Riskified’s Diversified Base of Merchants Powers 20% Growth in GMV and 15% Growth in Revenue for First Quarter 2022
Reaffirms Financial Outlook for FY 2022
Management to host a conference call today, May 17, at 8:30 a.m. Eastern Time
Riskified Ltd., a risk management platform enabling frictionless eCommerce, announced financial results for the three months ended March 31, 2022. The Company will host an investor call to discuss these results today at 8:30 a.m. Eastern Time.
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“We are pleased with our first quarter results, which reflect the impact of continued growth within our existing customer base, combined with the addition of new customers, as well as improving volume growth both in GMV and Billings from our ticketing and travel merchants”
“We are pleased with our first quarter results, which reflect the impact of continued growth within our existing customer base, combined with the addition of new customers, as well as improving volume growth both in GMV and Billings from our ticketing and travel merchants,” said Eido Gal, Co-Founder and Chief Executive Officer of Riskified. “With the vast majority of merchants globally still relying on in-house solutions that we consider to be slow, inaccurate, expensive, and inflexible, we believe the market remains ripe for disruption. We are already seeing positive returns and momentum from our previous investments, and we remain focused on opportunities that we expect to deliver high ROI for Riskified. These focused efforts include pursuing market share gains in new industries and new geographies, and continuing to expand our product suite to help merchants navigate adjacent eCommerce friction points.”
Q1 2022 Business Highlights
- Leveraging diversified base of industries to benefit from reopening trends: Existing merchants started selling significant volumes of airline travel, event tickets and similar products within our ticketing & travel category. As a result, Riskified’s total GMV from ticketing and travel grew 291% year-over-year.
- Adding several of the world’s pre-eminent online retailers to the platform: Several new merchants in established verticals joined the Riskified ecosystem, including luxury fashion, fast fashion, and diversified omnichannel retailing. Of particular significance, Riskified signed one of the world’s largest online fashion retailers that is revolutionizing the fashion industry with a presence in over 150 countries globally, which we believe expands the already large upsell opportunity within our existing customer base.
- Strong Execution of Land and Expand Strategy: Riskified continued to successfully execute our “land-and-expand” strategy that we believe drives GMV gains and long term gross margin expansion as customer engagements grow and mature. Several large existing customers expanded their contractual relationships by submitting additional order populations through our platform.
Q1 2022 Financial Performance Highlights
The following table summarizes our consolidated financial results for the three months ended March 31, 2022 and 2021, in thousands except where indicated:
|
|
Three Months Ended March 31, |
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|
|
2022 |
|
2021 |
|||||
|
|
(unaudited) |
|||||||
|
Gross merchandise volume (“GMV”) in millions(1) |
$ |
22,678 |
|
$ |
18,928 |
|
||
|
Increase in GMV year over year |
|
20 |
% |
|
77 |
% |
||
|
Revenue |
$ |
58,845 |
|
$ |
51,083 |
|
||
|
Increase in revenues year over year |
|
15 |
% |
|
54 |
% |
||
|
|
|
|
||||||
|
Gross profit |
$ |
30,368 |
|
$ |
28,628 |
|
||
|
Gross profit margin |
|
52 |
% |
|
56 |
% |
||
|
|
|
|
||||||
|
Operating profit (loss) |
$ |
(32,826 |
) |
$ |
(3,349 |
) |
||
|
Net profit (loss) |
$ |
(33,264 |
) |
$ |
(43,652 |
) |
||
|
|
|
|
||||||
|
Adjusted EBITDA(1) |
$ |
(13,447 |
) |
$ |
(296 |
) |
||
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“Our year is off to a good start, with first quarter GMV and revenue growth driven primarily by the continued expansion of our platform across new and existing merchants, and penetration across broadly diversified industries and geographies,” said Aglika Dotcheva, Chief Financial Officer of Riskified. “We are pleased with our momentum, encouraged by recent growth in the tickets and travel industry, our geographic expansion and the long-term growth opportunities in front of us. We’re keeping intact the full year financial outlook that we communicated in late February. We believe this approach balances our enthusiasm about the continued growth of our business against global economic volatility and a return of broader eCommerce volumes to normalized pre-pandemic levels.”
Financial Outlook
For the year ending December 31, 2022, Riskified continues to expect:
- Revenue between $254 million and $257 million
- Adjusted EBITDA(2) between negative $69 million and $66 million
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(1) |
GMV is a key performance indicator and Adjusted EBITDA is a non-GAAP metric. See “Key Performance Indicators and Non-GAAP Metrics” for additional information regarding this non-GAAP metric and “Reconciliation of GAAP to Non-GAAP Metrics” for a reconciliation of this non-GAAP metric to the most directly comparable GAAP metric. |
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(2) |
We are not able to provide a reconciliation of Adjusted EBITDA guidance for the fiscal year ending December 31, 2022 to net profit (loss) because certain items that are excluded from Adjusted EBITDA but included in net profit (loss), its most directly comparable GAAP financial measure, cannot be predicted on a forward-looking basis without unreasonable effort or are not in our control. In particular, we are unable to forecast the timing or magnitude of share-based compensation expense and foreign currency transaction gains or losses as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP metrics in the future. |
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