Riskified Ltd. Reports Q3 2024 Financial Results
Riskified Ltd. (NYSE: RSKD), a leader in ecommerce fraud and risk intelligence, reported its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Financial Metrics | Q3 2023 | Q3 2024 | YoY Change | Consensus Estimates | Q3 2024 vs. Consensus |
|---|---|---|---|---|---|
| GAAP EPS | $(0.12) | $(0.06) | Improved | $0.02 | Miss |
| Non-GAAP EPS | $(0.02) | $0.03 | Improved | - | - |
| Operating Cash Flow | $4.5M | $14.0M | Improved | - | - |
The company managed to improve its financial performance with a decrease in GAAP net loss per share from $(0.12) to $(0.06) year-over-year. On a non-GAAP basis, Riskified turned a profit with an EPS of $0.03, reflecting an improvement from a loss of $(0.02) in the previous year. Despite these gains, the GAAP EPS fell short of the Wall Street consensus estimate of $0.02.
Revenue Performance by Segment
| Segment | Performance Highlights |
|---|---|
| Policy Protect | Largest deal in company history with ~$2M ACV |
| Tickets and Live Events | Continued expansion; upsold additional volume |
| Money Transfer & Remittance | New account from a global company |
Riskified showed robust performance across its major segments, notably securing its largest Policy Protect deal to date and expanding its presence in the Tickets and Live Events sub-vertical. Additionally, the addition of a high-value account in the Money Transfer and Remittance category underscores the company’s successful vertical and geographic diversification strategy.
Operational Highlights
- Share Repurchases: Approximately 8.6 million shares repurchased for $47M in Q3.
- Board Authorization: Additional $75M share repurchase authorized, subject to regulatory procedures.
- Cash Position: Ended Q3 with $389.8M in cash, deposits, and investments, with zero debt.
Comments from Company Officers
CEO Eido Gal highlighted the strength of Riskified’s AI platform in boosting new business activities and market share across key verticals. CFO Aglika Dotcheva expressed satisfaction with the company’s progression towards profitable growth and emphasized the strategic use of their strong balance sheet to enhance shareholder value via share repurchases.
Shareholder Returns
- Share Repurchase Program: An additional $75 million repurchase program has been authorized, pending Israeli regulatory approval.
Forward Guidance
For the fiscal year ending December 31, 2024, Riskified has provided updated guidance with expected revenue between $322 million and $327 million and an Adjusted EBITDA of $14 million to $20 million.
Stock Price Movement
Following the earnings announcement, Riskified's stock price experienced a decrease of approximately 5.71%.
This financial review confirms Riskified's strategic advancements in improving profitability and operational efficiency, although it fell short of meeting EPS expectations. The ongoing share repurchase indicates a strong commitment to shareholder returns.
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