Riskified (RSKD) Q3 2024 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in Q3 and the first nine months of 2024, with GMV up 17% and non-GAAP gross profit up 17% year-over-year, outpacing revenue growth.

• Achieved fourth consecutive quarter of positive adjusted EBITDA, with $0.9M in Q3 2024, and record free cash flow of $13.9M.

• Expanded merchant base with new wins across all six verticals and four geographies, including a significant grocery merchant and strong new business generation.

• Launched the largest Policy Protect deal to date, worth nearly $2M in annual contract value, and expanded in ticketing, live events, and money transfer categories.

• Repurchased 8.6M shares for $47M in Q3; board authorized an additional $75M share repurchase, bringing total authorization to $85M.

Financial highlights

• Q3 2024 revenue was $78.8M, up 10% year-over-year; GMV reached $34.7B, up 17% year-over-year.

• Q3 non-GAAP gross profit margin was 50%; full-year margin expected between 52.5%-53.5%.

• Q3 adjusted EBITDA was $0.9M, up from $(8.4)M in Q3 2023; Q3 free cash flow was $13.9M, the highest in company history.

• Q3 GAAP net loss narrowed to $(9.7)M from $(20.9)M in Q3 2023.

• Ended Q3 with $390M in cash, deposits, and investments, and zero debt.

Outlook and guidance

• Raised 2024 revenue guidance to $322M-$327M, midpoint $324.5M, driven by new business and strong verticals.

• Full-year adjusted EBITDA guidance increased to $14M-$20M, midpoint $17M.

• Expect to exceed $35M in positive free cash flow for 2024.

• Maintain 2026 EBITDA margin goal of 15%-20%, despite merchant churn setback.

• Expect non-comparable periods in the home category until Q4 2025 due to merchant churn.