RSKD - Earnings call 4 2023

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Chett Mandel

Good morning, and thank you for joining us today. My name is Chett Mandel, Riskified's, Head of Investor Relations.

We are hosting today's call to discuss Riskified's financial results for the full year and fourth quarter of 2023. Participating on today's call are Eido Gal, Riskified's Co-Founder and Chief Executive Officer, and Agi Dotcheva, Riskified's Chief Financial Officer. We released our results for the full year and fourth quarter of 2023 earlier today.

of be a Investor judgment today's positive future statements and Relations based statements the today including covered available will expectations Securities made financial materials, and to in XXXX. adjusted call our which flows, related EBITDA of to on website will profit goals, earnings margins are outlook forward-looking replay cash not intend the Act as and performance.We performance, revenues, to guarantees currently webcast, all of to on by management's be on Harbor EBITDA our as Our available operating the statements gross business Private information margin, forward-looking at best adjusted provisions Reform ir.riskified.com.Certain reflect be profitability, Litigation Safe contained statements time forward-looking that cause reflect we actual may of by from our required of information could that as after other of as statements control, except which to of a are this differ some and to this expectations law, uncertainties the our and results call our materially revise factors, the occur result this developments risks, beyond involve of expectations. call.These These date as undertake obligation no forward-looking new

are actual could key will the are Eido. to the all on discuss will SEC are that over which today, to and Investor Form financial specific comparable we materially on cause You our furnished directly non-GAAP reports the and all to Relations file should available statement. XXXX or measures Investor presentation, in on year Presentation, in the on of undue on performance earlier call on any Investor release website.I Form the call. now our results with from posted for for earnings subsequent Please on Reconciliations to turn our most posted furnish our forward-looking and not appendix put SEC information Relations GAAP expectations.Additionally, reliance which our refer of with XX-F certain Report more the also differ factors issued X-K, indicators XX, Annual ended our and we financial December the the of Relations measures

Eido Gal

approach impact advancement event about three-pronged the hello, believe into on multiyear technology quarter. XX strong, Riskified facing goals, outstanding technology proud report macroeconomic of that but a continuous automated footprint our to high that achieving This some I enhance the the models. annual on can into quarters, fourth develop payment Chett, seen a and leverage expand and chargeback quarter. autonomously not of pleased XXXX platform scientists the despite basis, continue with drive am represents our of motion, geographic drive to technology and our merchants.Allow further XXXX, many performance some but an features into to to responding XXXX factory and to management while margin by existing automation and optimize and beyond, our XX% We designed high We particular, flow in analyzing in platform we am in to to base, business that sales through performance way. us the quarter. in our and provide automated I'm such rates approval our profitability the We results attention will fantastic cumulative year risk accounts, an given excited accomplish looking entered our training our EBITDA to the to performance, new focusing due additional out very expanded me transactions to leaning geopolitical ended factors, in our data improved in test while In I QX. we I'm work acknowledge the everyone. headwinds. improving constant able so strengthened penetrate and models quarter were to an Thanks, we to an focused believe to deploy new scale to machine contributed logo individual to merchants fourth highest ramping quickly their encourage levels QX and continue of quickly, further capacity gross us that basis want while further leverage.I we stack strengthen done.In our built in our of optimistic is on geographies, for We thank you deeper methods. vary of our achieving adjusted which finally, and from gross strategy. fourth and our to margin quarters will all expands including and per for maintaining gross the allows increase the new XXXX that yet This powerful train, learning the this insight on more team of margin industries performance.And of allow an our turn to profile third approved.I merchant fraud achieve

grow diversified portfolio geographies merchants, company across all across further industries resilient our and to that is to and broad-based able more continue macro have become We a to environments.

through through annual our the which growth positively by the upsells shortly, through encouraged you of but in our GMV top verticals white I XXXX. our the performance e-commerce five year. have success overall, of merchant walk XX% In and line am drivers during of landscape performance growth in particular, growth out our contributed our contributed will wins space, to XXXX.Agi revenue penetrating within six annual total existing of merchant to continue and XX% We new the total

more than least enterprise achieved growth year-over-year, and count our of merchants have at we All double-digit regions before. our platform that on ever

and XXXX. $X team of delivered merchant fact, full the line approximately Resolve top year go-to-market revenue first Secure their of Policy over million were In our XXXX.Our activity end XXXX coming small ability percentage accounts of technology the platform sell very has quarter base, our as to an we was Also, went stack differentiator products the the executed of our in throughout on heading during quarter in refine products year, X/X our represents revenue in with over improving Xx.Our XX% our contributed successful positive strongest Account be believe fourth or our revenue a annual that having to derived Protect that live bookings had new target sales new the up year for our only and Policy And more Protect tool.We strategy, proven momentum that of the fourth year. won we while the to still and in quarter, XX the met a product, our platform focused deals Policy Protect, into from and these providing from strong ever the we during stickiness end-to-end a overall Dispute quarter.

tools higher shop and activity proven Result, have Dispute from why true XX%. the combined existing coronal the we This and solution overall win us developing generates allows strategy.The market-leading new automated based dispute flow help our The number key cases we've proving product.On made, traction Policy initially reduce rate fourth of to chargeback a our fraud prioritize to just market is strong seen drawn on solve feedback offering, and become performance, entire accuracy we've for we policies to our recent abuse, merchants. core Protect based serve product on a serial led and our Both enhancements merchants, use example, our are product that automates merchants quarter rates reseller a item need as pipeline and to core direct of for non-fraud to and land-and-expand we the in blocking beyond also win help refunds chargeback chargeback guarantee product almost to a that are limits solve Riskified. one-stop with and our and predictability fraudulent increased For very for process. guarantee representment holistic returners the products

Now, dedicated cases churn to even our reason high-value end-to-end is gives use evident solving more This expanded our to in numbers. stay. them low platform multiple e-commerce

a unusual churn XX%, of events as of bankruptcies. annual merchant in Our was inclusive which was dollar a XXXX retention result few

We are within mid-XXXX, the that areas made operational the have our more to executed that and we our e-commerce enter statement lower decision built deep-rooted the income world's on we many largest accelerated In partnerships the proud that time profitability line frame. are have accelerate of of of and control. the time merchants.Moving with in to

our basis basis EBITDA and adjusted achieved have prior and we are on XXXX guiding the XXXX in the pleased we XXXX margin annual EBITDA year.I that for annual fourth points beyond. EBITDA adjusted of from in quarter exceeded Furthermore, and EBITDA guidance cash of Our free XX%, by annual negative our adjusted positive we X,XXX $X.X million. $X.X year by to positive expanded adjusted am the million flow that an achieved positive

think point, made we and are getting XXXX. We XX% years.As a by the is and to of in over how we building lot I it this believe XX% achieving margins team, to financial a adjusted plan about important towards few the on between next have EBITDA management milestones progress to communicate

In positive some inclusive share-based addition, we also provide of expenses me XXXX. EBITDA, by context. our plan further achieving on adjusted compensation Allow to

we volatile faced rates than to rates aspire norm consumer we multiple over seen have and low that to hundreds, be we've past has that longer in remain of and has retention significantly this to from on macro are term. there a not a produced pre-COVID.Overall, net our believe focused Over to revenue achieve even XXX dollar years, higher environment spending, that. accelerating two the is where down which challenging growth we We historical growth, and the our lower XXX led historically ways

risk the us. in in leader e-commerce capitalize a As front can that on we intelligence, opportunities of we fraud believe large and

largest would to As same potential would grow our goal platform frequency a are is addition, focus.In of on net the also on at improvements merchants and to impact our to also with the the retention dollar more which execute in us world's to expand area result which our revenue top positive base rate, and we always, faster. allow cohort able speed land and remains this our strategy e-commerce

confident last line However, I in the we even driving levers and to business improvements and are to am to available how items compared in order Overall, at OpEx our to our the ability further manage currently these Agi ability they our bring compensation provide guide, adjusted and than to business in levels it's the continue in on to to color similar the confident expense share-based at. constantly achieve as revenue operational growth the over to years, our are rates it EBITDA to to bottom our our line to gross to lower optimize targets. few margin growth results on turn meaningfully highlight top annual line.Before managing our dilution run commitment I and XXXX efficiently to to down important us

continue we meaningfully decreased revenue approximately approximately we approximately as points approximately to granted X% from see we of in XXXX, of X% decline equity perhaps XX% We approximately represented granted share-based focus anticipate this lower down drop-off XXX expect XXXX.We percentage from the controlling by shares, that diluted share-based requirements important equity expense in equity and awards expenses.Second, by end to business average awards First, a weighted expect XXXX. to in awards is compensation percentage the that in of a XXXX, be vesting to XXXX, on five-year our awards in complete as a fewer discuss granted to In 'XX. a of to in even will as to compensation XXXX. manage X% four compensation And our of we 'XX, XXXX basis have Many XXXX, compared larger And to as see revenue in our meaningful in number a awards through disciplined more to period. our manner. 'XX as these vesting the share-based continued levels. our X%

any leadership believe we business similar repurchased levels.Looking our to combined of that great There any our million we target the cost We scale benefit for repurchase repurchasing a and shareholders.Now, forward.Third, built we unanticipated model, 'XX. to and our authorization, of by white levels global positioned and network similar in $XX our are will and February we over and and to on or going for Assuming executive us today space attractive committed financial at senior forward, have well execute discipline $XX these since confidence have I valuation initiatives million platform that approximately of the expect Agi. and operational position believe total program of level to product that plenty share that, we as XX. us to buyback X.X hiring do of absent the implementation remain to the November, our the opportunity additional energized have allow at us million are shares shares of excited valuation in we with front of penetrate, are we what to in is

Aglika Dotcheva

We XX%, respectively. you, and revenue full million team, joining quarter everyone, year for up million, Thank and $XXX.X $XX.X year-over-year of and of achieved revenue Eido, today's call. X% fourth

Our upsell highest which reviewed the Friday Cyber fourth Monday growth quarter quarter X% GMV Black and $XX.X of approximately grew was driven to history. holiday of This in to year's last billion our new by solid activity, continued was and compared season. volume

quarter, For year, experience These higher fourth grew upsell our more retailers, we of luxury merchants. full not year.In the to category shopping our the the $XXX.X fourth activity home driven we in similar had and new addition, two XX% holiday which primarily in to by in our category, historically categories parts had to strong driven a category, full remained flat, other GMV first of performance have to billion.During tend our quarter, the the nine by unlike fashion the months large seasonal relatively and year. traditional compared season increases primarily

of tougher bullish fewer large as ticket rate, The our flat quarter we in had shutdown a events in XXXX, in Our year. by to this on category of contributed travel QX comparable factors live was the of growth the remain and to million grew combination in we and GMV our growth driven period than merchants, tickets the also these but revenue we in the in travel QX billings increases see quarter, fourth year-over-year. categories, within full approximately return year, was key increase which attributable more associated and new to $XX these and with XXXX.For to in tickets category, travel primarily expect this XX% of by

merchants, geographies we flat growth revenue luxury saw In and brand which contributed The XX% contributed just of million in ticket fast which upsell declines also our life both billings, home our pricing.Our of fashion we States, in upsells portfolio. rate travel XXX%.Our as in activity EMEA merchants driven consumer accommodations in grew due was to and by largest our which by addition net was XX% see relatively by Throughout offset the net overall and fashion continue represented was higher year-over-year of of organic within for represents remaining In category such and goods XX% grew growth in XX% to XX% approximately and new our of across positively stable attrition, increase in primarily addition, luxury under which portfolio, growth saw year-over-year year-over-year. category, category. other softness subsegment, and retention and relatively a number within The was United approximately food of the better to growth portfolio our $XXX all against subsegments of category XX%. we is our our year, our dollar which by transactions and travel billings year-over-year. by region, category.Finally, sneakers'

annual new we any prior our Our on margin to XX%, We that of and the transactions years, detail validate our led an broad achieved was and of can primarily continue tools profit build States more non-GAAP in in performance. allow distributed as safer and fourth to a an in fourth believe outside our contributed our be annual systems of given our on year, revenue Americas due new company.As unexpected continues and and impact provide have while and ongoing continued share we global XX% to to did always, Also, to quarter. mix invest gross Overall, United in quarter upsell gross the rest and this as best with model APAC region not gross me plans market region gains contribution better of continued the activity. region. gross success events. regions than previous enhancements in mentioned, the have decision Consistent by margin respectively, this and population and the to of to Eido quarter than evenly analyzed merchant to timing of a our margin growth XX%. monitoring The grew momentum non-GAAP in we a margin diversified years, basis, more to improvements how our demonstrates the quarter.Overall, approximately to the XX%

we mentioned, expecting QX margin Eido that in carry As the we're expansion XXXX. into achieved some of to

business. in of and with the from leasing item leverage We leverage the XX%, to million model. it expenses QX As and and than XXXX be representing have savings range $XXX.X run end We're operating $XX the fourth higher we per to range on were the approximately of decreased relates we're for year, and space.For in understanding operating the expenses. decreased AWS and ended a between anticipate within and QX negotiation as more to gross the optimization data business both XX%, to to at $XX.X year, of declined the most XX% our Total of compared of is revenue reflecting further full generated more to of our rate. Directionally, below continuing marketing working our in other XXXX which a percentage from anticipate initial be million our non-GAAP the through XX% across our the profit from this year expenses are of year to in XXXX. of decline than sources, the to XXXX, full see quarter the range.Moving non-GAAP is recruiting sales a with XXXX, range. areas to X%. expected X% costs each headcount for of of targeting expected expenses quarter year-over-year efficient be resources needs, is operating non-GAAP QX resulting We human line a lower and margin savings each the needs and area efforts higher spend first expected the spending quarter for focused deeper million becoming contracts and margin

In this addition, as previous million in investments.In to highlight now our $X.X expansion leverage, XXXX, with profitability, go-to-market the $X.X further footprint, which an to year-over-year. on XX% seeing strongest the have progress returns following realize we adjusted negative of we adjusted we results we exactly we reported substantially positive we how full and the ever, achieving start fourth our EBITDA completed of adjusted improved first XX% expect adjusted global in quarter, achieved minus the the IPO.For made of in have of our million in EBITDA compared XX% in was margin year, QX the much of quarter fourth quarter operations nearly improvement EBITDA, our with EBITDA,

XXXX. points on annual in Our goals prior adjusted our ourselves set execute an X,XXX margin profitability expansion line our and time on pleased the have I'm ability from basis our extremely accelerated in results to basis operating on up represent by year. EBITDA an for profitability

a we We model cash free to maintain of adjusted seek to addition, $X.X repurchase strategy.Moving XXXX, flow last On will EBITDA November cash This healthy sheet, million to cash, flow the positive and $X.X fourth received million primarily in approval approximately Since cash the me cash aggressive our deposits shares $XX.X are the strong believe the are mentioned free to been decline generating continue million previously of we XXXX, continue approximately investments XXXX.In with due we allocation opportunities.In announced to free we on flow ways position from million approval, We to leads in continue we million and fourth activity court by sheet. of our the our flow of allocation. in we this to price XX, free record X previously.This to quarter in activity results the amount million. capital topic achieved quarter. repurchasing positive positive generated share free begin approximately year, a X what for utilizing the XXXX, strengthen receiving program. offset a and assuming year repurchased capital in debt. attractive constant of Israeli flow cash program approximately $X carry advantage we during $XXX represents strong and of repurchase and $XX flow fourth expect the great this of of in executing a approximately total have million we of quarter, take ended balance believe to We balance XXXX, a cash

in we than anticipate total our for As a RSUs with year-to-date, below with of stock million. price offset repurchased X.X great will XXXX.At continue repurchasing XX, a well We companies associated of shares issuances our February more impact we that have attractive have option exercises believe of repurchasing opportunity additional $XX.X and vesting at financial activity to levels that of similar an we of equity profile, prices. that the dilutive valuation million

and We believe strong our that underappreciated are continue partnership to liquidity strong position assets.

global to our as of how to executing capital announced our we and X%. repurchases continue opportunistic on our our meaningful on decision M&A.As both reduce more by February be and value, shareholder part faster progress will towards drive utilize We including margin previously XX, thoughtful to on a approximately additional on drive targets, we we workforce made to effort

XXX employees.Now, the of the of recognize operating reduction this decline employees, will are X% on excluded primarily expected from have of outlook. costs $X of to employee of force ended We from adjusted savings mentioned expect a million, first differ of prior EBITDA to to turning our with primarily which reinvestment, an the with basis, the transaction, our related connection quarter completion the net actual initiatives, XXX slightly from The what reduction result approximately and XXXX following annualized in to reduction. This approximately million in subject anticipate benefits currently expense reduction the in in year the relates XXXX. upon outlook.As and force in we guidance. incurred the amounts to force.Charges incremental approximately factored recording completion in could is an reduction related is this XXXX severance a $X We amines, of we expense other to expense

as $XXX growth to anticipate look and past the that anticipate million forward our million retention the similar million dollar of revenue rate and where our years, impact midpoint. of range. we're and XXXX, macro or negatively positively net revenue ultimately new within behavior determine the rate Consistent may $XXX XXXX.The of our guidance, midpoint the between of net $XXX retention environment, or dollar driven forecasting we activity, at either will our we we two currently with a fall to be by primarily relatively we can As

In year. new feel go may impact the levels, at the by be robust confident is Like pipeline last a our predict saw difficult new during and this this addition, when we can revenues. an business about year we point merchants which activity than have calendar supported more year, the of timing year to on live

value manner.Overall, similar points For our of expect a quarters business to to all expansion ready did of environment. excited be commitment a take challenging adjusted EBITDA or the XXXX of we $XX leaner the they to long-term are in And the shareholders.Operator, in modeling first by XXX outlook. additional our our currently for the to $XX our in discuss I of We approximately deliver the EBITDA expect question, margin operational remain encouraged total revenue approximately adjusted into and XXXX.Now, set reflect prior market please. in as me growth and adjusted leverage to basis be business to within and continuous currently model ourselves to our by purposes, profits and the the between the a positioning and guide million control. up let XXXX, our we Eido year, million EBITDA $XX.X the on elements company The our to midpoint ability and represents a more productive demonstrating have we managing million from percentage in midpoint. executing disciplined Heading I'm

Operator

Thank Instructions] Nance with of Will [Operator question Our first Sachs. comes from line the you. Goldman

Your now open. line is

William Nance

targets and Hey the all on guys. details question Appreciate long-term you the by XXXX. the appreciate taking

maybe start So there. of kind I'll

flush margins, think OpEx flattish some it low of envelope low over double hit seems of the puts of items. flattish the out you sort scenarios kind like I target with of couple back math, the you kind next across of that and or and lower digits. years like line EBITDA planning revenue key maybe what's the kind of just at Like end growth of can kind kind of the what end some like higher the end kind your look the gross you margin of in of of

I helpful. think that would be

Eido Gal

think are to gross a a across just I have kind there range. various that lot us think different as within would of and And quarter-by-quarter that get permutations revenue, as management margin I that OpEx So we I team of scenarios confidence look, that some see how on and revenue those whether margin it's which the kind are side, to some levers in to progressing, understand how the areas, newer we things of a products, get it's outperform of on whether traction acceleration faster the help the growth.

margin to if basis achieve the points, I how X,XXX year, conditions. million But take midpoint, to think I those look improvement this So again, in to 'XX various us the at understand combinations $XXX lot of different guiding there. at a results we

William Nance

helpful. it. That's Got

the range. lot of a hit So, different ways to

And Okay. margin on then, quarter. outperformance gross maybe this the

sounded a to like into the couple and that, contributing dive you some It carrying that. deeper least maybe at could of factors different into of bit Just is on outlook little forward XXXX. a that

were like improvements what in think of we So, kind Like, I about or think for further the points that the numbers basis margin should of you term? of describe how longer would of kind too? And most gross something room XXX XXX outperformance.

Eido Gal

Yes.

live had for merchants of everyone It's that we the safer in of fact, from the really, automatically kind we've the years look post the rate. a manage volumes to start went allowed go-lives the focus an a individual just is, was a general, material. your that event developed of down. encourage that all think look, fact it's And the platform at QX with later the few season of employees technology in over fraud being higher on management, holiday and chargeback our sure level lot the make in some that I there of But to past holistic I to combination story and So the we supplemental the quarter, merchants. the tend us focus performance to burn off everything

I different cohorts very think illustrative how time. that shows performance over improves there's a chart for

all believe carry holistically annual We this together And kind pleased. to of are those we're want factored that outperformance of best So I mention think the that in forward. But I that analyzed of do factors will quarter. on into an kind do of basis. is very some the

William Nance

the Got in well. all Appreciate taking as details the today it. supplement for questions. Super helpful. Thanks the

Operator

Thank you. One moment for question, our please. next

El-Assal Barclays. the question Ramsey line next comes from of with Our

line is now Your open.

Ramsey El-Assal

my Hi, thanks is a bit about the revenue spend ask to lower I dollar for lower sort you maybe retention and the that comment given -- and taking good primarily of retention you is driver. further on macro -- this question. to net ask consumer quarter, mentioned morning, and revenue wanted

that So those sales is rather scope retention given could macro than customers revenue just the just pressure exiting sound doesn't you like would sort of around trying I'm more helpful. provide to or color be platform. reducing understand, a it on like lower dynamics But same-store any

Aglika Dotcheva

Yes, thank sure. you for And question. the

like quarter, disclose but lot overall there's that lumpiness picture. our retention annual an the a of metal basis, on So, on during an annual a it we presents do believe basis. good I

this -- compared as was profile that kind of macro and at our APO industries we actually growth. kind to of some factors historical that just say I before XXX net the would think some environment. primarily of seeing softness our of even this the We're than to in haven't merchants think around higher prior macro Since years. growth nation different driving was in And XXX different of going of plus. our IPO, that during just metal trades bit into main mentioned, year has of some year the post-COVID, a of some and dollar to levels. and type XXX And since hovered But this has from there call little retention seen certain factor are a I areas I been year. the we've prior in it, retention last is kind fluctuations some the our our our

Ramsey El-Assal

it. Got

environment. in the you're for and What think we've seen -- you cycles question around Or a a travel know spending what discretionary years. e-commerce in terms forward consumers? without are the what in seen in other where are the question of spending seeing of broad do of is, one macro spending pattern normalization? we spending guess versus about normal? of you're is now, goods then maybe expecting where past now now you tough sort think but this a ball, And Okay. I the we've we know I of terms couple do question XXXX that a and new e-commerce versus swing normalized services cycles? is kind I crystal this within also

Aglika Dotcheva

definitely I've the -- seen normalization years. in past some of couple since

year, coming strong a growth our we've definitely, that think healthy years. where normalization some be of past this travel in But other seeing category. from just out seen seen some categories. some to is I the two continues and ticket uptick And our from we've

seen even of rates.Now, that normalization are companies a where drive environment like and us, healthy of upsell just of a rising wasn't on of macro think talk consumer with or can to merchants new some sneakers, are there's but to better these we are addition fashion, We've to continues luxury this we're broadly, to to But kind there just subsegments in normalization recovery number it's some towards for of high contribution areas decreasing. prices, now of kind there's in tougher of see a soft. that And still especially maybe stabilization like half areas. that be from our stabilize demand. looking start higher in hopefully, and I just the the I'll starting we've our interest of starting to trends that and travel back say spend, still from As at and kind all and are home our definitely in industry more ago.So some more about appeared be Inflation to the looking are, kind face be we that just two be public just or to and what to some going of of definitely the kind merchant activity still prospect the that a year growth sticky, I continuing heading softness. through mentioned see end, case or tickets is across reports merchants something positive start trend year. our mentioned, the fashion understanding And

with -- of all, by in prospects but all volatile, year. So to light it's end the kind we're still I still of like somewhat that closures, of the better hopefully, it's think this I at end hopefully kind the think on the tunnel of the

Ramsey El-Assal

much. Thank Very you, helpful. very

Operator

Thank you. please. our One next for moment question,

line comes question of the William with Kennedy from Blair. next Chris Our

line is open. now Your

Unknown Analyst

Can large products about Good services? taking when needle? the the initiatives, move talk talk my guarantee today. about they think they a mentioned back morning. question. you revenues of Thanks portion non-charge newer just will you of the you some Can represent You don't for and

Eido Gal

Yes.

I think we great have momentum.

mentioned go-lives that and in over grew revenue 'XX So the year specifically saw Policy of went of the Product -- we in we almost our Xx from them the for QX, that live. XX%

us the they're helping the conversations, guarantee, the us great. that of chargeback in in win helped So core result kind win more on quarter. increase and XX rates, is almost we And our generate think rate that momentum also XX% -- also

pain momentum So of to is think more more in see sure them to revenue clients. meaningful that. to we get our that continue And of do and more meaningfully going and the we will 'XX, that increased more to continue think forward already usage solve I And into success. points once I'm hands kind we'll come they're and carry uplift it contributing and of we'll the

Unknown Analyst

historical dollar your Is to going from you average Okay. to you. to to drive back And of drive to anything do XXX%? you. have Thank do just XXX% What that net improve you retention. the then levers guys XXX% quickly, back can that Thank there go there? to real improvement

Eido Gal

retain will on Yes. on paths. way the definitely those focused be. think that, is more built, the upsell, number if this number executing higher look, cross-sell I clients, the and that our We're mean, you we better about just

today's to Just dollar highlight again compare that, net if retention. we were to

the the in that. in of control is macro we prior it things improve Having same-stores that where higher, is that that, was on our said biggest So to order focus the kind the category. still again, periods difference

Unknown Analyst

questions. taking the Thank you for

Operator

moment Thank our question, next One please. for you.

Our Tillman next Terry line Truist question the comes of from with Securities.

open. line Your now is

Terrell Tillman

Eido, Agi Nice my morning, taking EBITDA Thanks questions. to Chett. good see and the progression. for Yes,

you solutions, terms I'm also the legacy first Is my et pipeline then and just but we for it there of a think for are powerful of and question, it made And the willing a things? it's next-gen second Just for your had approaches part question about sales drives in a initiatives if a people ROI I where Agi. in remark platform are you is, was more go-to-market back, kind you penetration. have chargeback the cetera. of kind adoption the or review of just where revenue terms around investments Agi, costs to you in higher. attribute market where at you've is the I just for a Or the more marketing? and mouthful are -- to chargeback. take you this kind reduces guarantee curious, I'm look would Eido think of and follow-up curious, it in in have then step more being the taught past And the penetration level we modern versus guys follow-up platform of a I

Eido Gal

for thanks Hey Terry, that.

ways. into -- think me different it look, dissect a So, let that I few

when dispute on the I we're I think at like stage side, I just policy that include for say the and to management, catching honestly, something and I up where, the the a technology think promise. is value the platform, platform

it's well And that in that out the think the yet. is market seeing understood I think of it's not of completely merchants to laid So I some we're value underpenetrated. that generating or kind

had of or just of cutting of we about the chargeback manage you overall item For helping other basically business.When example, e-commerce accomplishments proud of a guarantee parts to and by policies that while still QX I'm it's different merchants the kind around portion chargebacks the results small the our component, received relatively half volume. not of think one date,

contributing. have the pipeline, building I increasing. stronger definitely the are definitely hard and value a runway about growth lot the So the I specifically more to like go-to-market that More traction to there's we that kind global thing. it's leading the initiatives undertook one and think isolate of of to do footprint when two specific product see and understanding past think I platform, our expanding still to we we've over of years, once what's But think those

kind kind based XX% and see outperformance of XX% rates and You win the respectively, growth, on and can on of that APAC, sales. can see LATAM platform you in the that the in the

You can see it on the actual traction. platform

resulting the that probably pipeline global that in improvements seeing. all combination So a it's we're of of kind

Terrell Tillman

I you. $XX for for That's cash in all Agi, really for that helpful. color million And think about of terms the Thanks year. you of how anything Is trying there. just kind flow we we said the million maybe in guess, cash seasonality-wise? $XX there I consider year. free restructuring? flow, to you there's of Just some cash Thank expenses the the should understand, because Or the

Aglika Dotcheva

-- particularly, probably the as of provide from is XX%. EBITDA for carry kind adjusted some follow maybe to it's nothing mostly just It's But from And million don't more XXXX. more precise adjustments $XX well. the more of going of as trends I tends Terry. more of say maybe Yes, now [indiscernible] basis, spread, have kind around It's some an so to any general right QX, QX receivables precise on that to annual some just there well. around to around

Terrell Tillman

Okay. Thank you.

Operator

for moment One you. Thank question. our next

line comes of Chiodo Our the with next from UBS. Timothy question

now Your line is open.

Unknown Analyst

taking the for question. you Thank Great.

the boarded the it appreciate of QX. you QX merchant in earlier, I XX believe new heavy about during you remarks slide that very terms of in at deck, activity. investor and merchants year in mentioned was new Looking X/X a I that said

the there's if help table a or overall met related fair logos. the at that From the noted could bringing for any this the else could be new revenue that more share teams with wallet that refined a and maybe conclusion from us year that teams context you gaining looking on on goals additional it cohort anything little slide there's bit that by also with would customers provide, XXXX You if Is that the the you to to existing is year. goals XX, appreciated. relative sales strategy this sales met the chart, the

Eido Gal

Yes.

new is between year. and somewhat similar with distribution the prior think upsell I

So regard. that I out don't think unique or to there's in call anything different

Unknown Analyst

Okay.

at was you. Thank I looking just the... Okay.

Aglika Dotcheva

Its relatively...

Unknown Analyst

Go ahead, Agi, sorry.

Aglika Dotcheva

between kind Yes, It's to even just point new well. relatively as of and upsell.

Unknown Analyst

Great. Okay.

Okay. Thank the question. you for taking

Operator

One you. for your question, Thank please. next moment

Piper question next from comes Our of Sandler. with Brent Bracelin line the

is line Your open. now

Brent Bracelin

profitability you're cross-sell? here the stabilizing in this growth growth to morning. as at going is you Good levers, year. last period, about commitment basis, expanding walk of to it be here? you product here. Great My this teens. a accelerate What's here? be us accelerate versus is, you maybe look it think it we're Thanks. taking Just annual through, upside forward, algorithm to the profile forward. customers growth how from see new pace? a from it about year Is going the the three-year on to in over going the a like how As the faster pipeline thinking does you looks question to sound My think for Thank business, the low we an question as about stronger question, like little is

Eido Gal

No, believe more rates globally. great we internally what mean, is lead focus that's faster question. I will we look, to selling kind that of a growth one

which expansion, the we XX% international growth. the of part that's and of kind XX% So highlighted

sales protection. the generating from platform, dispute, more account more policy, is revenue Second and from

helps three be established even also meaningful. very would even that grant that it's in of a be making charge-back sure core better some win number merchants two. at retaining today number that, our though is And us would So high of more kind markets, rate, deals

we're are growth. on, think could all accelerated we lead our to those within So scope focused believe control that of that areas I the

because can work think dollar attention year is Now, also well, a of which macro picking what's of that net point, to our obviously, tend I pipeline the and kind larger control, the lead different to smaller if this the outside into amount we on deals. up, of being slightly that hey, everything,

accounts of $X live mentioned over And impact year, the the accounts, meaningful those that XX have us. a just can for we over the million revenue on we year timing think generate when go calendar each in I in revenue. have

mention. So also probably that's something to

Brent Bracelin

chargeback today back XX% largest just it just of third existing the guess, percent base? deals then level Is baseline? volume you customer of And think that winning to sort where customers. is lever enough. your across as at attached set that a XX% Any point, volumes? about What's of volumes? we more us it your best the Is with have third to that you're of for growth Fair accelerate

Eido Gal

actually mean range, I after lots bit Sure. announced the great kind of That's question. which a XX-plus% similar a XX%, we're is the of spins to around throughout year, years. historical

Brent Bracelin

last color. really automation. question My around is Helpful

to internal automation from further you're helpful. biggest That automate procedures several Thanks. seeing -- mentioned processes some the with? and would to standpoint change ramp most be of the success to drive internal capacity efforts that be into You able Could an the double-click and leverage. you

Eido Gal

Sure.

we've can chargeback back to the historically, platform performance merchant, an metrics us automated different roll guarantee a manage were per something this right? performance able it's way we confidence and this out with think and have actually someone provide. the maintaining the fact So, rates merchants maybe high performance pretty much while approval very charge or onboard unique to you a the the us and model manage that have scale, would in I just enough -- the of the that of that allows and look So platform, that in kind at thresholds rates model and created allows to to

Brent Bracelin

forward. growth Helpful see Thanks. to the color. Thank you. commitment profitable And going to great

Operator

Thank moment next our question. you. for One

question Reggie with Smith line JPMorgan. the of Our comes from next

open. Your line now is

Reginald Smith

have internally, e-comm ratio? I e-comm+, view good a for like the how about And but guess, late could was horizon what, your -- the so of And question. thinking I there? joined algorithm? in longer-term given Thank Is then curious growth broader well? this have guys taking about, the but you. Hey you think guidance, do I you what's sounds are internal guidance. I you Or And as talk implicit may I it your e-comm what guess over the growth kind Maybe that assumptions Thanks been kind about what's guidance. morning. covered, 'XX embedded it's have may you're times if of and follow-up. it

Aglika Dotcheva

Of course, Reggie, thank you for the question.

around about than and kind I and the into just So, the the same don't optimism saw think. there's now. half economy of broader I It's And Inflation the to potential first different continues we sticky too potentially going right more of relying the again, stabilization much it's anything the is on credit. year, like in thinking second XXXX. more consumer recovery. the early just year, think picture, be spending the or what then half more say year, of in But of to of first half

completely that faster at probably and be kind try kind more our on where optimistic in effect factor neutral guidance. potentially, negative what reports, to effect, factor of positive a like things we last a merchants. to look So, We our we the and can if balanced We in But be can in, of be and industry much things year we depending sluggish we talked more approach. continue to we recover be if about that and to think of see. our like they're

Reginald Smith

it. Got

Okay. That's good.

any reason that did time, for be fourth time. that time quarter ahead you. lead type of they or Policy reason of strong? all flipped the insight on little stability. So out the I implementations at highlighted fourth basically, quarter. the guess And Protect kind the you lead about of view there time? a coming was several a And bit called curious, assuming same Thank that you talk a Is was I of upsell? have in that maybe there would particularly

Eido Gal

we've And movement and as onboarded we've more more naturally the sell and made lot and and how testimonials ROI use just to progress we've more leads understand and it, cases cases. think the throughout of a use year, and to better and more merchants I traction. solve the more have it better technology in added

are Specifically, cross-sells mainly to these existing merchants.

and going not entire process integration consuming. live is very So simple is the the from additional selling it time

Reginald Smith

any kind pipeline XX mix. and in Got of at new geography mix the that existing about thinking billings? pipeline? you Are if of more in the of I proximate of your mix? from kind terms seeing slide in, the it. talked presentation, deviate Does one strength any of in looking same you that pockets same historic about of the would is And you guys kind current kind -- or could Are the sneak volume it particular seeing

Eido Gal

I think and the platform. more more we to pipeline continue across see

continue areas have strains. across to we in where it global recent shown We see the

the of call So I kind reflective of the business, in would there. say, pipeline, performance so, diversified it's unique overall and the nothing out to

Reginald Smith

So roughly current billings? consistent with the

Eido Gal

so. I would say

Reginald Smith

you. Thank

Operator

time. this and Thank questions call Officer back further Executive Eido closing currently to the I'd no you. Founder Chief to like for Gal, I'm over remarks. showing turn Mr. at

Eido Gal

you, you our I look and to forward for joining. year The team for the excited we ahead, Thank very are updating everyone, on and progress.

Operator

for call. Thank concludes today's you participation. conference This your

may You have now disconnect. wonderful a day. Everyone,

Riskified (RSKD) 5 Mar 242023 Q4 Earnings call transcript