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  Title	RISKIFIED LTD. Riskified : 2024 Q4 Earnings Transcript
  ID	7541357
  External ID	7607108438
  Author	Unknown
  Published Date	March 6, 2025, 9:55 p.m.
  Summary	March 06, 2025 at 10:52 pm EST Riskified‭ Fourth Quarter 2024 Earnings Transcript *Edited*‬ Corporate‭ Participants‬ Chett‭ Mandel,‬ Head‭ of Investor Relations‬ Eido‭ Gal,‬ Chief‭ Executive Offi
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  URL	https://www.marketscreener.com/quote/stock/riskified-ltd-125218482/news/riskified-2024-q4-earnings-transcript-49265159/
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  Content ID	4846603
  Key	591d1bba-bf91-427e-b916-9a82bb80545e
  Content	March 06, 2025 at 10:52 pm EST Riskified‭ Fourth Quarter 2024 Earnings Transcript *Edited*‬ Corporate‭ Participants‬ Chett‭ Mandel,‬ Head‭ of Investor Relations‬ Eido‭ Gal,‬ Chief‭ Executive Officer‬ Agi‭ Dotcheva,‬ Chief‭ Financial Officer‬ Analyst‭ Participants (Alphabetical Order)‬ Tim‭ Chiodo -‬ UBS‬‭ Clarke‭ Jeffries -‬ Piper‭ Sandler‬ Cristopher‭ Kennedy -‬ William‭ Blair‬ Will‭ Nance -‬ Goldman‭ Sachs‬ Terry‭ Tillman -‬ Truist‭ Securities‬ Ryan‭ Tomasello -‬ KBW‬‭ Reggie‭ Smith -‬ J‭ .P. Morgan‬ Chett‭ Mandel‬ Head‭ of Investor Relations‬ ‭Good‬ ‭morning‬ ‭and‬ ‭thank‬ ‭you‬ ‭for‬ ‭joining‬ ‭us‬ ‭today.‬ ‭My‬ ‭name‬ ‭is‬ ‭Chett‬ ‭Mandel,‬ ‭Riskified's‬ ‭Head‬‭of‬‭Investor‬‭Relations.‬‭We‬‭are‬ ‭hosting‬‭today's‬‭call‬‭to‬‭discuss‬‭Riskified's‬‭financial‬ ‭results‬‭for‬‭the‬‭fourth‬‭quarter‬‭and‬‭full‬‭year‬‭2024.‬‭Participating‬‭on‬‭today's‬‭call‬ ‭are Eido Gal, Riskified's Co-Founder and Chief Executive Officer, and Agi Dotcheva, Riskified's Chief Financial Officer.‬ ‭We‬‭released‬‭our‬‭results‬‭for‬‭the‬‭fourth‬‭quarter‬‭and‬‭full‬‭year‬‭2024‬‭earlier‬‭today.‬‭Our‬‭earnings‬‭materials,‬‭including‬‭a‬‭replay‬‭of‬‭today's‬ ‭webcast, will be available on our Investor Relations website at ir.riskified.com.‬ ‭Certain‬‭statements‬‭made‬‭on‬‭the‬‭call‬‭today‬‭will‬‭be‬‭forward-looking‬‭statements‬‭related‬‭to‬‭our‬‭operating‬‭performance,‬‭business‬‭and‬ ‭financial‬ ‭goals,‬ ‭outlook‬ ‭as‬ ‭to‬ ‭revenues,‬ ‭gross‬ ‭profit‬ ‭margin,‬ ‭Adjusted‬ ‭EBITDA‬ ‭profitability,‬ ‭Adjusted‬ ‭EBITDA‬ ‭margins‬ ‭and‬ expectations‬‭ as‬‭ to‬‭ retention‬‭ rates,‬‭ market‬‭ opportunity‬‭ and‬‭ execution‬‭ of‬‭ strategic‬‭ initiatives,‬‭ which‬‭ reflect‬‭ management's‬‭ best‬‭ ‭judgment‬ ‭based‬ ‭on‬‭currently‬‭available‬‭information‬‭and‬‭are‬‭not‬‭guarantees‬‭of‬‭future‬‭performance.‬‭We‬‭intend‬‭all‬‭forward-looking‬ statements‬‭to‬‭be‬‭covered‬‭by‬‭the‬‭Safe‬‭Harbor‬‭provisions‬‭contained‬‭in‬‭the‬‭Private‬‭Securities‬‭Litigation‬‭Reform‬‭Act‬‭of‬‭1995‭ .‬‭These‬ ‭forward-looking‬ ‭statements‬ ‭reflect‬ ‭our‬ ‭expectations‬ ‭as‬ ‭of‬ ‭the‬ ‭date‬ ‭of‬ ‭this‬ ‭call‬ ‭and‬ ‭except‬ ‭as‬‭required‬‭by‬‭law,‬‭we‬‭undertake‬‭no‬ obligation‬‭ to‬‭ revise‬‭ this‬‭ information‬‭ as‬‭ a‬‭ result‬‭ of‬‭ new‬‭ developments‬‭ that‬‭ may‬‭ occur‬‭ after‬‭ the‬‭ time‬‭ of‬‭ this‬‭ call‭ .‬ These‬‭ ‭forward-looking‬‭statements‬‭involve‬‭risks,‬‭uncertainties‬‭and‬‭other‬‭factors,‬‭some‬‭of‬‭which‬‭are‬‭beyond‬‭our‬‭control,‬‭that‬‭could‬‭cause‬ actual‬‭ results‬‭ to‬‭ differ‬‭ materially‬‭ from‬‭ our‬‭ expectations‭ .‬ You‬‭ should‬‭ not‬‭ put‬‭undue‬‭reliance‬‭on‬‭any‬‭forward‭ -looking‬‭statement.‬ ‭Please‬‭refer‬‭to‬‭our‬‭Annual‬‭Report‬‭on‬‭Form‬‭20-F‬‭for‬‭the‬‭year‬‭ended‬‭December‬‭31,‬‭2023‬‭and‬‭subsequent‬‭reports‬‭filed‬‭or‬‭furnished‬ ‭with the SEC for more information on the specific factors that could cause actual results to differ materially from our expectations.‬ ‭Additionally,‬‭we‬‭will‬‭discuss‬‭certain‬‭non-GAAP‬‭financial‬‭measures‬‭and‬‭key‬‭performance‬‭indicators‬‭on‬‭the‬‭call.‬‭Reconciliations‬‭to‬ ‭the‬ ‭most‬ ‭directly‬ ‭comparable‬ ‭GAAP‬ ‭financial‬ ‭measures‬ ‭are‬ ‭available‬ ‭in‬ ‭our‬ ‭earnings‬ ‭release‬ ‭issued‬ ‭earlier‬ ‭today,‬ ‭and‬ ‭also‬ furnished‬‭with‬‭the‬‭SEC‬‭on‬‭Form‬‭6‭ -K,‬‭and‬‭in‬‭the‬‭appendix‬‭of‬‭our‬‭Investor‬‭Relations‬‭Presentation,‬‭all‬‭of‬‭which‬‭are‬‭posted‬‭on‬‭our‬ ‭Investor Relations website.‬ I‭ will now turn the call over to Eido.‬ Eido‭ Gal‬ Co‭ -Founder, CEO & Director‬ ‭Thanks‬‭Chett‬‭and‬‭hello‬‭everyone.‬‭2024‬‭was‬‭an‬‭important‬‭year‬‭for‬‭Riskified‬‭in‬‭terms‬‭of‬‭executing‬‭on‬‭our‬‭business‬‭objectives‬‭and‬ ‭positioning our company for long-term success.‬ I‬‭am‬‭proud‬‭that‬‭we‬‭grew‬‭our‬‭GMV‬‭by‬‭15%‬‭for‬‭the‬‭full‬‭year,‬‭and‬‭achieved‬‭revenue‬‭growth‬‭of‬‭10%,‬‭finishing‬‭the‬‭year‬‭with‬‭‭ $327.5‬ million‬‭ in‬‭ revenue‬‭ and‬‭ exceeding‬‭ the‬‭ high‬‭ end‬‭ of‬‭ our‬‭ guidance‭ .‬ We‬‭ also‬‭ delivered‬‭ meaningful‬‭ Adjusted‬‭ EBITDA‬‭ margin‬‭ ‭improvements in our first full year of positive adjusted EBITDA as a public company.‬ We‬‭finished‬‭the‬‭year‬‭on‬‭a‬‭strong‬‭note,‬‭with‬‭our‬‭year‭ -over-year‬‭revenue‬‭growth‬‭accelerating‬‭slightly‬‭in‬‭Q4'24‬‭compared‬‭to‬‭Q3'24.‬ This‭ sequential improvement contributed to our highest-ever quarterly revenue and Adjusted EBITDA.‬ Despite‬‭the‬‭strong‬‭end‬‭to‬‭the‬‭year,‬‭our‬‭2024‬‭revenue‬‭growth,‬‭and‬‭Annual‬‭Dollar‬‭Retention,‬‭or‬‭ADR,‬‭and‬‭Net‬‭Dollar‬‭Retention,‬‭or‬‭ NDR,‬‭ rates‬‭ were‬‭ not‬‭ in‬‭ line‬‭ with‬‭ our‬‭ historical‬‭ benchmarks‬‭ and‬‭ our‬‭ long‭ -term‬ objectives‭ .‬ That‬‭ being‬‭ said,‬‭ I‬‭ believe‬‭ that‬‭ the‬‭ ‭operational successes of 2024 position us well for improved performance in these areas in 2025 and beyond.‬ ‭Allow‬‭me‬‭to‬‭provide‬‭some‬‭further‬‭context.‬‭Our‬‭go-to-market‬‭team‬‭had‬‭another‬‭strong‬‭year‬‭in‬‭executing‬‭on‬‭our‬‭strategy‬‭of‬‭landing‬ ‭many‬ ‭of‬ ‭the‬ ‭world's‬ ‭largest‬ ‭online‬ ‭merchants,‬ ‭proving‬ ‭our‬ ‭ROI,‬ ‭and‬ ‭then‬ ‭expanding‬‭our‬‭relationships‬‭with‬‭these‬‭merchants‬‭to‬ capture‬‭ additional‬‭ volume‭ .‬ We‬‭ closed‬‭ more‬‭new‬‭business‬‭sequentially‬‭throughout‬‭each‬‭quarter‬‭during‬‭the‬‭year,‬‭and‬‭we‬‭derived‬‭ ‭approximately‬‭$45‬‭million‬‭in‬‭revenue‬‭from‬‭new‬‭merchants‬‭added‬‭in‬‭2024,‬‭and‬‭the‬‭annualization‬‭of‬‭new‬‭merchants‬‭onboarded‬‭to‬ ‭our platform in 2023.‬ ‭Overall,‬ ‭we‬ ‭continued‬ ‭to‬ ‭win‬ ‭new‬ ‭logos‬ ‭within‬ ‭our‬ ‭larger‬ ‭verticals‬ ‭in‬‭"Fashion",‬‭and‬‭"Ticketing‬‭and‬‭Live‬‭Events",‬‭while‬‭also‬ ‭penetrating‬‭newer‬‭verticals‬‭like‬‭"Money‬‭Transfer‬‭&‬‭Payments"‬‭and‬‭"Food."‬‭We‬‭also‬‭saw‬‭strong‬‭new‬‭logo‬‭success‬‭in‬‭the‬‭United‬ States‬‭and‬‭APAC‭ .‬‭Continued‬‭upsell‬‭strength‬‭contributed‬‭to‬‭a‬‭great‬‭year‬‭in‬‭"Travel"‬‭and‬‭"Fashion",‬‭with‬‭EMEA‬‭and‬‭the‬‭Americas‬ ‭having the most success in these verticals.‬ ‭In‬ ‭2024,‬ ‭we‬ ‭welcomed‬ ‭several‬ ‭key‬ ‭merchants‬ ‭onto‬ ‭our‬ ‭core‬ ‭Chargeback‬ ‭Guarantee‬ ‭Product.‬ ‭Notable‬ ‭names‬ ‭including‬ ‭Meta,‬ ‭TodayTix,‬ ‭Fast-Retailing,‬ ‭Armani,‬ ‭Ria‬ ‭Money‬ ‭Transfer,‬ ‭Herbalife,‬ ‭Viva‬ ‭aerobus,‬ ‭Hy-Vee‬ ‭Grocery,‬ ‭Therabody,‬ ‭and‬ ‭MECCA‬ Brands‬‭ all‬‭ joined‬‭ the‬‭ Riskified‬‭ Network,‬‭ and‬‭ contributed‬‭ to‬‭ our‬‭ ongoing‬‭ efforts‬‭ to‬‭ diversify‬‭ our‬‭ revenue‬‭ base‬‭ across‬‭ various‬‭ ‭verticals and regions.‬ ‭We‬‭also‬‭executed‬‭on‬‭our‬‭goal‬‭of‬‭expanding‬‭our‬‭multi-product‬‭platform‬‭to‬‭further‬‭diversify‬‭our‬‭revenue‬‭base‬‭across‬‭products,‬‭and‬ ‭are‬‭excited‬‭to‬‭have‬‭added‬‭merchants‬‭including‬‭Norwegian‬‭Cruise‬‭Lines,‬‭Moncler,‬‭Hotel‬‭Planner,‬‭Allbirds,‬‭and‬‭SHEIN‬‭to‬‭products‬ ‭outside of our core Chargeback Guarantee product. We believe that these wins have contributed to market-share gains.‬ ‭A‬ ‭key‬ ‭focus‬ ‭for‬ ‭2025‬ ‭is‬ ‭to‬ ‭expand‬ ‭our‬ ‭top-of-funnel‬ ‭efforts‬‭to‬‭drive‬‭more‬‭pipeline.‬‭Simply‬‭put,‬‭we‬‭believe‬‭that‬‭increasing‬‭the‬ ‭opportunities‬ ‭that‬ ‭we‬ ‭have‬ ‭in‬ ‭the‬‭funnel‬‭gives‬‭us‬‭more‬‭opportunities‬‭to‬‭demonstrate‬‭the‬‭power‬‭of‬‭our‬‭platform,‬‭outperform‬‭our‬ competition‬‭ and‬‭ win‬‭ new‬‭ business‬‭ at‬‭ high‬‭ rates,‬‭ just‬‭ like‬‭ we‬‭ did‬‭ in‬‭ 2024,‬‭ when‬‭ our‬‭ win‬‭ rate‬‭ in‬‭ competitive‬‭ processes‬‭ was‬‭ ‭approximately 70%.‬ Having‭ mapped the revenue opportunities ahead, we believe that there are a number of ways for us to expand our funnel.‬ ‭First,‬ ‭we‬ ‭believe‬ ‭the‬ ‭value‬ ‭that‬ ‭our‬ ‭expanded‬ ‭multi-product‬ ‭platform‬ ‭unlocks‬ ‭is‬ ‭differentiated‬ ‭from‬ ‭our‬ ‭competition,‬ ‭and‬ ‭is‬ ‭opening doors beyond Chargeback Guarantee.‬ Second,‬‭ we‬‭ have‬‭ deeper‬‭ penetration‬‭ in‬‭ select‬‭ sub‭ -verticals‬ like‬‭ "Fashion"‬‭ and‬‭ "Ticketing‬‭ &‬‭ Live‬‭ Events",‬‭ but‬‭ relatively‬‭ low‬‭ penetration‬‭ rates‬‭ and‬‭ significant‬‭ whitespace‬‭ within‬‭ many‬‭ of‬‭ our‬‭ newer‬‭ and‬‭emerging‬‭verticals‭ .‬‭Our‬‭experience‬‭has‬‭shown‬‭that‬ ‭once‬ ‭we‬ ‭are‬ ‭able‬ ‭to‬ ‭onboard‬ ‭a‬ ‭significant‬ ‭number‬ ‭of‬ ‭merchants‬ ‭in‬ ‭a‬ ‭vertical‬ ‭and‬ ‭then‬ ‭generate‬ ‭strong‬ ‭performance‬ ‭for‬ ‭those‬ merchants,‬‭we‬‭reach‬‭an‬‭inflection‬‭point‬‭where‬‭future‬‭wins‬‭become‬‭easier,‬‭faster‬‭and‬‭more‬‭streamlined‭ .‬‭By‬‭following‬‭this‬‭proven‬ ‭playbook in our newer and emerging categories, we believe that we can ultimately own these categories as well.‬ ‭Third,‬ ‭landing‬ ‭key‬ ‭tentpole‬ ‭accounts‬ ‭outside‬ ‭of‬ ‭the‬ ‭Americas‬ ‭&‬ ‭EMEA,‬ ‭helps‬ ‭us‬ ‭unlock‬ ‭more‬ ‭opportunities‬ ‭for‬ ‭continued‬ ‭geographic expansion.‬ ‭And‬ ‭fourth,‬ ‭we‬ ‭continue‬ ‭to‬ ‭scale‬ ‭our‬ ‭network‬ ‭and‬ ‭data‬ ‭advantage‬ ‭and‬ ‭enhance‬ ‭our‬ ‭brand‬ ‭presence‬ ‭globally,‬ ‭which‬ ‭helps‬ ‭us‬ ‭promote the increasing capabilities of the platform and the financial strength of Riskified.‬ As‬‭we‬‭have‬‭frequently‬‭discussed,‬‭we‬‭have‬‭established‬‭deep‬‭rooted‬‭relationships‬‭with‬‭many‬‭of‬‭the‬‭top‬‭eCommerce‬‭brands‬‭around‬‭ the‬‭world‭ .‬‭In‬‭2024,‬‭our‬‭Annual‬‭Dollar‬‭Retention‬‭Rate‬‭was‬‭down‬‭from‬‭historical‬‭levels‬‭of‬‭98%‬‭and‬‭above.‬‭This‬‭was‬‭in‬‭part‬‭driven‬ ‭by‬‭the‬‭one-off‬‭merchant‬‭churn‬‭event‬‭in‬‭the‬‭"Home"‬‭category‬‭that‬‭we‬‭discussed‬‭during‬‭our‬‭last‬‭earnings‬‭call,‬‭along‬‭with‬‭a‬‭broader‬ uptick‬‭ in‬‭ competitive‬‭ pressure‭ .‬ To‬‭combat‬‭this‬‭dynamic,‬‭we‬‭have‬‭operationalized‬‭a‬‭thoughtful‬‭and‬‭thorough‬‭merchant‬‭retention‬‭ ‭strategy, which is designed to help us return our ADR back towards its historic levels.‬ ‭A‬ ‭key‬ ‭pillar‬ ‭of‬ ‭this‬ ‭strategy‬ ‭has‬ ‭been‬ ‭to‬ ‭aim‬ ‭to‬ ‭shift‬ ‭many‬ ‭of‬ ‭our‬ ‭merchants‬ ‭to‬ ‭multi-year‬ ‭contracts‬ ‭in‬ ‭order‬ ‭to‬ ‭increase‬ ‭our‬ ‭committed‬‭revenue‬‭base.‬‭We‬‭have‬‭already‬‭had‬‭success‬‭in‬‭executing‬‭on‬‭this‬‭plan‬‭and‬‭have‬‭over‬‭70%‬‭of‬‭our‬‭2025‬‭book‬‭of‬‭business‬ committed‭ .‬‭Based‬‭on‬‭revenue,‬‭we‬‭increased‬‭our‬‭weighted-average‬‭contract‬‭term‬‭signed‬‭for‬‭our‬‭larger‬‭accounts‬‭by‬‭30%,‬‭locking‬‭in‬ ‭renewals for nearly two years on average.‬ ‭Outside‬‭of‬‭the‬‭previously‬‭mentioned‬‭churn‬‭event‬‭we‬‭successfully‬‭renewed‬‭100%‬‭of‬‭our‬‭top‬‭20‬‭contracts‬‭up‬‭for‬‭renewal‬‭in‬‭2024,‬ ‭with half of those contracts signed for multi-year deals with the average ending year of 2027.‬ ‭In‬ ‭addition,‬ ‭we‬ ‭are‬ ‭also‬ ‭executing‬ ‭on‬ ‭the‬ ‭other‬ ‭core‬ ‭components‬ ‭of‬ ‭our‬ ‭retention‬ ‭strategy.‬ ‭We‬ ‭are‬ ‭focused‬ ‭on‬ ‭getting‬ ‭our‬ ‭differentiated‬ ‭multi-product‬ ‭platform‬ ‭into‬ ‭the‬ ‭hands‬ ‭of‬ ‭more‬ ‭of‬ ‭our‬ ‭existing‬ ‭merchants,‬ ‭generating‬ ‭continuous‬ ‭SLA‬ outperformance‬‭ for‬‭ our‬‭ existing‬‭ merchants,‬‭ partnering‬‭ with‬‭ key‬‭ merchants‬‭ to‬‭ develop‬‭ bespoke‬‭ features,‬‭ and‬‭ expanding‬‭ our‬‭ ‭executive sponsorship and merchant community programs to all aid in driving customer satisfaction and retention.‬ We‬‭are‬‭also‬‭expecting‬‭an‬‭improved‬‭Net‬‭Dollar‬‭Retention‬‭Rate‬‭in‬‭2025‭ .‬‭We‬‭believe‬‭that‬‭the‬‭prospect‬‭of‬‭stabilization‬‭in‬‭some‬‭of‬‭our‬ more‬‭recently‬‭challenged‬‭verticals‬‭such‬‭as‬‭"Fashion",‬‭ongoing‬‭execution‬‭of‬‭our‬‭aforementioned‬‭merchant‬‭retention‬‭initiatives,‬‭and‬‭ continued‬‭ penetration‬‭ of‬‭ the‬‭ upsell‬‭ whitespace‬‭ from‬‭ new‬‭ logo‬‭ wins‬‭ should‬‭help‬‭us‬‭work‬‭towards‬‭returning‬‭our‬‭NDR‬‭to‬‭recent‬‭ ‭levels of over 100% in 2025.‬ Shifting‬‭focus‬‭to‬‭our‬‭product‬‭platform‭ .‬‭It‬‭is‬‭playing‬‭a‬‭critical‬‭role‬‭in‬‭supporting‬‭growth‬‭and‬‭retention‬‭by‬‭enabling‬‭us‬‭to‬‭address‬‭a‬ wider‬‭range‬‭of‬‭merchant‬‭use‬‭cases‬‭beyond‬‭Chargeback‬‭Guarantee‭ .‬‭The‬‭expanded‬‭platform‬‭is‬‭gaining‬‭traction,‬‭with‬‭new‬‭product‬ ‭revenue‬ ‭up‬ ‭approximately‬ ‭90%‬ ‭year-over-year‬‭in‬‭2024,‬‭and‬‭new‬‭product‬‭bookings‬‭representing‬‭approximately‬‭10%‬‭of‬‭the‬‭total‬ bookings‬‭won‬‭in‬‭2024‭ .‬‭I'm‬‭encouraged‬‭by‬‭this‬‭trajectory‬‭and‬‭we‬‭are‬‭currently‬‭anticipating‬‭aggregate‬‭revenue‬‭in‬‭the‬‭high-single‬ ‭digit‬‭to‬‭low-double‬‭digits‬‭millions‬‭from‬‭Policy‬‭Protect,‬‭Account‬‭Secure,‬‭and‬‭Dispute‬‭Resolve‬‭in‬‭2025,‬‭based‬‭on‬‭our‬‭2024‬‭revenue‬ ‭exit-rate and pipeline expectations for 2025.‬ Overall,‬‭ while‬‭ we‬‭ are‬‭ seeing‬‭ traction‬‭across‬‭all‬‭of‬‭our‬‭products,‬‭I‬‭am‬‭most‬‭excited‬‭about‬‭the‬‭market‬‭opportunity‬‭for‬‭our‬‭Policy‬‭ Protect‬‭product‭ .‬‭The‬‭return‬‭and‬‭claim‬‭landscape‬‭is‬‭evolving‬‭quickly,‬‭causing‬‭significant‬‭challenges‬‭for‬‭merchants,‬‭with‬‭the‬‭market‬ ‭comprising‬‭over‬‭$100‬‭billion‬‭in‬‭losses‬‭for‬‭retailers.‬‭That's‬‭why‬‭we‬‭are‬‭further‬‭investing‬‭in‬‭the‬‭accuracy,‬‭scalability,‬‭and‬‭efficiency‬ ‭of integration in order to get this product in the hands of many more of our merchants.‬ ‭To‬‭that‬‭end‬‭-‬‭we‬‭recently‬‭partnered‬‭with‬‭Apriss‬‭Retail​,‬‭a‬‭top‬‭provider‬‭of‬‭return‬‭and‬‭claim‬‭authorization‬‭solutions.‬‭This‬‭innovative‬ ‭collaboration‬‭aims‬‭to‬‭address‬‭the‬‭growing‬‭challenges‬‭of‬‭omnichannel‬‭fraud‬‭and‬‭policy‬‭abuse‬‭by‬‭integrating‬‭comprehensive‬‭data‬‭on‬ ‭consumer‬ ‭shopping‬ ‭patterns‬ ‭throughout‬ ‭the‬ ‭entire‬ ‭customer‬ ‭journey‬‭-‬‭both‬‭in‬‭physical‬‭stores‬‭and‬‭online.‬‭This‬‭comprehensive‬ offering‬‭ seamlessly‬‭ integrates‬‭online‬‭and‬‭offline‬‭channel‬‭data,‬‭providing‬‭a‬‭unique,‬‭unified‬‭view‬‭of‬‭customer‬‭interactions,‬‭which‬‭ ‭we believe further strengthens our Policy Protect offering.‬ We‬‭believe‬‭that‬‭our‬‭ability‬‭to‬‭provide‬‭policy‬‭abuse‬‭decisioning‬‭across‬‭all‬‭ecommerce‬‭interactions‬‭is‬‭unmatched‭ .‬‭I‬‭wanted‬‭to‬‭take‬ the‬‭time‬‭to‬‭provide‬‭a‬‭few‬‭real‭ -life‬‭examples‬‭of‬‭how‬‭merchants‬‭are‬‭utilizing‬‭the‬‭product,‬‭which‬‭I‬‭think‬‭demonstrates‬‭the‬‭power‬‭of‬ ‭Policy‬ ‭Protect.‬ ‭For‬ ‭one‬ ‭merchant‬ ‭in‬ ‭the‬ ‭"Fashion"‬ ‭space,‬ ‭Policy‬ ‭Protect‬ ‭has‬ ‭given‬‭them‬‭insights‬‭on‬‭who‬‭to‬‭provide‬‭an‬‭instant‬ refund‬‭ to‬‭ upon‬‭ return‬‭ initiation,‬‭ instead‬‭ of‬‭ after‬‭ warehouse‬‭ inspection‭ .‬ Another‬‭ merchant‬‭ is‬‭ utilizing‬‭ Policy‬‭ Protect's‬‭ identity‬‭ ‭engine‬‭to‬‭customize‬‭every‬‭return‬‭experience,‬‭applying‬‭friction‬‭via‬‭handling‬‭fees‬‭or‬‭warnings‬‭to‬‭repeat‬‭abusers,‬‭and‬‭auto-approving‬ returns‬‭to‬‭good‬‭customers,‬‭reducing‬‭manual‬‭review‬‭work‭ .‬ And‭ …another‬‭merchant‬‭is‬‭seeing‬‭the‬‭benefit‬‭of‬‭our‬‭identity‬‭clustering‬ ‭technology‬‭which‬‭detects‬‭similar‬‭consumer‬‭behavior‬‭patterns‬‭across‬‭our‬‭merchant‬‭network.‬‭They‬‭are‬‭also‬‭leveraging‬‭our‬‭recently‬ released‬‭ Decision‬‭ Studio‬‭ tool,‬‭ which‬‭ is‬‭ part‬‭ of‬‭ Policy‬‭ Protect‭ .‬ As‬‭ a‬‭ reminder,‬‭ this‬‭ tool‬‭ gives‬‭ merchants‬‭ powerful‬‭self‭ -service‬ ‭capabilities‬ ‭for‬ ‭the‬ ‭creation,‬ ‭simulation,‬ ‭and‬ ‭management‬ ‭of‬ ‭customer-facing‬ ‭policy‬ ‭decisions.‬ ‭By‬ ‭using‬ ‭Riskified's‬ ‭Decision‬ Studio,‬‭ this‬‭ merchant‬‭ has‬‭ reduced‬‭their‬‭previous‬‭policy‬‭review‬‭process‬‭from‬‭200‬‭static‬‭rules‬‭to‬‭just‬‭20‬‭dynamic‬‭rules‭ .‬‭This‬‭has‬ ‭allowed‬‭the‬‭merchant‬‭to‬‭prevent‬‭bad‬‭actors‬‭from‬‭buying‬‭extra‬‭amounts‬‭of‬‭limited-run‬‭items‬‭for‬‭the‬‭purpose‬‭of‬‭reselling‬‭them‬‭on‬ ‭the secondary market.‬ ‭These‬‭complex‬‭and‬‭unique‬‭use-cases‬‭are‬‭just‬‭some‬‭examples‬‭of‬‭how‬‭our‬‭Policy‬‭Protect‬ ‭product‬‭is‬‭designed‬‭to‬‭improve‬‭customer‬ ‭experiences, reduce manual review work and help to embed Riskified into our merchants' daily workflows.‬ At‬‭our‬‭core,‬‭we‬‭are‬‭an‬‭innovative‬‭growth‬‭company‬‭with‬‭some‬‭of‬‭the‬‭best‬‭R&D‬‭and‬‭product‬‭talent‬‭in‬‭the‬‭industry‭ .‬‭We‬‭are‬‭focused‬ on‬‭investing‬‭in‬‭a‬‭merchant‭ -centric‬‭product‬‭roadmap‬‭for‬‭2025‬‭and‬‭beyond,‬‭to‬‭help‬‭us‬‭generate‬‭additional‬‭opportunities‬‭for‬‭revenue‬ ‭growth, while guaranteeing continued strong performance for our merchants.‬ ‭To‬ ‭aid‬ ‭in‬ ‭this,‬ ‭we‬ ‭have‬ ‭developed‬ ‭numerous‬ ‭AI‬‭capabilities,‬‭which,‬‭collectively,‬‭are‬‭expected‬‭to‬‭improve‬‭the‬‭performance‬‭and‬ ‭accuracy‬‭of‬‭our‬‭platform‬‭over‬‭time.‬‭To‬‭name‬‭a‬‭few,‬‭we‬‭have‬‭further‬‭enhanced‬‭our‬‭autonomous‬‭training‬‭capabilities,‬‭which‬‭enables‬ us‬‭ to‬‭ provide‬‭ completely‬‭customized‬‭models‬‭and‬‭feature‬‭performance‬‭on‬‭an‬‭individual‬‭merchant‬‭basis‬‭which‬‭generally‬‭leads‬‭to‬‭ ‭better‬ ‭performance‬ ‭results‬ ‭and‬ ‭a‬ ‭faster‬ ‭time‬ ‭to‬ ‭production.‬ ‭Our‬ ‭performance‬ ‭segmentation‬ ‭system‬ ‭automatically‬ ‭analyzes‬ ‭our‬ entire‬‭ order‬‭ population,‬‭ and‬‭ sorts‬‭ similar‬‭ transactions‬‭ into‬‭ different‬‭ segments‬‭ based‬‭ on‬‭ features‬‭ such‬‭ as‬‭ payment‬‭ type,‬‭ IP,‬‭ or‬‭ ‭margin‬ ‭profile.‬ ‭From‬ ‭here,‬ ‭we‬ ‭assign‬ ‭certain‬ ‭customized‬ ‭risk‬ ‭thresholds‬ ‭for‬ ‭each‬ ‭segment‬ ‭in‬ ‭order‬ ‭to‬ ‭eliminate‬ ‭chargebacks‬ without‬‭ impacting‬‭ approval‬‭ rates‭ .‬ The‬‭ entire‬‭ process‬‭ is‬‭ intended‬‭ to‬‭ optimize‬‭ approval‬‭ and‬‭ chargeback‬‭ rates,‬‭ to‬‭ enable‬‭ high‬‭ ‭performance‬‭for‬‭our‬‭merchants.‬‭We‬‭believe‬‭that‬‭this‬‭automation‬‭will‬‭allow‬‭us‬‭to‬‭continue‬‭to‬‭scale‬‭the‬‭business‬‭with‬‭high‬‭leverage.‬ ‭And‬‭we‬‭also‬‭deepened‬‭our‬‭modular‬‭machine‬‭learning‬‭infrastructure‬‭to‬‭easily‬‭add‬‭additional‬‭capabilities‬‭into‬‭the‬‭Riskified‬‭Decision‬ ‭Layer.‬‭Some‬‭of‬‭these‬‭features‬‭such‬‭as‬‭early‬‭detection‬‭models,‬‭our‬‭Address‬‭Obfuscation‬‭Engine,‬‭and‬‭SKU‬‭Risk‬‭network‬‭all‬‭plug‬ ‭back into the model to further deepen the AI learning across the entire platform.‬ Our‬‭ expanded‬‭ product‬‭ platform‬‭delivers‬‭the‬‭most‬‭comprehensive‬‭data‬‭capture‬‭per‬‭transaction‬‭we've‬‭ever‬‭had‭ .‬‭Starting‬‭from‬‭the‬ moment‬‭ a‬‭ consumer‬‭accesses‬‭a‬‭merchant‬‭website,‬‭opens‬‭an‬‭account,‬‭through‬‭the‬‭cart‬‭checkout‬‭experience,‬‭potential‬‭refund‬‭and‬‭ ‭return‬ ‭process,‬ ‭and‬ ‭finally‬ ‭the‬ ‭eventual‬ ‭dispute‬ ‭of‬ ‭a‬ ‭chargeback,‬ ‭the‬ ‭multiple‬ ‭customer‬ ‭touch‬ ‭points‬ ‭that‬ ‭we‬ ‭collect‬ ‭and‬ ‭tag‬ throughout‬‭ the‬‭ entire‬‭ customer‬‭ journey‬‭ all‬‭ feed‬‭ back‬‭ into‬‭ the‬‭ platform‭ .‬ This‬‭ integrated,‬‭ cross‭ -platform‬ data‬‭ sharing‬‭ creates‬‭ a‬‭ ‭synergy that enhances our performance across each product, and further strengthens our identity mapping capabilities.‬ ‭Adding‬ ‭to‬ ‭our‬ ‭capabilities,‬ ‭I‬ ‭am‬ ‭excited‬ ‭to‬ ‭announce‬ ‭Adaptive‬ ‭Checkout,‬ ‭a‬ ‭new‬ ‭advanced‬ ‭configuration‬ ‭of‬ ‭our‬ ‭Chargeback‬ ‭Guarantee‬‭Fraud‬‭and‬‭Risk‬‭Engine.‬‭We‬‭have‬‭enhanced‬‭our‬‭AI‬‭decisioning‬‭engine‬‭to‬‭intelligently‬‭adapt‬‭the‬‭checkout‬‭process‬‭to‬‭the‬ risk‬‭level‬‭of‬‭each‬‭transaction,‬‭ensuring‬‭more‬‭legitimate‬‭transactions‬‭are‬‭approved‬‭while‬‭reducing‬‭fraud‭ .‬‭This‬‭configuration‬‭works‬ ‭by‬‭blocking‬‭fraudulent‬‭attempts‬‭before‬‭bank‬‭authorization‬‭even‬‭occurs,‬‭preventing‬‭fraud‬‭from‬‭entering‬‭the‬‭payment‬‭stream.‬‭And‬ now,‬‭ we‬‭ are‬‭ employing‬‭ selective‬‭ smart‬‭ friction‬‭ to‬‭ certain‬‭ transactions,‬‭ such‬‭ as‬‭ automatically‬‭ asking‬‭ for‬‭ a‬‭ CVV‬‭ if‬‭ there‬‭ are‬‭ ‭concerns‬ ‭on‬ ‭an‬ ‭account‬ ‭takeover,‬ ‭or‬ ‭sending‬ ‭a‬ ‭One-Time-Password‬ ‭prompt‬ ‭to‬ ‭good,‬ ‭but‬ ‭risky-looking‬ ‭orders‬ ‭in‬‭order‬‭to‬‭help‬ legitimate‬‭ customers‬‭ proceed‬‭ through‬‭checkout‭ .‬‭These‬‭enhancements,‬‭combined‬‭with‬‭sharing‬‭enriched‬‭data‬‭with‬‭card‬‭issuers‬‭to‬ ‭boost‬‭auth‬‭rates,‬‭help‬‭us‬‭optimize‬‭the‬‭end-to-end‬‭conversion‬‭funnel,‬‭creating‬‭a‬‭dynamic‬‭and‬‭safe‬‭checkout‬‭process.‬‭More‬‭details‬ ‭on Adaptive Checkout will be shared in a launch press release scheduled to be issued later today.‬ By‬‭focusing‬‭on‬‭continuously‬‭advancing‬‭the‬‭capabilities‬‭of‬‭our‬‭product‬‭platform,‬‭and‬‭through‬‭strong‬‭execution‬‭by‬‭our‬‭go‭ -to-market‬ organization,‬‭we‬‭believe‬‭that‬‭we‬‭are‬‭well‬‭positioned‬‭to‬‭capture‬‭more‬‭market‬‭share‬‭in‬‭a‬‭large‬‭and‬‭growing‬‭ecommerce‬‭end‭ -market.‬ The‬‭largest‬‭part‬‭of‬‭the‬‭ecommerce‬‭landscape,‬‭being‬‭traditional‬‭CNP‬‭transactions,‬‭continues‬‭to‬‭grow‬‭off‬‭of‬‭a‬‭large‬‭baseline,‬‭which‬‭ ‭further‬‭expands‬‭our‬‭addressable‬‭market.‬‭And‬‭as‬‭Alternative‬‭payment‬‭methods,‬‭such‬‭as‬‭Apple‬‭Pay,‬‭GooglePay,‬‭and‬‭various‬‭BNPL‬ ‭types grow off a small base, we are also finding ways to be relevant to this subsegment of volume.‬ In‬‭ order‬‭to‬‭capture‬‭more‬‭of‬‭this‬‭market‬‭opportunity,‬‭we‬‭are‬‭doubling‬‭down‬‭on‬‭our‬‭platform‬‭development‬‭and‬‭expansion‬‭efforts‭ .‬ Throughout‬‭ our‬‭ company's‬‭ evolution,‬‭ we‬‭ have‬‭always‬‭aimed‬‭to‬‭invest‬‭in‬‭the‬‭development‬‭of‬‭our‬‭technology‬‭and‬‭products‬‭in‬‭a‬‭ ‭responsible‬ ‭way,‬ ‭while‬ ‭remaining‬ ‭focused‬ ‭on‬ ‭managing‬ ‭our‬ ‭expenses‬ ‭to‬‭drive‬‭towards‬‭profitability.‬‭In‬‭2024,‬‭we‬‭decreased‬‭our‬ ‭non-GAAP operating expenses by 4% for the year, on top of the 6% decline that we achieved in 2023.‬ Given‬‭ our‬‭ strong‬‭ new‬‭ business‬‭ generation‬‭ in‬‭ 2024,‬‭ our‬‭ robust‬‭ new‭ -business‬ pipeline‬‭for‬‭2025,‬‭and‬‭increasing‬‭demand‬‭for‬‭our‬‭ multi‭ -product‬ platform,‬‭ we‬‭ believe‬‭ that‬‭ now‬‭ is‬‭ the‬‭ right‬‭ time‬‭ to‬‭ focus‬‭ our‬‭ investments‬‭ into‬‭ further‬‭ developing‬‭ our‬‭ product‬‭ ‭platform.‬‭In‬‭2025,‬‭we‬‭plan‬‭on‬‭increasing‬‭development‬‭and‬‭research‬‭capacity‬‭by‬‭almost‬‭20%.‬‭We‬‭plan‬‭on‬‭doing‬‭this‬‭while‬‭keeping‬ ‭total expenses flat versus 2024.‬ ‭To‬‭accomplish‬‭this,‬‭we‬‭recently‬‭initiated‬‭a‬‭plan‬‭to‬‭restructure‬‭Riskified's‬‭workforce‬‭by‬‭relocating‬‭certain‬‭positions‬‭to‬‭lower-cost‬ ‭regions and reducing headcount in areas that we viewed as less critical to our product development and growth strategy.‬ ‭In‬‭addition,‬‭we‬‭are‬‭identifying‬‭further‬‭opportunities‬‭to‬‭incorporate‬‭AI‬‭tools‬‭into‬‭our‬‭business‬‭to‬‭help‬‭automate‬‭certain‬‭employee‬ ‭tasks‬‭and‬‭reduce‬‭manual‬‭work‬‭processes.‬‭This‬‭will‬‭in‬‭turn‬‭allow‬‭our‬‭employees‬‭to‬‭focus‬‭on‬‭higher-return‬‭work‬‭and‬‭increase‬‭their‬ output‭ .‬‭We‬‭believe‬‭that‬‭with‬‭increased‬‭employee‬‭capacity‬‭and‬‭efficiency‬‭that‬‭we‬‭can‬‭limit‬‭future‬‭hiring‬‭to‬‭the‬‭most‬‭critical‬‭roles‬ ‭needed.‬ ‭As‬‭a‬‭result‬‭of‬‭these‬‭initiatives,‬‭we‬‭expect‬‭to‬‭be‬‭able‬‭to‬‭increase‬‭development‬‭capacity,‬‭advance‬‭platform‬‭innovation‬‭to‬‭outperform‬ ‭the‬‭competition,‬‭and‬‭improve‬‭product‬‭accuracy‬‭and‬‭customer‬‭service‬‭to‬‭deepen‬‭our‬‭merchant‬‭relationships.‬‭These‬‭actions‬‭should‬ ‭help position us to maintain market leadership, accelerate our revenue, and achieve our long-term financial goals.‬ ‭As‬‭this‬‭project‬‭ramps‬‭up‬‭in‬‭the‬‭second‬‭half‬‭of‬‭2025,‬‭we‬‭believe‬‭that‬‭we‬‭will‬‭see‬‭a‬‭meaningful‬‭step‬‭down‬‭in‬‭expenses‬‭in‬‭the‬‭second‬ ‭half‬‭of‬‭the‬‭year,‬‭with‬‭the‬‭overall‬‭exit‬‭rate‬‭being‬‭lower‬‭heading‬‭into‬‭2026‬‭versus‬‭2025.‬‭Agi‬‭will‬‭touch‬‭on‬‭the‬‭overall‬‭positive‬‭impact‬ ‭to our expense outlook shortly.‬ ‭As‬‭we've‬‭previously‬‭discussed,‬‭we‬‭are‬‭aiming‬‭to‬‭achieve‬‭adjusted‬‭EBITDA‬‭margins‬‭between‬‭15‬‭and‬‭20%‬‭by‬‭the‬‭end‬‭of‬‭2026.‬‭We‬ ‭are‬ ‭still‬ ‭eight‬ ‭quarters‬ ‭away‬ ‭from‬ ‭this‬ ‭time‬ ‭frame,‬ ‭and‬ ‭we‬ ‭believe‬ ‭in‬ ‭our‬ ‭ability‬ ‭to‬ ‭manage‬ ‭the‬ ‭business‬ ‭to‬ ‭continue‬ ‭driving‬ improvements‬‭in‬‭order‬‭to‬‭achieve‬‭these‬‭goals‭ .‬‭By‬‭optimizing‬‭the‬‭operational‬‭levers‬‭available‬‭to‬‭us‬‭over‬‭the‬‭last‬‭two‬‭years,‬‭we've‬ achieved‬‭approximately‬‭2000‬‭bps‬‭in‬‭total‬‭Adjusted‬‭EBITDA‬‭margin‬‭expansion‬‭and‬‭we‬‭remain‬‭confident‬‭that‬‭we‬‭can‬‭hit‬‭our‬‭target‬‭ ‭by 2026.‬ ‭While‬‭tightly‬‭managing‬‭our‬‭bottom‬‭line,‬‭we‬‭have‬‭also‬‭executed‬‭on‬‭our‬‭capital‬‭allocation‬‭priorities.‬‭During‬‭2024‬‭we‬‭repurchased‬ ‭over‬ ‭$140‬ ‭million‬ ‭of‬ ‭our‬ ‭stock,‬ ‭and‬ ‭generated‬ ‭nearly‬ ‭$40‬ ‭million‬ ‭in‬ ‭positive‬ ‭Free‬ ‭Cash‬ ‭Flow.‬ ‭This‬ ‭is‬ ‭a‬ ‭testament‬ ‭to‬ ‭our‬ commitment‬‭to‬‭driving‬‭shareholder‬‭value,‬‭and‬‭our‬‭powerful‬‭business‬‭model‭ .‬‭As‬‭discussed‬‭on‬‭previous‬‭calls,‬‭our‬‭meaningful‬‭free‬ ‭cash‬ ‭flow‬ ‭generation,‬ ‭and‬ ‭our‬ ‭strong‬ ‭cash‬ ‭reserves,‬ ‭with‬ ‭no‬ ‭debt,‬ ‭empower‬ ‭us‬ ‭to‬ ‭utilize‬ ‭our‬ ‭capital‬ ‭strategically.‬ ‭Our‬ ‭M&A‬ strategy‬‭ remains‬‭ unchanged‭ .‬ We‬‭ believe‬‭ that‬‭ we‬‭ are‬‭ the‬‭ leader‬‭ in‬‭the‬‭space‬‭and‬‭are‬‭continuously‬‭looking‬‭for‬‭opportunities‬‭for‬‭ ‭potential consolidation to drive scale and synergies.‬ In‬‭conclusion‬‭‭ -‬‭I‬‭feel‬‭great‬‭about‬‭our‬‭leading‬‭identity‬‭engine‬‭and‬‭our‬‭differentiated‬‭positioning‬‭in‬‭the‬‭market.‬‭I‬‭believe‬‭that‬‭we‬‭are‬ redefining‬‭ the‬‭ ecommerce‬‭ fraud‬‭ and‬‭ risk‬‭ intelligence‬‭ landscape‬‭ through‬‭ our‬‭ leading‬‭ tech,‬‭ and‬‭ our‬‭ robust‬‭ pipeline‬‭ for‬‭ 2025‬‭ ‭supports the market demand for our product platform.‬ Now,‭ over to Agi‬ Aglika‭ Dotcheva‬ Chief‭ Financial Officer‬ Discussion‭ of Financial Results:‬ Thank‭ you Eido, team, and everyone for joining today's call.‬ ‭We‬‭achieved‬‭fourth‬‭quarter‬‭revenue‬‭of‬‭$93.5‬‭million,‬‭and‬‭full‬‭year‬‭revenue‬‭of‬‭$327.5‬‭million,‬‭up‬‭11%‬‭and‬‭10%‬‭year‬‭over‬‭year,‬ ‭respectively.‬ Our‬‭ fourth‬‭ quarter‬‭ GMV‬‭ of‬‭ $‭ 39.5‬ billion‬‭ represents‬‭the‬‭highest‬‭quarter‬‭of‬‭volume‬‭reviewed‬‭in‬‭our‬‭history‭ .‬‭This‬‭was‬‭driven‬‭by‬ continued‬‭ new‬‭ and‬‭ upsell‬‭ growth,‬‭ and‬‭ strong‬‭Black‬‭Friday‬‭through‬‭Cyber‬‭Monday‬‭holiday‬‭activity,‬‭which‬‭grew‬‭approximately‬‭ ‭10% on a same store basis as compared to last year's season.‬ For‭ the full year 2024, our GMV grew by 15% to $141.2 billion.‬ During‬‭ the‬‭ fourth‬‭ quarter,‬‭ we‬‭ saw‬‭ growth‬‭across‬‭all‬‭verticals‬‭other‬‭than‬‭our‬‭"Home"‬‭category‬‭due‬‭to‬‭the‬‭previously‬‭mentioned‬‭ churn‬‭ event‭ .‬‭Growth‬‭was‬‭primarily‬‭driven‬‭by‬‭new‬‭business‬‭and‬‭upsell‬‭activity‬‭in‬‭our‬‭"Tickets‬‭and‬‭Travel"‬‭vertical,‬‭and‬‭by‬‭new‬ ‭business activity in both of our "Food" and "Money Transfer & Payments" category.‬ ‭Similar‬‭to‬‭the‬‭first‬‭nine‬‭months‬‭of‬‭the‬‭year,‬‭during‬‭the‬‭fourth‬‭quarter,‬‭revenue‬‭growth‬‭in‬‭our‬‭"Fashion‬‭and‬‭Luxury"‬‭vertical‬‭was‬ ‭primarily‬ ‭driven‬ ‭by‬ ‭new‬ ‭business‬ ‭and‬ ‭upsell‬ ‭activity.‬ ‭This‬ ‭growth‬ ‭was‬‭partially‬‭offset‬‭by‬‭continued‬‭same‬‭store‬‭sales‬‭pressures‬ primarily‬‭ within‬‭ our‬‭ "High‭ -End‬ Fashion"‬‭ and‬‭ "Sneakers"‬‭ sub‭ -verticals.‬ Overall,‬‭ our‬‭ "Fashion‬‭ &‬‭ Luxury"‬‭ category‬‭ grew‬‭ by‬‭ low‭ -single‬‭digits‬‭in‬‭the‬‭fourth‬‭quarter‬‭and‬‭for‬‭the‬‭full-year,‬‭and‬‭represented‬‭approximately‬‭one‬‭third‬‭of‬‭our‬‭portfolio‬‭for‬‭the‬‭year.‬ ‭More‬‭recently‬‭we‬‭have‬‭seen‬‭some‬‭very‬‭early‬‭indications‬‭of‬‭stabilization‬‭of‬‭activity‬‭in‬‭our‬‭"High-End‬‭Fashion"‬‭segment‬‭relative‬‭to‬ ‭prior quarters, although still tracking at year-over-year declines.‬ For‬‭the‬‭full‬‭year,‬‭approximately‬‭‭ $45‬‭million‬‭of‬‭the‬‭increase‬‭in‬‭revenue‬‭was‬‭attributable‬‭to‬‭new‬‭merchants‬‭onboarded‬‭in‬‭2023‬‭and‬ 2024,‬‭ primarily‬‭ within‬‭ our‬‭ "Tickets‬‭ and‬‭ Travel"‬‭ category,‬‭ which‬‭ grew‬‭ by‬‭ 17%‬‭ year‭ -over-year.‬ In‬‭ addition,‬‭ we‬‭ saw‬‭ 40%‬‭ year‭ -over-year‬‭growth‬‭in‬‭our‬‭"Food"‬‭category,‬‭and‬‭66%‬‭growth‬‭in‬‭our‬‭"Money‬‭Transfer‬‭&‬‭Payments"‬‭category,‬‭as‬‭we‬‭continued‬ ‭to‬‭penetrate‬‭these‬‭newer‬‭areas.‬‭This‬‭growth‬‭was‬‭partially‬‭offset‬‭by‬‭a‬‭net‬‭decrease‬‭of‬‭$15‬‭million‬‭primarily‬‭due‬‭to‬‭higher‬‭attrition‬ ‭than in previous years and continued organic declines, net of upsells, which contributed to our Net Dollar Retention Rate of 96%.‬ Our‬‭ "Ticket‬‭ &‬‭ Travel"‬‭ category‬‭ was‬‭ the‬‭ largest‬‭ contributor‬‭ to‬‭ our‬‭ year‭ -over-year‬ revenue‬‭ growth,‬‭ and‬‭ it‬‭ is‬‭ now‬‭ our‬‭ largest‬‭ category‭ .‬ This‬‭ vertical‬‭ achieved‬‭ just‬‭ over‬‭ $‭ 111‬ million‬‭ in‬‭ revenue,‬‭ which‬‭ represented‬‭ approximately‬‭ one‬‭ third‬‭ of‬‭ our‬‭ overall‬‭ ‭portfolio in 2024.‬ And,‭ while our "Home" vertical declined year-over-year, we expect to exit 2025 with growth in this vertical.‬ Finally,‬‭we‬‭also‬‭saw‬‭billings‬‭growth‬‭across‬‭all‬‭geographies‬‭year‭ -over-year.‬‭The‬‭United‬‭States,‬‭which‬‭is‬‭our‬‭largest‬‭region,‬‭grew‬‭by‬ 9%‬‭and‬‭EMEA‬‭grew‬‭by‬‭4%‭ .‬‭Our‬‭Americas‬‭and‬‭APAC‬‭regions‬‭grew‬‭approximately‬‭10%‬‭and‬‭33%‬‭respectively,‬‭primarily‬‭due‬‭to‬ ‭momentum‬‭in‬‭new‬‭and‬‭upsell‬‭activity,‬‭including‬‭some‬‭tentpole‬‭accounts.‬‭We‬‭believe‬‭that‬‭our‬‭continued‬‭growth‬‭in‬‭regions‬‭outside‬ ‭of the United States is driving continued market share gains.‬ GAAP‭ to non-GAAP Disclosure:‬ ‭Moving‬‭to‬‭the‬‭discussion‬‭of‬‭our‬‭gross‬‭profit‬‭margin,‬‭operating‬‭expenses,‬‭and‬‭Adjusted‬‭EBITDA.‬‭Unless‬‭otherwise‬‭noted,‬‭I‬‭will‬‭be‬ ‭referencing‬ ‭non-GAAP‬ ‭financial‬ ‭measures‬ ‭with‬ ‭respect‬ ‭to‬ ‭these‬ ‭metrics.‬ ‭We‬ ‭have‬ ‭provided‬ ‭a‬ ‭reconciliation‬ ‭of‬ ‭GAAP‬ ‭to‬ ‭non-GAAP financial measures in our earnings release.‬ Gross‭ Profit Margin:‬ Moving‭ on to gross margin, our gross profit margin for the full year was 53%, up from 52% in 2023.‬ ‭We‬‭continued‬‭to‬‭benefit‬‭from‬‭improvements‬‭in‬‭our‬‭overall‬‭core‬‭machine‬‭learning‬‭models‬‭and‬‭the‬‭positive‬‭impact‬‭of‬‭new‬‭product‬ ‭revenue, offset by the impact of ramping of significant new merchants.‬ As‭ it relates to 2025, for the full year, we're targeting a gross profit margin between 52% to 53.5%.‬ ‭As‬‭a‬‭reminder,‬‭I‬‭encourage‬‭you‬‭to‬‭continue‬‭analyzing‬‭our‬‭gross‬‭margin‬‭on‬‭an‬‭annual‬‭basis,‬‭given‬‭individual‬‭quarters‬‭can‬‭vary‬‭due‬ ‭to various factors, including the ramping of new merchants, and the risk profiles of transactions approved.‬ ‭For‬‭modelling‬‭purposes,‬‭directionally,‬‭our‬‭first‬‭quarter‬‭and‬‭third‬‭quarters‬‭are‬‭expected‬‭to‬‭be‬‭below‬‭the‬‭range,‬‭our‬‭second‬‭to‬‭be‬‭at‬ ‭the bottom end of the range, and the fourth quarter is expected to be higher than the range.‬ Operating‭ Expenses:‬ Moving‭ to our operating expenses. We continued to manage the business in a focused and disciplined manner.‬ ‭Total‬‭operating‬‭expenses‬‭were‬‭$38.2‬‭million‬‭for‬‭the‬‭fourth‬‭quarter.‬‭For‬‭the‬‭full‬‭year‬‭2024,‬‭total‬‭operating‬‭expenses‬‭were‬‭$156.4‬ ‭million,‬ ‭a‬ ‭decline‬ ‭of‬ ‭4%‬ ‭from‬ ‭2023,‬ ‭driven‬ ‭by‬ ‭continued‬ ‭efficiency‬ ‭across‬ ‭each‬ ‭area‬ ‭of‬ ‭the‬ ‭business,‬ ‭as‬ ‭evidenced‬ ‭by‬ ‭year-over-year declines in each of our R&D, S&M and G&A expenses.‬ ‭Our‬‭operating‬‭expenses‬‭as‬‭a‬‭percentage‬‭of‬‭revenue‬‭declined‬‭from‬‭55%‬‭in‬‭2023‬‭to‬‭48%‬‭in‬‭2024,‬‭reflecting‬‭increased‬‭leverage‬‭in‬ ‭the business model.‬ As‬‭Eido‬‭noted,‬‭part‬‭of‬‭our‬‭efforts‬‭to‬‭drive‬‭faster‬‭and‬‭more‬‭meaningful‬‭progress‬‭towards‬‭our‬‭margin‬‭targets,‬‭include‬‭increasing‬‭our‬‭ reliance‬‭ on‬‭ artificial‬‭ intelligence‬‭ tools,‬‭ and‬‭ also‬‭ involved‬‭ a‬‭ decision‬‭ to‬‭ restructure‬‭ our‬‭ headcount‬‭ in‬‭ areas‬‭ less‬‭ critical‬‭ to‬‭ our‬‭ ‭product development and growth strategy, and by relocating certain positions to lower-cost regions.‬ ‭We‬ ‭ended‬ ‭2024‬ ‭with‬ ‭693‬ ‭global‬ ‭employees,‬ ‭a‬ ‭decline‬ ‭of‬ ‭7%‬ ‭from‬ ‭the‬ ‭prior‬ ‭year.‬ ‭Following‬ ‭the‬ ‭completion‬ ‭of‬ ‭this‬ ‭global‬ ‭headcount initiative we expect to end 2025 with a similar level of employees, with meaningfully increased R&D capacity,‬ As‬‭a‬‭result‬‭of‬‭this‬‭initiative,‬‭which‬‭will‬‭largely‬‭be‬‭implemented‬‭in‬‭the‬‭second‬‭half‬‭of‬‭2025,‬‭we‬‭expect‬‭to‬‭see‬‭quarterly‬‭operating‬‭ expenses‬‭ of‬‭ approximately‬‭ $‭ 38‬ million‬‭ in‬‭ the‬‭ second‬‭ half‬‭ of‬‭ the‬‭ year‭ .‬ We‬‭ should‬‭ exit‬‭ 2025‬‭ with‬‭ this‬‭ amount‬‭ as‬‭ a‬‭ good‬‭ ‭approximation for our quarterly expenses in 2026.‬ Adjusted‭ EBITDA:‬ ‭We‬ ‭achieved‬ ‭positive‬ ‭Adjusted‬ ‭EBITDA‬ ‭of‬ ‭$11.2M‬ ‭in‬ ‭the‬ ‭fourth‬ ‭quarter,‬ ‭the‬‭highest‬‭quarterly‬‭amount‬‭in‬‭our‬‭history,‬‭and‬‭our‬ ‭Adjusted EBITDA for the year was positive $17.2 million, representing a year-over-year increase of over 300%.‬ I'm‭ excited that we achieved positive Adjusted EBITDA in each quarter in 2024, and expanded our margin by 800 bps in 2024.‬ Balance‭ Sheet:‬ Moving‭ to the balance sheet. We ended the year with approximately $376 million of cash and deposits, and we carry zero debt.‬ ‭In‬‭addition,‬‭we‬‭continue‬‭to‬‭maintain‬‭a‬‭healthy‬‭cash‬‭flow‬‭model‬‭and‬‭in‬‭the‬‭fourth‬‭quarter‬‭we‬‭achieved‬‭quarterly‬‭free‬‭cash‬‭flows‬‭of‬ ‭$10.6 million, which allowed us to achieve record free cash flow generation of $39 million for the year.‬ ‭During‬‭2024‬‭we‬‭repurchased‬‭approximately‬‭27‬‭million‬‭shares‬‭for‬‭a‬‭total‬‭price‬‭of‬‭$141‬‭million‬‭which‬‭contributed‬‭to‬‭a‬‭meaningful‬ ‭reduction in shares outstanding.‬ We‬‭continue‬‭to‬‭believe‬‭that‬‭our‬‭strong‬‭balance‬‭sheet‬‭and‬‭liquidity‬‭position‬‭are‬‭valuable‬‭assets‭ .‬‭We‬‭intend‬‭to‬‭remain‬‭thoughtful‬‭in‬ how‭ we utilize our capital to drive shareholder value.‬ ‭As‬ ‭a‬ ‭result‬ ‭of‬‭our‬‭continued‬‭strong‬‭buyback‬‭activity,‬‭and‬‭our‬‭commitment‬‭to‬‭managing‬‭dilution‬‭with‬‭discipline,‬‭we‬‭continue‬‭to‬ ‭expect our share count to decline year-over-year.‬ SBC‭ and Share Issuances:‬ ‭Allow‬‭me‬‭to‬‭spend‬‭some‬‭time‬‭highlighting‬‭our‬‭commitment‬‭to‬‭tightly‬‭managing‬‭our‬‭share-based‬‭compensation‬‭expense‬‭and‬‭share‬ ‭issuances.‬ ‭First,‬ ‭in‬ ‭2024,‬ ‭share-based‬ ‭compensation‬ ‭expense‬ ‭as‬ ‭a‬ ‭percentage‬ ‭of‬ ‭revenue‬ ‭decreased‬ ‭by‬ ‭approximately‬ ‭300bps‬ ‭from‬ ‭2023‬ ‭levels.‬‭This‬‭was‬‭on‬‭top‬‭of‬‭a‬‭decline‬‭of‬‭500bps‬‭from‬‭the‬‭prior‬‭year.‬‭As‬‭the‬‭expense‬‭associated‬‭with‬‭certain‬‭awards‬‭granted‬‭in‬‭2021‬ ‭continues to decrease, we anticipate a further decline in our share-based compensation expense in 2025.‬ ‭Second,‬‭looking‬‭ahead‬‭to‬‭2026,‬‭we‬‭expect‬‭share-based‬‭compensation‬‭dollars‬‭and‬‭as‬‭a‬‭percent‬‭of‬‭revenue‬‭to‬‭continue‬‭declining‬‭due‬ ‭to‬‭the‬‭aforementioned‬‭awards‬‭coupled‬‭with‬‭the‬‭gradual‬‭roll‬‭off‬‭of‬‭expense‬‭associated‬‭with‬‭large‬‭grants‬‭made‬‭in‬‭2021‬‭and‬‭2022‬‭as‬ ‭the awards fully vest throughout 2026.‬ And‬‭ third,‬‭ we‬‭ continue‬‭ to‬‭ focus‬‭ on‬‭ controlling‬‭ our‬‭ equity‬‭ awards‭ .‬‭We‬‭granted‬‭over‬‭30%‬‭fewer‬‭awards‬‭in‬‭2024‬‭than‬‭we‬‭did‬‭in‬ 2023‭ .‬ In‬‭ 2024,‬‭ equity‬‭ awards‬‭ granted‬‭ represented‬‭ approximately‬‭ 4%‬‭ of‬‭our‬‭dilutive‬‭share‬‭count,‬‭which‬‭was‬‭down‬‭from‬‭6%‬‭in‬‭ ‭2023,‬‭and‬‭9%‬‭in‬‭2022.‬‭We‬‭will‬‭continue‬‭to‬‭target‬‭approximately‬‭4-5%‬‭in‬‭2025‬‭as‬‭we‬‭continue‬‭to‬‭manage‬‭our‬‭compensation‬‭policy‬ ‭in a disciplined manner.‬ Guidance:‬‭ ‭Now‬ ‭turning‬ ‭to‬ ‭our‬ ‭outlook.‬ ‭As‬ ‭we‬ ‭look‬ ‭forward‬ ‭to‬ ‭2025,‬ ‭we‬ ‭currently‬ ‭anticipate‬‭revenue‬‭of‬‭between‬‭$333‬‭million‬‭and‬‭$346‬ ‭million, or $339.5 million to the midpoint.‬ ‭Consistent‬‭with‬‭past‬‭years,‬‭we‬‭anticipate‬‭that‬‭our‬‭growth‬‭will‬‭be‬‭driven‬‭primarily‬‭by‬‭new‬‭business‬‭activity,‬‭and‬‭at‬‭the‬‭midpoint‬‭of‬ ‭our guidance, we are forecasting an improved Net Dollar Retention rate from 2024.‬ ‭The‬‭behavior‬‭of‬‭the‬‭macro-environment,‬‭our‬‭success‬‭in‬‭executing‬‭on‬‭our‬‭retention‬‭strategy,‬‭and‬‭the‬‭level‬‭of‬‭upsell‬‭activity‬‭relative‬ ‭to‬‭new‬‭logo‬‭wins‬‭all‬‭may‬‭impact‬‭our‬‭Net‬‭Dollar‬‭Retention‬‭Rate,‬‭and‬‭may‬‭ultimately‬‭determine‬‭where‬‭we‬‭fall‬‭within‬‭our‬‭revenue‬ ‭range.‬ ‭In‬ ‭addition,‬ ‭we‬ ‭feel‬ ‭confident‬ ‭about‬ ‭the‬ ‭new‬ ‭business‬ ‭activity‬ ‭levels,‬ ‭which‬‭is‬‭supported‬‭by‬‭a‬‭robust‬‭pipeline‬‭of‬‭new‬‭business‬ ‭activity.‬‭Historically,‬‭the‬‭timing‬‭of‬‭when‬‭new‬‭merchants‬‭go‬‭live‬‭during‬‭the‬‭year‬‭can‬‭be‬‭difficult‬‭to‬‭predict,‬‭and‬‭may‬‭have‬‭an‬‭impact‬ ‭on our calendar year revenues.‬ ‭As‬ ‭always,‬ ‭we‬ ‭will‬ ‭continue‬ ‭to‬ ‭monitor‬ ‭the‬ ‭performance‬ ‭and‬ ‭health‬ ‭of‬ ‭our‬ ‭merchants,‬ ‭consumer‬ ‭spending,‬ ‭and‬ ‭the‬ ‭broader‬ ‭eCommerce landscape and the impact on our results.‬ ‭For‬‭modeling‬‭purposes,‬‭we‬‭currently‬‭expect‬‭revenue‬‭in‬‭the‬‭first‬‭three‬‭quarters‬‭of‬‭2025‬‭to‬‭be‬‭similar‬‭on‬‭an‬‭absolute‬‭dollar‬‭basis,‬ ‭and‬‭for‬‭the‬‭fourth‬‭quarter‬‭to‬‭be‬‭above‬‭this‬‭level.‬‭We‬‭currently‬‭expect‬‭all‬‭of‬‭the‬‭quarters‬‭in‬‭2025‬‭to‬‭reflect‬‭a‬‭similar‬‭percentage‬‭of‬ ‭the total revenue as they did in 2024.‬ ‭Now‬ ‭let‬ ‭me‬ ‭discuss‬ ‭our‬ ‭adjusted‬ ‭EBITDA‬ ‭outlook.‬‭We‬‭currently‬‭expect‬‭adjusted‬‭EBITDA‬‭to‬‭be‬‭between‬‭$18‬‭million‬‭and‬‭$26‬ ‭million, or approximately $22 million to the midpoint.‬ ‭The‬‭midpoint‬‭of‬‭our‬‭adjusted‬‭EBITDA‬‭guide‬‭represents‬‭additional‬‭margin‬‭expansion‬‭from‬‭the‬‭prior‬‭year,‬‭demonstrating‬‭leverage‬ ‭in the business model and our commitment to managing the business in a disciplined manner.‬ Conclusion:‬‭ ‭Overall,‬ ‭I‬ ‭am‬ ‭encouraged‬ ‭by‬‭our‬‭market‬‭position‬‭and‬‭am‬‭confident‬‭that‬‭we‬‭can‬‭continue‬‭to‬‭execute‬‭on‬‭the‬‭elements‬‭within‬‭our‬ ‭operational‬‭control.‬‭Heading‬‭into‬‭2025‬‭we‬‭have‬‭set‬‭ourselves‬‭up‬‭to‬‭be‬‭a‬‭more‬‭productive‬‭company‬‭and‬‭Eido‬‭and‬‭I‬‭remain‬‭excited‬ ‭by the continued prospects for long-term growth and our ability to deliver value to shareholders.‬ Operator,‭ we're ready to take the first question please.‬ Question‭ and Answer‬ Terry‭ Tillman‬ Truist‭ Securities‬ ‭Good‬‭morning,‬‭Eido,‬‭Agi‬‭and‬‭Chett,‬‭thanks‬‭for‬‭taking‬‭my‬‭questions.‬‭The‬‭first‬‭question,‬‭there's‬‭a‬‭lot‬‭of‬‭disclosure‬‭on‬‭this‬‭call,‬‭so‬‭I‬ ‭appreciate‬‭it.‬‭And‬‭also‬‭hearing‬‭about‬‭specific‬‭customers,‬‭I‬‭think‬‭that's‬‭very‬‭helpful.‬‭One,‬‭I‬‭wanted‬‭to‬‭ask‬‭about‬‭is‬‭one‬‭of‬‭the‬‭first‬ things‬‭you‬‭talked‬‭about,‬‭Eido,‬‭in‬‭the‬‭opening‬‭remarks‬‭was‬‭top‬‭of‬‭the‬‭funnel‭ .‬‭It's‬‭a‬‭real‬‭focus.‬‭You‬‭win‬‭a‬‭lot‬‭of‬‭the‬‭deals,‬‭high‬‭win‬ ‭rate,‬‭you‬‭get‬‭expansion‬‭sales.‬‭What‬‭are‬‭you‬‭all‬‭doing‬‭-‬‭and‬‭we‬‭heard‬‭about‬‭R&D‬‭investment.‬‭What‬‭are‬‭you‬‭all‬‭doing‬‭to‬‭actually‬ ‭more‬‭-‬‭maximize‬‭top‬‭of‬‭the‬‭funnel,‬‭whether‬‭it's‬‭more‬‭sales‬‭reps‬‭or‬‭just‬‭maybe‬‭you‬‭could‬‭share‬‭more‬‭about‬‭some‬‭of‬‭the‬‭drivers‬‭that‬ are‭ going to help with top-of-the-funnel activity? And then I had a follow-up.‬ Eido‭ Gal‬ CEO,‭ Riskified‬ Sure‭ .‬ Hey,‬‭ Terry,‬‭ thanks‬‭ for‬‭ the‬‭ question‭ .‬ I'll‬‭highlight‬‭three‭ .‬‭Number‬‭one,‬‭as‬‭we‬‭expand‬‭the‬‭platform‬‭capabilities‬‭through‬‭this‬ increased‬‭ R&D‬‭ spend,‬‭ we're‬‭ actually‬‭ seeing‬‭ that‬‭ it's‬‭ really‬‭ beneficial‬‭ to‬‭ increase‬‭the‬‭top‬‭of‬‭the‬‭funnel‭ .‬‭So,‬‭whereas‬‭where‬‭we‬ might‬‭interact‬‭with‬‭the‬‭merchants‬‭and‬‭then‬‭they‬‭might‬‭say,‬‭the‬‭Chargeback‬‭Guarantee‬‭sounds‬‭really‬‭interesting,‬‭but‬‭I‬‭have‬‭three‬‭ ‭other‬‭priorities.‬‭Before‬‭that,‬‭now‬‭as‬‭we're‬‭able‬‭to‬‭kind‬‭of‬‭package‬‭and‬‭show‬‭the‬‭value‬‭of‬‭our‬‭policy‬‭product‬‭of‬‭Dispute‬‭Resolve,‬ ‭we are seeing an increase in that top-of-funnel opportunity. So, we think it's helpful there. That's number one.‬ ‭Number‬ ‭two‬ ‭would‬ ‭be‬ ‭around‬ ‭just‬ ‭the‬ ‭geographical‬ ‭expansion.‬ ‭We‬ ‭continue‬ ‭to‬ ‭see‬ ‭more‬‭pipeline‬‭and‬‭opportunities‬‭from‬‭that‬ ‭go-to-market‬‭investment‬‭that‬‭started‬‭kind‬‭of‬‭two‬‭years‬‭ago.‬‭And‬‭again,‬‭these‬‭being‬‭kind‬‭of‬‭longer‬‭term‬‭enterprise‬‭cycles,‬‭continue‬ ‭to see that ramp up.‬ And‬‭number‬‭three‬‭is‬‭we're‬‭trying‬‭to‬‭be‬‭more‬‭thoughtful‬‭in‬‭how‬‭we‬‭approach‬‭the‬‭more‬‭mid‭ -tier‬‭areas‬‭of‬‭our‬‭market.‬‭And‬‭that‬‭could‬ be‭ thoughts around channel distribution, which is something we're looking into and investing more this year than prior years.‬ Terry‭ Tillman‬ Truist‭ Securities‬ Okay‭ .‬ Got‬‭ it‭ .‬ Thank‬‭ you‬‭ for‬‭ that‭ .‬ And‬‭ just‬‭ the‬‭ follow‭ -up‬ question‬‭ relates‬‭ to,‬‭ sounds‬‭ like‬‭ this‬‭ is‬‭ an‬‭ important‬‭ push‬‭ around‬‭ multi‭ -year‬ renewals‭ .‬ I'm‬‭ just‬‭ curious,‬‭ and‬‭ I‬‭ don't‬‭ know‬‭ if‬‭ you‬‭ addressed‬‭ this,‬‭ what's‬‭ the‬‭ exposure‬‭ into‬‭ 2025‬‭ on‬‭ any‬‭ larger‭ -than-average‬‭renewals‬‭and‬‭then‬‭the‬‭confidence‬‭level‬‭on‬‭this‬‭kind‬‭of‬‭cohort‬‭of‬‭renewals‬‭in‬‭2025‬‭actually‬‭taking‬‭multi-year‬ ‭versus a year at a time or no, I don't want to do that? Thank you.‬ Eido‭ Gal‬ CEO,‭ Riskified‬ No,‬‭I‬‭think‬‭the‬‭confidence‬‭level‬‭is‬‭high‭ .‬‭We‬‭had‬‭a‬‭30%‬‭increase‬‭in‬‭the‬‭amount‬‭of‬‭renewals‬‭coming‬‭into‬‭the‬‭year,‬‭right?‬‭So,‬‭over‬ 70%‬‭of‬‭our‬‭book‬‭of‬‭business‬‭has‬‭already‬‭been‬‭renewed‬‭over‬‭the‬‭past‬‭three‬‭‭ -‬‭few‬‭months‬‭as‬‭part‬‭of‬‭this‬‭initiative.‬‭And‬‭as‬‭we‬‭think‬ ‭about, we mentioned kind of aside from that churn event, the 20 out of 20 renewals happening throughout the year.‬ And‬‭then‬‭maybe‬‭one‬‭thing‬‭to‬‭call‬‭out‬‭there‬‭that‬‭would‬‭be‬‭interesting‭ .‬‭Also‬‭on‬‭the‬‭discounting‬‭front,‬‭I‬‭think‬‭we're‬‭doing‬‭a‬‭good‬ job‭ .‬‭It's‬‭only‬‭been‬‭10%‬‭of‬‭renewals‬‭that‬‭actually‬‭had‬‭a‬‭discount.‬‭So,‬‭I‬‭think‬‭we're‬‭doing‬‭a‬‭great‬‭job‬‭of‬‭kind‬‭of‬‭both‬‭leveraging‬‭the‬ product‬‭platform,‬‭outperformance‬‭SLAs‬‭in‬‭order‬‭to‬‭make‬‭sure‬‭that‬‭there‬‭are‬‭kind‬‭of‬‭mutual‬‭win‭ -wins‬‭at‬‭renewal.‬‭So,‬‭we‬‭feel‬‭good‬ ‭about the strategy and the improvements we can see in 2025.‬ Ryan‭ Tomasello‬ KBW‬‭ ‭Hi,‬‭everyone.‬‭Thanks‬‭for‬‭taking‬‭the‬‭questions.‬‭Nice‬‭to‬‭see‬‭the‬‭traction‬‭on‬‭the‬‭non-chargeback‬‭products.‬‭I‬‭guess,‬‭on‬‭that‬‭topic,‬‭I‬ ‭was‬‭hoping‬‭you‬‭could‬‭provide‬‭some‬‭context‬‭around‬‭the‬‭success‬‭you're‬‭seeing‬‭with‬‭stand-alone‬‭non-chargeback‬‭deals‬‭like‬‭Policy‬ Protect?‬‭ Any‬‭ way‬‭ to‬‭quantify‬‭the‬‭momentum‬‭there?‬‭And‬‭then‬‭also‬‭just‬‭based‬‭on‬‭all‬‭these‬‭strategic‬‭initiatives‬‭that‬‭you‬‭outlined‬‭ ‭entering 2025, how any of those might play into driving more stand-alone non-chargeback wins? Thanks.‬ Eido‭ Gal‬ CEO,‭ Riskified‬ Sure‭ .‬‭Happy‬‭to‬‭take‬‭that.‬‭So,‬‭yes,‬‭we're‬‭definitely‬‭happy.‬‭I‬‭mean,‬‭we're‬‭talking‬‭about‬‭going‬‭from‬‭about‬‭$4‬‭-‬‭$5‬‭million‬‭in‬‭revenue‬ from‬‭these‬‭products‬‭in‬‭2024‬‭to‬‭potentially‬‭low‭ -double-digit‬‭million.‬‭So,‬‭really‬‭like‬‭very‬‭meaningful‬‭expansion‬‭and‬‭growth.‬‭We‬‭are‬ ‭seeing‬ ‭initial‬ ‭deal‬ ‭signings,‬ ‭while‬ ‭there‬ ‭are‬ ‭a‬‭handful‬‭of‬‭deals‬‭coming‬‭in‬‭just‬‭on‬‭the‬‭new‬‭products,‬‭we're‬‭probably‬‭seeing‬‭a‬‭bit‬ more‬‭platform‬‭sales‬‭and‬‭more‬‭cross‭ -sales‬‭to‬‭our‬‭existing‬‭base‬‭at‬‭this‬‭point.‬‭But‬‭I‬‭think‬‭as‬‭we‬‭get‬‭more‬‭comfortable‬‭with‬‭the‬‭ROI,‬ ‭improve‬‭some‬‭of‬‭the‬‭integration‬‭and‬‭usage‬‭capabilities,‬‭we‬‭can‬‭continue‬‭to‬‭see‬‭either‬‭stand-alones‬‭or‬‭initial‬‭platform‬‭sales.‬‭And‬ ‭that definitely ties into the strategy that we discussed.‬ Ryan‭ Tomasello‬ KBW‬‭ Got‬‭it‭ .‬‭And‬‭then,‬‭Agi,‬‭just‬‭for‬‭reconfirming‬‭some‬‭of‬‭the‬‭figures‬‭you‬‭gave‬‭last‬‭quarter‬‭on‬‭the‬‭home‬‭category‬‭churn,‬‭I‬‭believe‬‭you‬ mentioned‬‭you‬‭were‬‭expecting‬‭‭ $5‬‭million‬‭in‬‭the‬‭fourth‬‭quarter‬‭and‬‭then‬‭an‬‭$18‬‭million‬‭impact‬‭in‬‭2025.‬‭Are‬‭those‬‭numbers‬‭still‬ the‬‭right‬‭ballpark‬‭that‬‭we‬‭should‬‭be‬‭thinking‬‭about‬‭here,‬‭just‬‭as‬‭we're‬‭kind‬‭of‬‭looking‬‭at‬‭the‬‭underlying‬‭growth‬‭in‬‭the‬‭business,‬‭ ‭excluding that outsized churn?‬ Aglika‭ Dotcheva‬ CFO,‭ Riskified‬ Yeah‭ . That's a good approximation. I'd use these numbers.‬ Christopher‭ Kennedy‬ William‭ Blair‬ Hello‭ .‬ Thanks‬‭ for‬‭ all‬‭ the‬‭ information‬‭ and‬‭ thanks‬‭ for‬‭ taking‬‭ the‬‭question‭ .‬‭Can‬‭you‬‭just‬‭talk‬‭about‬‭NRR,‬‭I‬‭think‬‭you‬‭said‬‭96%.‬ Historically,‬‭your‬‭company‬‭has‬‭had‬‭an‬‭NRR‬‭of‬‭over‬‭110%‭ .‬‭And‬‭just‬‭talk‬‭about‬‭the‬‭dynamics‬‭there.‬‭Clearly,‬‭you‬‭had‬‭the‬‭customer‬ ‭deconversion, but just give a little bit more color in NRR?‬ Aglika‭ Dotcheva‬ CFO,‭ Riskified‬ ‭Yeah,‬‭of‬‭course.‬‭And‬‭thank‬‭you‬‭for‬‭the‬‭question.‬‭So,‬‭we‬‭reported‬‭our‬‭2024‬‭numbers‬‭and‬‭our‬‭net‬‭dollar‬‭retention‬‭rate‬‭decreased‬ ‭from‬‭historical‬‭numbers.‬‭And‬‭some‬‭of‬‭the‬‭dynamics‬‭that‬‭I‬‭see‬‭in‬‭2024‬‭versus‬‭historical‬‭numbers,‬‭again,‬‭number‬‭one,‬‭I'll‬‭say‬‭that‬ we‬‭ continue‬‭ to‬‭ see‬‭ decline‬‭ in‬‭ our‬‭ same‬‭ cohort‬‭ sales‭ .‬ And‬‭ historically,‬‭ that‬‭ has‬‭ been‬‭ like‬‭ a‬‭ very‬‭ positive‬‭number,‬‭flat,‬‭single,‬‭ ‭double-digit, even kind of very strong growth that, unfortunately, we haven't been experiencing over the last couple of years.‬ The‬‭second‬‭factor‬‭is‬‭more‬‭around‬‭the‬‭upsells‭ .‬‭What‬‭we‬‭mentioned‬‭before‬‭is,‬‭in‬‭2024‬‭specifically,‬‭we‬‭kind‬‭of‬‭focused‬‭more‬‭on‬‭new‬ logo‬‭ generation‬‭ and‬‭ it‬‭did‬‭impact‬‭our‬‭NDR‬‭just‬‭more‬‭in‬‭terms‬‭of‬‭the‬‭split‬‭of‬‭new‬‭business,‬‭just‬‭lower‬‭splits‬‭towards‬‭the‬‭upsell‬‭ ‭category. And lastly, the churn event that we kind of mentioned in 2024, it had a partial impact on NDR.‬ ‭Going‬ ‭forward,‬ ‭as‬ ‭I‬ ‭think‬ ‭about‬ ‭2025,‬ ‭I'm‬ ‭more‬ ‭optimistic‬ ‭of‬‭where‬‭it'll‬‭be.‬‭I'm‬‭hopeful‬‭that‬‭we‬‭are‬‭going‬‭to‬‭be‬‭above‬‭100%.‬ ‭There's‬‭a‬‭number‬‭of‬‭areas‬‭that‬‭we're‬‭investing‬‭in‬‭and‬‭hopefully,‬‭this‬‭will‬‭kind‬‭of‬‭reflect‬‭in‬‭the‬‭numbers.‬‭But‬‭all‬‭in‬‭all,‬‭I'll‬‭say,‬‭we‬ are‬‭ expecting‬‭ a‬‭ better‬‭ split‬‭ on‬‭ the‬‭ prior‬‭ upsells‬‭ and‬‭ as‬‭ we‬‭ focus‬‭ on‬‭ existing‬‭ merchants‬‭ and‬‭ how‬‭ to‬‭penetrate‬‭them‬‭better‬‭and‬‭ ‭overall, again, better NDR as well‬ Christopher‭ Kennedy‬ William‭ Blair‬ ‭Great.‬‭Thank‬‭you‬‭for‬‭that.‬‭And‬‭then‬‭can‬‭you‬‭just‬‭give‬‭a‬‭quick‬‭update?‬‭You‬‭mentioned‬‭it‬‭in‬‭your‬‭prepared‬‭remarks.‬‭But‬‭can‬‭you‬ ‭give‬ ‭a‬ ‭little‬ ‭bit‬‭more‬‭color‬‭on‬‭alternative‬‭payment‬‭methods,‬‭kind‬‭of‬‭what‬‭role‬‭you‬‭play‬‭within‬‭that‬‭area?‬‭Thanks‬‭for‬‭taking‬‭the‬ ‭question.‬ Eido‭ Gal‬ CEO,‭ Riskified‬ ‭Sure.‬‭Of‬‭course,‬‭Cris.‬‭So,‬‭I'll‬‭take‬‭that.‬‭So,‬‭as‬‭we‬‭think‬‭about‬‭-‬‭like‬‭we‬‭mentioned‬‭on‬‭the‬‭prepared‬‭remarks,‬‭as‬‭we‬‭think‬‭about‬‭the‬ ‭majority‬‭of‬‭the‬‭volume‬‭that‬‭continues‬‭to‬‭be‬‭CNP‬‭and‬‭that's‬‭probably‬‭growing‬‭at,‬‭based‬‭on‬‭our‬‭recent‬‭analysis,‬‭high-single-digit‬ areas,‬‭ right?‬‭ And‬‭ that‬‭ would‬‭ be‬‭ kind‬‭ of‬‭ the‬‭core‬‭Chargeback‬‭Guarantee‬‭then‭ .‬‭And‬‭then‬‭as‬‭we‬‭think‬‭about‬‭alternative‬‭payment‬ ‭methods and that could be anything from buy now, pay later to Google pay, Apple Pay to potentially PayPal areas.‬ So,‬‭ those‬‭ are‬‭ all‬‭ -‭ ‬ merchants‬‭ have‬‭a‬‭request‬‭for‬‭us‬‭to‬‭review‬‭this‬‭volume,‬‭because‬‭they‬‭have‬‭a‬‭lot‬‭of‬‭inefficiencies‬‭and‬‭losses‭ .‬ They‬‭ have‬‭ fraud‬‭ in‬‭ those‬‭ areas‬‭ and‬‭they‬‭continue‬‭to‬‭believe‬‭that‬‭we're‬‭great‬‭at‬‭identifying‬‭fraud‬‭in‬‭those‬‭areas‭ .‬‭Sometimes‬‭it's‬ ‭under‬ ‭an‬ ‭uncovered‬ ‭model‬ ‭and‬ ‭sometimes‬ ‭it's‬ ‭under‬ ‭our‬ ‭covered‬ ‭model.‬ ‭And‬ ‭there‬ ‭are‬‭a‬‭lot‬‭of‬‭nuances‬‭between‬‭the‬‭different‬ wallets‬‭ and‬‭ where‬‭ they're‬‭ protected‬‭ and‬‭ where‬‭ they're‬‭ not‭ .‬ But‬‭ from‬‭ our‬‭ perspective,‬‭ we‬‭ get‬‭ most‬‭ merchants‬‭ to‬‭ continue‬‭ ‭submitting this volume to us in a variety of business models.‬ Christopher‭ Kennedy‬ William‭ Blair‬ Got‭ it. And any percentage of mix of GMV that alternative payments are for you? Thanks.‬ Eido‭ Gal‬ CEO,‭ Riskified‬ I‭ would assume that it's similar to the global mix of these instruments.‬ Will‭ Nance‬ Goldman‭ Sachs‬ ‭Hey,‬ ‭guys.‬ ‭Appreciate‬ ‭you‬ ‭taking‬ ‭the‬ ‭question.‬ ‭Great‬ ‭to‬ ‭hear‬ ‭about‬ ‭the‬ ‭renewal‬ ‭activity‬ ‭and‬ ‭kind‬ ‭of‬‭locking‬‭up‬‭the‬‭base.‬‭I'm‬ ‭curious,‬ ‭as‬ ‭you‬ ‭guys‬ ‭went‬ ‭through‬ ‭the‬‭review‬‭of‬‭pricing‬‭strategies‬‭and‬‭took‬‭into‬‭account‬‭the‬‭competitive‬‭dynamics,‬‭any‬‭major‬ learnings‬‭ from‬‭ that‬‭ process‬‭ or‬‭ kind‬‭ of‬‭updated‬‭perspective‬‭on‬‭the‬‭competitive‬‭landscape‬‭or‬‭the‬‭pricing‬‭environment‬‭within‬‭the‬‭ fraud‬‭prevention‬‭space?‬‭How‬‭do‬‭you‬‭think‬‭Riskified‬‭is‬‭positioned‬‭and‬‭has‬‭anything‬‭kind‬‭of‬‭changed‬‭in‬‭your‬‭thinking‬‭around‬‭how‬‭ ‭you should be positioning the product in the market? Thanks.‬ Eido‭ Gal‬ CEO,‭ Riskified‬ Hey,‬‭Will,‬‭thanks‬‭for‬‭that‬‭question‭ .‬‭We‬‭did.‬‭I‬‭mean,‬‭look,‬‭when‬‭we‬‭talk‬‭to‬‭our‬‭merchants‬‭and‬‭when‬‭we‬‭try‬‭to‬‭understand‬‭why‬‭we‬ have‬‭ these‬‭ high‬‭ win‬‭ rates‬‭ in‬‭ kind‬‭ of‬‭ our‬‭ competitive‬‭ cycles,‬‭ and‬‭ I‬‭ think‬‭ we‬‭ mentioned‬‭ about‬‭ 70‭ -plus-percent‬ for‬‭ the‬‭ year‬‭ ‭increasing‬‭throughout‬‭the‬‭year,‬‭two‬‭things‬‭stand‬‭out.‬‭Number‬‭one‬‭is‬‭the‬‭accuracy‬‭of‬‭the‬‭platform,‬‭and‬‭that‬‭can‬‭be‬‭proven‬‭either‬‭in‬ kind‬‭of‬‭some‬‭online‬‭test‬‭and‬‭pilot‬‭that‬‭can‬‭be‬‭proven‬‭through‬‭just‬‭testimonials‬‭and‬‭talking‬‭to‬‭other‬‭merchants‭ .‬‭But‬‭that‬‭tends‬‭to‬‭be‬ ‭number one in one dimension.‬ The‬‭other‬‭dimension‬‭is‬‭the‬‭strategic‬‭product‬‭road‬‭map,‬‭right?‬‭So,‬‭when‬‭we‬‭talk‬‭and‬‭explain‬‭about‬‭the‬‭dynamic‬‭checkout‬‭and‬‭the‬‭ end‭ -to-end‬‭conversion‬‭impact,‬‭when‬‭we‬‭talk‬‭about‬‭policy,‬‭the‬‭different‬‭use‬‭cases,‬‭the‬‭value‬‭that‬‭it‬‭can‬‭generate,‬‭Dispute‬‭Resolve,‬ ‭Account‬‭Secure,‬‭the‬‭value‬‭add‬‭between‬‭all‬‭these‬‭different‬‭products.‬‭So,‬‭that‬‭really‬‭resonates‬‭with‬‭merchants‬‭as‬‭well.‬‭So,‬‭I‬‭think‬ those‬‭ are‬‭ the‬‭ two‬‭ components‬‭ that‬‭ merchants‬‭ are‬‭ clearly‬‭ telling‬‭ us,‬‭ this‬‭ is‬‭ why‬‭ we‬‭ choose‬‭you‬‭and‬‭why‬‭we‬‭want‬‭to‬‭continue‬‭ ‭working with you.‬ As‬‭we‬‭think‬‭about‬‭more,‬‭how‬‭do‬‭we‬‭take‬‭this‬‭and‬‭price‬‭it‬‭and‬‭bundle‬‭it‬‭in‬‭a‬‭way‬‭that's‬‭easy‬‭for‬‭the‬‭merchants‬‭to‬‭use‬‭and‬‭also‬‭good‬‭ for‬‭our‬‭financials,‬‭I‬‭mean‬‭I‬‭don't‬‭want‬‭to‬‭‭ -‬‭just‬‭for‬‭competitive‬‭reasons,‬‭I‬‭don't‬‭want‬‭to‬‭break‬‭out‬‭the‬‭different‬‭price‬‭points‬‭for‬‭each‬ ‭one‬ ‭of‬ ‭these‬ ‭products.‬ ‭We‬ ‭continue‬ ‭to‬ ‭feel‬‭that‬‭policy‬‭has‬‭very‬‭high‬‭and‬‭meaningful‬‭ROI.‬‭But‬‭just‬‭looking‬‭at‬‭the‬‭new‬‭product‬ ‭revenue‬‭growth,‬‭I‬‭think‬‭we‬‭found‬‭a‬‭good‬‭kind‬‭of‬‭mix‬‭between‬‭what‬‭functionality‬‭is‬‭kind‬‭of‬‭more‬‭stickiness‬‭related‬‭in‬‭a‬‭core‬‭part‬ of‬‭ the‬‭ product‬‭ and‬‭ what‬‭ is‬‭ generating‬‭ enough‬‭ outsized‬‭ value‬‭ that‬‭ can‬‭ be‬‭ priced‬‭ separately‬‭ and‬‭ generate‬‭ meaningful‬‭ revenue‬‭ ‭growth as well.‬ Will‭ Nance‬ Goldman‭ Sachs‬ ‭Got‬‭it.‬‭Appreciate‬‭all‬‭the‬‭color‬‭there.‬‭And‬‭then,‬‭the‬‭logo‬‭wins‬‭were‬‭interesting‬‭this‬‭quarter,‬‭I‬‭thought,‬‭or‬‭the‬‭logo‬‭call-outs‬‭in‬‭the‬ ‭prepared‬‭remarks.‬‭You‬‭guys‬‭have‬‭talked‬‭about‬‭having‬‭tentpole‬‭merchants.‬‭I‬‭think‬‭you‬‭mentioned‬‭that‬‭you're‬‭seeing‬‭some‬‭of‬‭that‬ right‬‭now‭ .‬‭Just‬‭curious‬‭what‬‭you‬‭think‬‭-‬‭I‬‭guess,‬‭which‬‭of‬‭the‬‭verticals‬‭that‬‭you‬‭guys‬‭are‬‭operating‬‭in,‬‭either‬‭like‬‭whether‬‭you're‬ already‬‭in‬‭or‬‭prospectively‬‭in‬‭through‬‭current‬‭conversations,‬‭are‬‭you‬‭kind‬‭of‬‭most‬‭excited‬‭about?‬‭Do‬‭you‬‭feel‬‭like‬‭you‬‭have‬‭line‬‭of‬‭ ‭sight to the next sort of tickets and travel like opportunity, which pretty quickly became your largest vertical?‬ Eido‭ Gal‬ CEO,‭ Riskified‬ ‭No,‬ ‭it‬ ‭did‬ ‭and‬ ‭it's‬ ‭amazing‬ ‭to‬ ‭see‬ ‭the‬ ‭growth‬ ‭there.‬‭And‬‭like‬‭we‬‭highlighted‬‭historically,‬‭right,‬‭it's‬‭always‬‭this‬‭combination‬‭of‬ ‭having‬‭these‬‭tentpole‬‭accounts,‬‭building‬‭customized‬‭features‬‭and‬‭a‬‭localized‬‭network.‬‭Look,‬‭I‬‭think‬‭over‬‭the‬‭past‬‭year,‬‭or‬‭maybe‬ even‬‭slightly‬‭more,‬‭we've‬‭really‬‭focused‬‭on‬‭expanding‬‭into‬‭non‭ -discretionary.‬‭So,‬‭when‬‭I‬‭see‬‭some‬‭of‬‭the‬‭success‬‭that‬‭we've‬‭had‬ ‭in‬‭groceries,‬‭food‬‭delivery‬‭and‬‭remittance,‬‭I'm‬‭very‬‭encouraged.‬‭I‬‭think‬‭it's‬‭still‬‭a‬‭bit‬‭premature‬‭to‬‭say‬‭which‬‭one‬‭of‬‭these‬‭is‬‭kind‬ Attachments Original document Permalink Disclaimer Riskified Ltd. published this content on March 07, 2025 , and is solely responsible for the information contained therein. 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  Data Source Name	Quantexa News
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
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