Riskified .(US:RSKD)2022-08-10 17:08Financial Data and Key Metrics Changes - The company achieved quarterly revenue of $60 million, up 8% year-over-year [12][26] - Gross merchandise volume (GMV) reviewed was $25 billion, reflecting an 18% year-over-year increase [26] - Non-GAAP gross profit margin was 52%, consistent with the first quarter of 2022 [31] - Total non-GAAP operating expenses for the second quarter were $44.6 million, up 39% year-over-year but flat sequentially [31][32] - Adjusted EBITDA loss for the second quarter was negative $13.6 million [36] Business Line Data and Key Metrics Changes - Revenue growth was primarily driven by new merchants added in the past 12 months and upsells within the existing customer base [16] - The company saw ongoing growth across emerging categories, particularly in fashion, luxury goods, and electronics [27] - The tickets and travel segment rebounded to pre-pandemic levels, contributing significantly to growth [28] Market Data and Key Metrics Changes - The U.S. market experienced softness, particularly in the stay-at-home category, while EMEA showed strength due to the recovery in tickets and travel [29] - The company is diversifying its merchant base, with top 10 new merchants spread across five different industries and three geographies [17] Company Strategy and Development Direction - The company aims to improve efficiency and reduce overall expenses to achieve additional operating leverage [18] - A reevaluation of the expense base is underway, with a focus on strategic hiring and cost optimization [34][35] - The company believes it has a large and growing addressable market, maintaining a strong position in fraud solutions [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current macroeconomic landscape and continue to grow [11] - The company anticipates a strong performance in the third quarter, particularly in the tickets and travel segment, but is cautious about potential seasonal softness in the fourth quarter [40] - Management is optimistic about the trajectory towards profitability, with a revised adjusted EBITDA guidance of negative $54 million to negative $57 million for the year [41] Other Important Information - The company ended the second quarter with approximately $488 million in cash and deposits and zero debt [37] - The updated revenue guidance for 2022 is between $255 million and $258 million, reflecting an upward revision from previous estimates [39] Q&A Session Summary Question: Can you elaborate on the performance in tickets and travel? - Management noted strong performance in tickets and travel clients, with many returning to pre-pandemic levels and new merchants being added [50] Question: What is the outlook for profitability and the impact of new leadership? - Management is excited about the reevaluation leading to an accelerated path to profitability and believes the new hire will enhance sales strategies [51][54] Question: Are there changes in risk appetite due to consumer signals? - Management reported improved chargeback trends and remains confident in the risk performance [58] Question: What is the discretionary versus non-discretionary mix of GMV? - Management indicated that the growth of services is a significant driver, with no major changes in the discretionary versus non-discretionary mix [80] Question: What is the outlook for the tickets and travel segment in Q3? - Management expects continued strength in the tickets and travel segment, driven by operational streamlining and automation [86]