Riskified .(RSKD) - 2024 Q3 - Quarterly Report

Financial Performance - Gross Merchandise Volume (GMV) for Q3 2024 reached $34,706 million, a 17$78,849 million, reflecting a 10% year-over-year growth[4] - GAAP Gross Profit for Q3 2024 was $38,956 million, with a gross profit margin of 49$(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 $31.140 million in Q3 2023, reflecting a 25.2$(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]