Financial Data and Key Metrics Changes - The company reported a GMV of $37.8 billion for Q3 2025, reflecting a 9% year-over-year increase, and $108.4 billion for the first nine months, showing a 7% increase year-over-year [12] - Q3 revenue reached a record $81.9 million, up 4% year-over-year, while revenue for the first nine months was $245.3 million, increasing 5% year-over-year [13] - Non-GAAP gross profit for Q3 was $41.5 million, a 5% year-over-year increase, translating to a non-GAAP gross profit margin of approximately 51%, up 1% from the previous year [16] - Adjusted EBITDA for Q3 was $5.6 million, representing a margin of approximately 7%, with expectations for a margin of approximately 15% in Q4 [18][21] Business Line Data and Key Metrics Changes - The money transfer and payments category grew 100% year-over-year in Q3, driven by new business activity [14] - The tickets and travel category grew 6% in Q3, while the fashion and luxury category saw a 13% increase [13][14] - The home category contracted by approximately 70% year-over-year, but growth is expected to return in Q4 [15] Market Data and Key Metrics Changes - In the U.S., revenue declined 12% year-over-year, primarily due to the contraction in the home category [15] - APAC region grew approximately 55% year-over-year, while other Americas (Canada and Latin America) grew approximately 18% year-over-year [15][16] - EMEA region experienced a 19% year-over-year growth, with strong performance in fashion and luxury, tickets and travel, and money transfer and payments [16] Company Strategy and Development Direction - The company is focused on enhancing machine learning capabilities and has shifted approximately 70% of its models to autonomous training, which is expected to improve scalability and performance [6][7] - The company is investing in new product developments, including Adaptive Checkout, which has shown significant improvements in conversion rates for merchants [9] - The strategy includes targeting specific verticals and geographic regions for expansion, with a focus on mid-market opportunities [26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the upcoming holiday season, supported by resilient consumer spending and strong performance in key categories [10][11] - The company raised the bottom end of its revenue guidance for the second consecutive quarter, now anticipating revenue between $338 million and $346 million for the full year [21] - Management highlighted the importance of navigating complexities introduced by agentic commerce and stablecoin adoption, positioning the company to assist merchants in this evolving landscape [39][60] Other Important Information - The company ended Q3 with $325 million in cash and investments, maintaining a zero-debt position [19] - Share repurchase activity included 5.2 million shares for approximately $25.3 million in Q3, with a total of 14.2 million shares repurchased for about $69.2 million in the first nine months [20] Q&A Session Summary Question: Momentum as the year ends - Management expects strong performance from both upselling existing merchants and acquiring new clients [24] Question: Emerging verticals for 2026 - The company is focused on specific large verticals and geographic regions for expansion, considering both product and distribution strategies [25][26] Question: Revenue contribution from non-Chargeback Guarantee products - Non-Chargeback Guarantee products have shown strong growth, exceeding 100% [29] Question: Long-term margin profile - The long-term margin profile varies based on product mix, with a focus on increasing gross profit dollars [30] Question: Gross margin trajectory into next year - Recent model improvements are expected to enhance gross margins, despite potential headwinds from new categories [34][35] Question: One-time expense impacts in Q3 - Positive impacts were related to payroll adjustments and reserve duties, with expectations for operating expenses to be around $39 million in Q4 [36][37] Question: Growing stablecoin adoption - The company sees stablecoins introducing complexity for merchants, which could drive demand for its services [39] Question: Agentic commerce opportunities and threats - Agentic commerce could increase demand for services due to added complexity, but could also pose risks if transactions shift away from traditional e-commerce [58][60] Question: 2026 EBITDA targets - Management remains optimistic about achieving targeted margins, although some delays may occur due to merchant events [62]

Financial Data and Key Metrics Changes - The company's GMV for Q3 was $37.8 billion, reflecting a 9% year-over-year increase, while the first nine months totaled $108.4 billion, up 7% year-over-year [12] - Q3 revenue reached a record $81.9 million, a 4% increase year-over-year, with year-to-date revenue of $245.3 million, up 5% year-over-year [13] - Non-GAAP gross profit for Q3 was $41.5 million, a 5% year-over-year increase, translating to a gross profit margin of approximately 51%, up 1% from the previous year [16] - Adjusted EBITDA for Q3 was $5.6 million, representing a margin of approximately 7%, with expectations for a margin of approximately 15% in Q4 [18][21] Business Line Data and Key Metrics Changes - The money transfer and payments category grew approximately 100% year-over-year in Q3, driven by new business activity [14] - The tickets and travel category grew 6% in Q3, while the fashion and luxury category saw a 13% increase [13][14] - The home category contracted by approximately 70% year-over-year, but growth is expected to return in Q4 [15] Market Data and Key Metrics Changes - In the U.S., revenue declined 12% year-over-year, primarily due to the contraction in the home category [15] - APAC region grew approximately 55% year-over-year, while other Americas (Canada and Latin America) grew approximately 18% year-over-year [15][16] - EMEA region grew approximately 19% year-over-year, with strong performance in fashion and luxury, tickets and travel, and money transfer and payments [16] Company Strategy and Development Direction - The company is focused on enhancing machine learning capabilities and has shifted approximately 70% of its models to autonomous training, which is expected to improve scalability and performance [6][7] - The company is investing in new product developments, including Adaptive Checkout, which has shown significant improvements in conversion rates for merchants [9] - The strategy includes targeting specific verticals and geographic regions for expansion, with a focus on mid-market opportunities [26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for a healthy holiday season, supported by resilient consumer spending and strong performance in key categories [10][11] - The company raised the bottom end of its revenue guidance for the second consecutive quarter, now anticipating revenue between $338 million and $346 million for the full year [21] - Management highlighted the importance of navigating complexities introduced by agentic commerce and the potential for increased demand for their services [60] Other Important Information - The company ended Q3 with $325 million in cash and investments, maintaining zero debt and achieving quarterly free cash flows of $13.4 million [19] - Share repurchase activity included 5.2 million shares for approximately $25.3 million in Q3, with a total of 14.2 million shares repurchased for approximately $69.2 million in the first nine months [20] Q&A Session Summary Question: Momentum as the year ends - Management expects strong performance from both upselling existing merchants and acquiring new clients [24] Question: Emerging verticals for 2026 - The company is focused on specific large verticals and geographic regions for expansion, considering both product fit and distribution strategies [26] Question: Revenue contribution from non-Chargeback Guarantee products - Non-Chargeback Guarantee products have shown strong growth, over 100%, contributing positively to long-term contracts and new business [28] Question: Long-term margin profile - The long-term margin profile varies based on product mix, with a focus on increasing gross profit dollars [30] Question: Gross margin trajectory into next year - Recent model improvements are expected to improve performance, but there may be headwinds from new categories and regions [34] Question: One-time expense impacts in Q3 - Positive impacts were related to payroll adjustments and reserve duties, with expectations for operating expenses around $39 million in Q4 [36] Question: Growing stablecoin adoption - The company sees stablecoins and crypto introducing complexity for merchants, which could drive demand for their services [39] Question: Agentic commerce opportunities and threats - Agentic commerce could increase demand for services due to complexity, but there is a risk if transactions move away from traditional e-commerce [60]

Financial Data and Key Metrics Changes - The company's GMV for Q3 was $37.8 billion, reflecting a 9% year-over-year increase, while the first nine months GMV was $108.4 billion, up 7% year-over-year [12] - Record Q3 revenue reached $81.9 million, a 4% increase year-over-year, with year-to-date revenue of $245.3 million, up 5% year-over-year [12] - Non-GAAP gross profit for Q3 was $41.5 million, a 5% year-over-year increase, translating to a non-GAAP gross profit margin of approximately 51%, an improvement of 1% from the prior year [16] - Adjusted EBITDA for Q3 was $5.6 million, representing a margin of approximately 7%, with expectations for a significant increase to around 15% in Q4 [18][20] Business Line Data and Key Metrics Changes - The tickets and travel category grew 6% in Q3, driven by new business wins, while the fashion and luxury category saw a 13% increase [12][13] - The money transfer and payments category achieved approximately 100% year-over-year growth in Q3, primarily driven by new business activity [14] - The home category contracted by approximately 70% year-over-year, but growth is expected to return in Q4 [15] Market Data and Key Metrics Changes - In the U.S., revenue declined 12% year-over-year, mainly due to the contraction in the home category, while APAC grew approximately 55% year-over-year [15] - Other Americas (Canada and Latin America) grew approximately 18% year-over-year, with EMEA growing approximately 19% year-over-year, supported by strong performance in key verticals [15][16] Company Strategy and Development Direction - The company is focused on enhancing machine learning capabilities, with 70% of models shifted to autonomous training, which is expected to improve scalability and performance [6][10] - The company is positioning itself to navigate the rise of agentic commerce through strategic partnerships and innovative technology [10] - The company plans to continue investing in product development while managing expenses effectively to maintain operating leverage [45][47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for a healthy holiday season, supported by resilient consumer spending and strong performance in key categories [11] - The company raised the bottom end of its revenue guidance for the second consecutive quarter, now anticipating revenue between $338 million and $346 million for the full year [20] - Management highlighted the importance of adapting to new complexities introduced by agentic commerce, which could drive demand for their services [58] Other Important Information - The company ended Q3 with $325 million in cash and investments, maintaining a zero-debt position [19] - The company repurchased 5.2 million shares for approximately $25.3 million in Q3, continuing its commitment to managing dilution [19] Q&A Session Summary Question: How does the company view growth outlook related to existing merchants versus new business? - Management expects strong performance on both upsell and new client acquisition fronts, consistent with prior years [23] Question: Are there emerging verticals to watch for 2026? - The company is focused on specific large verticals and geographic regions for expansion, considering both product fit and distribution strategies [25] Question: What is the revenue contribution from non-Chargeback Guarantee products for 2025? - Non-Chargeback Guarantee products have shown strong growth, over 100%, aiding in securing longer-term contracts and winning new business [27] Question: How does the company view the long-term margin profile with machine learning investments? - The long-term margin profile varies based on product mix, with a focus on increasing gross profit dollars [29] Question: What are the expectations for gross margins into next year? - Management anticipates improved performance from model enhancements, but also acknowledges potential headwinds from new categories [33] Question: How does the company view the impact of stablecoin adoption on fraud management? - The company sees stablecoins introducing complexity for merchants, which could drive demand for their services [39] Question: What are the opportunities and threats related to agentic commerce? - Agentic commerce presents opportunities due to increased complexity for merchants, but could also pose threats if transactions shift away from traditional e-commerce [58]

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 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.

Financial Performance - Riskified's Q1 2025 revenue reached $82.4 million, an 8% year-over-year increase[51, 56] - The company achieved positive Adjusted EBITDA of $1.3 million in Q1 2025, marking the sixth consecutive quarter of positive Adjusted EBITDA[51, 58] - Riskified repurchased 4.1 million shares in Q1 2025 at a total cost of $20.7 million[59, 65] - The company maintains its 2025 revenue guidance between $333 million and $346 million, with an Adjusted EBITDA guidance between $18 million and $26 million[61] Business Growth & Diversification - Riskified's GMV for FY2024 was over $140 billion[16, 20] - Revenue from products outside of the core Chargeback Guarantee product increased by approximately 190% year-over-year[64] - The company is expanding into new verticals, including Money Transfer & Payments, which experienced over 90% year-over-year revenue growth in Q1 2025[63] - Riskified is diversifying geographically, with eight of the top ten new Chargeback Guarantee logos representing wins outside of the United States in Q1 2025[62] Platform & Technology - Riskified's platform has reviewed over 4 billion historical eCommerce transactions and includes over 950 million unique consumers in its network[40] - The company's non-GAAP operating expenses as a percentage of revenue decreased from 53% to 48% year-over-year, indicating improved expense management[57]

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]