Riskified (RSKD) The 44th Annual William Blair Growth Stock Conference summary

Business overview and value proposition

• Specializes in fraud management for enterprise e-commerce, leveraging machine learning and network effects to outperform internal merchant teams.

• Processes over $120 billion in GMV annually with a 98% retention rate and works with 50+ publicly traded companies.

• Offers a chargeback guarantee and approval rate guarantee, providing merchants with cost savings and higher approval rates.

• Utilizes proprietary supervised machine learning models trained on a large, tagged dataset, enabling high accuracy and network effects.

• Expands product suite from chargeback management to policy abuse and dispute resolution, enhancing cross-sell opportunities.

Technology and competitive landscape

• Integrates deeply with merchant systems, accessing SKU-level, shipping, and customer support data for superior decisioning.

• Continuously monitors for fraud across its network, quickly closing vulnerabilities for all clients.

• Main competitors are internal teams using third-party tools and newer players like Sift and Signifyd, not Visa or Mastercard.

• Focuses R&D on AI and machine learning, with ongoing innovation to maintain a technological edge.

Financial performance and growth

• 2024 revenue guidance midpoint at $329 million, with over 50 accounts generating $1 million+ in revenue, doubling since 2020.

• Gross margin exceeds 53%, with operating expenses declining and strong improvements in adjusted EBITDA since IPO.

• Free cash flow projected above $30 million for the year, with $450 million+ on the balance sheet.

• Chargeback to billings ratio improves over time as machine learning models mature, offset by new merchant and category onboarding.