Riskified .(US:RSKD)2023-05-17 16:32Financial Data and Key Metrics Changes - The company reported a GMV of $27.3 billion for Q1 2023, reflecting a 20% year-over-year increase [13] - Revenue for Q1 2023 was $68.9 million, up 17% year-over-year, accelerating from 14% growth in Q4 2022 [13] - Adjusted EBITDA for Q1 was negative $5.2 million, a 62% year-over-year improvement [30] - The company ended Q1 with approximately $484 million in cash deposits and zero debt, representing a sequential increase of $2 million [31] Business Line Data and Key Metrics Changes - The tickets and travel vertical saw nearly double the billings year-over-year, indicating strong growth [49] - The electronics, food, and money transfer categories also grew during the quarter, driven by new merchants and upsell activity [26] - The fashion and luxury goods category was flat year-over-year, contrasting with growth seen in 2022 [50] Market Data and Key Metrics Changes - The U.S. market, the largest region, improved by high-single-digits, while EMEA and APAC each grew approximately 40% during the quarter [27] - The company noted a slowdown in some same-focus merchants, particularly in luxury brands and the sneaker sub-segment [14] Company Strategy and Development Direction - The company continues to execute a "land and expand" strategy, focusing on upselling existing customers and acquiring new ones [20] - There is an emphasis on optimizing costs and streamlining operations to improve efficiency, with non-GAAP operating expenses remaining flat over the past three quarters [10][52] - The company is exploring opportunities for mergers and acquisitions to enhance its technology and expand its market presence [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability on an adjusted EBITDA basis by Q4 2023, despite macroeconomic challenges [46] - The company is monitoring the performance and health of its merchants and consumer spending trends closely [33] - Management highlighted the importance of their machine-learning platform as a competitive advantage in the e-commerce fraud prevention space [47] Other Important Information - The company introduced nearly 20 new features and deployed over a dozen models into production during the quarter [23] - Non-GAAP gross profit margin for Q1 2023 was 53%, consistent with Q4 2022 and an improvement from 52% in Q1 2022 [51] Q&A Session Summary Question: What is the confidence in getting to positive EBITDA? - Management indicated they are nearing profitability and expect to achieve it in Q4 2023, driven by operational efficiency and revenue growth [36] Question: What is the outlook for revenue growth? - Management noted that growth from new and upsell activities was above 20%, but some large merchants in declining categories are impacting overall growth [42] Question: How does the company view opportunities for expansion through acquisitions? - Management is open to exploring M&A opportunities but maintains a high bar for any potential deals [70] Question: What is the current state of the onboarding pipeline? - Management feels better about visibility in the onboarding pipeline for the back half of the year, with a strong number of closed deals [119] Question: Can you provide insights on the vertical mix and performance? - Fashion and luxury goods accounted for about 30% of the business, with recent performance being flat due to declines in high fashion and sneakers [71]