The following is a summary of the Riskified Ltd. (RSKD) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 GMV grew 17% YoY to $34.7 billion; revenue increased to $78.8 million.
FY 2024 revenue forecast between $322 to $327 million; adjusted EBITDA from $14 to $20 million.
Business Progress:
Added new logos across six verticals, significant growth in remittance and food sectors.
Launched largest Policy Protect deal, enhancing chargeback tools.
Opportunity:
Expansion across APAC and Americas; rolling out enhancements under Policy Protect.
Authorized $75 million for acquisitions and share repurchases.
Risk:
Loss of significant merchant in home category may impact 2025 financials.
Competitive pressures could affect client retention and pricing.
Financial Performance:
Q3 GMV grew 17% year-over-year to $34.7 billion.
Q3 revenue increased 10% year-over-year to $78.8 million.
Achieved a positive adjusted EBITDA of $0.9 million in Q3 compared to negative $8.4 million in the same period the previous year.
Gross profit margin remained steady at 50% in Q3.
For FY 2024, gross profit margin is expected to be between 52.5% to 53.5%.
Forecasting year-end revenues between $322 to $327 million, with adjusted EBITDA between $14 million to $20 million.
Business Progress:
Added significant new logos across six verticals, with exceptional growth in newer areas such as remittance and food.
Expanded the use of core Chargeback Guarantee product to new high-value merchants.
Launched enhancements for Policy Protect, further empowering merchants with tools to combat abusive returns and chargebacks.
Strengthened the AI platform, enhancing machine learning capabilities and data integration.
Opportunities:
Expansion in non-discretionary sectors like food and remittance.
Diverse growth across new and existing geographical markets particularly in APAC and the Americas.
Rolling out product enhancements and new tools under Policy Protect boosting platform adoption.
Capitalizing on growth opportunities through strategic acquisitions and a more aggressive share repurchase program authorized at $75 million.
Risks:
A significant merchant in the home category leaving the Riskified network could impact financial projections for 2025.
Competitive pressures in the market may influence client retention and pricing strategies.
Dependence on the performance of discretionary spending categories, particularly fashion and luxury goods, which continue to experience fluctuating demand.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
