NEW YORK CITY - Riskified (NYSE: NYSE:RSKD), a company specializing in fraud and risk intelligence, has concluded its annual ecommerce summit, Ascend 2024, on Monday. The event, held in New York City from June 25-27, brought together global enterprise merchants and industry leaders to discuss strategies for driving ecommerce growth.
At the summit, Riskified unveiled a series of new AI-powered capabilities aimed at helping merchants combat fraud and abusive behavior, which is increasingly sophisticated due to advancements in AI and activities on the Dark Web. The highlight of the new offerings is Policy Decisions, a feature within Riskified's Decision Studio suite. This tool allows merchants to create, test, and manage customer-facing policies with greater flexibility and precision, moving beyond static rules to adapt to dynamic ecommerce environments.
Policy Decisions leverages standard data points and dynamic logic based on Riskified's identity and risk models, granting merchants more control over policies related to refunds, returns, promotions, and resale activities. The innovation is designed to enable merchants to accept more orders and retain more revenue while mitigating the risk of policy abuse.
Jeff Otto, Chief Marketing Officer at Riskified, emphasized the collective challenge posed by fraud and abuse, noting that Riskified is committed to providing advanced solutions to address these issues so that ecommerce leaders can achieve profitable growth.
The event also recognized the achievements of individuals within the ecommerce community through the Titans of Ecommerce Awards. Eva Alvarez from Gucci and Angela Rehal from BJ's Wholesale Club (NYSE:BJ) were among the recipients of this year's awards, which honor the most inspiring and influential figures in Riskified's merchant network.
Ascend 2024 was supported by Riskified's ecosystem partners, including Deloitte and Mastercard (NYSE:MA), as well as other industry stakeholders. Riskified is known for its AI-powered platform that analyzes each interaction to deliver real-time decisions and insights, helping online brands and companies protect against chargebacks and improve customer retention.
This report is based on a press release statement from Riskified.
In other recent news, Riskified Ltd. has demonstrated robust financial performance with an 11% increase in revenue and an 18% rise in non-GAAP gross profit. The company's adjusted EBITDA margin has also significantly improved, and a share repurchase program has been executed. Barclays maintains an 'Equalweight' rating on Riskified, while Keefe, Bruyette & Woods, and DA Davidson have raised their stock price targets based on the company's strong quarterly performance. Truist Securities also increased its price target for Riskified, maintaining a 'Buy' rating.
Riskified's successful cross-selling of new products and adept handling of operational expenses have led to a revision of its fiscal year 2024 adjusted EBITDA forecast upwards. The company has also initiated a new share repurchase program valued at $75 million. These recent developments underscore the company's financial health and future prospects.
Analysts from various firms, including Barclays, Keefe, Bruyette & Woods, and Truist Securities, have given positive feedback on the company's current position and future growth potential. They have cited factors such as the company's strong performance in its Tickets & Travel segment, significant new customer engagement, and efficient capital management as reasons for their positive outlook.
InvestingPro Insights
Riskified's recent Ascend 2024 summit not only showcased the company's innovative strides in fraud prevention but also coincided with a period of notable financial activity for the firm. According to InvestingPro real-time data, Riskified boasts a market capitalization of $1.11 billion USD, reflecting its significant presence in the ecommerce security sector. With a revenue growth of 12.46% in the last twelve months as of Q1 2024, the company is demonstrating its ability to expand its services amidst a challenging online landscape.
From an investor's perspective, two InvestingPro Tips highlight the company's strategic financial health: Riskified holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. These indicators suggest a robust financial position that could reassure stakeholders of the company's ability to manage its finances effectively, especially in an era where ecommerce is facing complex fraud threats.
Despite not having turned a profit over the last twelve months, analysts predict that Riskified will become profitable this year, as the company continues to trade near its 52-week high. The company's aggressive share buyback strategy and a strong return over the last three months, with a price total return of 18.62%, signal confidence from management and could be a harbinger of positive momentum.
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