
2,641 |
|
|
|
2,514 |
|
|
|
5,348 |
|
|
|
4,561 |
|
Share-based compensation expense |
|
15,035 |
|
|
|
15,799 |
|
|
|
30,557 |
|
|
|
32,155 |
|
Non-cash right-of-use asset changes |
|
1,204 |
|
|
|
1,116 |
|
|
|
2,334 |
|
|
|
2,227 |
|
Changes in accrued interest |
|
1,317 |
|
|
|
806 |
|
|
|
944 |
|
|
|
445 |
|
Ordinary share warrants issued to a customer |
|
384 |
|
|
|
384 |
|
|
|
767 |
|
|
|
768 |
|
Other |
|
51 |
|
|
|
38 |
|
|
|
137 |
|
|
|
75 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(6,561 |
) |
|
|
(9,592 |
) |
|
|
6,308 |
|
|
|
(827 |
) |
Deferred contract acquisition costs |
|
(1,547 |
) |
|
|
(1,948 |
) |
|
|
(3,132 |
) |
|
|
(3,531 |
) |
Prepaid expenses and other assets |
|
(427 |
) |
|
|
521 |
|
|
|
(1,321 |
) |
|
|
1,212 |
|
Accounts payable |
|
(386 |
) |
|
|
1,394 |
|
|
|
(718 |
) |
|
|
1,728 |
|
Accrued compensation and benefits |
|
(2,584 |
) |
|
|
(2,565 |
) |
|
|
(4,145 |
) |
|
|
(6,059 |
) |
Guarantee obligations |
|
677 |
|
|
|
(39 |
) |
|
|
(2,879 |
) |
|
|
(2,469 |
) |
Provision for chargebacks, net |
|
1,330 |
|
|
|
4,094 |
|
|
|
(1,027 |
) |
|
|
(953 |
) |
Operating lease liabilities |
|
(1,029 |
) |
|
|
(786 |
) |
|
|
(2,204 |
) |
|
|
(1,406 |
) |
Accrued expenses and other liabilities |
|
2,758 |
|
|
|
(503 |
) |
|
|
2,721 |
|
|
|
950 |
|
Net cash provided by (used in) operating activities |
|
4,332 |
|
|
|
(4,866 |
) |
|
|
14,993 |
|
|
|
(4,637 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Purchases of short-term deposits |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50,000 |
) |
Maturities of short-term deposits |
|
— |
|
|
|
118,000 |
|
|
|
— |
|
|
|
247,000 |
|
Purchases of property and equipment |
|
(224 |
) |
|
|
(61 |
) |
|
|
(402 |
) |
|
|
(248 |
) |
Net cash provided by (used in) investing activities |
|
(224 |
) |
|
|
117,939 |
|
|
|
(402 |
) |
|
|
196,752 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from exercise of share options |
|
2,098 |
|
|
|
1,574 |
|
|
|
3,128 |
|
|
|
2,780 |
|
Purchases of treasury shares |
|
(39,000 |
) |
|
|
— |
|
|
|
(69,429 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
(36,902 |
) |
|
|
1,574 |
|
|
|
(66,301 |
) |
|
|
2,780 |
|
Effects of exchange rates on cash, cash equivalents, and restricted cash |
|
(46 |
) |
|
|
(33 |
) |
|
|
(434 |
) |
|
|
183 |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(32,840 |
) |
|
|
114,614 |
|
|
|
(52,144 |
) |
|
|
195,078 |
|
Cash, cash equivalents, and restricted cash—beginning of period |
|
421,534 |
|
|
|
271,481 |
|
|
|
440,838 |
|
|
|
191,017 |
|
Cash, cash equivalents, and restricted cash—end of period |
$ |
388,694 |
|
|
$ |
386,095 |
|
|
$ |
388,694 |
|
|
$ |
386,095 |
|
Reconciliation of GAAP to Non-GAAP Measures
The following tables reconcile non-GAAP measures to the most directly comparable GAAP measure and are presented in thousands except for share and per share amounts.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
||||||||||||
Net profit (loss) |
$ |
(9,509 |
) |
|
$ |
(16,894 |
) |
|
$ |
(21,139 |
) |
|
$ |
(34,845 |
) |
Provision for (benefit from) income taxes |
|
1,049 |
|
|
|
928 |
|
|
|
2,347 |
|
|
|
2,082 |
|
Interest (income) expense, net |
|
(5,398 |
) |
|
|
(5,617 |
) |
|
|
(11,139 |
) |
|
|
(11,064 |
) |
Other (income) expense, net |
|
(337 |
) |
|
|
(503 |
) |
|
|
(177 |
) |
|
|
(1,248 |
) |
Depreciation and amortization |
|
1,255 |
|
|
|
1,263 |
|
|
|
2,520 |
|
|
|
2,546 |
|
Share-based compensation expense |
|
15,035 |
|
|
|
15,799 |
|
|
|
30,557 |
|
|
|
32,155 |
|
Payroll taxes related to share-based compensation |
|
150 |
|
|
|
129 |
|
|
|
351 |
|
|
|
277 |
|
Litigation-related expenses |
|
1 |
|
|
|
309 |
|
|
|
1 |
|
|
|
342 |
|
Restructuring costs |
|
94 |
|
|
|
— |
|
|
|
1,770 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
2,340 |
|
|
$ |
(4,586 |
) |
|
$ |
5,091 |
|
|
$ |
(9,755 |
) |
Net profit (loss) margin |
|
(12 |
)% |
|
|
(23 |
)% |
|
|
(14 |
)% |
|
|
(25 |
)% |
Adjusted EBITDA Margin |
|
3 |
% |
|
|
(6 |
)% |
|
|
3 |
% |
|
|
(7 |
)% |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
||||||||||||
GAAP gross profit |
$ |
41,002 |
|
|
$ |
37,023 |
|
|
$ |
83,122 |
|
|
$ |
72,864 |
|
Plus: depreciation and amortization |
|
423 |
|
|
|
434 |
|
|
|
850 |
|
|
|
872 |
|
Plus: share-based compensation expense |
|
200 |
|
|
|
188 |
|
|
|
411 |
|
|
|
383 |
|
Plus: payroll taxes related to share-based compensation |
|
6 |
|
|
|
3 |
|
|
|
11 |
|
|
|
5 |
|
Plus: restructuring costs |
|
17 |
|
|
|
— |
|
|
|
156 |
|
|
|
— |
|
Non-GAAP gross profit |
$ |
41,648 |
|
|
$ |
37,648 |
|
|
$ |
84,550 |
|
|
$ |
74,124 |
|
Gross profit margin |
|
52 |
% |
|
|
51 |
% |
|
|
54 |
% |
|
|
51 |
% |
Non-GAAP gross profit margin |
|
53 |
% |
|
|
52 |
% |
|
|
54 |
% |
|
|
52 |
% |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(unaudited) |
|
(unaudited) |
||||||||
GAAP cost of revenue |
$ |
37,728 |
|
$ |
35,743 |
|
$ |
72,016 |
|
$ |
68,809 |
Less: depreciation and amortization |
|
423 |
|
|
434 |
|
|
850 |
|
|
872 |
Less: share-based compensation expense |
|
200 |
|
|
188 |
|
|
411 |
|
|
383 |
Less: payroll taxes related to share-based compensation |
|
6 |
|
|
3 |
|
|
11 |
|
|
5 |
Less: restructuring costs |
|
17 |
|
|
— |
|
|
156 |
|
|
— |
Non-GAAP cost of revenue |
$ |
37,082 |
|
$ |
35,118 |
|
$ |
70,588 |
|
$ |
67,549 |
|
|
|
|
|
|
|
|
||||
GAAP research and development |
$ |
17,079 |
|
$ |
18,264 |
|
$ |
34,851 |
|
$ |
37,058 |
Less: depreciation and amortization |
|
386 |
|
|
388 |
|
|
773 |
|
|
781 |
Less: share-based compensation expense |
|
3,403 |
|
|
3,476 |
|
|
6,825 |
|
|
6,910 |
Less: payroll taxes related to share-based compensation |
|
2 |
|
|
— |
|
|
3 |
|
|
— |
Less: restructuring costs |
|
— |
|
|
— |
|
|
555 |
|
|
— |
Non-GAAP research and development |
$ |
13,288 |
|
$ |
14,400 |
|
$ |
26,695 |
|
$ |
29,367 |
|
|
|
|
|
|
|
|
||||
GAAP sales and marketing |
$ |
22,468 |
|
$ |
23,216 |
|
$ |
45,682 |
|
$ |
45,339 |
Less: depreciation and amortization |
|
248 |
|
|
250 |
|
|
499 |
|
|
507 |
Less: share-based compensation expense |
|
5,001 |
|
|
4,877 |
|
|
9,940 |
|
|
9,774 |
Less: payroll taxes related to share-based compensation |
|
93 |
|
|
68 |
|
|
199 |
|
|
137 |
Less: restructuring costs |
|
34 |
|
|
— |
|
|
563 |
|
|
— |
Non-GAAP sales and marketing |
$ |
17,092 |
|
$ |
18,021 |
|
$ |
34,481 |
|
$ |
34,921 |
|
|
|
|
|
|
|
|
||||
GAAP general and administrative |
$ |
15,650 |
|
$ |
17,629 |
|
$ |
32,697 |
|
$ |
35,542 |
Less: depreciation and amortization |
|
198 |
|
|
191 |
|
|
398 |
|
|
386 |
Less: share-based compensation expense |
|
6,431 |
|
|
7,258 |
|
|
13,381 |
|
|
15,088 |
Less: payroll taxes related to share-based compensation |
|
49 |
|
|
58 |
|
|
138 |
|
|
135 |
Less: litigation-related expenses |
|
1 |
|
|
309 |
|
|
1 |
|
|
342 |
Less: restructuring costs |
|
43 |
|
|
— |
|
|
496 |
|
|
— |
Non-GAAP general and administrative |
$ |
8,928 |
|
$ |
9,813 |
|
$ |
18,283 |
|
$ |
19,591 |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
(unaudited) |
||||||||||||
Net cash provided by (used in) operating activities |
$ |
4,332 |
|
|
$ |
(4,866 |
) |
|
$ |
14,993 |
|
|
$ |
(4,637 |
) |
Purchases of property and equipment |
|
(224 |
) |
|
|
(61 |
) |
|
|
(402 |
) |
|
|
(248 |
) |
Free Cash Flow |
$ |
4,108 |
|
|
$ |
(4,927 |
) |
|
$ |
14,591 |
|
|
$ |
(4,885 |
) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
(unaudited) |
|
(unaudited) |
|||||||||||||
Net profit (loss) |
$ |
(9,509 |
) |
|
$ |
(16,894 |
) |
|
$ |
(21,139 |
) |
|
$ |
(34,845 |
) |
Depreciation and amortization |
|
1,255 |
|
|
|
1,263 |
|
|
|
2,520 |
|
|
|
2,546 |
|
Share-based compensation expense |
|
15,035 |
|
|
|
15,799 |
|
|
|
30,557 |
|
|
|
32,155 |
|
Payroll taxes related to share-based compensation |
|
150 |
|
|
|
129 |
|
|
|
351 |
|
|
|
277 |
|
Litigation related expenses |
|
1 |
|
|
|
309 |
|
|
|
1 |
|
|
|
342 |
|
Restructuring costs |
|
94 |
|
|
|
— |
|
|
|
1,770 |
|
|
|
— |
|
Non-GAAP net profit (loss) |
$ |
7,026 |
|
|
$ |
606 |
|
|
$ |
14,060 |
|
|
$ |
475 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in computing net profit (loss) and non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, basic |
|
173,687,773 |
|
|
|
175,618,208 |
|
|
|
175,374,045 |
|
|
|
174,238,825 |
|
Add: Dilutive Class A and B ordinary share equivalents |
|
8,878,042 |
|
|
|
8,005,974 |
|
|
|
7,163,918 |
|
|
|
8,785,919 |
|
Weighted-average shares used in computing non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, diluted |
|
182,565,815 |
|
|
|
183,624,182 |
|
|
|
182,537,963 |
|
|
|
183,024,744 |
|
|
|
|
|
|
|
|
|
||||||||
Net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted |
$ |
(0.05 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.20 |
) |
Non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted |
$ |
0.04 |
|
|
$ |
0.00 |
|
|
$ |
0.08 |
|
|
$ |
0.00 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814420466/en/
Investor Relations: Chett Mandel, Head of Investor Relations | ir@riskified.com
Corporate Communications: Cristina Dinozo, Senior Director of Communications | press@riskified.com
Source: Riskified Ltd.
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