Riskified .(RSKD)2024-11-13 19:52Financial Data and Key Metrics Changes - The company achieved record third quarter revenue of 34.7 billion, representing a 17% increase year-over-year [19] - Adjusted EBITDA was positive at 8.4 million in Q3 2023, marking the ninth consecutive quarter of year-over-year improvement [27] - The company ended the third quarter with approximately 390 million in cash and no debt [28] Business Line Data and Key Metrics Changes - The Fashion & Luxury vertical grew by low-single-digits, driven by new business activity but offset by same-store sales pressures [20] - The Tickets & Travel vertical grew over 20%, benefiting from new business activity and strong seasonal performance [21] - The General vertical, including Food and General Retail, grew 15%, primarily due to growth in the Food sub-vertical [22] - The Payments and Money Transfer category saw over 70% growth, driven by new business activity [22] Market Data and Key Metrics Changes - Revenue in the United States, the largest region, grew by 14% year-over-year [23] - EMEA region experienced 9% year-over-year growth, exceeding expectations [23] - The APAC region grew by 25%, fueled by market share gains through new logos [23] Company Strategy and Development Direction - The company is focused on expanding its merchant base through new logo wins and diversifying revenue across verticals and geographies [6][9] - There is an emphasis on enhancing pricing and product bundling strategies in response to competitive pressures [10] - The company plans to assess product bolt-on M&A to accelerate growth and expand its platform [16] Management's Comments on Operating Environment and Future Outlook - Management noted a recent uptick in competitive pressure and a significant merchant leaving the network, which will impact future revenue [10][19] - The company anticipates a healthy holiday season, although not extraordinarily strong [51] - The outlook for 2024 revenue has been raised to between 322 million and 75 million for share repurchases, aiming to reduce shares outstanding by 10% to 15% annually [17][29] - The company expects to exceed 30 million [30] Q&A Session Summary Question: Impact of churn in the Home category - Management indicated that the churn will have a 18 million in 2025 [39] Question: Insights on the large upsell for Policy Protect - The specific deal represented a larger uplift than previously expected, indicating strong potential for future bundling opportunities [41] Question: Growth capacity in new logo verticals - Management expressed confidence in growing wallet share in faster-growing categories like groceries and remittances [44] Question: Strength of the holiday season - Management expects a healthy holiday season, with positive trends in travel and live events [51] Question: Future applications of AI capabilities - Management sees potential for expanding AI capabilities beyond retail, focusing on building self-service tools for merchants [58]