Riskified (RSKD, Financial) has reported its first-quarter revenue of $82.39 million, surpassing the anticipated $79.23 million. The company attributes this strong performance to effective execution of its product roadmap aimed for 2025 and substantial pipeline growth so far this year. According to Eido Gal, Co-Founder and CEO, Riskified's strategic diversification across various sectors and regions, coupled with a robust financial standing and an ability to perform across diverse market conditions, is setting the company up for sustainable long-term growth.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Riskified Ltd (RSKD, Financial) is $5.89 with a high estimate of $7.00 and a low estimate of $4.50. The average target implies an upside of 19.29% from the current price of $4.94. More detailed estimate data can be found on the Riskified Ltd (RSKD) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Riskified Ltd's (RSKD, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Riskified Ltd (RSKD, Financial) in one year is $6.45, suggesting a upside of 30.57% from the current price of $4.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Riskified Ltd (RSKD) Summary page.
RSKD Key Business Developments
Release Date: March 05, 2025
- Revenue: $327.5 million for the full year 2024, up 10% year-over-year.
- Fourth Quarter Revenue: $93.5 million, up 11% year-over-year.
- Gross Merchandise Volume (GMV): $141.2 billion for the full year 2024, up 15% year-over-year.
- Adjusted EBITDA: $17.2 million for the full year 2024, representing a year-over-year increase of over 300%.
- Gross Profit Margin: 53% for the full year 2024, up from 52% in 2023.
- Operating Expenses: $156.4 million for the full year 2024, a decline of 4% from 2023.
- Free Cash Flow: $39 million for the full year 2024.
- Share Repurchase: $141 million worth of shares repurchased in 2024.
- Cash and Deposits: Approximately $376 million at the end of 2024.
- Net Dollar Retention Rate: 96% for the full year 2024.
- Employee Headcount: 693 global employees at the end of 2024, a decline of 7% from the prior year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Riskified Ltd (RSKD, Financial) achieved a 15% growth in GMV and a 10% increase in revenue, reaching $327.5 million, exceeding the high end of their guidance.
- The company delivered its first full year of positive adjusted EBITDA as a public company, with significant margin improvement.
- Riskified Ltd (RSKD) successfully renewed 100% of its top 20 contracts up for renewal in 2024, with many signed for multiyear deals.
- The company expanded its multiproduct platform, with new products revenue up approximately 90% year-over-year.
- Riskified Ltd (RSKD) ended the year with $376 million in cash and no debt, demonstrating strong financial health and free cash flow generation.
Negative Points
- The annual dollar retention rate was down from historical levels, partly due to a one-off merchant churn event and increased competitive pressure.
- Despite revenue growth, the net dollar retention rate was 96%, below historical benchmarks of over 100%.
- The company experienced higher attrition than in previous years, impacting overall revenue growth.
- There was a decline in same-store sales within the high-end fashion and sneakers sub-verticals.
- Riskified Ltd (RSKD) plans to restructure its workforce, relocating positions to lower-cost regions and reducing headcount in less critical areas.
