Riskified (RSKD) Q4 2024 earnings summary

Executive summary

• Achieved 2024 revenue of $327.5M, up 10% year-over-year, exceeding guidance, with Q4 revenue of $93.5M and record adjusted EBITDA of $17.2M.

• GMV grew 15% to $141.2B for the year, driven by new and upsell growth, especially in tickets, travel, and strong holiday activity.

• Adjusted EBITDA margin expanded to 5% for 2024, with positive EBITDA every quarter and margin expansion of 800 basis points.

• Expanded vertical and geographic reach, with new merchant wins across five verticals and all four geographies, including Meta, TodayTix, Armani, and Ria Money Transfer.

• Secured over 70% more large enterprise contracts (>$1M annually) compared to 2023, highlighting success with global brands.

Financial highlights

• Gross profit margin for 2024 was 53%, up from 52% in 2023; Q4 gross profit was $48.9M.

• Operating expenses declined 4% year-over-year to $156.4M, with R&D, sales/marketing, and G&A all decreasing.

• Free cash flow for 2024 was $39.1M, with $10.6M generated in Q4; ended 2024 with $376M in cash and no debt.

• Repurchased $141M in stock, reducing shares outstanding by 27M.

• FY2024 net loss narrowed to $(34.9)M, improved from $(59.0)M in 2023.

Outlook and guidance

• 2025 revenue guidance: $333M-$346M (midpoint $339.5M), driven by new business and improved net dollar retention.

• Adjusted EBITDA guidance for 2025: $18M-$26M (midpoint $22M), reflecting further margin expansion.

• Targeting adjusted EBITDA margins of 15%-20% by end of 2026.

• Weighted average shares outstanding expected: 168–172M.

• Expecting continued decline in share-based compensation as a percent of revenue.