Financial Performance - Gross merchandise volume (GMV) for Q3 2025 reached $37,805 million, a 9% increase year-over-year[4] - Revenue for Q3 2025 was $81,862 million, reflecting a 4% year-over-year growth[4] - GAAP gross profit for Q3 2025 was $41,063 million, with a gross profit margin of 50%[4] - Adjusted EBITDA for Q3 2025 was $5,553 million, representing an adjusted EBITDA margin of 7%[4] - Revenue for Q3 2025 was $81.862 million, a 3.8% increase from $78.849 million in Q3 2024[31] - Gross profit for Q3 2025 was $41.063 million, compared to $38.956 million in Q3 2024, reflecting a gross profit margin improvement[31] - Adjusted EBITDA for Q3 2025 was $5,553 million, up from $899 million in Q3 2024, with an adjusted EBITDA margin of 7% compared to 1% in the prior year[36] - Non-GAAP gross profit for Q3 2025 was $41,531 million, an increase from $39,561 million in Q3 2024, resulting in a non-GAAP gross profit margin of 51% compared to 50% in the previous year[36] - Net profit for Q3 2025 was $(7,806) million, an improvement from $(9,699) million in Q3 2024, while the net profit for the nine months ended September 30, 2025, was $(33,325) million compared to $(30,838) million in the same period of 2024[34] - Non-GAAP net profit for Q3 2025 was $6.698 million, up from $5.530 million in Q3 2024, representing a 21% increase[39] Cash Flow and Liquidity - Operating cash inflow for Q3 2025 was $13.5 million, compared to $14.0 million in the prior year[7] - The company ended Q3 2025 with approximately $325.2 million in cash, deposits, and investments, with zero debt[7] - Cash and cash equivalents as of September 30, 2025, were $228.845 million, down from $371.063 million as of December 31, 2024[29] - The company experienced a net cash decrease of $(36,187) million in Q3 2025, compared to a decrease of $(32,296) million in Q3 2024[34] - The company’s cash and cash equivalents at the end of Q3 2025 were $228,845 million, down from $356,398 million at the end of Q3 2024[34] Expenses and Cost Management - Operating expenses decreased to $50.014 million in Q3 2025 from $53.286 million in Q3 2024, indicating a cost management strategy[31] - Research and development expenses for Q3 2025 were $17,006 million, up from $16,671 million in Q3 2024, reflecting ongoing investment in innovation[38] - The company reported a GAAP cost of revenue of $40,799 million for Q3 2025, compared to $39,893 million in Q3 2024, indicating a year-over-year increase[38] - Share-based compensation expenses of $12,945 million in Q3 2025, slightly down from $13,905 million in Q3 2024[36] - Restructuring costs for Q3 2025 amounted to $585,000, while there were no such costs reported in Q3 2024[39] Assets and Liabilities - Total assets decreased to $421.697 million as of September 30, 2025, from $495.861 million as of December 31, 2024[29] - Total liabilities were $105.401 million as of September 30, 2025, compared to $113.557 million as of December 31, 2024, showing a reduction in liabilities[29] - Shareholders' equity decreased to $316.296 million as of September 30, 2025, from $382.304 million as of December 31, 2024[29] Market and Strategic Initiatives - The Money Transfer and Payments category achieved 100% year-over-year revenue growth, with plans to double absolute dollar revenues for FY 2025[3] - The company aims to expand its market share and improve its AI-powered platform to enhance customer retention and reduce fraud[26] - Total attendance at the Ascend 2025 events increased by 73%, with over $1 trillion in merchant ecommerce volume represented[3] Taxation - The company reported a provision for income taxes of $1,801 million for Q3 2025, compared to $639 million in Q3 2024, indicating a significant increase in tax obligations[36] Share Performance - Basic and diluted net loss per share for Q3 2025 was $(0.05), an improvement from $(0.06) in Q3 2024[39] - Non-GAAP net profit per share for Q3 2025 was $0.04, compared to $0.03 in Q3 2024, reflecting a 33% increase[39] - Weighted-average shares used in computing net profit per share for Q3 2025 were 156,793,171, compared to 168,649,496 in Q3 2024[39]

Core Insights - Riskified (NYSE: RSKD) shares have remained nearly flat this year, reflecting the company's financial performance, but are expected to experience growth acceleration in upcoming quarters due to easier comparisons and a robust pipeline of new opportunities [1] Company Performance - The financial performance of Riskified has been stable, with shares showing little movement year-to-date [1] - The company is anticipated to benefit from favorable conditions that will enhance growth prospects in the near future [1] Market Outlook - The growth acceleration is attributed to easier year-over-year comparisons and a healthy pipeline of new initiatives that the company is pursuing [1]

Core Insights - Riskified Ltd. reported strong second-quarter sales, with earnings of 2 cents per share meeting analyst expectations and sales of $81.060 million exceeding the consensus estimate of $80.374 million [1] - The company raised its FY2025 sales guidance from a range of $333 million to $346 million to a new range of $336 million to $346 million [1] Company Performance - The CEO of Riskified highlighted solid second-quarter results driven by consistent execution and demand for their platform, emphasizing advancements in AI capabilities to enhance competitive edge and market leadership [2] - Riskified's shares increased by 2.3%, trading at $4.5300 following the earnings announcement [3] Analyst Ratings - DA Davidson analyst maintained a Buy rating but lowered the price target from $6.5 to $6 [8] - UBS analyst kept a Neutral rating and reduced the price target from $5.75 to $5 [8] - Keefe, Bruyette & Woods analyst maintained a Market Perform rating and decreased the price target from $5.5 to $5.25 [8]

Core Viewpoint - Riskified reported quarterly earnings of $0.02 per share, matching the Zacks Consensus Estimate, but down from $0.04 per share a year ago [1] - The company posted revenues of $81.06 million for the quarter, exceeding the Zacks Consensus Estimate by 1.22% and up from $78.73 million year-over-year [2] Financial Performance - Riskified's earnings of $0.02 per share align with expectations, while the previous quarter saw a surprise of +200% with earnings of $0.03 per share against an expectation of $0.01 [1] - The company has surpassed consensus revenue estimates four times over the last four quarters [2] Stock Performance - Riskified shares have increased approximately 11.2% since the beginning of the year, outperforming the S&P 500's gain of 9.7% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $80.43 million, and for the current fiscal year, it is $0.18 on revenues of $340.58 million [7] - The estimate revisions trend for Riskified was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Riskified belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company's GMV for Q2 was $36.4 billion, with a first half GMV of $70.6 billion, reflecting a 45% year-over-year increase [15] - Q2 revenue reached a record $81.1 million, up 3% year-over-year, while first half revenue was $163.4 million, up 5% year-over-year [15] - Non-GAAP gross profit margin for 2025 was approximately 50%, down from 53% in the prior year [19] - Positive adjusted EBITDA of $2.1 million in Q2 and $3.5 million for the first half of 2025, marking the seventh consecutive quarter of positive adjusted EBITDA [21] Business Line Data and Key Metrics Changes - The two largest categories, tickets and travel, and fashion and luxury, grew 1510% year-over-year, driven by strong new business wins and upsell activity [15] - The home category saw a year-over-year decline of 74%, while the money transfer and payments category achieved approximately 90% year-over-year growth in Q2 [17] - Fashion and luxury category growth was partially offset by same-store sales pressure, particularly in high-end fashion and sneakers [16] Market Data and Key Metrics Changes - The United States market declined 11% year-over-year, primarily due to the contraction in the home category, while APAC grew approximately 40% year-over-year [18] - Other Americas (Canada and Latin America) grew approximately 16% year-over-year, and EMEA grew approximately 23% year-over-year, with strong performance in fashion and luxury, tickets and travel, and money transfer and payments [18] Company Strategy and Development Direction - The company aims to gain market share in existing categories and geographies while expanding into new verticals to diversify its merchant base [7] - A partnership with Human Security was announced to enhance fraud prevention capabilities in the evolving landscape of AI commerce [10] - The board authorized an additional $75 million share repurchase program, reflecting confidence in the company's long-term trajectory [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the solid first half performance and the potential for improvement in the second half, supported by a robust new business pipeline [6] - The company anticipates delivering an annual non-GAAP gross profit margin of approximately 52% for 2025, with expectations for higher margins in the second half [20] - Management highlighted the increasing complexity of fraud and the need for advanced solutions, positioning the company as a leader in the market [89] Other Important Information - The company ended Q2 with $339 million in cash, deposits, and investments, maintaining a debt-free balance sheet [22] - Quarterly free cash flows were $5.3 million, up from $4.1 million in the prior year, with an expectation of approximately $30 million of positive free cash flow for 2025 [22] Q&A Session Summary Question: Expectations for the second half of the year and same-store sales in fashion and luxury - Management is optimistic about the sales pipeline and expects win rates to be similar to historical levels, but same-store sales in fashion and luxury may be flat or down [27][30] Question: Impact of AgenTek Commerce on pipeline conversations - The evolving space of AgenTek Commerce is generating new conversations and budget opportunities as merchants seek to address AI-related challenges [32][34] Question: Trends in performance by vertical and same-store sales commentary - Travel and payments performed well, while ticket sales showed some softness, particularly in June, with expectations for a challenging comparison to the previous year's strong performance [39][41] Question: Management of operating expenses - Operating expenses were managed well, with expectations for similar levels in the second half of the year [43][45] Question: Adoption trends for adaptive checkout and its impact on new logos - Adaptive checkout has seen double-digit percentage adoption, contributing positively to the overall value proposition [47][49] Question: Proportion of fraud from large coordinated attacks - There has been an increase in professional, coordinated fraud attacks, primarily through remote desktop hacking and data breaches [72] Question: Renewal rates and upsell strategies - The company achieved a 100% renewal success rate and continues to focus on creating unmatched value for merchants [80][81]

Financial Performance - Q2 2025 revenue reached $811 million, a 3% year-over-year increase[50, 55] - H1 2025 revenue totaled $163447 million, a 5% year-over-year increase[55, 89] - Q2 2025 Adjusted EBITDA was $21 million[50, 57] - The company repurchased 49 million shares for $233 million in Q2 2025[58, 65] - The company has approximately $85 million remaining for share repurchases as of August 15, 2025[58, 65] Market Position and Growth - Riskified reviewed approximately $145 billion in GMV in the twelve months ended June 30, 2025[16, 18] - The company estimates the global ecommerce GMV to be approximately $65 trillion in 2025 and $83 trillion in 2029[19] - Non-GAAP operating expenses as a percentage of revenue decreased from 50% to 47% year-over-year[56] Future Outlook - The company's 2025 revenue guidance is between $336 million and $346 million[59] - The company's 2025 Adjusted EBITDA guidance is between $18 million and $26 million[59] - The company expects approximately $30 million in Free Cash Flow in 2025[74]

Financial Performance - Gross merchandise volume (GMV) for Q2 2025 was $36,434 million, a 4% increase year-over-year, and $70,605 million for the first half of 2025, a 5% increase year-over-year[4] - Revenue for Q2 2025 reached $81,060 million, reflecting a 3% year-over-year increase, and $163,447 million for the first half of 2025, a 5% increase year-over-year[4] - GAAP net loss for Q2 2025 was $(11,633) million, compared to $(9,509) million in Q2 2024, with a net loss margin of (14)%[4] - Adjusted EBITDA for Q2 2025 was $2,134 million, maintaining a margin of 3%[4] - Revenue for Q2 2025 was $81,060,000, a 2% increase from $78,730,000 in Q2 2024[32] - Gross profit for Q2 2025 was $39,750,000, down 3% from $41,002,000 in Q2 2024[32] - Net loss for Q2 2025 was $11,633,000, compared to a net loss of $9,509,000 in Q2 2024, representing a 22% increase in losses[32] - The company anticipates continued margin and Adjusted EBITDA expansion, with expectations for growth in new verticals and geographies[25] - Net profit for Q2 2025 was $(11,633) million, compared to $(9,509) million in Q2 2024, reflecting a decline of approximately 22.3% year-over-year[34] - Adjusted EBITDA for Q2 2025 was $2,134 million, down from $2,340 million in Q2 2024, indicating a decrease of about 8.8%[36] - GAAP gross profit for Q2 2025 was $39,750 million, a decrease of 3.1% from $41,002 million in Q2 2024[36] - Non-GAAP gross profit for Q2 2025 was $40,347 million, compared to $41,648 million in Q2 2024, representing a decline of 3.1%[36] Cash Flow and Assets - Operating cash inflow for Q2 2025 was $5.6 million, up from $4.3 million in the prior year[8] - The company ended Q2 2025 with approximately $339.1 million in cash, deposits, and investments, with zero debt[8] - Cash and cash equivalents decreased to $265,032,000 as of June 30, 2025, down from $371,063,000 as of December 31, 2024[30] - Total assets decreased to $445,488,000 as of June 30, 2025, from $495,861,000 as of December 31, 2024[30] - Total liabilities decreased to $107,063,000 as of June 30, 2025, from $113,557,000 as of December 31, 2024[30] - Cash flows from operating activities for Q2 2025 were $5,592 million, an increase of 29.1% from $4,332 million in Q2 2024[38] - Free Cash Flow for Q2 2025 was $5,340 million, up from $4,108 million in Q2 2024, marking an increase of 29.9%[38] - The net cash used in investing activities for Q2 2025 was $(4,621) million, compared to $(224) million in Q2 2024, indicating a significant increase in cash outflow[34] - The ending cash and cash equivalents for Q2 2025 were $265,032 million, down from $388,694 million at the end of Q2 2024[34] Shareholder Actions - The company repurchased approximately 4.9 million ordinary shares for about $23.3 million during Q2 2025, with an additional $75 million authorized for repurchase[3] Expenses and Costs - Total operating expenses decreased to $52,756,000 in Q2 2025 from $55,197,000 in Q2 2024, a reduction of approximately 8%[32] - GAAP cost of revenue for Q2 2025 was $41,310 million, up from $37,728 million in Q2 2024, reflecting an increase of 9.3%[38] - Research and development expenses for Q2 2025 were $17,167 million, slightly up from $17,079 million in Q2 2024[38] - Share-based compensation expense for Q2 2025 was $12,859 million, a decrease of 14.6% from $15,035 million in Q2 2024[39] - Restructuring costs increased significantly to $1,268 million in Q2 2025 from $94 million in Q2 2024, indicating a rise of over 1,250%[39] - Total depreciation and amortization for Q2 2025 was $875 million, down from $1,255 million in Q2 2024, a decrease of 30.2%[39] Losses and Earnings Per Share - The company reported a comprehensive loss of $10,386,000 for Q2 2025, compared to a comprehensive loss of $9,678,000 in Q2 2024[32] - The weighted-average shares used in computing net loss per share for Q2 2025 was 159,112,218, compared to 173,687,773 for Q2 2024[32] - Non-GAAP net profit for Q2 2025 was $3,507 million, down from $7,026 million in Q2 2024, representing a decrease of about 50%[39] - Non-GAAP net profit per share for Q2 2025 was $0.02, down from $0.04 in Q2 2024, a decline of 50%[39] - Basic and diluted net loss per share for Q2 2025 was $(0.07), compared to $(0.05) in Q2 2024, reflecting a worsening of 40%[39] - Total net loss for the first half of 2025 was $(25,519) million, compared to $(21,139) million in the first half of 2024, indicating a year-over-year increase of approximately 20.5%[39] Strategic Initiatives - The partnership with HUMAN Security aims to enhance AI shopping agent safety, combining both companies' expertise in fraud prevention and risk intelligence[3] - The company launched innovative Agentic ecommerce solutions to advance fraud prevention in the evolving ecommerce landscape[3]

Group 1 - Riskified Ltd. is set to release its second-quarter earnings results on August 18, with analysts expecting earnings of 2 cents per share, a decrease from 4 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $80.37 million, an increase from $78.73 million a year earlier [1] - Riskified's first-quarter results were better than expected, indicating potential positive momentum [1] Group 2 - Riskified shares experienced a decline of 1.5%, closing at $5.11 [2] - Analysts have provided various ratings for Riskified, with DA Davidson maintaining a Buy rating and raising the price target from $6 to $6.5 [4] - Piper Sandler reiterated an Overweight rating with a price target of $7, while JP Morgan maintained a Neutral rating and reduced the price target from $7 to $6 [4]

Summary of Riskified (RSKD) FY Conference Call - June 10, 2025 Company Overview - **Company**: Riskified - **Industry**: E-commerce fraud prevention and risk management Key Points and Arguments 1. **Core Business Model**: Riskified started by helping merchants manage e-commerce risk, focusing on identifying fraudulent transactions and managing chargebacks. The company has expanded its services to include policy abuse management and consumer account protection [1][3][4]. 2. **Market Size**: Merchants are liable for card-not-present fraud, leading to aggregate losses of hundreds of billions annually due to fraud [4]. 3. **Cost Structure for Merchants**: A sample profit and loss statement for e-commerce merchants shows costs related to fraud chargebacks (25 basis points), staffing (3 basis points), and tools (2 basis points) [5]. 4. **Performance Guarantees**: Riskified offers guaranteed performance, including cost guarantees for approved transactions that result in chargebacks, which allows merchants to replace traditional service provider costs [7][8]. 5. **Data Capture and Technology**: Riskified utilizes extensive data capture per transaction, leveraging machine learning to optimize fraud detection and decision-making processes. The company claims to capture three times more data than traditional payment processors [10][12]. 6. **Client Base**: Riskified works with over 50 publicly traded companies, providing tailored models for each client based on their specific data points [12][14]. 7. **Fraud Trends**: Fraud is becoming more sophisticated, necessitating continuous investment from merchants to combat new trends. The rise of e-commerce and AI tools has contributed to this increase in fraud [19][20][21]. 8. **Riskified Flywheel**: As more merchants join the network, Riskified's accuracy improves due to better data, leading to higher approval rates and retention rates among clients [22][23]. 9. **Policy Abuse Management**: Riskified's policy product helps merchants identify and block fraudulent refund and return requests, providing significant ROI [23][37]. 10. **International Growth**: The company has seen strong international growth, with eight out of the top ten clients in Q1 being outside the U.S. [35]. 11. **New Product Growth**: Non-chargeback guarantee products grew by 190% year-over-year, with significant revenue expected from the policy product [36]. 12. **Financial Health**: Riskified has a strong balance sheet with no debt and has been actively repurchasing shares. The company aims for 15% to 20% EBITDA margins by 2026 [53][56]. 13. **Market Opportunity**: The total e-commerce GMV is over $6 trillion, presenting a significant growth opportunity for Riskified as it aims to capture more market share [58]. Additional Important Insights 1. **Client Decision Factors**: Enterprises often weigh the cost of building internal solutions against outsourcing to Riskified, which can improve their P&L by reducing costs and increasing efficiency [60]. 2. **Long-term Vision**: Riskified aims to expand its product portfolio and generate more value for clients, leveraging network effects to gain capabilities across geographies and industries [62]. 3. **M&A Strategy**: The company is open to M&A opportunities that can enhance its technology and cross-sell to existing clients, although current market valuations present challenges [56][57]. This summary encapsulates the key insights from the Riskified FY Conference Call, highlighting the company's strategic focus, market dynamics, and growth potential in the e-commerce fraud prevention industry.

Summary of Riskified (RSKD) FY Conference June 04, 2025 Company Overview - **Company Name**: Riskified - **Founded**: 2013 - **Public Listing**: 2021 - **Core Business**: Provides fraud management solutions for e-commerce, focusing on chargeback guarantee products and expanding into new areas [2][6] Industry Insights - **E-commerce Market Size**: The total addressable market (TAM) for e-commerce is approximately $6 trillion, with Riskified managing over $140 billion in gross merchandise volume (GMV) [17][40] - **Fraud Management Challenge**: E-commerce merchants face significant costs due to chargebacks, averaging around 25 basis points (bps) of revenue, which can be substantial [9][11] Core Product Offerings - **Chargeback Guarantee**: Riskified offers a chargeback guarantee that reduces the cost structure for merchants from an average of 30 bps to 20-25 bps, while also guaranteeing transaction approval rates [14][40] - **Adaptive Checkout**: A product that enhances bank payment authorization rates by sending enriched data to issuing banks, improving overall transaction success [19] - **Policy Protect**: The fastest-growing product with 90% year-over-year growth, aimed at identifying and blocking fraudulent refund requests [20][21][26] - **Chargeback Management Software**: A tool for managing chargebacks, allowing fraud teams to handle disputes efficiently [27] Financial Performance - **Cost Structure**: The cost of chargebacks is the largest component affecting gross margins, which hover around 50% [44] - **Operational Efficiency**: The company has focused on reducing operational expenses (OpEx) while improving profitability, with a flat OpEx forecast for the current year [41] - **Cash Flow**: Strong cash flow generation, with guidance over $30 million for the year [44] Growth Opportunities - **Market Expansion**: Riskified is targeting geographic expansion in regions like APAC and LATAM, with a focus on diversifying into non-discretionary categories [42][49] - **Upselling Potential**: There is significant white space for upselling within existing clients, with 80% of the top 30 clients having at least one upsell [49] - **New Product Development**: Continuous innovation in machine learning and data analytics to enhance product offerings and improve fraud detection capabilities [35][39] Key Metrics and Results - **ROI for Merchants**: On average, top clients experience a 30% reduction in costs and a high single-digit increase in approval rates [17][40] - **Data Capture Advantage**: Riskified's ability to capture extensive data per transaction allows for more accurate fraud detection and tailored solutions for enterprise clients [33] Conclusion Riskified is positioned as a leading player in the e-commerce fraud management space, leveraging machine learning and extensive data capture to provide value to merchants while addressing the significant challenges posed by fraud and chargebacks. The company is focused on expanding its product offerings and geographic reach, aiming for sustained growth and improved profitability in the coming years.