Riskified's Triumphant 2024: Revenue Surge and Adjusted EBITDA Milestone

Riskified Ltd. (NYSE: RSKD), a leader in ecommerce fraud and risk intelligence, has just announced its financial results for the three and twelve months ended December 31, 2024. The company has exceeded its high-end revenue guidance for the fiscal year and achieved its first full year of positive Adjusted EBITDA. Let's dive into the key highlights and explore what this means for Riskified's future.

Riskified's revenue growth has been primarily driven by its go-to-market strategy, contributing to 10% year-over-year revenue growth in both the third quarter and the first nine months of 2024. The company's expansion into new verticals and geographies has also played a significant role in its financial success. For instance, in the first nine months of 2024, Riskified achieved GMV growth of 16% and non-GAAP gross profit growth of 17% year-over-year, outpacing its revenue growth. This demonstrates the company's ongoing commitment to adjusted EBITDA margin expansion.

One of the most notable achievements for Riskified in 2024 was the 800 basis point expansion in its Adjusted EBITDA margin. This expansion is a testament to the company's disciplined management of its business, driving ongoing revenue and gross profit margin growth, as well as decreases in operating expenses across each area of the expense base. Riskified's ability to manage its bottom line has positioned it well for further Adjusted EBITDA margin expansion in 2025 and beyond.

Riskified's product diversification strategy has been a key driver of its financial performance. In 2024, revenue from additional products increased by approximately 90% year-over-year, representing approximately 10% of total new bookings won during the year. This growth demonstrates the company's success in expanding its product offerings and reducing its dependency on a single revenue stream. One key example of this diversification is the launch of Adaptive Checkout, an AI-powered fraud prevention and ecommerce conversion solution that combines fraud detection with conversion optimization. This product, along with other new offerings, has contributed to Riskified's overall revenue growth and improved financial performance.

In conclusion, Riskified's triumphant 2024, marked by revenue growth and the achievement of positive Adjusted EBITDA, is a testament to the company's strategic focus on expanding its product offerings, entering new verticals and geographies, and managing its business in a disciplined manner. As Riskified looks ahead to 2025, investors can expect the company to continue building on its momentum, driving further growth and margin improvement.