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]

Summary of Affirm (AFRM) FY Conference Call - June 05, 2025 Company Overview - Affirm operates in the fintech industry, focusing on providing innovative financial solutions to consumers dissatisfied with traditional banking products [2][7] - The company aims to reinvent consumer credit, positioning itself as a modern alternative to credit cards [9][10] Core Points and Arguments Mission and Product Differentiation - Affirm's mission is to deliver honest financial products that improve lives, avoiding practices that are detrimental to users [7][8] - The company emphasizes a product model that avoids revolving debt, late fees, and hidden charges, contrasting sharply with traditional credit card systems [15][19] - Affirm's products are designed to be transparent, with no compound interest and quick amortization, which benefits both the company and consumers [16][17] Market Position and Consumer Trends - Affirm has over 20 million users, with a significant portion of consumers preferring Buy Now, Pay Later (BNPL) options over credit cards [20][21] - The company claims to capture about one-third of the Gross Merchandise Volume (GMV) in North America and half of the revenue in the BNPL sector [26] - Affirm's growth rate in purchase volume has compounded at 48% since going public, with recent monthly growth rates exceeding 40% [24][25] Financial Performance - Affirm reported total revenue of approximately $3 billion on a trailing twelve-month basis, with a compounded growth rate of about 36% [42] - The company aims for a net revenue margin of 3-4% on GMV, currently running above 4% [45] - Affirm has shown meaningful growth in both adjusted and GAAP operating income, with a commitment to achieving GAAP operating profit [46] Consumer Demographics and Credit Outcomes - The typical Affirm consumer has an average FICO score of 652 and an average income of $74,000, aligning closely with the national average [51] - Affirm's delinquency rates are lower than those of major credit card issuers, even with a portfolio that includes 42% non-prime receivables [53] - The company attributes its favorable credit outcomes to advanced data science and machine learning capabilities, allowing for effective risk assessment [54][55] Competitive Landscape - Affirm does not compete on price but rather on the value provided to merchants and consumers, maintaining consistent merchant fees despite competitive pressures [57] - The company distinguishes itself from other BNPL players by not charging late fees or other hidden costs, and it actively reports to credit bureaus [58] Other Important Insights - Affirm's product offerings include flexible payment terms, interest-bearing loans, and 0% APR options, catering to a wide range of consumer needs [29][30] - The company has successfully integrated its services with major merchants, including a recent partnership with Costco, expanding its market reach [41] - Affirm's growth strategy includes expanding into international markets, with plans to launch in the UK and Continental Europe [49][48]

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.

Summary of Riskified Conference Call Company Overview - **Company**: Riskified - **Industry**: E-commerce fraud prevention and management - **Core Offering**: AI solutions for managing online payments fraud, policy abuse, chargeback management, and account security [4][5] Core Value Proposition - **Merchant Challenges**: Merchants face liability for fraudulent transactions, requiring robust systems to differentiate between legitimate and fraudulent transactions [5] - **Fraud Types**: Includes chargebacks from "liar buyer friendly fraud," where customers falsely claim fraud to return items [6][7] - **Impact on Business**: Riskified's solutions have led to a cost reduction of over 30% and an average increase in approval rates of about 8% for top customers [9][10] Market Strategy - **Target Market**: Focus on enterprise clients, particularly those with revenues from $50 million to over $1 billion, with a growing presence in Latin America and Asia-Pacific [12] - **Sales Approach**: Direct sales targeting large enterprises, with plans to expand into mid-market and SMB segments [12] Industry Dynamics - **Fraud Evolution**: Increased sophistication in fraud tactics, including the use of AI by fraudsters, necessitating advanced solutions [14][21] - **Market Opportunity**: The growth of e-commerce (projected at $6.5 trillion) presents a significant opportunity for fraud, driving demand for Riskified's services [18][19] Financial Performance - **Net Dollar Retention**: Declined to 96% in 2024, attributed to large merchant churn and macroeconomic factors affecting discretionary spending [31][32] - **Growth in Non-Discretionary Categories**: Shift towards non-discretionary spending categories like food delivery and groceries has diversified the revenue base [30] Competitive Landscape - **Competitors**: Traditional legacy players and newer fintech solutions, with Riskified positioned as a more advanced, AI-driven alternative [35][36] - **Data Advantage**: Riskified captures extensive data across the transaction lifecycle, enhancing modeling performance compared to competitors [37][38] Product Development - **New Products**: Introduction of adaptive checkout, policy protect, and dispute resolve tools aimed at improving merchant conversion rates and managing fraud [55][61] - **Chargeback Guarantee**: Offers merchants a guaranteed approval rate and cost of fraud, enhancing value and accountability [49][50] Customer Engagement - **Cross-Selling Opportunities**: Increased focus on cross-selling additional products to existing clients, with significant growth in new product revenue [44][46] - **Customer Experience**: Emphasis on improving customer experience through faster refunds for loyal customers and managing abusive refund requests [62][63] Macro Environment - **Economic Resilience**: Despite uncertainties, consumer spending has remained resilient, with minimal impact from tariffs on overall business [27][28] - **Future Outlook**: Anticipated recovery in discretionary spending and continued growth in non-discretionary categories expected to stabilize net dollar retention [34] Conclusion - Riskified is well-positioned in the e-commerce fraud prevention market, leveraging advanced AI technology to address evolving fraud challenges while expanding its product offerings and market reach. The company is focused on enhancing customer experience and driving growth through strategic diversification and innovation.

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]