Riskified Ltd. (RSKD) saw its stock plunge 8.89% in pre-market trading on Wednesday after the company reported mixed results for the fourth quarter and provided a disappointing revenue outlook for fiscal 2025.
The AI-powered ecommerce risk management platform reported Q4 earnings of $0.06 per share, missing the consensus estimate of $0.08 by a significant margin. However, revenue rose 11.3% year-over-year to $93.53 million, topping expectations of $90.36 million.
While Riskified's revenue growth remained solid, investors were spooked by the company's weak guidance for 2025. Riskified forecasted full-year revenue in the range of $333 million to $346 million, well below the consensus estimate of $339.44 million. The company also projected adjusted EBITDA between $18 million and $26 million, indicating a potential slowdown in profitability.
The lackluster guidance overshadowed Riskified's strong performance in key metrics such as gross merchandise volume (GMV), which grew 12% year-over-year to $39.5 billion, and non-GAAP gross profit margin, which improved to 53% from 58% a year ago.