Riskified (RSKD) Q3 2024 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in Q3 and the first nine months of 2024, driven by new merchant wins, upsell activity, and AI platform differentiation.

• Achieved fourth consecutive quarter of positive adjusted EBITDA, with $0.9M in Q3'24, and record free cash flow of $13.9M.

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

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

• Expanded merchant base across all six verticals and four geographies, with notable strength in the US.

Financial highlights

• Q3 2024 revenue was $78.8M, up 10% year-over-year; nine-month revenue reached $234.0M.

• Q3 GMV reached $34.7B, up 17% year-over-year.

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

• Q3 GAAP net loss narrowed to $9.7M (net loss margin -12%), compared to $20.9M (-29%) last year.

• Free cash flow in Q3 was $13.9M, highest in company history; full-year 2024 free cash flow expected to exceed $35M.

Outlook and guidance

• Raised 2024 revenue guidance to $322M-$327M, midpoint $324.5M.

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

• 2024 positive free cash flow outlook of ~$35M.

• 2026 EBITDA margin goal of 15%-20% reaffirmed despite recent churn.

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