NEW YORK - Riskified Ltd. (NYSE: NYSE:RSKD), a company specializing in e-commerce fraud prevention and risk intelligence, has released its financial results for the second quarter and first half of 2024. The company has reported an increase in gross merchandise volume (GMV) and revenue, alongside a series of strategic moves aimed at expanding its merchant network and product offerings.
For the second quarter ending June 30, 2024, Riskified's GMV rose to $34.99 billion, marking a 13% increase year over year. Revenue for the quarter was up 8% to $78.73 million compared to the same period last year. The company's six-month figures showed a similar upward trajectory, with GMV reaching $67.01 billion, up 15% from the previous year, and revenue growing 10% to $155.14 million.
Despite the revenue growth, Riskified still reported a net loss, which amounted to $9.51 million for the quarter and $21.14 million for the half-year. However, these figures represent an improvement in net loss margins, which were reduced to 12% for the quarter and 14% for the six-month period, compared to 23% and 25%, respectively, in 2023.
Riskified's CFO, Aglika Dotcheva, expressed optimism about the company's financial discipline and improved adjusted EBITDA, which reflects a commitment to margin expansion. The company has revised its financial outlook for the year ending December 31, 2024, expecting revenue between $320 million and $325 million and adjusted EBITDA between $13 million and $19 million.
Strategically, Riskified has expanded its leadership in the tickets and live event sub-vertical, secured a key account in Japan, and added new merchants across various verticals and geographies. The company has also continued its share repurchase program, buying back 6.8 million shares for $39 million, with a remaining authorization of approximately $50 million as of August 5th.
In recognition of its market-leading position, Riskified was named to CNBC's 2024 list of the world's top fintech companies. The company also hosted its annual merchant summit, Ascend 2024, where it introduced a suite of new AI-powered capabilities, including Policy Decisions, a tool designed to give merchants greater control over customer-facing policies.
The company's balance sheet remains strong, with approximately $422.2 million in cash, deposits, and investments, and no debt as of June 30, 2024.
This financial update is based on a press release statement from Riskified Ltd. and reflects the company's performance and strategic initiatives as it continues to position itself for growth in the e-commerce fraud prevention market.
In other recent news, Riskified has been showcasing robust financial performance and strategic growth. The fraud prevention specialist reported an 11% increase in revenue and an 18% rise in non-GAAP gross profit. The company has also revised its fiscal year 2024 adjusted EBITDA forecast upwards, indicating positive financial health.
Riskified has also announced the addition of David Meredith (NYSE:MDP), a seasoned technology business leader, to its Board of Directors. The appointment is expected to support the company's strategic priorities and enhance long-term shareholder value.
In terms of product development, Riskified introduced new AI-powered capabilities at the Ascend 2024 summit. The highlight of these new offerings is Policy Decisions, a tool designed to help merchants adapt to dynamic ecommerce environments.
Analysts have provided insights on Riskified's progress. Truist Securities maintained its Buy rating on the company's shares, while Barclays kept its 'Equalweight' rating. Keefe, Bruyette & Woods, and DA Davidson raised their stock price targets based on the company's strong quarterly performance. These recent developments underscore the company's commitment to growth and its ability to adapt to the dynamic ecommerce landscape.
InvestingPro Insights
Riskified Ltd. (NYSE: RSKD) continues to demonstrate a strategic approach to growth and financial management as evidenced by the latest data and insights from InvestingPro. The company's aggressive share buyback program is a testament to management's confidence in its value, with a substantial repurchase of 6.8 million shares reflecting a proactive capital allocation strategy. This aligns with one of the InvestingPro Tips highlighting management's aggressive share buyback activity.
On the balance sheet front, Riskified's position appears robust, holding more cash than debt, which is a reassuring sign for investors concerned about financial stability. This is underscored by another InvestingPro Tip, noting that the company's liquid assets exceed its short-term obligations—a key indicator of financial health and resilience.
From a valuation standpoint, Riskified's market capitalization stands at approximately $1.02 billion. Despite a challenging profitability track record over the last twelve months, analysts predict a turnaround with the company expected to become profitable this year. This optimism is mirrored in the company's revenue growth, which has seen a 12.46% increase in the last twelve months as of Q1 2024, and a 10.89% quarterly growth in Q1 2024. The company's gross profit margin remains strong at 52.1%, a positive sign for its operational efficiency.
Investors tracking share performance will note that Riskified's price has seen a significant uptick, with a 27.35% year-to-date total return, and a 39.91% return over the past year. This could be indicative of growing investor confidence and market recognition of the company's potential.
For those interested in deeper analysis and additional insights, InvestingPro offers more tips on Riskified Ltd., which can be explored further at https://www.investing.com/pro/RSKD. The platform lists an additional six InvestingPro Tips for a comprehensive understanding of the company's financial dynamics and market positioning.
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