Why did RSKD's Q2 earnings barely meet forecasts?

Riskified's (RSKD) Q2 earnings barely met forecasts due to a combination of factors: 1. **Revenue Shortfall**: Riskified reported an actual EPS of $0.06 for Q2 2024, which was slightly below the estimated EPS of $0.08. This indicates a shortfall in revenue, as the company's actual performance was below market expectations. |code|Ticker|Name|Date|Estimate EPS|EPS Surprise|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |RSKD|RSKD.N|Riskified|2024 Q1|0.02|0.02|-0.07|169| |RSKD|RSKD.N|Riskified|2024 Q2|-0.06|0.1|-0.05|169| |RSKD|RSKD.N|Riskified|2024 Q3|-0.07|0.1|-0.06|169| |RSKD|RSKD.N|Riskified|2024 Q4|0.08|-0.02||169| 2. **Operational Challenges**: The company's partnership with Appriss Retail to strengthen fraud prevention for Shopify merchants may have introduced operational complexities during the integration period, potentially impacting short-term performance. Such partnerships often require significant setup and customization efforts, which can disrupt day-to-day operations and affect immediate financial results. 3. **Market Conditions**: The broader market conditions, including competitive dynamics and consumer behavior, may have also played a role in Riskified's performance. Changes in consumer shopping behaviors, especially across digital and physical channels, can affect the effectiveness of fraud prevention tools and overall revenue generation. In summary, Riskified's Q2 earnings fell short due to a combination of lower-than-expected revenue and operational challenges related to a recent partnership.