Financial Data and Key Metrics Changes - The company reported a GMV of $34.2 billion for Q1 2025, reflecting a 7% year-over-year increase [13] - Revenue for the first quarter was $82.4 million, also up 8% year-over-year [13] - The non-GAAP gross profit margin for Q1 2025 was approximately 50%, with a year-over-year decline attributed to ramping up new merchants in newer categories [17] - Positive adjusted EBITDA of $1.3 million was achieved in Q1, marking the sixth consecutive quarter of positive adjusted EBITDA [19] - The company ended the quarter with approximately $357 million in cash, deposits, and investments, carrying zero debt [19][20] Business Line Data and Key Metrics Changes - The two largest categories, Tickets and Travel and Fashion and Luxury, each grew in the mid-teens range year-over-year, driven by strong new business wins and upsell activity [13] - The money transfer and payments category saw approximately 90% year-over-year growth, primarily driven by new merchant activity [14] - The home category contracted by 74%, contributing to a 5% year-over-year decline in the U.S. market [15] - Growth accelerated across all regions outside the U.S., with APAC growing approximately 70% and Outer Americas growing approximately 13% [16] Market Data and Key Metrics Changes - Eight of the top ten new logos won during Q1 were headquartered outside the U.S., indicating a continued expansion of the company's geographic footprint [12] - The company noted that the overall consumer remained resilient, with April trends stable compared to March [11] Company Strategy and Development Direction - The company is focused on expanding its top-of-funnel efforts to generate more pipeline, converting that pipeline into new business, and retaining and growing with merchants once onboarded [7] - The strategic investment in machine learning capabilities is aimed at enhancing performance for merchants and addressing evolving fraud challenges [10] - The company aims to maintain a non-GAAP gross profit margin between 52% to 53.5% for the full year [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2025 and the opportunities surrounding the pipeline and anticipated new business activity [21] - The company is maintaining its revenue guidance of between $333 million and $346 million and adjusted EBITDA guidance of between $18 million and $26 million for the year [22] - Management acknowledged the uncertainty around potential impacts of tariffs on merchants and overall spending activity [21] Other Important Information - The company repurchased 4.1 million shares for approximately $20.7 million during the first quarter, contributing to a decrease in share count [20] - The company continues to expect approximately $30 million of positive free cash flow in 2025, with the majority expected in the second half of the year [20] Q&A Session Summary Question: Impact of product roadmap execution on growth confidence - Management expressed satisfaction with the strong start to the year, attributing pipeline growth to the platform's value proposition and increased touchpoints within organizations [26][27] Question: Timeline for gross margin stabilization - Management encouraged looking at gross margins on an annual basis, reiterating expectations set in the previous call [30] Question: Update on mid-tier market strategy - Management indicated that while there is potential in the mid-tier market, the current strength of the pipeline remains focused on enterprise-level clients [35] Question: Long-term potential of the money transfer and payments category - Management highlighted the broad range of use cases in the money transfer category and the opportunity to expand market share [37] Question: Comparison with competitors, specifically Stripe - Management noted that Riskify's data capabilities are significantly greater than those of gateway solutions like Stripe, allowing for more effective fraud prevention [41][43] Question: Industry growth rates compared to company performance - Management acknowledged that their categories do not always align with external e-commerce growth metrics, with some categories performing better than industry averages [45][46] Question: Growth mix between new logos and existing base - Management indicated that new logo growth is slightly higher than expected, while dollar retention rates remain close to 100% [63][64]