Continues to Diversify Network of Global
Merchants through New Logo Wins
Riskified Ltd. (NYSE: RSKD) (the “Company”), a leader in
ecommerce fraud and risk intelligence, today announced financial
results for the three and six months ended June 30, 2024. The
Company will host an investor call to discuss these results today
at 8:30 a.m. Eastern Time.
“We believe that Riskified remains well positioned to gain
market share by capturing a greater portion of the eCommerce
whitespace in front of us. We have great demand for our products,
and by continuously strengthening our machine learning factory to
solve additional use cases beyond chargeback fraud, I am confident
that our durable business will continue to execute for merchants
and our shareholders.” said Eido Gal, Co-Founder and Chief
Executive Officer of Riskified.
Q2 2024 Business Highlights
- Expanded Leadership Positioning in Tickets and Live Event
Sub-Vertical: Similar to the first quarter, one of our top new
logos won during the second quarter was in our Ticketing and Live
Events sub-vertical. We launched our relationship with this
merchant by capturing all of this merchant's Chargeback Guarantee
volume from a competitor, and we successfully cross-sold our
Dispute Resolve product at initial contract signing.
- Further Geographic Diversification with the Addition of New
Merchants: We continued to have success landing new merchants
on the Riskified network, which in turn deepened our vertical and
geographic reach. Our top ten new logos added during the second
quarter represented five different verticals across three
geographies, with seven of our top ten new Chargeback Guarantee
logos located outside of the United States.
- Landed Key Account in Japan: Landed a cornerstone
account in Japan during the second quarter. This multinational
fashion company owns several global brands. We view this new logo
win as an important cornerstone merchant, as we seek to unlock
further opportunities in the region.
- Share Repurchase Program Update: During the second
quarter we repurchased 6.8 million ordinary shares for $39.0
million. Our total outstanding aggregate repurchase authorization
was approximately $50 million as of August 5th. We remain committed
to repurchasing our shares at what we believe are attractive
valuation levels.
- Named to CNBC's 2024 List of the World's Top Fintech
Companies: We were recently named to CNBC's Top Fintech
Companies List. This recognition highlights our market-leading
position in the ecommerce fraud and risk intelligence sector and
underscores Riskified's ongoing success in empowering businesses to
boost ecommerce revenues and profit by mitigating risks through our
innovative AI-powered platform.
- Hosted Riskified’s Annual Merchant Summit, Ascend:
Ascend 2024 gathered global enterprise merchants, leaders from
payments and fraud advisories, and the Riskified team to discuss
the latest strategies to unleash ecommerce growth. Themed
“Ecommerce Champions,” Ascend 2024 set the stage for the debut of
cutting-edge solutions as well as inspiring success stories from
leading merchants in the ecommerce space.
- Introduced Slate of New AI-powered Capabilities: At
Ascend 2024, we introduced new tools designed to empower merchants
to win more customers, accept more orders, and retain more revenue.
Among the new innovations we unveiled was Policy Decisions. As part
of Riskified's Decision Studio, a suite of tools that enables
merchants to fine-tune their ecommerce performance, Policy
Decisions is designed to give merchants the power to exercise deep
control over their refund, return, promo and resale policies
through self-service capabilities for the creation, simulation, and
management of customer-facing policies.
Q2 2024 Financial Summary & Highlights
The following table summarizes our consolidated financial
results for the three and six months ended June 30, 2024 and 2023,
in thousands except where indicated:
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
Gross merchandise volume ("GMV") in
millions(1)
$
34,987
$
30,955
$
67,006
$
58,223
Increase in GMV year over year
13
%
15
%
Revenue
$
78,730
$
72,766
$
155,138
$
141,673
Increase in revenues year over year
8
%
10
%
GAAP Gross profit
$
41,002
$
37,023
$
83,122
$
72,864
GAAP Gross profit margin
52
%
51
%
54
%
51
%
Net profit (loss)
$
(9,509
)
$
(16,894
)
$
(21,139
)
$
(34,845
)
Net profit (loss) margin
(12
)%
(23
)%
(14
)%
(25
)%
Adjusted EBITDA(1)
$
2,340
$
(4,586
)
$
5,091
$
(9,755
)
Adjusted EBITDA margin(1)
3
%
(6
)%
3
%
(7
)%
Additional Financial Highlights:
- Non-GAAP gross profit margin(1) of 53% for the three months
ended June 30, 2024, improved from 52% in the prior year. Non-GAAP
gross profit margin of 54% for the six months ended June 30, 2024,
improved from 52% in the prior year.
- GAAP net loss per share was $(0.05) for the three months ended
June 30, 2024 compared to a loss of $(0.10) in the prior year.
Non-GAAP net profit per share(1) for the three months ended June
30, 2024 was $0.04 compared to $0.00 in the prior year. GAAP net
loss per share was $(0.12) for the six months ended June 30, 2024
compared to a loss of $(0.20) in the prior year. Non-GAAP net
profit per share for the six months ended June 30, 2024 was $0.08
compared to $0.00 in the prior year.
- Operating cash flow of positive $4.3 million for the three
months ended June 30, 2024, improved from negative $4.9 million in
the prior year. Free cash flow(1) of positive $4.1 million for the
three months ended June 30, 2024, improved from negative $4.9
million in the prior year. Operating cash flow of positive $15.0
million for the six months ended June 30, 2024, improved from
negative $4.6 million in the prior year. Free cash flow of positive
$14.6 million for the six months ended June 30, 2024, improved from
negative $4.9 million in the prior year.
- Ended June 30, 2024 with approximately $422.2 million of cash,
deposits and investments on the balance sheet and zero debt.
“I am encouraged by our execution and financial discipline
during the first six months of the year. Our consecutive quarters
of improved Adjusted EBITDA guidance highlights our ongoing
commitment to delivering continued margin expansion. I look forward
to driving the business towards our long-term targets,” said Aglika
Dotcheva, Chief Financial Officer of Riskified.
Financial Outlook:
For the year ending December 31, 2024, we now expect:
- Revenue between $320 million and $325 million
As a result of our disciplined approach to managing the
business, for the year ending December 31, 2024, we now expect:
- Adjusted EBITDA(2) between $13 million and $19 million
(1) GMV is a key performance indicator. Adjusted EBITDA,
Adjusted EBITDA margin, non-GAAP gross profit margin, non-GAAP net
profit (loss) per share, and free cash flow are non-GAAP measures
of financial performance. See “Key Performance Indicators and
Non-GAAP Measures” for additional information and “Reconciliation
of GAAP to Non-GAAP Measures” for a reconciliation to the most
directly comparable GAAP measure.
(2) We are not able to provide a reconciliation of Adjusted
EBITDA guidance for the fiscal year ending December 31, 2024 to net
profit (loss), the most directly comparable GAAP financial measure,
because certain items that are excluded from Adjusted EBITDA but
included in net profit (loss) cannot be predicted on a
forward-looking basis without unreasonable effort or are not within
our control. For example, we are unable to forecast the magnitude
of foreign currency transaction gains or losses which are subject
to many economic and other factors beyond our control. For the same
reasons, we are unable to address the probable significance of the
unavailable information, which could have a potentially
unpredictable and potentially significant impact on our future GAAP
financial results.
Conference Call and Webcast Details
The Company will host a conference call to discuss its financial
results today, August 14, 2024 at 8:30 a.m. Eastern Time. A live
webcast of the call can be accessed from Riskified’s Investor
Relations website at ir.riskified.com. A replay of the webcast will
also be available for a limited time at ir.riskified.com. The press
release with the financial results, as well as the investor
presentation materials will be accessible on the Company’s Investor
Relations website prior to the conference call.
Key Performance Indicators and Non-GAAP Measures
This press release and the accompanying tables contain
references to Gross Merchandise Volume ("GMV"), which is a key
performance indicator, and to certain non-GAAP measures which
include non-GAAP measures of financial performance, including
Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit,
non-GAAP gross profit margin, non-GAAP cost of revenue, non-GAAP
operating expenses by line item, non-GAAP net profit (loss), and
non-GAAP net profit (loss) per share, and non-GAAP measures of
liquidity, including Free Cash Flow. Management and our Board of
Directors use key performance indicators and non-GAAP measures as
supplemental measures of performance and liquidity because they
assist us in comparing our operating performance on a consistent
basis, as they remove the impact of items that we believe do not
directly reflect our core operations. We also use Adjusted EBITDA
for planning purposes, including the preparation of our internal
annual operating budget and financial projections, to evaluate the
performance and effectiveness of our strategic initiatives, and to
evaluate our capacity to expand our business. Free Cash Flow
provides useful information to management and investors about the
amount of cash generated by the business that can be used for
strategic opportunities, including investing in our business and
strengthening our balance sheet.
These non-GAAP measures should not be construed as an inference
that our future results will be unaffected by unusual or other
items. Non-GAAP measures of financial performance have limitations
as analytical tools in that these measures do not reflect our cash
expenditures, or future requirements for capital expenditures, or
contractual commitments; these measures do not reflect changes in,
or cash requirements for, our working capital needs; these measures
do not reflect our tax expense or the cash requirements to pay our
taxes, and assets being depreciated and amortized will often have
to be replaced in the future and these measures do not reflect any
cash requirements for such replacements. Free Cash Flow is limited
because it does not represent the residual cash flow available for
discretionary expenditures. Free Cash Flow is not necessarily a
measure of our ability to fund our cash needs.
In light of these limitations, management uses these non-GAAP
measures to supplement, not replace, our GAAP results. The non-GAAP
measures used herein are not necessarily comparable to similarly
titled captions of other companies due to different calculation
methods. Non-GAAP financial measures should not be considered in
isolation, as an alternative to, or superior to information
prepared and presented in accordance with GAAP. These measures are
frequently used by analysts, investors and other interested parties
to evaluate companies in our industry. By providing these non-GAAP
measures together with a reconciliation to the most comparable GAAP
measure, we believe we are enhancing investors' understanding of
our business and our results of operations, as well as assisting
investors in evaluating how well we are executing our strategic
initiatives.
We define GMV as the gross total dollar value of orders reviewed
through our ecommerce risk intelligence platform during the period
indicated, including the value of orders that we did not
approve.
We define each of our non-GAAP measures of financial
performance, as the respective GAAP balances shown in the below
tables, adjusted for, as applicable, depreciation and amortization
(including amortization of capitalized internal-use software as
presented in our statement of cash flows), share-based compensation
expense, payroll taxes related to share-based compensation,
litigation-related expenses, restructuring costs, provision for
(benefit from) income taxes, other income (expense) including
foreign currency transaction gains and losses and gains and losses
on non-designated hedges, and interest income (expense). Adjusted
EBITDA margin represents Adjusted EBITDA expressed as a percentage
of revenue. Non-GAAP Gross Profit Margin represents Non-GAAP Gross
Profit expressed as a percentage of revenue. We define non-GAAP net
profit (loss) per share as non-GAAP net profit (loss) divided by
non-GAAP weighted-average shares. We define non-GAAP
weighted-average shares, as GAAP weighted average shares, adjusted
to reflect any dilutive ordinary share equivalents resulting from
non-GAAP net profit (loss), if applicable.
We define Free Cash Flow as net cash provided by (used in)
operating activities, less cash purchases of property and
equipment.
Management believes that by excluding certain items from the
associated GAAP measure, these non-GAAP measures are useful in
assessing our performance and provide meaningful supplemental
information due to the following factors:
Depreciation and amortization: We exclude depreciation and
amortization (including amortization of capitalized internal-use
software) because we believe that these costs are not core to the
performance of our business and the utilization of the underlying
assets being depreciated and amortized can change without a
corresponding impact on the operating performance of our business.
Management believes that excluding depreciation and amortization
facilitates comparability with other companies in our industry.
Share-based compensation expense: We exclude share-based
compensation expense primarily because it is a non-cash expense
that does not directly correlate to the current performance of our
business. This is because the expense is calculated based on the
grant date fair value of an award which may vary significantly from
the current fair market value of the award based on factors outside
of our control. Share-based compensation expense is principally
aimed at aligning our employees’ interests with those of our
shareholders and at long-term retention, rather than to address
operational performance for any particular period.
Payroll taxes related to share-based compensation: We exclude
employer payroll tax expense related to share-based compensation in
order to see the full effect that excluding that share-based
compensation expense had on our operating results. These expenses
are tied to the exercise or vesting of underlying equity awards and
the price of our common stock at the time of vesting or exercise,
which may vary from period to period independent of the operating
performance of our business.
Litigation-related expenses: We exclude costs associated with
the legal matter previously disclosed under the caption "Legal
Proceedings" in our Form 6-K furnished with the Securities and
Exchange Commission ("SEC") on August 15, 2023, because such costs
are not reflective of costs associated with our ongoing business
and operating results and are viewed as unusual and infrequent.
Restructuring costs: We exclude costs associated with the
reduction in force previously disclosed in our Form 6-K furnished
with the SEC on February 13, 2024, because these costs are related
to one-time severance and benefit payments and are not reflective
of costs associated with our ongoing business and operating results
and are viewed as unusual and infrequent.
We are not able to provide a reconciliation of Adjusted EBITDA,
Adjusted EBITDA margin, non-GAAP gross profit, and free cash flow
guidance for the fiscal year ending December 31, 2024 to net profit
(loss), gross profit, and net cash provided by (used in) operating
activities, because certain items that are excluded from these
non-GAAP metrics but included in the most directly comparable GAAP
financial measures, cannot be predicted on a forward-looking basis
without unreasonable effort or are not within our control. For
example, we are unable to forecast the magnitude of foreign
currency transaction gains or losses which are subject to many
economic and other factors beyond our control. For the same
reasons, we are unable to address the probable significance of the
unavailable information, which could have a potentially
unpredictable and potentially significant impact on our future GAAP
financial results.
See the tables below for reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP
measures.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward looking statements contained in Section 27A
of the U.S. Securities Act of 1933, as amended (the "Securities
Act") and Section 21E of the Exchange Act. All statements contained
in this press release other than statements of historical fact,
including, without limitation, statements regarding our revenue and
adjusted EBITDA guidance for fiscal year 2024, our anticipated
non-GAAP gross profit margin and free cash flow for fiscal year
2024, expectations as to continued margin expansion, future growth
potential in new verticals and new geographies, anticipated
benefits of our share repurchase program and management of our
dilution, internal modeling assumptions, expectations as to the
macroeconomic environment, expectations as to our new merchant
pipeline and upsell opportunities, the performance of our
multi-product platform, including the anticipated benefits of our
AI-powered products and capabilities, our forecasted operating
expenses and our business plans and strategy are forward looking
statements, which reflect our current views with respect to future
events and are not a guarantee of future performance. The words
“believe,” “may,” “will,” “estimate,” “potential,” “continue,”
“anticipate,” “intend,” “expect,” “could,” “would,” “project,”
“forecasts,” “aims,” “plan,” “target,” and similar expressions are
intended to identify forward-looking statements, though not all
forward-looking statements use these words or expressions.
Actual outcomes may differ materially from the information
contained in the forward-looking statements as a result of a number
of factors, including, without limitation, the following: our
ability to manage our growth effectively; continued use of credit
cards and other payment methods that expose merchants to the risk
of payment fraud, and other changes in laws and regulations,
including card scheme rules, related to the use of these payment
methods, and the emergence of new alternative payments products;
our history of net losses and ability to achieve profitability; our
ability to attract new merchants and retain existing merchants; the
impact of macroeconomic conditions on us and on the performance of
our merchants; our ability to continue to improve our machine
learning models; fluctuations in our CTB Ratio and gross profit
margin, including as a result of large-scale merchant fraud attacks
or other security incidents; our ability to protect the information
of our merchants and consumers; our ability to predict future
revenue due to lengthy sales cycles; seasonal fluctuations in
revenue; competition; our merchant concentration; the financial
condition of our merchants, particularly in challenging
macroeconomic environments; our ability to increase the adoption of
our products and to develop and introduce new products; our ability
to mitigate the risks involved with selling our products to large
enterprises; our ability to retain the services of our executive
officers, and other key personnel, including our co-founders; our
ability to attract and retain highly qualified personnel, including
software engineers and data scientists, particularly in Israel;
changes to our prices and pricing structure; our exposure to
existing and potential future litigation claims; our exposure to
fluctuations in currency exchange rates, including recent declines
in the value of the Israeli shekel against the US dollar as a
result of the ongoing conflict in Israel; our ability to obtain
additional capital; our third-party providers of cloud-based
infrastructure; our ability to protect our intellectual property
rights; technology and infrastructure interruptions or performance
problems; the efficiency and accuracy of our machine learning
models and access to third-party and merchant data; our ability to
comply with evolving data protection, privacy and security laws;
the development of regulatory frameworks for machine learning
technology and artificial intelligence; our use of open-source
software; our ability to enhance and maintain our brand; our
ability to execute potential acquisitions, strategic investments,
partnerships, or alliances; our ability to successfully establish
partnership channels and to integrate with these partners;
potential claims related to the violation of the intellectual
property rights of third parties; our failure to comply with
anti-corruption, trade compliance, and economic sanctions laws and
regulations; disruption, instability and volatility in global
markets and industries; our ability to enforce non-compete
agreements entered into with our employees; our ability to maintain
effective systems of disclosure controls and financial reporting;
our ability to accurately estimate or judgements relating to our
critical accounting policies; our business in China; changes in tax
laws or regulations; increasing scrutiny of, and expectations for,
environmental, social and governance initiatives; potential future
requirements to collect sales or other taxes; potential future
changes in the taxation of international business and corporate tax
reform; changes in and application of insurance laws or
regulations; conditions in Israel that may affect our operations;
the impact of the dual class structure of our ordinary shares;
risks associated with our share repurchase program, including the
risk that the program could increase volatility and fail to enhance
shareholder value; our status as a foreign private issuer; and
other risk factors set forth in Item 3.D - “Risk Factors” in our
Annual Report on Form 20-F for the fiscal year ended December 31,
2023, as filed with the SEC on March 6, 2024, and other documents
filed with or furnished to the SEC. These statements reflect
management’s current expectations regarding future events and
operating performance and speak only as of the date of this press
release. You should not put undue reliance on any forward-looking
statements. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
that future results, levels of activity, performance and events and
circumstances reflected in the forward-looking statements will be
achieved or will occur. Except as required by applicable law, we
undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Riskified
Riskified empowers businesses to unleash ecommerce growth by
taking risk off the table. Many of the world’s biggest brands and
publicly traded companies selling online rely on Riskified for
guaranteed protection against chargebacks, to fight fraud and
policy abuse at scale, and to improve customer retention. Developed
and managed by the largest team of ecommerce risk analysts, data
scientists and researchers, Riskified’s AI-powered fraud and risk
intelligence platform analyzes the individual behind each
interaction to provide real-time decisions and robust
identity-based insights. Learn more at riskified.com.
RISKIFIED LTD.
CONSOLIDATED BALANCE SHEETS (in thousands, except share
data)
As of June 30,
2024
As of December 31,
2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
388,694
$
440,838
Short-term deposits
5,000
5,000
Accounts receivable, net
40,077
46,886
Prepaid expenses and other current
assets
9,939
10,607
Short-term investments
28,508
28,968
Total current assets
472,218
532,299
Property and equipment, net
14,171
15,639
Operating lease right-of-use assets
27,408
29,742
Deferred contract acquisition costs
14,406
15,562
Other assets, noncurrent
8,202
8,690
Total assets
$
536,405
$
601,932
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
1,771
$
2,573
Accrued compensation and benefits
19,494
24,016
Guarantee obligations
9,840
12,719
Provision for chargebacks, net
11,065
12,092
Operating lease liabilities, current
5,436
5,615
Accrued expenses and other current
liabilities
13,506
12,796
Total current liabilities
61,112
69,811
Operating lease liabilities,
noncurrent
23,034
25,694
Other liabilities, noncurrent
17,026
14,706
Total liabilities
101,172
110,211
Shareholders’ equity:
Class A ordinary shares, no par value;
900,000,000 shares authorized as of June 30, 2024 and December 31,
2023; 121,637,527 and 128,738,857 shares issued and outstanding as
of June 30, 2024 and December 31, 2023, respectively
—
—
Class B ordinary shares, no par value;
232,500,000 shares authorized as of June 30, 2024 and December 31,
2023; 48,902,840 and 49,814,864 shares issued and outstanding as of
June 30, 2024 and December 31, 2023, respectively
—
—
Treasury shares at cost, 16,238,464 and
3,038,865 ordinary shares as of June 30, 2024 and December 31,
2023, respectively
(82,584
)
(13,155
)
Additional paid-in capital
950,823
916,371
Accumulated other comprehensive profit
(loss)
(298
)
74
Accumulated deficit
(432,708
)
(411,569
)
Total shareholders’ equity
435,233
491,721
Total liabilities and shareholders’
equity
$
536,405
$
601,932
RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except share and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
Revenue
$
78,730
$
72,766
$
155,138
$
141,673
Cost of revenue
37,728
35,743
72,016
68,809
Gross profit
41,002
37,023
83,122
72,864
Operating expenses:
Research and development
17,079
18,264
34,851
37,058
Sales and marketing
22,468
23,216
45,682
45,339
General and administrative
15,650
17,629
32,697
35,542
Total operating expenses
55,197
59,109
113,230
117,939
Operating profit (loss)
(14,195
)
(22,086
)
(30,108
)
(45,075
)
Interest income (expense), net
5,398
5,617
11,139
11,064
Other income (expense), net
337
503
177
1,248
Profit (loss) before income taxes
(8,460
)
(15,966
)
(18,792
)
(32,763
)
Provision for (benefit from) income
taxes
1,049
928
2,347
2,082
Net profit (loss)
$
(9,509
)
$
(16,894
)
$
(21,139
)
$
(34,845
)
Other comprehensive profit (loss), net of
tax:
Other comprehensive profit (loss)
(169
)
(20
)
(372
)
(968
)
Comprehensive profit (loss)
$
(9,678
)
$
(16,914
)
$
(21,511
)
$
(35,813
)
Net profit (loss) per share attributable
to Class A and B ordinary shareholders, basic and diluted
$
(0.05
)
$
(0.10
)
$
(0.12
)
$
(0.20
)
Weighted-average shares used in computing
net profit (loss) per share attributable to Class A and B ordinary
shareholders, basic and diluted
173,687,773
175,618,208
175,374,045
174,238,825
RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
Cash flows from operating
activities:
Net profit (loss)
$
(9,509
)
$
(16,894
)
$
(21,139
)
$
(34,845
)
Adjustments to reconcile net profit (loss)
to net cash provided by (used in) operating activities:
Unrealized loss (gain) on foreign
currency
(431
)
(522
)
(443
)
(1,408
)
Provision for (benefit from) account
receivable allowances
154
54
365
194
Depreciation and amortization
872
880
1,754
1,780
Amortization of capitalized internal-use
software costs
383
383
766
766
Amortization of deferred contract
costs
2,641
2,514
5,348
4,561
Share-based compensation expense
15,035
15,799
30,557
32,155
Non-cash right-of-use asset changes
1,204
1,116
2,334
2,227
Changes in accrued interest
1,317
806
944
445
Ordinary share warrants issued to a
customer
384
384
767
768
Other
51
38
137
75
Changes in operating assets and
liabilities:
Accounts receivable
(6,561
)
(9,592
)
6,308
(827
)
Deferred contract acquisition costs
(1,547
)
(1,948
)
(3,132
)
(3,531
)
Prepaid expenses and other assets
(427
)
521
(1,321
)
1,212
Accounts payable
(386
)
1,394
(718
)
1,728
Accrued compensation and benefits
(2,584
)
(2,565
)
(4,145
)
(6,059
)
Guarantee obligations
677
(39
)
(2,879
)
(2,469
)
Provision for chargebacks, net
1,330
4,094
(1,027
)
(953
)
Operating lease liabilities
(1,029
)
(786
)
(2,204
)
(1,406
)
Accrued expenses and other liabilities
2,758
(503
)
2,721
950
Net cash provided by (used in) operating
activities
4,332
(4,866
)
14,993
(4,637
)
Cash flows from investing
activities:
Purchases of short-term deposits
—
—
—
(50,000
)
Maturities of short-term deposits
—
118,000
—
247,000
Purchases of property and equipment
(224
)
(61
)
(402
)
(248
)
Net cash provided by (used in) investing
activities
(224
)
117,939
(402
)
196,752
Cash flows from financing
activities:
Proceeds from exercise of share
options
2,098
1,574
3,128
2,780
Purchases of treasury shares
(39,000
)
—
(69,429
)
—
Net cash provided by (used in) financing
activities
(36,902
)
1,574
(66,301
)
2,780
Effects of exchange rates on cash, cash
equivalents, and restricted cash
(46
)
(33
)
(434
)
183
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(32,840
)
114,614
(52,144
)
195,078
Cash, cash equivalents, and restricted
cash—beginning of period
421,534
271,481
440,838
191,017
Cash, cash equivalents, and restricted
cash—end of period
$
388,694
$
386,095
$
388,694
$
386,095
Reconciliation of GAAP to Non-GAAP Measures
The following tables reconcile non-GAAP measures to the most
directly comparable GAAP measure and are presented in thousands
except for share and per share amounts.
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
Net profit (loss)
$
(9,509
)
$
(16,894
)
$
(21,139
)
$
(34,845
)
Provision for (benefit from) income
taxes
1,049
928
2,347
2,082
Interest (income) expense, net
(5,398
)
(5,617
)
(11,139
)
(11,064
)
Other (income) expense, net
(337
)
(503
)
(177
)
(1,248
)
Depreciation and amortization
1,255
1,263
2,520
2,546
Share-based compensation expense
15,035
15,799
30,557
32,155
Payroll taxes related to share-based
compensation
150
129
351
277
Litigation-related expenses
1
309
1
342
Restructuring costs
94
—
1,770
—
Adjusted EBITDA
$
2,340
$
(4,586
)
$
5,091
$
(9,755
)
Net profit (loss) margin
(12
)%
(23
)%
(14
)%
(25
)%
Adjusted EBITDA Margin
3
%
(6
)%
3
%
(7
)%
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
GAAP gross profit
$
41,002
$
37,023
$
83,122
$
72,864
Plus: depreciation and amortization
423
434
850
872
Plus: share-based compensation expense
200
188
411
383
Plus: payroll taxes related to share-based
compensation
6
3
11
5
Plus: restructuring costs
17
—
156
—
Non-GAAP gross profit
$
41,648
$
37,648
$
84,550
$
74,124
Gross profit margin
52
%
51
%
54
%
51
%
Non-GAAP gross profit margin
53
%
52
%
54
%
52
%
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
GAAP cost of revenue
$
37,728
$
35,743
$
72,016
$
68,809
Less: depreciation and amortization
423
434
850
872
Less: share-based compensation expense
200
188
411
383
Less: payroll taxes related to share-based
compensation
6
3
11
5
Less: restructuring costs
17
—
156
—
Non-GAAP cost of revenue
$
37,082
$
35,118
$
70,588
$
67,549
GAAP research and development
$
17,079
$
18,264
$
34,851
$
37,058
Less: depreciation and amortization
386
388
773
781
Less: share-based compensation expense
3,403
3,476
6,825
6,910
Less: payroll taxes related to share-based
compensation
2
—
3
—
Less: restructuring costs
—
—
555
—
Non-GAAP research and development
$
13,288
$
14,400
$
26,695
$
29,367
GAAP sales and marketing
$
22,468
$
23,216
$
45,682
$
45,339
Less: depreciation and amortization
248
250
499
507
Less: share-based compensation expense
5,001
4,877
9,940
9,774
Less: payroll taxes related to share-based
compensation
93
68
199
137
Less: restructuring costs
34
—
563
—
Non-GAAP sales and marketing
$
17,092
$
18,021
$
34,481
$
34,921
GAAP general and administrative
$
15,650
$
17,629
$
32,697
$
35,542
Less: depreciation and amortization
198
191
398
386
Less: share-based compensation expense
6,431
7,258
13,381
15,088
Less: payroll taxes related to share-based
compensation
49
58
138
135
Less: litigation-related expenses
1
309
1
342
Less: restructuring costs
43
—
496
—
Non-GAAP general and administrative
$
8,928
$
9,813
$
18,283
$
19,591
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
Net cash provided by (used in) operating
activities
$
4,332
$
(4,866
)
$
14,993
$
(4,637
)
Purchases of property and equipment
(224
)
(61
)
(402
)
(248
)
Free Cash Flow
$
4,108
$
(4,927
)
$
14,591
$
(4,885
)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
Net profit (loss)
$
(9,509
)
$
(16,894
)
$
(21,139
)
$
(34,845
)
Depreciation and amortization
1,255
1,263
2,520
2,546
Share-based compensation expense
15,035
15,799
30,557
32,155
Payroll taxes related to share-based
compensation
150
129
351
277
Litigation related expenses
1
309
1
342
Restructuring costs
94
—
1,770
—
Non-GAAP net profit (loss)
$
7,026
$
606
$
14,060
$
475
Weighted-average shares used in computing
net profit (loss) and non-GAAP net profit (loss) per share
attributable to Class A and B ordinary shareholders, basic
173,687,773
175,618,208
175,374,045
174,238,825
Add: Dilutive Class A and B ordinary share
equivalents
8,878,042
8,005,974
7,163,918
8,785,919
Weighted-average shares used in computing
non-GAAP net profit (loss) per share attributable to Class A and B
ordinary shareholders, diluted
182,565,815
183,624,182
182,537,963
183,024,744
Net profit (loss) per share attributable
to Class A and B ordinary shareholders, basic and diluted
$
(0.05
)
$
(0.10
)
$
(0.12
)
$
(0.20
)
Non-GAAP net profit (loss) per share
attributable to Class A and B ordinary shareholders, basic and
diluted
$
0.04
$
0.00
$
0.08
$
0.00
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240814420466/en/
Investor Relations: Chett Mandel, Head of Investor
Relations | ir@riskified.com
Corporate Communications: Cristina Dinozo, Senior
Director of Communications | press@riskified.com
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