• Revenue: $327.5 million for the full year 2024, up 10% year-over-year.
• Fourth Quarter Revenue: $93.5 million, up 11% year-over-year.
• Gross Merchandise Volume (GMV): $141.2 billion for the full year 2024, up 15% year-over-year.
• Adjusted EBITDA: $17.2 million for the full year 2024, representing a year-over-year increase of over 300%.
• Gross Profit Margin: 53% for the full year 2024, up from 52% in 2023.
• Operating Expenses: $156.4 million for the full year 2024, a decline of 4% from 2023.
• Free Cash Flow: $39 million for the full year 2024.
• Share Repurchase: $141 million worth of shares repurchased in 2024.
• Cash and Deposits: Approximately $376 million at the end of 2024.
• Net Dollar Retention Rate: 96% for the full year 2024.
• Employee Headcount: 693 global employees at the end of 2024, a decline of 7% from the prior year.

• Warning! GuruFocus has detected 1 Warning Sign with RSKD.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Riskified Ltd (NYSE:RSKD) achieved a 15% growth in GMV and a 10% increase in revenue, reaching $327.5 million, exceeding the high end of their guidance.
• The company delivered its first full year of positive adjusted EBITDA as a public company, with significant margin improvement.
• Riskified Ltd (NYSE:RSKD) successfully renewed 100% of its top 20 contracts up for renewal in 2024, with many signed for multiyear deals.
• The company expanded its multiproduct platform, with new products revenue up approximately 90% year-over-year.
• Riskified Ltd (NYSE:RSKD) ended the year with $376 million in cash and no debt, demonstrating strong financial health and free cash flow generation.

Negative Points

• The annual dollar retention rate was down from historical levels, partly due to a one-off merchant churn event and increased competitive pressure.
• Despite revenue growth, the net dollar retention rate was 96%, below historical benchmarks of over 100%.
• The company experienced higher attrition than in previous years, impacting overall revenue growth.
• There was a decline in same-store sales within the high-end fashion and sneakers sub-verticals.
• Riskified Ltd (NYSE:RSKD) plans to restructure its workforce, relocating positions to lower-cost regions and reducing headcount in less critical areas.

Q & A Highlights

Q: What strategies are being implemented to maximize top-of-the-funnel activities? A: Eido Gal, CEO, highlighted three strategies: expanding platform capabilities through increased R&D spend, which enhances top-of-the-funnel opportunities; geographical expansion, which continues to yield more pipeline and opportunities; and exploring channel distribution to approach mid-tier market areas.

Q: How confident is Riskified in securing multiyear renewals for 2025? A: Eido Gal, CEO, expressed high confidence, noting a 30% increase in renewals with over 70% of the book of business already renewed. Only 10% of renewals involved discounts, indicating strong leverage and product platform outperformance.

Q: Can you provide context on the success of stand-alone non-chargeback products like Policy Protect? A: Eido Gal, CEO, mentioned significant growth, with revenue from these products potentially reaching low double-digit millions. Initial deals are more platform sales and cross-sales to existing clients, with expectations for more standalone or initial platform sales as ROI and integration improve.

Q: What are the dynamics affecting the net dollar retention rate (NDR), and what is the outlook for 2025? A: Aglika Dotcheva, CFO, explained that the NDR decreased due to declines in same cohort sales, a focus on new logo generation, and a churn event. For 2025, there is optimism for an NDR above 100%, driven by higher upsell focus and better penetration of existing merchants.

Q: How does Riskified view the competitive landscape and pricing environment in the fraud prevention space? A: Eido Gal, CEO, noted that high win rates are attributed to the platform's accuracy and strategic product roadmap. The company is focused on pricing and bundling products effectively to balance merchant usability and financial growth, with Policy Protect offering high ROI.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.