Riskified Ltd. (RSKD) Bundle
A Brief History of Riskified Ltd. (RSKD)
Foundation and Initial Years
Riskified Ltd. was founded in 2013 by Eido Gal, Assaf Hulio, and Shai Cohen. The company started with a vision to provide eCommerce merchants with a solution to combat fraud while maximizing approval rates.
Business Model
The company operates on a SaaS (Software as a Service) business model, offering a fraud management platform that leverages machine learning and big data analytics. This allows merchants to make real-time decisions on customer transactions.
Funding Rounds
Riskified raised a significant amount of funding in several rounds:
- Series A: $12 million in 2014
- Series B: $18 million in 2015
- Series C: $63 million in 2018
- Series D: $255 million in 2020
IPO and Public Listing
Riskified went public on July 3, 2021, through an IPO on the New York Stock Exchange under the ticker symbol RSKD. The IPO raised approximately $368 million, with shares priced at $21 each.
Financial Performance
For the fiscal year ended December 31, 2021, Riskified reported:
| Metric | 2021 | 2020 |
|---|---|---|
| Revenue | $140 million | $108 million |
| Net Loss | $(30) million | $(22) million |
| Gross Profit | $126 million | $100 million |
| Operating Expenses | $156 million | $122 million |
Market Expansion
As of 2022, Riskified expanded its product offerings into various sectors such as travel, digital goods, and subscription services. The company also established partnerships with major eCommerce platforms, increasing its market reach significantly.
Recent Developments
In 2023, Riskified reported a strategic focus on enhancing its fraud prevention capabilities and expanding its machine learning algorithms. The company has also been investing in marketing and sales to increase its customer base.
Employee Growth
Riskified has seen substantial employee growth over the years:
| Year | Employees |
|---|---|
| 2018 | 150 |
| 2019 | 300 |
| 2020 | 500 |
| 2021 | 700 |
| 2022 | 900 |
Stock Performance
As of October 2023, the stock price of RSKD is approximately $8.50, representing a significant decline from its initial public offering price of $21. The market capitalization stands at around $1 billion.
Client Base
Riskified serves over 2,500 clients globally, including major brands like:
- GoPro
- Wayfair
- American Eagle Outfitters
- Urban Outfitters
Future Outlook
Analysts predict continued growth in the eCommerce sector and an increasing focus on fraud prevention, which positions Riskified for potential future success. The company's ongoing investments in technology and customer relationships are expected to play a crucial role in its growth strategy.
A Who Owns Riskified Ltd. (RSKD)
Shareholder Composition
As of the latest available data, Riskified Ltd. (RSKD) has several major shareholders comprising institutional investors, company insiders, and retail investors. Here is the breakdown of major shareholders:
| Shareholder Type | Percentage Ownership | Number of Shares | Last Reported Date |
|---|---|---|---|
| Institutional Investors | 60% | 30,000,000 | Q2 2023 |
| Insiders | 25% | 12,500,000 | Q2 2023 |
| Retail Investors | 15% | 7,500,000 | Q2 2023 |
Top Institutional Investors
Several institutional investors hold significant stakes in Riskified Ltd., providing substantial financial backing:
| Institution | Ownership Percentage | Number of Shares | Last Reported Date |
|---|---|---|---|
| Vanguard Group Inc. | 9% | 4,500,000 | Q2 2023 |
| BlackRock Inc. | 7% | 3,500,000 | Q2 2023 |
| FMR LLC | 5% | 2,500,000 | Q2 2023 |
| State Street Corporation | 4% | 2,000,000 | Q2 2023 |
Executive Team Ownership
Key executives also own a portion of the company’s shares, aligning their interests with those of the shareholders:
| Name | Position | Ownership Percentage | Number of Shares | Last Reported Date |
|---|---|---|---|---|
| Erez Katz | CEO | 10% | 5,000,000 | Q2 2023 |
| Shay Zilberman | Founder | 8% | 4,000,000 | Q2 2023 |
| Oren Yagil | CFO | 3% | 1,500,000 | Q2 2023 |
Recent Changes in Ownership
The following are notable transactions and changes in ownership:
- Vanguard Group Inc. increased its stake by 1% in Q2 2023.
- BlackRock Inc. reduced its holdings by 0.5% in Q1 2023.
- Insider sales by Erez Katz were noted, with 500,000 shares sold in March 2023.
Market Capitalization
As of the last trading session, Riskified Ltd. has a market capitalization of approximately $1.5 billion.
Stock Performance
The stock performance has shown fluctuations in the last year. Here are the key financial metrics:
| Metric | Value | Date |
|---|---|---|
| 52-Week High | $35.00 | September 2023 |
| 52-Week Low | $15.00 | November 2022 |
| Current Stock Price | $25.00 | October 2023 |
Conclusion on Ownership and Shareholder Dynamics
The ownership structure of Riskified Ltd. reflects a strong reliance on institutional backing, combined with significant insider ownership, indicating confidence in the company's future growth prospects.
Riskified Ltd. (RSKD) Mission Statement
Company Overview
Riskified Ltd. (RSKD) is a technology company that specializes in eCommerce fraud prevention and chargeback protection solutions. As of October 2023, Riskified's mission statement revolves around empowering businesses to maximize their revenue while minimizing fraud-related losses.
Core Values
- Integrity: Upholding a culture of honesty and strong moral principles.
- Innovation: Continuously developing advanced technology solutions to stay ahead in the fraud prevention market.
- Customer Success: Focusing on delivering value and measurable results to clients.
- Collaboration: Working alongside industry partners to enhance security and foster trust.
Strategic Goals
Riskified aims to achieve several strategic goals:
- Expand global market presence in eCommerce sectors.
- Enhance the fraud detection algorithms to improve accuracy rates.
- Increase customer satisfaction and retention, targeting a 90% retention rate for existing clients.
- Implement machine learning and AI technologies to further reduce false positives.
Financial Performance
As of Q2 2023, Riskified reported the following financial statistics:
| Metric | Q2 2023 Value | Year over Year Growth |
|---|---|---|
| Revenue | $50.3 million | 25% |
| Net Income | -$10.1 million | N/A |
| Gross Merchandise Value Processed | $7.2 billion | 30% |
| Total Customers | 2,200 | 15% |
| Employee Count | 500 | 20% |
Impact Metrics
Riskified tracks several impact metrics that align with its mission to combat eCommerce fraud:
| Metric | Value (2023) |
|---|---|
| Fraud Rate Reduction | 50% |
| Chargeback Rate Reduction | 40% |
| Client Revenue Increase | $1 billion |
| False Positive Rate | 0.1% |
Technological Advancements
Riskified invests significantly in technology to meet its mission goals:
- Utilization of AI algorithms running on 3.5 million data points per transaction.
- Deployment of state-of-the-art machine learning solutions to improve fraud detection efficiency.
- Continuous updates to their risk assessment system, with 99.9% accuracy in legitimate transactions.
Market Position
Riskified holds a strong position in the fraud prevention market, noting its competitive advantages:
- Market Share: Approximately 10% of the eCommerce fraud prevention market.
- Partnerships with leading platforms such as Shopify, Magento, and WooCommerce.
- Integration capabilities with over 1,000 payment gateways worldwide.
How Riskified Ltd. (RSKD) Works
Company Overview
Company Overview
Riskified Ltd. is a provider of fraud prevention and chargeback management solutions. The company utilizes machine learning and data analytics to help online merchants increase their revenue while reducing fraudulent activities. As of October 2023, Riskified is headquartered in New York City and has expanded its global footprint to assist various e-commerce businesses.
Business Model
Riskified operates on a pay-per-performance model, meaning that clients only pay for the services when the fraud prevention measures are successful. This aligns the company's interests with those of its clients and builds trust in its service delivery.
Key Services
-
Fraud Screening: Solutions designed to analyze transactions in real-time.
-
Chargeback Protection: Services that protect merchants from fraud-related chargebacks.
-
Identity Verification: Tools for confirming customer identities to prevent fraudulent transactions.
Technology and Data Science
- Fraud Screening: Solutions designed to analyze transactions in real-time.
- Chargeback Protection: Services that protect merchants from fraud-related chargebacks.
- Identity Verification: Tools for confirming customer identities to prevent fraudulent transactions.
Technology and Data Science
Riskified utilizes advanced machine learning algorithms that assess millions of transactions per day. The technology relies on a vast dataset, continuously learning from new data to improve accuracy and fraud detection rates. By utilizing behavioral analytics, the company can differentiate between genuine and fraudulent activities effectively.
Market Reach and Growth
As of 2023, Riskified serves over 2,500 merchants across different industries including retail, travel, and digital goods. The company reported a year-over-year revenue growth of 35% in Q2 2023, indicating strong market adoption of its services.
Financial Performance
| Year | Revenue (in millions) | Net Income (in millions) | Customer Growth |
|---|---|---|---|
| 2020 | 95 | -12 | 1,800 |
| 2021 | 126 | -10 | 2,000 |
| 2022 | 170 | -6 | 2,300 |
| 2023 | 230 | 0 | 2,500 |
Partnerships and Integrations
Riskified has established partnerships with major payment gateways and e-commerce platforms including:
- Shopify
- Magento
- BigCommerce
- PayPal
- Square
Compliance and Security
The company adheres to stringent compliance measures, including PCI DSS and GDPR, to ensure that customer data is handled with the utmost security. Riskified regularly undergoes third-party audits to validate its security protocols.
Recent Developments
In Q3 2023, Riskified announced the launch of a new product feature that enhances real-time analytics for better decision-making. This feature is aimed at improving customer experience and minimizing fraud.
Investment and Valuation
As of October 2023, Riskified Ltd. holds a market capitalization of approximately $1 billion. The company has raised a total of about $300 million in funding since its inception, with significant investments from venture capital firms interested in fintech and e-commerce innovations.
How Riskified Ltd. (RSKD) Makes Money
Business Model Overview
Riskified Ltd. operates primarily on a SaaS (Software as a Service) model, providing e-commerce merchants with fraud prevention solutions that enhance online transaction security. The company generates revenue through transaction-based fees and subscription fees.
Transaction-Based Revenue
The primary source of revenue for Riskified is derived from transaction fees. They charge their clients a percentage of the sales processed through their platform, which can vary based on the client’s volume and risk profile.
In Q2 2023, Riskified reported processing over $57 billion in e-commerce revenue.
Transaction fees typically range from 1.5% to 2.5% of the total transaction value, depending on the risk level of the transactions involved.
| Year | Gross Merchandise Volume (GMV) | Transaction Fees (Model Percentages) | Revenue from Transaction Fees |
|---|---|---|---|
| 2021 | $30 billion | 2.0% | $600 million |
| 2022 | $40 billion | 2.0% | $800 million |
| 2023 (Q2) | $57 billion | 1.75% | $998 million |
Subscription Fees
Alongside transaction fees, Riskified offers subscription-based pricing for its suite of services. Clients can opt for monthly or annual subscriptions, which provide access to various tools and analytics for managing fraud and optimizing their transaction processes.
As of Q2 2023, the average annual subscription fee is approximately $5,000 per client.
| Year | Number of Clients | Average Subscription Fee | Total Subscription Revenue |
|---|---|---|---|
| 2021 | 1,000 | $3,500 | $3.5 million |
| 2022 | 1,500 | $4,500 | $6.75 million |
| 2023 (Q2) | 2,000 | $5,000 | $10 million |
Service Level Agreements (SLA) and Performance Guarantees
Riskified differentiates itself by providing performance guarantees through its service level agreements. If a transaction fails due to their fraud prevention technology, they offer clients the opportunity to recover the losses, increasing client trust and loyalty.
Approximately 10-20% of new clients are attracted through these performance guarantees, which also contributes to increased transaction volume.
Cost Structure
The operational expenses for Riskified include technology development, customer support, and marketing. In Q2 2023, their total operating expenses were reported at approximately $40 million.
- Technology Development: $25 million
- Customer Support: $8 million
- Marketing: $7 million
Market Positioning and Growth
Riskified operates in a rapidly growing market for e-commerce fraud prevention, projected to grow significantly due to increasing online transactions. The estimated market size for global e-commerce fraud prevention was valued at around $8 billion in 2022 and is expected to reach $30 billion by 2030.
Riskified’s revenue growth has been strong, with a year-on-year increase of 40% in 2023, attributed to expanding their client base and enhancing service offerings.
Key Performance Indicators
Riskified measures its success using various KPIs, including:
- Annual Recurring Revenue (ARR): $120 million as of Q2 2023
- Client Retention Rate: 90%
- Net Revenue Retention (NRR): 120%
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