NEW YORK - Riskified Ltd. (NYSE: NYSE:RSKD), a company specializing in e-commerce fraud prevention and risk intelligence, has updated its financial outlook for 2024, following a robust performance in the first quarter ended March 31, 2024. The company's revised forecast indicates a positive trajectory, with an increase in both gross merchandise volume (GMV) and revenue year over year.
In the first quarter of 2024, Riskified reported a 17% increase in GMV, reaching $32,018 million, compared to $27,268 million in the same period last year. Revenue also saw an 11% increase to $76,408 thousand from $68,907 thousand. The company's GAAP gross profit margin improved from 52% to 55%, and the non-GAAP gross profit margin increased from 53% to 56%.
Despite these gains, Riskified experienced a net loss of $11,630 thousand, which is an improvement from the $17,951 thousand loss in the first quarter of 2023. The adjusted EBITDA turned positive at $2,751 thousand, compared to a negative $5,169 thousand in the prior year, reflecting a margin of 4%.
The company's cash position remains strong, with approximately $455.2 million in cash, deposits, and investments, and no debt as of March 31, 2024. Additionally, operating cash flow improved significantly to $10.7 million from just $0.2 million in the prior year.
Riskified's Board of Directors has authorized a share repurchase program, with the company having bought back 6.4 million ordinary shares for $30.3 million in the first quarter. The board has approved an additional $75 million for repurchases, subject to Israeli regulatory procedures, bringing the total authorization to approximately $92 million as of May 10th.
The company's leadership expressed confidence in the continued growth and efficiency improvements. Eido Gal, Co-Founder and CEO, highlighted the success in the Ticketing and Live Events sector, where Riskified has been able to outperform competitors and secure significant new business. Aglika Dotcheva, Chief Financial Officer, emphasized the company's agility and focus on long-term success.
Looking ahead, Riskified has raised its adjusted EBITDA guidance for the year ending December 31, 2024, to between $12 million and $18 million, with revenue projections remaining between $323 million and $335 million.
This article is based on a press release statement from Riskified Ltd.
InvestingPro Insights
In the wake of Riskified's optimistic financial update for 2024, several metrics and trends from InvestingPro provide additional context for investors evaluating the company's performance and potential. Riskified's market capitalization stands at a solid $935.81 million, reflecting investor confidence in its market position and growth prospects. This valuation comes despite the company not being profitable over the last twelve months, with a negative P/E ratio of -15.91, indicating that investors are willing to bet on its future profitability.
Two key InvestingPro Tips shed light on Riskified's financial health and future outlook. Firstly, the company holds more cash than debt, which is always a positive sign for stakeholders, as it suggests a strong balance sheet and financial flexibility. Secondly, four analysts have revised their earnings upwards for the upcoming period, signaling that there may be positive developments on the horizon that could impact the company's profitability.
InvestingPro data also shows a strong return over the last three months, with a 15.52% price total return, and an even more impressive 36.39% over the last six months. This performance indicates that investors have responded well to Riskified's strategies and market execution. The company's stock is trading near its 52-week high, at 94.77% of this peak value, which could suggest a level of market optimism about its future.
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