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Riskified (RSKD)
NYSE:RSKD
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Riskified
(NYSE:RSKD)
61Neutral
Riskified (RSKD) vs. S&P 500 (SPY)
Market Cap
$738.90M
Dividend YieldN/A
Average Volume (3M)638.97K
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth10.05%
EPS Growth39.55%
CountryUS
Employees742
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-0.20
Shares Outstanding112,781,640
10 Day Avg. Volume953,081
30 Day Avg. Volume638,972
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.51
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.75Price Target Upside25.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Riskified Business Overview & Revenue Model
Company DescriptionRiskified Ltd. is a company operating in the e-commerce and fraud prevention sectors, providing a platform that enables online merchants to increase revenues, reduce costs, and manage risks associated with online payments. The core product offering includes a suite of fraud prevention solutions that utilize machine learning and data analytics to review and approve or decline orders in real time, thereby enhancing customer experience and maximizing sales conversions for merchants.
How the Company Makes MoneyRiskified generates revenue primarily through a software-as-a-service (SaaS) model where merchants pay for fraud prevention services based on the volume of transactions processed. The company typically charges a percentage of the transaction value for the orders it reviews and approves. Significant partnerships with major online retailers and payment processors also contribute to its earnings by expanding its customer base and facilitating integration with various e-commerce platforms. Riskified's ability to reduce chargebacks and fraudulent transactions for its clients further solidifies its value proposition in the market.
Riskified Financial Statement Overview
Summary
Riskified shows strong revenue growth and improved cash flows, indicating positive operational prospects. However, profitability challenges persist due to negative net income and EBIT margins, despite a solid balance sheet with low leverage.Income Statement
Riskified has shown consistent revenue growth over the years, with a notable revenue growth rate of 10.06% from 2023 to 2024. However, profitability remains a challenge, indicated by negative EBIT and Net Income margins. The gross profit margin stands at 52.20% for 2024, showcasing efficient cost management at the gross level, but overall profitability is hindered by high operating expenses.65
Positive
Balance Sheet
The balance sheet is strong, supported by a high equity ratio of 77.11% in 2024, indicating a low level of leverage. The Debt-to-Equity ratio is low at 0.07, reflecting prudent financial management. However, the consistent negative net income impacts return on equity, which remains negative despite improvements over the years.70
Positive
Cash Flow
Cash flow from operations has improved significantly, with an operating cash flow to net income ratio of 1.14 in 2024, indicating better cash generation from operations. Free cash flow has grown notably by 559.38% from 2023 to 2024, showing strong cash flow management. These improvements are positive, but the company still faces challenges in achieving positive net income.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 327.52M | 297.61M | 261.25M | 229.14M | 169.74M | Gross Profit |
| 170.94M | 152.52M | 135.10M | 122.97M | 92.82M | EBIT |
| -47.85M | -76.85M | -108.63M | -55.40M | -6.81M | EBITDA |
| -42.97M | -71.75M | -108.63M | -55.40M | -5.45M | Net Income Common Stockholders |
| -34.92M | -59.03M | -103.99M | -178.88M | -11.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 376.06M | 474.81M | 475.67M | 503.27M | 117.62M | Total Assets |
| 495.86M | 601.93M | 608.97M | 600.63M | 180.56M | Total Debt |
| 27.53M | 31.31M | 37.42M | 0.00 | 0.00 | Net Debt |
| -343.53M | -409.53M | -151.25M | -418.14M | -103.61M | Total Liabilities |
| 113.56M | 110.21M | 112.55M | 71.77M | 223.87M | Stockholders Equity |
| 382.30M | 491.72M | 496.42M | 528.86M | -43.31M |
| Cash Flow | Free Cash Flow | |||
| 39.06M | 5.92M | -34.26M | -33.78M | -6.08M | Operating Cash Flow |
| 39.70M | 7.28M | -26.25M | -20.28M | -3.12M | Investing Cash Flow |
| 27.75M | 251.56M | -210.01M | -84.44M | -16.96M | Financing Cash Flow |
| -136.82M | -9.31M | 3.85M | 423.19M | 54.02M |
Riskified Technical Analysis
Negative
4.57
Price Trends
5.13
Negative
4.89
Negative
5.22
Negative
Market Momentum
-0.15
Positive
32.87
Neutral
12.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSKD, the sentiment is Negative. The current price of 4.57 is below the 20-day moving average (MA) of 5.30, below the 50-day MA of 5.13, and below the 200-day MA of 5.22, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 32.87 is Neutral, neither overbought nor oversold. The STOCH value of 12.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RSKD.
Riskified Risk Analysis
Riskified disclosed 63 risk factors in its most recent earnings report. Riskified reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Riskified Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $67.25B | 17.01 | 20.00% | ― | 7.10% | 4.45% | |
74 Outperform | $34.25B | 12.15 | 14.50% | ― | 10.06% | 38060.98% | |
64 Neutral | $4.44B | ― | -20.27% | ― | 24.50% | 49.38% | |
64 Neutral | $14.85B | ― | -7.34% | ― | 46.27% | 74.39% | |
63 Neutral | $41.40B | 77.81 | -47.82% | ― | 14.49% | 21.85% | |
61 Neutral | $738.90M | ― | -7.99% | ― | 10.05% | 39.55% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% |
* Technology Sector Average
Performance Comparison
RSKD
Riskified
4.66
-0.62
-11.74%
FICO
Fair Isaac
1,722.85
394.26
29.68%
PYPL
PayPal Holdings
67.98
7.95
13.24%
XYZ
Block
55.29
-26.42
-32.33%
UPST
Upstart Holdings
46.65
21.35
84.39%
AFRM
Affirm Holdings
46.77
9.25
24.65%
Riskified Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -9.68% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
Riskified delivered strong financial performance in 2024 with significant revenue and GMV growth, improved adjusted EBITDA margins, and successful expansion of its multi-product platform. However, challenges in retention rates and pressure in specific verticals like high-end fashion and the home category posed some setbacks.Highlights
Revenue and GMV Growth
Riskified grew its Gross Merchandising Volume (GMV) by 15% for the full year and achieved revenue growth of 10%, finishing the year with $327.5 million in revenue, exceeding the high end of their guidance.
Adjusted EBITDA Margin Improvement
The company delivered meaningful adjusted EBITDA margin improvement, achieving positive adjusted EBITDA in each quarter of 2024, with a year-over-year increase of over 300%, culminating in $17.2 million for the year.
Strong New Business and Upsell Activity
Riskified derived approximately $45 million in revenue from new merchants added in 2024, and experienced strong upsell activity, particularly in the Tickets and Travel and Fashion verticals.
Multi-Product Platform Expansion
The company expanded its multi-product platform, with new product revenue up approximately 90% year-over-year, and new products bookings representing approximately 10% of the total bookings won in 2024.
Successful Merchant Retention Strategy
Over 70% of the 2025 book of business was committed through multiyear contracts, with a 30% increase in weighted average contract term signed for larger accounts.
Continued Market Share Gains
Riskified saw billings growth across all geographies, with notable growth in the Americas and APAC regions, leading to continued market share gains outside of the United States.
Lowlights
Annual Dollar Retention and Net Dollar Retention Rates
The company's 2024 revenue growth in Annual Dollar Retention (ADR) and Net Dollar Retention (NDR) rates were not in line with historical benchmarks and long-term objectives, with NDR at 96% compared to historical levels of over 110%.
Challenges in the Home Category
The Home category experienced a churn event, resulting in a decline, although the company expects growth in this vertical by the end of 2025.
Pressure in High-End Fashion and Sneakers
The Fashion and Luxury vertical experienced continued same-store sales pressure, particularly within the high-end Fashion and Sneakers sub-verticals, although there are early signs of stabilization.
Company Guidance
In the Riskified Fourth Quarter 2024 Earnings Call, the company provided guidance on various financial metrics for the upcoming fiscal year. Riskified reported a 15% increase in GMV for 2024 and a 10% revenue growth, achieving $327.5 million in revenue. They expect 2025 revenue to be between $333 million and $346 million, with a midpoint of $339.5 million. The company anticipates adjusted EBITDA between $18 million and $26 million, reflecting continued margin expansion. Riskified is focusing on improving their annual dollar retention (ADR) and net dollar retention (NDR) rates, as 2024 saw a decline from historical levels. For 2025, they plan to expand their multi-product platform and aim for a gross profit margin of 52% to 53.5%. Additionally, they have initiated a restructuring plan to maintain flat total expenses while increasing their R&D capacity by nearly 20%. The company ended 2024 with $376 million in cash and zero debt and generated $39 million in free cash flow for the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.