Financial Data and Key Metrics Changes - The company achieved fourth quarter revenue of $93.5 million and full-year revenue of $327.5 million, representing year-over-year growth of 11% and 10% respectively [44][9] - The annual gross merchandise volume (GMV) grew by 15% to $141.2 billion for the full year 2024 [45][9] - Adjusted EBITDA for the year was positive $17.2 million, reflecting a year-over-year increase of over 300% [58][9] - The gross profit margin for the full year was 53%, up from 52% in 2023 [53][9] Business Line Data and Key Metrics Changes - The Ticket & Travel category was the largest contributor to year-over-year revenue growth, achieving over $111 million in revenue, which represented approximately one-third of the overall portfolio [49][9] - The Food category saw a 40% year-over-year growth, while the Money Transfer & Payments category grew by 66% [49][9] - The Fashion & Luxury category grew by low single digits in the fourth quarter and for the full year, representing approximately one-third of the portfolio [47][9] Market Data and Key Metrics Changes - The United States, the largest region, grew by 9%, while EMEA grew by 4% [51][9] - The Americas and APAC regions grew approximately 10% and 33% respectively, driven by new and upsell activity [51][9] Company Strategy and Development Direction - The company aims to expand its multi-product platform to diversify its revenue base and has successfully added several key merchants to products outside of its core chargeback guarantee [14][9] - A key focus for 2025 is to enhance top-of-funnel efforts to drive more pipeline and increase opportunities [15][9] - The company is investing in AI capabilities to improve performance and accuracy across its platforms [29][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved performance in annual dollar retention (ADR) and net dollar retention (NDR) rates in 2025, despite challenges faced in 2024 [21][9] - The company is implementing a merchant retention strategy aimed at returning ADR to historical levels [18][9] - Management anticipates revenue for 2025 to be between $333 million and $346 million, driven primarily by new business activity [65][9] Other Important Information - The company ended 2024 with approximately $376 million in cash and deposits and zero debt [59][9] - The company repurchased approximately $27 million shares for a total price of $141 million during 2024 [60][9] - Share-based compensation expense as a percentage of revenue decreased by approximately 300 basis points from 2023 levels [62][9] Q&A Session Summary Question: What are the strategies to maximize top of the funnel activity? - Management highlighted three strategies: expanding platform capabilities through increased R&D, geographical expansion, and a more thoughtful approach to mid-tier market areas [75][76][77] Question: What is the exposure to larger-than-average renewals in 2025? - Management expressed high confidence in multiyear renewals, with over 70% of the book of business already renewed [79][80] Question: Can you provide context around the success of standalone non-chargeback products? - Management indicated significant growth potential, projecting revenue from these products to increase from $4.5 million in 2024 to low double-digit millions [86][9] Question: What are the dynamics affecting net dollar retention (NDR)? - Management noted that NDR decreased due to churn events and a focus on new logo generation rather than upsells, but expressed optimism for improvement in 2025 [92][96] Question: How does the company view alternative payment methods? - Management stated that there is ongoing demand from merchants for fraud identification in alternative payment methods, indicating a growing opportunity in this area [98][9]

Financial Data and Key Metrics Changes - The company achieved fourth-quarter revenue of $93.5 million and full-year revenue of $327.5 million, representing year-over-year increases of 11% and 10% respectively [44][9] - Gross profit margin for the full year was 53%, up from 52% in 2023, with expectations for 2025 to be between 52% and 53.5% [53][54] - Adjusted EBITDA for the year was positive $17.2 million, a year-over-year increase of over 300%, with the fourth quarter achieving the highest quarterly adjusted EBITDA of $11.2 million [58][44] Business Line Data and Key Metrics Changes - The company grew its GMV by 15% for the full year, reaching $141.2 billion, with significant contributions from the Tickets & Travel vertical, which generated over $111 million in revenue [9][49] - The Food category saw a 40% year-over-year growth, while the Money Transfer & Payments category grew by 66% [49] - The Fashion & Luxury category grew by low single digits, representing approximately one-third of the portfolio, with early signs of stabilization in high-end fashion [46][47] Market Data and Key Metrics Changes - The United States, the largest region, grew by 9%, while EMEA grew by 4%, with the Americas and APAC regions growing approximately 10% and 33% respectively [51] - The company reported growth across all geographies year-over-year, indicating continued market share gains outside the United States [50] Company Strategy and Development Direction - The company aims to expand its multi-product platform to diversify revenue streams and enhance market share, with a focus on increasing top-of-funnel opportunities [14][15] - A key strategy for 2025 includes shifting many merchants to multiyear contracts to increase committed revenue, with over 70% of the 2025 book of business already committed [19][20] - The company is investing in AI capabilities to improve product performance and customer service, aiming for adjusted EBITDA margins between 15% to 20% by the end of 2026 [29][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved net dollar retention in 2025, driven by stabilization in challenged verticals and ongoing retention initiatives [21][66] - The company anticipates revenue for 2025 to be between $333 million and $346 million, with growth primarily driven by new business activity [65] - Management highlighted the importance of monitoring the performance of merchants and consumer spending in the broader e-commerce landscape [67] Other Important Information - The company ended 2024 with approximately $376 million in cash and deposits, carrying zero debt, and generated nearly $40 million in positive free cash flow [59][60] - The company repurchased over $140 million of its stock during 2024, reflecting a commitment to driving shareholder value [41][60] Q&A Session Summary Question: What are the strategies to maximize top-of-funnel activity? - Management highlighted three strategies: expanding platform capabilities through R&D, geographical expansion, and focusing on mid-tier market approaches [75][76][77] Question: What is the exposure to larger-than-average renewals in 2025? - Management expressed high confidence in multiyear renewals, with 70% of the book of business already renewed and only 10% of renewals requiring discounts [79][80] Question: Can you provide context around standalone non-chargeback deals like PolicyProtect? - Management indicated significant growth potential, projecting revenue from these products to increase from $4.5 million in 2024 to low double-digit millions [86] Question: What are the dynamics affecting net dollar retention (NDR)? - Management noted that NDR decreased to 96% due to churn events and a focus on new logo generation over upsells, but expressed optimism for improvement in 2025 [92][94][96] Question: How does the company view alternative payment methods? - Management acknowledged ongoing fraud challenges in alternative payment methods and emphasized the company's capability to identify fraud in these areas [98][100] Question: What insights were gained from the review of pricing strategies? - Management noted that accuracy and strategic product growth are key factors in maintaining high win rates against competitors [108][110]

Group 1: Earnings Performance - Riskified reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.08 per share, and down from $0.07 per share a year ago, representing an earnings surprise of -25% [1] - The company posted revenues of $93.53 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.71%, compared to year-ago revenues of $84.07 million [2] - Over the last four quarters, Riskified has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Riskified shares have increased by approximately 7% since the beginning of the year, while the S&P 500 has declined by -1.8% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $77.29 million, and for the current fiscal year, it is $0.22 on revenues of $336.61 million [7] Group 3: Industry Context - The Internet - Software industry, to which Riskified belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, indicating potential challenges [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Exhibit 99.1 Riskified Exceeds High End of FY'24 Revenue Guidance and Achieves Full Year of Positive Adjusted EBITDA Provides Initial 2025 Outlook NEW YORK, March 5, 2025 - Riskified Ltd. (NYSE: RSKD) (the "Company"), a leader in ecommerce fraud and risk intelligence, today announced financial results for the three and twelve months ended December 31, 2024. The Company will host an investor call to discuss these results today at 8:30 a.m. Eastern Time. "We began 2024 with a clear focus on advancing our AI p ...

Group 1 - The previous investment thought on Riskified (NYSE: RSKD) was a buy rating due to the potential for long-term growth given the large addressable market [1] - The focus is on long-term investments while incorporating short-term shorts to uncover alpha opportunities [1] - The investment approach revolves around bottom-up analysis, examining the fundamental strengths and weaknesses of individual companies [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Company Performance - Riskified reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, compared to a loss of $0.02 per share a year ago, representing an earnings surprise of 50% [1] - The company posted revenues of $78.85 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.28%, and showing an increase from year-ago revenues of $71.87 million [2] - Over the last four quarters, Riskified has consistently surpassed consensus EPS and revenue estimates [2] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $92.01 million, and for the current fiscal year, it is $0.18 on revenues of $322.05 million [7] - The estimate revisions trend for Riskified is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Riskified belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [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 Performance - Gross Merchandise Volume (GMV) for Q3 2024 reached $34,706 million, a 17% increase year-over-year[4] - Revenue for Q3 2024 was $78,849 million, reflecting a 10% year-over-year growth[4] - GAAP Gross Profit for Q3 2024 was $38,956 million, with a gross profit margin of 49%, up from 43% in the prior year[4] - Net loss for Q3 2024 was $(9,699) million, improving from a net loss of $(20,925) million in Q3 2023[4] - Adjusted EBITDA for Q3 2024 was $899 million, compared to a loss of $(8,448) million in the same quarter last year[4] - Revenue for Q3 2024 was $78.849 million, a 9.7% increase from $71.872 million in Q3 2023[33] - Gross profit for Q3 2024 reached $38.956 million, compared to $31.140 million in Q3 2023, reflecting a 25.2% year-over-year growth[33] - Operating loss for Q3 2024 was $(14.330) million, an improvement from $(25.210) million in Q3 2023[33] - Net profit for Q3 2024 was $(9,699) million, an improvement from $(20,925) million in Q3 2023, while the net profit for the nine months ended September 30, 2024, was $(30,838) million compared to $(55,770) million in the same period last year[35] - Adjusted EBITDA for Q3 2024 was $899 million, a significant recovery from $(8,448) million in Q3 2023, with a nine-month adjusted EBITDA of $5,990 million compared to $(18,203) million in the prior year[37] Cash Flow and Assets - Free cash flow for Q3 2024 was $13.9 million, significantly improved from $3.7 million in Q3 2023[7] - Cash provided by operating activities for Q3 2024 was $14,012 million, a substantial increase from $4,493 million in Q3 2023, with a nine-month total of $29,005 million compared to $(144) million in the same period last year[38] - Free cash flow for Q3 2024 was $13,907 million, compared to $3,667 million in Q3 2023, with a nine-month free cash flow of $28,498 million compared to $(1,218) million in the prior year[38] - The total cash, cash equivalents, and restricted cash at the end of Q3 2024 was $356,398 million, down from $435,473 million at the end of Q3 2023[35] - Total current assets decreased to $433.756 million as of September 30, 2024, down from $532.299 million as of December 31, 2023[31] - Total liabilities decreased to $101.290 million as of September 30, 2024, compared to $110.211 million as of December 31, 2023[31] - Shareholders' equity as of September 30, 2024, was $393.548 million, down from $491.721 million as of December 31, 2023[31] Expenses and Costs - Research and development expenses for Q3 2024 were $16.671 million, slightly down from $17.397 million in Q3 2023[33] - Research and development expenses for Q3 2024 were $16,671 million, slightly down from $17,397 million in Q3 2023, with nine-month expenses totaling $51,522 million compared to $54,455 million last year[38] - Total share-based compensation expense for the three months ended September 30, 2024, was $13,905 million, down from $15,330 million in the same period of 2023[39] - Depreciation and amortization for the three months ended September 30, 2024, was $1,189 million, slightly down from $1,275 million in the same period of 2023[39] - Restructuring costs for the nine months ended September 30, 2024, amounted to $1,770 million, with no costs reported in the same period of 2023[39] - Litigation-related expenses for the three months ended September 30, 2024, were $0 million, compared to $48 million in the same period of 2023[39] Shareholder Information - The Board of Directors authorized an additional $75 million share repurchase program, bringing total repurchase authorization to approximately $85 million[3] - GAAP net loss per share for Q3 2024 was $(0.06), an improvement from $(0.12) in the prior year[7] - Non-GAAP net profit for the three months ended September 30, 2024, was $5,530 million, an improvement from $(4,163) million in the same period of 2023[39] - Basic and diluted net loss per share attributable to Class A and B ordinary shareholders for the three months ended September 30, 2024, was $(0.06), compared to $(0.12) in the same period of 2023[39] - Non-GAAP net profit per share attributable to Class A and B ordinary shareholders for the three months ended September 30, 2024, was $0.03, compared to $(0.02) in the same period of 2023[39] - Weighted-average shares used in computing net profit per share for the three months ended September 30, 2024, was 168,649,496, compared to 178,360,665 in the same period of 2023[39] Strategic Initiatives - The company expects revenue for FY 2024 to be between $322 million and $327 million[8] - The company onboarded a multi-billion dollar global money transfer company, expanding its reach in the Money Transfer & Remittance category[3] - The company anticipates continued margin expansion and growth potential in new verticals and geographies for fiscal year 2024[25] - The company is focused on enhancing its AI-powered products and capabilities to improve performance and customer retention[25] - The company reported a provision for income taxes of $639 million in Q3 2024, compared to $1,239 million in Q3 2023, indicating a decrease in tax burden[37] Cash Flow Changes - The company experienced a net increase in cash and cash equivalents of $(32,296) million in Q3 2024, compared to an increase of $49,378 million in Q3 2023[35]

Group 1 - Riskified (NYSE: RSKD) is positioned uniquely in online fraud management for e-commerce merchants, leveraging a strong technology platform and significant network effects [1] - The company is focused on identifying asymmetric investment opportunities within the technology, software, electronics, and energy transition sectors [1] - The analyst has a background in Electrical Engineering and experience in automotive battery R&D, which supports the analysis of small to mid-cap companies [1] Group 2 - The article emphasizes the importance of thorough research in uncovering potential investment opportunities that are often overlooked by others [1] - The analyst has been investing personal capital for over 7 years, indicating a long-term commitment to understanding market dynamics [1]

✔ rıskıfied August 2024 Investor Presentation 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 statements contained in Section 27A of the U.S. Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the U.S. Securities Exchange Act of 1934, a ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $78.7 million, reflecting an 8% year-over-year increase, while GMV reached $35 billion, up 13% year-over-year [13][21] - Non-GAAP gross profit margin was 53%, up from 52% in the same quarter last year, with a first-half gross profit margin of approximately 54%, the highest since the IPO [16][12] - Adjusted EBITDA was positive at $2.3 million for Q2 2024, compared to negative $4.6 million in Q2 2023, marking the eighth consecutive quarter of year-over-year improvements [19] Business Line Data and Key Metrics Changes - The home category grew by 21% year-over-year, while the general vertical, including food and retail, grew by 7% [13][14] - Payments and money transfer category saw over 40% growth, driven by new business activity [13] - Fashion and luxury category grew by 5%, with expectations of continued same-store sales pressures in the second half of the year [14] Market Data and Key Metrics Changes - The United States, the largest region, grew by 11% in Q2, while APAC grew approximately 35% [15] - EMEA is expected to be relatively flat for the year due to a high concentration of merchants in fashion and travel, which are experiencing softness [15][62] Company Strategy and Development Direction - The company is focused on building a market-leading platform to solve real problems for merchants and expand its total addressable market (TAM) [8][12] - There is an emphasis on cross-selling multiple products to existing clients, with a strong pipeline of merchant activity anticipated for the second half of the year [6][31] - The company aims to enhance its technology and expand its market share while managing operational expenses effectively [7][12] Management's Comments on Operating Environment and Future Outlook - Management anticipates softer trends in the third and fourth quarters due to macroeconomic headwinds affecting consumer spending, particularly in high-end fashion and travel [6][21] - Despite challenges, management remains optimistic about new business activity in the second half of the year, which is expected to partially offset macro headwinds [6][21] - The company is updating its 2024 revenue guidance to between $320 million and $325 million, reflecting anticipated headwinds [21][22] Other Important Information - The company ended Q2 2024 with approximately $422 million in cash and zero debt, having repurchased 6.8 million shares for about $39 million [20] - The company expects to generate approximately $30 million in positive free cash flow for 2024 [20] Q&A Session Summary Question: Impact of CrowdStrike outage on Q3 expectations - Management confirmed no impact on Riskified or its merchants related to the CrowdStrike issue [24] Question: Update on platform penetration rates - Management indicated ongoing improvements in gross profit margins and a strong pipeline for new products [26] Question: Net dollar retention expectations - Management expects net dollar retention to be slightly below 100% due to macro factors, with a slight uptick in loss volume anticipated [28][29] Question: Sales strategy evolution for platform offerings - Management highlighted a focus on new logos and the ability to sell multiple products to clients, enhancing win rates [31] Question: Growth expectations for 2025 - Management stated it is too early to model 2025 but noted acceleration in growth due to new business activity [34] Question: Margin targets for 2026 - Management remains confident in achieving the 15% to 20% EBITDA margin target for 2026 [36] Question: Enhancements in go-to-market strategy - Management emphasized the importance of product differentiation and a strong sales force in driving new business success [40] Question: Implementation pipeline for the back half of the year - Management confirmed a robust pipeline expected to go live by year-end, despite some seasonal considerations [54] Question: Comparisons to last year and easier growth rates - Management acknowledged easier comparisons in the back half of the year, particularly in high fashion and home categories [55]