Raises Adjusted EBITDA Guidance for FY 2023
Riskified Ltd. (NYSE: RSKD) (the “Company”), a leader in
eCommerce fraud and risk intelligence, today announced financial
results for the three and nine months ended September 30, 2023. The
Company will host an investor call to discuss these results today
at 8:30 a.m. Eastern Time.
“I am extremely proud of the team for their resilience and
strength in the face of the ongoing conflict in Israel. Our
unwavering focus on executing the business in all environments,
combined with our commitment in providing outstanding merchant
service has been the foundation of the success of Riskified. I
remain confident in Riskified's ability to grow and innovate even
in challenging times,” said Eido Gal, Co-Founder and Chief
Executive Officer of Riskified.
Q3 2023 Business Highlights
- Operationalized Business Continuity Plan ("BCP"): Our
primary focus following the events in Israel on October 7, 2023 was
ensuring the safety of our employees and maintaining continuity of
service for our merchants. We promptly operationalized our BCP to
help ensure continuity of service and to minimize disruptions to
our merchants. We remain engaged with all our merchants and have
not seen any loss of merchant volumes so far as a result of these
events. We believe this is a testament to the deep relationships
that we have cultivated with many of our merchants, our high
retention rates, and our track record of being a reliable and
trusted partner.
- Further Diversification with the Addition of New
Merchants: We continue to have success landing new merchants on
the platform. Our top 10 new logos added during the third quarter
of 2023 helped us deepen our geographic reach, with particular
strength in the United States, and further penetrate four different
verticals.
- Strong Upsell Activity in Key Accounts in our Fashion and
Luxury Vertical: Key existing customers expanded their
contractual relationships with us during the quarter. In
particular, we successfully executed upsells with merchants in our
Luxury and Sneakers sub-verticals, and also with one of the world’s
largest online fashion retailers in APAC.
- Signed Multi-Year, Multi-Product Cross-Sell: During the
third quarter of 2023, we successfully cross-sold our Policy
Protect and Account Secure products to an existing Enterprise
merchant in our General Retailers vertical for a multi-year
contract. Using Policy Protect and Account Secure, Riskified is
able to help block abusive resellers upon checkout and balance the
overall customer experience while preventing account
takeovers.
- Partnered with Plaid to Enhance Risk Protection for
Automatic Clearing House ("ACH") Bank Payments: This
partnership empowers online merchants, marketplaces, and trading
platforms to approve ACH payments with greater confidence,
safeguarding against fraud and the risk of insufficient funds. The
integration enhances Riskified’s existing ACH protection capability
to shift fraud liability and protect against ACH ‘insufficient
funds’ returns. Riskified’s platform complements Plaid’s Signal
offering, a transaction risk scoring engine that furnishes
merchants with new data attributes to better assess the return risk
of transactions.
- Share Repurchase Program Update: As previously
announced, on August 8, 2023 our Board of Directors authorized a
share repurchase program of up to $75 million, subject to approval
from the Tel Aviv District Court Economic Department ("Israeli
Court"), which is required by law. Due to the events of October 7,
the Israeli Court has been operating under rolling Emergency Orders
and certain court processes are delayed. We will announce the
Israeli Court's decision promptly once it is obtained. Share
repurchases are expected to be used to take advantage of attractive
repurchase opportunities and to manage share dilution. We believe
our strong balance sheet, with zero debt and approximately $482
million of cash, deposits, investments and accrued interest as of
September 30, 2023, enables us to continue investing in the growth
of our business and simultaneously enhance shareholder value
through a share repurchase program.
Q3 2023 Financial Performance Highlights
The following table summarizes our consolidated financial
results for the three and nine months ended September 30, 2023 and
2022, in thousands except where indicated:
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(unaudited)
(unaudited)
Gross merchandise volume ("GMV") in
millions(1)
$
29,674
$
25,314
$
87,897
$
73,391
Increase in GMV year over year
17
%
20
%
Revenue
$
71,872
$
63,172
$
213,545
$
181,949
Increase in revenues year over year
14
%
17
%
Gross profit
$
31,140
$
32,679
$
104,004
$
93,653
Gross profit margin
43
%
52
%
49
%
51
%
Operating profit (loss)
$
(25,210
)
$
(26,170
)
$
(70,285
)
$
(92,097
)
Net profit (loss)
$
(20,925
)
$
(26,047
)
$
(55,770
)
$
(92,653
)
Adjusted EBITDA(1)
$
(8,448
)
$
(9,360
)
$
(18,203
)
$
(36,746
)
“Our disciplined approach to managing the business is evident as
we grew revenue by 17% while simultaneously decreasing total
operating expenses by 6% year-to-date. These results are testament
to the overall strength of the business, and to our ability to
execute and find leverage in the model. I'm encouraged that we
improved our Adjusted EBITDA performance by over 50% year-to-date,
and we remain on track to deliver positive Adjusted EBITDA in the
fourth quarter of 2023,” said Aglika Dotcheva, Chief Financial
Officer of Riskified.
Financial Outlook:
We are updating our revenue guidance for the year ending
December 31, 2023 as follows:
- Revenue between $297 million and $300 million.
We assume no further worsening in consumer spending patterns, or
material changes to the macro-environment, which remains factored
into our revenue guidance for the year.
We now expect:
- Adjusted EBITDA(2) to be between negative $14.5 million and
negative $12.5 million.
We are committed to continuing to manage the business in a
disciplined manner and seek to identify further leverage in the
business model.
(1) GMV is a key performance indicator and Adjusted EBITDA is a
non-GAAP measure of financial performance. See “Key Performance
Indicators and Non-GAAP Measures” for additional information and
“Reconciliation of GAAP to Non-GAAP Measures” for a reconciliation
to the most directly comparable GAAP measure.
(2) We are not able to provide a reconciliation of Adjusted
EBITDA guidance for the fiscal year ending December 31, 2023 to net
profit (loss) because certain items that are excluded from Adjusted
EBITDA but included in net profit (loss), the most directly
comparable GAAP financial measure, cannot be predicted on a
forward-looking basis without unreasonable effort or are not within
our control. For example, we are unable to forecast the magnitude
of foreign currency transaction gains or losses which are subject
to many economic and other factors beyond our control. For the same
reasons, we are unable to address the probable significance of the
unavailable information, which could have a potentially
unpredictable and potentially significant impact on our future GAAP
financial results.
Conference Call and Webcast Details
The Company will host a conference call to discuss its financial
results today, November 15, 2023 at 8:30 a.m. Eastern Time. A live
webcast of the call can be accessed from Riskified’s Investor
Relations website at ir.riskified.com. A replay of the webcast will
also be available for a limited time at ir.riskified.com. The press
release with the financial results, as well as the investor
presentation materials will be accessible on the Company’s Investor
Relations website prior to the conference call.
Key Performance Indicators and Non-GAAP Measures
This press release and the accompanying tables contain
references to Gross Merchandise Volume ("GMV"), which is a key
performance indicator, and to certain non-GAAP measures which
include non-GAAP measures of financial performance, including
Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross profit
margin, non-GAAP cost of revenue, non-GAAP operating expenses by
line item, non-GAAP net profit (loss), and non-GAAP net profit
(loss) per share, and non-GAAP measures of liquidity, including
Free Cash Flow. Management and our Board of Directors use key
performance indicators and non-GAAP measures as supplemental
measures of performance and liquidity because they assist us in
comparing our operating performance on a consistent basis, as they
remove the impact of items that we believe do not directly reflect
our core operations. We also use Adjusted EBITDA for planning
purposes, including the preparation of our internal annual
operating budget and financial projections, to evaluate the
performance and effectiveness of our strategic initiatives, and to
evaluate our capacity to expand our business. Free Cash Flow
provides useful information to management and investors about the
amount of cash generated by the business that can be used for
strategic opportunities, including investing in our business and
strengthening our balance sheet.
These non-GAAP measures should not be construed as an inference
that our future results will be unaffected by unusual or other
items. Non-GAAP measures of financial performance have limitations
as analytical tools in that these measures do not reflect our cash
expenditures, or future requirements for capital expenditures, or
contractual commitments; these measures do not reflect changes in,
or cash requirements for, our working capital needs; these measures
do not reflect our tax expense or the cash requirements to pay our
taxes, and assets being depreciated and amortized will often have
to be replaced in the future and these measures do not reflect any
cash requirements for such replacements. Free Cash Flow is limited
because it does not represent the residual cash flow available for
discretionary expenditures. Free Cash Flow is not necessarily a
measure of our ability to fund our cash needs.
In light of these limitations, management uses these non-GAAP
measures to supplement, not replace, our GAAP results. The non-GAAP
measures used herein are not necessarily comparable to similarly
titled captions of other companies due to different calculation
methods. Non-GAAP financial measures should not be considered in
isolation, as an alternative to, or superior to information
prepared and presented in accordance with GAAP. These measures are
frequently used by analysts, investors and other interested parties
to evaluate companies in our industry. By providing these non-GAAP
measures together with a reconciliation to the most comparable GAAP
measure, we believe we are enhancing investors' understanding of
our business and our results of operations, as well as assisting
investors in evaluating how well we are executing our strategic
initiatives.
We define GMV as the gross total dollar value of orders reviewed
through our eCommerce risk intelligence platform during the period
indicated, including orders that we did not approve.
We define each of our non-GAAP measures of financial
performance, as the respective GAAP balances shown in the below
tables, adjusted for, as applicable, depreciation and amortization
(including amortization of capitalized internal-use software as
presented in our statement of cash flows), share-based compensation
expense, payroll taxes related to share-based compensation,
litigation-related expenses, provision for (benefit from) income
taxes, other income (expense) including foreign currency
transaction gains and losses and gains and losses on non-designated
hedges, and interest income (expense). Non-GAAP Gross Profit Margin
represents Non-GAAP Gross Profit expressed as a percentage of
revenue. We define non-GAAP net profit (loss) per share as non-GAAP
net profit (loss) divided by non-GAAP weighted-average shares. We
define non-GAAP weighted-average shares, as GAAP weighted average
shares, adjusted to reflect any dilutive ordinary share equivalents
resulting from non-GAAP net profit (loss), if applicable.
We define Free Cash Flow as net cash provided by (used in)
operating activities, less cash purchases of property and
equipment, and cash spent on capitalized software development
costs.
Management believes that by excluding certain items from the
associated GAAP measure, these non-GAAP measures are useful in
assessing our performance and provide meaningful supplemental
information due to the following factors:
Depreciation and amortization: We exclude depreciation and
amortization (including amortization of capitalized internal-use
software) because we believe that these costs are not core to the
performance of our business and the utilization of the underlying
assets being depreciated and amortized can change without a
corresponding impact on the operating performance of our business.
Management believes that excluding depreciation and amortization
facilitates comparability with other companies in our industry.
Share-based compensation expense: We exclude share-based
compensation expense primarily because it is a non-cash expense
that does not directly correlate to the current performance of our
business. This is because the expense is calculated based on the
grant date fair value of an award which may vary significantly from
the current fair market value of the award based on factors outside
of our control. Share-based compensation expense is principally
aimed at aligning our employees’ interests with those of our
shareholders and at long-term retention, rather than to address
operational performance for any particular period.
Payroll taxes related to share-based compensation: We exclude
employer payroll tax expense related to share-based compensation in
order to see the full effect that excluding that share-based
compensation expense had on our operating results. These expenses
are tied to the exercise or vesting of underlying equity awards and
the price of our common stock at the time of vesting or exercise,
which may vary from period to period independent of the operating
performance of our business.
Litigation-related expenses: We exclude costs associated with
the legal matter previously disclosed under the caption "Legal
Proceedings" in our Form 6-K furnished with the Securities and
Exchange Commission ("SEC") on August 15, 2023, because such costs
are not reflective of costs associated with our ongoing business
and operating results and are viewed as unusual and infrequent.
See the tables below for reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP
measures.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward looking statements contained in Section 27A
of the U.S. Securities Act of 1933, as amended (the "Securities
Act") and Section 21E of the Exchange Act. All statements contained
in this press release other than statements of historical fact,
including, without limitation, statements regarding our revenue and
adjusted EBITDA guidance for fiscal year 2023, future growth
potential in new verticals and new geographies, anticipated
implementation timeline and benefits of our proposed share
repurchase program, ongoing impact of the conflict in Israel on our
business and financial performance and Company actions designed to
mitigate such impact, internal modeling assumptions, expectations
as to our new merchant pipeline, upsell opportunities and strategic
partnerships, the performance of our products, our management of
our cash outflow and leverage, and business plans and strategy are
forward looking statements, which reflect our current views with
respect to future events and are not a guarantee of future
performance. The words “believe,” “may,” “will,” “estimate,”
“potential,” “continue,” “anticipate,” “intend,” “expect,” “could,”
“would,” “project,” “forecasts,” “aims,” “plan,” “target,” and
similar expressions are intended to identify forward-looking
statements, though not all forward-looking statements use these
words or expressions.
Actual outcomes may differ materially from the information
contained in the forward-looking statements as a result of a number
of factors, including, without limitation, the following: our
ability to manage our growth effectively; our history of net losses
and ability to achieve profitability; our ability to attract new
merchants and retain existing merchants; continued use of credit
cards and other payment methods that expose merchants to the risk
of payment fraud, and changes in laws and regulations related to
use of these payment methods, such as PSD2, and the emergence of
new alternative payment products; the impact of macroeconomic
conditions on us and on the performance of our merchants; our
ability to continue to improve our machine learning models;
fluctuations in our CTB Ratio and gross profit margin, including as
a result of large-scale merchant fraud attacks or other security
incidents; our ability to protect the information of our merchants
and consumers; our ability to predict future revenue due to lengthy
sales cycles; seasonal fluctuations in revenue; competition; our
merchant concentration; the financial condition of our merchants,
particularly in challenging macroeconomic environments; our ability
to increase the adoption of our products and to develop and
introduce new products; our ability to mitigate the risks involved
with selling our products to large enterprises; our ability to
retain the services of our executive officers, and other key
personnel, including our co-founders; our ability to attract and
retain highly qualified personnel, including software engineers and
data scientists, particularly in Israel; changes to our prices and
pricing structure; our exposure to existing and potential future
litigation claims; our exposure to fluctuations in currency
exchange rates, including recent declines in the value of the
Israeli shekel against the US dollar as a result of the ongoing
conflict in Israel; our ability to obtain additional capital; risks
associated with our proposed share repurchase program, including
the risk that the program could increase volatility and fail to
enhance shareholder value, risks relating to our ability to obtain
authorization and re-authorization, as necessary, by the Tel Aviv
District Court Economic Department to permit share repurchases, or
other factors; our third-party providers of cloud-based
infrastructure; our ability to protect our intellectual property
rights; technology and infrastructure interruptions or performance
problems; the efficiency and accuracy of our machine learning
models and access to third-party and merchant data; our ability to
comply with evolving data protection, privacy and security laws;
our ability to comply with lending regulation and oversight; the
development of regulatory frameworks for machine learning
technology and artificial intelligence; our use of open-source
software; our ability to enhance and maintain our brand; our
ability to execute potential acquisitions, strategic investments,
partnerships, or alliances; our ability to successfully establish
partnership channels and to integrate with these partners;
potential claims related to the violation of the intellectual
property rights of third parties; our limited experience managing a
public company; our failure to comply with anti-corruption, trade
compliance, and economic sanctions laws and regulations;
disruption, instability and volatility in global markets and
industries; our ability to enforce non-compete agreements entered
into with our employees; our ability to maintain effective systems
of disclosure controls and financial reporting; our ability to
accurately estimate or judgements relating to our critical
accounting policies; our business in China; changes in tax laws or
regulations; increasing scrutiny of, and expectations for,
environmental, social and governance initiatives; potential future
requirements to collect sales or other taxes; potential future
changes in the taxation of international business and corporate tax
reform; changes in and application of insurance laws or
regulations; conditions in Israel that may affect our operations,
including ongoing conflict in Israel following the events of
October 7, 2023; the impact of the dual class structure of our
ordinary shares; our status as a foreign private issuer; and other
risk factors set forth in Item 3.D - “Risk Factors” in our Annual
Report on Form 20-F, filed with the SEC on February 24, 2023, and
other documents filed with or furnished to the SEC. These
statements reflect management’s current expectations regarding
future events and operating performance and speak only as of the
date of this press release. You should not put undue reliance on
any forward-looking statements. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee that future results, levels of
activity, performance and events and circumstances reflected in the
forward-looking statements will be achieved or will occur. Except
as required by applicable law, we undertake no obligation to update
or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
About Riskified
Riskified empowers businesses to grow eCommerce revenues and
profit by mitigating risk. An unrivaled network of merchant brands
partner with Riskified for guaranteed protection against
chargebacks, to fight fraud and policy abuse at scale, and to
improve customer retention. Developed and managed by the largest
team of eCommerce risk analysts, data scientists, and researchers,
Riskified’s AI-powered fraud and risk intelligence platform
analyzes the individual behind each interaction to provide
real-time decisions and robust identity-based insights. Learn more
at riskified.com.
RISKIFIED LTD.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
As of
September 30, 2023
As of
December 31, 2022
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
435,473
$
188,670
Restricted cash
—
2,347
Short-term deposits
15,000
287,000
Accounts receivable, net
30,750
37,547
Prepaid expenses and other current
assets
12,493
14,371
Total current assets
493,716
529,935
Property and equipment, net
16,383
18,586
Operating lease right-of-use assets
30,854
35,158
Deferred contract acquisition costs
13,961
14,383
Long-term investments
28,906
—
Other assets, noncurrent
8,695
8,922
Total assets
$
592,515
$
606,984
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
2,571
$
2,110
Accrued compensation and benefits
19,417
24,134
Guarantee obligations
9,489
12,361
Provision for chargebacks, net
10,698
11,980
Operating lease liabilities, current
5,493
6,214
Accrued expenses and other current
liabilities
17,630
15,813
Total current liabilities
65,298
72,612
Operating lease liabilities,
noncurrent
25,919
31,202
Other liabilities, noncurrent
12,425
8,734
Total liabilities
103,642
112,548
Shareholders’ equity:
Class A ordinary shares, no par value;
900,000,000 shares authorized as of September 30, 2023 and December
31, 2022; 122,263,782 and 102,084,746 shares issued and outstanding
as of September 30, 2023 and December 31, 2022, respectively
—
—
Class B ordinary shares, no par value;
232,500,000 shares authorized as of September 30, 2023 and December
31, 2022; 56,010,858 and 68,945,014 shares issued and outstanding
as of September 30, 2023 and December 31, 2022, respectively
—
—
Additional paid-in capital
900,354
848,609
Accumulated other comprehensive profit
(loss)
(3,177
)
(1,639
)
Accumulated deficit
(408,304
)
(352,534
)
Total shareholders’ equity
488,873
494,436
Total liabilities and shareholders’
equity
$
592,515
$
606,984
RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except share
and per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(unaudited)
(unaudited)
Revenue
$
71,872
$
63,172
$
213,545
$
181,949
Cost of revenue
40,732
30,493
109,541
88,296
Gross profit
31,140
32,679
104,004
93,653
Operating expenses:
Research and development
17,397
17,452
54,455
53,512
Sales and marketing
21,758
20,712
67,097
67,047
General and administrative
17,195
20,685
52,737
65,191
Total operating expenses
56,350
58,849
174,289
185,750
Operating profit (loss)
(25,210
)
(26,170
)
(70,285
)
(92,097
)
Interest income (expense), net
5,717
3,123
16,781
5,116
Other income (expense), net
(193
)
(1,133
)
1,055
(1,209
)
Profit (loss) before income taxes
(19,686
)
(24,180
)
(52,449
)
(88,190
)
Provision for (benefit from) income
taxes
1,239
1,867
3,321
4,463
Net profit (loss)
$
(20,925
)
$
(26,047
)
$
(55,770
)
$
(92,653
)
Other comprehensive profit (loss), net of
tax:
Other comprehensive profit (loss)
(570
)
121
(1,538
)
(2,973
)
Comprehensive profit (loss)
$
(21,495
)
$
(25,926
)
$
(57,308
)
$
(95,626
)
Net profit (loss) per share attributable
to Class A and B ordinary shareholders, basic and diluted
$
(0.12
)
$
(0.15
)
$
(0.32
)
$
(0.56
)
Weighted-average shares used in computing
net profit (loss) per share attributable to Class A and B ordinary
shareholders, basic and diluted
178,360,665
168,798,761
175,627,868
166,598,745
RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(unaudited)
(unaudited)
Cash flows from operating
activities:
Net profit (loss)
$
(20,925
)
$
(26,047
)
$
(55,770
)
$
(92,653
)
Adjustments to reconcile net profit (loss)
to net cash provided by (used in) operating activities:
Unrealized loss (gain) on foreign
currency
24
504
(1,384
)
(1,191
)
Provision for (benefit from) account
receivable allowances
(18
)
210
176
35
Depreciation and amortization
892
886
2,672
2,567
Amortization of capitalized internal-use
software costs
383
124
1,149
371
Amortization of deferred contract
costs
2,393
1,820
6,954
5,028
Share-based compensation expense
15,330
15,711
47,485
52,234
Non-cash right-of-use asset changes
1,283
1,161
3,510
3,299
Changes in accrued interest
1,214
(319
)
1,659
(974
)
Ordinary share warrants issued to a
customer
384
384
1,152
1,151
Other
48
29
123
136
Changes in operating assets and
liabilities:
Accounts receivable
7,015
(2,490
)
6,188
4,860
Deferred contract acquisition costs
(1,662
)
(2,510
)
(5,193
)
(5,008
)
Prepaid expenses and other assets
(3,109
)
119
(1,897
)
7,054
Accounts payable
(1,326
)
544
402
2,151
Accrued compensation and benefits
1,767
1,763
(4,292
)
(3,822
)
Guarantee obligations
(403
)
(3
)
(2,872
)
(2,345
)
Provision for chargebacks, net
(329
)
1,077
(1,282
)
(1,309
)
Operating lease liabilities
(2,088
)
1,385
(3,494
)
(985
)
Accrued expenses and other liabilities
3,620
2,870
4,570
7,247
Net cash provided by (used in) operating
activities
4,493
(2,782
)
(144
)
(22,154
)
Cash flows from investing
activities:
Purchases of short-term deposits
(5,000
)
(143,789
)
(55,000
)
(335,753
)
Maturities of short-term deposits
80,000
149,789
327,000
235,000
Purchases of investments
(29,086
)
—
(29,086
)
—
Purchases of property and equipment
(826
)
(434
)
(1,074
)
(3,413
)
Capitalized software development costs
—
(563
)
—
(1,535
)
Net cash provided by (used in) investing
activities
45,088
5,003
241,840
(105,701
)
Cash flows from financing
activities:
Proceeds from exercise of share
options
333
828
3,113
3,009
Payments of deferred offering costs
—
(14
)
—
(204
)
Net cash provided by (used in) financing
activities
333
814
3,113
2,805
Effects of exchange rates on cash, cash
equivalents, and restricted cash
(536
)
(722
)
(353
)
(2,646
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
49,378
2,313
244,456
(127,696
)
Cash, cash equivalents, and restricted
cash—beginning of period
386,095
295,118
191,017
425,127
Cash, cash equivalents, and restricted
cash—end of period
$
435,473
$
297,431
$
435,473
$
297,431
Reconciliation of GAAP to Non-GAAP Measures
The following tables reconcile non-GAAP measures to the most
directly comparable GAAP measure and are presented in thousands
except for share and per share amounts.
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(unaudited)
(unaudited)
Net profit (loss)
$
(20,925
)
$
(26,047
)
$
(55,770
)
$
(92,653
)
Provision for (benefit from) income
taxes
1,239
1,867
3,321
4,463
Interest (income) expense, net
(5,717
)
(3,123
)
(16,781
)
(5,116
)
Other (income) expense, net
193
1,133
(1,055
)
1,209
Depreciation and amortization
1,275
1,010
3,821
2,938
Share-based compensation expense
15,330
15,711
47,485
52,234
Payroll taxes related to share-based
compensation
109
89
386
179
Litigation-related expenses
48
—
390
—
Adjusted EBITDA
$
(8,448
)
$
(9,360
)
$
(18,203
)
$
(36,746
)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(unaudited)
(unaudited)
GAAP gross profit
$
31,140
$
32,679
$
104,004
$
93,653
Plus: depreciation and amortization
427
177
1,299
521
Plus: share-based compensation expense
191
183
574
477
Plus: payroll taxes related to share-based
compensation
3
2
8
4
Non-GAAP gross profit
$
31,761
$
33,041
$
105,885
$
94,655
Gross profit margin
43
%
52
%
49
%
51
%
Non-GAAP gross profit margin
44
%
52
%
50
%
52
%
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(unaudited)
(unaudited)
GAAP cost of revenue
$
40,732
$
30,493
$
109,541
$
88,296
Less: depreciation and amortization
427
177
1,299
521
Less: share-based compensation expense
191
183
574
477
Less: payroll taxes related to share-based
compensation
3
2
8
4
Non-GAAP cost of revenue
$
40,111
$
30,131
$
107,660
$
87,294
GAAP research and development
$
17,397
$
17,452
$
54,455
$
53,512
Less: depreciation and amortization
391
387
1,172
1,120
Less: share-based compensation expense
3,182
2,538
10,092
7,421
Less: payroll taxes related to share-based
compensation
$
1
$
—
$
1
$
—
Non-GAAP research and development
$
13,823
$
14,527
$
43,190
$
44,971
GAAP sales and marketing
$
21,758
$
20,712
$
67,097
$
67,047
Less: depreciation and amortization
260
245
767
731
Less: share-based compensation expense
4,940
3,872
14,714
14,076
Less: payroll taxes related to share-based
compensation
71
41
208
99
Non-GAAP sales and marketing
$
16,487
$
16,554
$
51,408
$
52,141
GAAP general and administrative
$
17,195
$
20,685
$
52,737
$
65,191
Less: depreciation and amortization
197
201
583
566
Less: share-based compensation expense
7,017
9,118
22,105
30,260
Less: payroll taxes related to share-based
compensation
34
46
169
76
Less: litigation-related expenses
48
—
390
—
Non-GAAP general and administrative
$
9,899
$
11,320
$
29,490
$
34,289
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(unaudited)
(unaudited)
Net cash provided by (used in) operating
activities
$
4,493
$
(2,782
)
$
(144
)
$
(22,154
)
Purchases of property and equipment
(826
)
(434
)
(1,074
)
(3,413
)
Capitalized software development costs
—
(563
)
—
(1,535
)
Free Cash Flow
$
3,667
$
(3,779
)
$
(1,218
)
$
(27,102
)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(unaudited)
(unaudited)
Net profit (loss)
$
(20,925
)
$
(26,047
)
$
(55,770
)
$
(92,653
)
Depreciation and amortization
1,275
1,010
3,821
2,938
Share-based compensation expense
15,330
15,711
47,485
52,234
Payroll taxes related to share-based
compensation
109
89
386
179
Litigation related expenses
48
—
390
—
Non-GAAP net profit (loss)
$
(4,163
)
$
(9,237
)
$
(3,688
)
$
(37,302
)
Weighted-average shares used in computing
net profit (loss) and non-GAAP net profit (loss) per share
attributable to Class A and B ordinary shareholders, basic and
diluted
178,360,665
168,798,761
175,627,868
166,598,745
Net profit (loss) per share attributable
to Class A and B ordinary shareholders, basic and diluted
$
(0.12
)
$
(0.15
)
$
(0.32
)
$
(0.56
)
Non-GAAP net profit (loss) per share
attributable to Class A and B ordinary shareholders, basic and
diluted
$
(0.02
)
$
(0.05
)
$
(0.02
)
$
(0.22
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231115679006/en/
Investor Relations: Chett Mandel, Head of Investor
Relations | ir@riskified.com
Corporate Communications: Cristina Dinozo, Senior
Director of Communications | press@riskified.com
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