Riskified (RSKD) Goldman Sachs Communacopia + Technology Conference 2024 summary

Business performance and growth strategy

• Focused on expanding use cases beyond fraud detection, including policy and dispute management, aiming for deeper merchant integration over the next 18–36 months.

• Growth driven by adding new merchants to the core platform and exponential growth in new products like Policy Protect and Dispute Resolve, though these currently contribute a small share to gross margin.

• Net dollar retention has declined due to macroeconomic pressures in discretionary categories, with retention metrics expected to dip slightly below 100% this year.

• Healthy pipeline supported by global expansion, especially in Japan, Brazil, APAC, and LATAM, and strong new logo acquisition.

• International markets, particularly APAC and LATAM, are delivering some of the fastest growth, with tailored approaches for complex local needs.

Market trends and customer dynamics

• Macro headwinds have impacted verticals like home goods, luxury, and fashion, while low-end shopping, electronics, groceries, and food delivery have seen increased activity.

• Fraud is increasingly sophisticated and adaptive, with new attack vectors such as chatbot fraud emerging, benefiting companies with advanced detection capabilities.

• Enterprise e-commerce clients prefer best-of-breed, gateway-agnostic solutions, while SMBs are targeted through a partner-first approach.

• Customer relationships are built on trust and performance, with proven results leading to expanded share of merchant volumes.

• Fraud events often catalyze deeper client engagement and expansion of service scope.

Product innovation and technology

• AI and machine learning are core to the business, with proprietary supervised learning models and continuous feature engineering driving superior fraud detection.

• New products like Policy Protect and Dispute Resolve address non-fraud chargebacks and policy abuse, growing rapidly and providing higher gross margins.

• Customization for verticals, such as ticketing, has enabled significant market share gains, with similar strategies being applied to new categories.

• Sales force is tiered by client size, with compensation plans incentivizing new product sales and entry into new verticals.

• Risk-adjusted pricing allows for tailored solutions across varying risk profiles and verticals.