Riskified Reports Record Second Quarter and First Half Performance, Accelerates Path to Profitability and Raises Annual Guidance for 2022

-Raises Guidance and Financial Outlook for FY 2022

-Management to host a conference call today, August 10, at 8:30 a.m. Eastern Time

Riskified Ltd. , a risk management platform enabling frictionless eCommerce, announced financial results for the three and six months ended June 30, 2022. The Company will host an investor call to discuss these results today at 8:30 a.m. Eastern Time.

“I am extremely pleased that for the first six months of the year we generated record revenues and GMV as the business continues to grow, capture market share, and scale. This achievement is even more impressive in the current challenging economic landscape,” said Eido Gal, Co-Founder and Chief Executive Officer of Riskified.

“As positive as I feel about our top-line performance, I am also excited by the progress that we’ve made to lower and optimize our cost base. This allowed us to raise our Adjusted EBITDA outlook for 2022, and accelerate our path to profitability, while keeping our long-term growth outlook intact.”

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“I am extremely pleased that for the first six months of the year we generated record revenues and GMV as the business continues to grow, capture market share, and scale. This achievement is even more impressive in the current challenging economic landscape”

Q2 2022 Business Highlights

• Increased 2022 Revenue Guidance: Record first half performance and a solid second half pipeline of merchant activity resulted in upward revised full year revenue outlook for the company.

• Accelerating Path to Profitability through improved Adjusted EBITDA Outlook: Through ongoing financial discipline and a focused evaluation of Riskified’s operating expenses, the Company made meaningful strides in reducing its budgeted expense base while fully maintaining its growth outlook. As a result, Riskified was able to improve its Adjusted EBITDA outlook for the full year of 2022 by approximately 18% and accelerate its path to profitability.

• Strengthened Leadership Team with Appointment of President of Worldwide Field Operations to Propel Growth: Riskified recently announced Ravi Kumaraswami’s appointment as President of Worldwide Field Operations. Mr. Kumaraswami, a proven technology leader with more than 20 years of experience, will build upon existing momentum and spearhead the go-forward strategy and operations of Riskified’s global sales, marketing and channel teams, by focusing on identifying new opportunities and partnerships to further accelerate our growth.

• Further Diversified Business with the Addition of New Merchants: Riskified had a strong quarter of activity driven primarily by upsells within our existing customer base and new merchant additions. The Company’s top ten new merchants represented five different industries across three separate geographies, which we believe demonstrates Riskified’s ability to win new merchants across varied macroeconomic environments.

• Momentum within Tickets & Travel Industry Group: Tickets and Travel demonstrated resilience to rebound from pre-pandemic levels and was one of the most meaningful areas of growth during the second quarter. We believe the Company remains well positioned to benefit from a resurgence in travel and a return to live events as a result of the ongoing re-opening trends.

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Q2 2022 Financial Performance Highlights

The following table summarizes our consolidated financial results for the three and six months ended June 30, 2022 and 2021, in thousands except where indicated:

“Building on the momentum from a strong first quarter, we continued to see the expansion of our volume reviewed across all geographies and a majority of industries in the second quarter. Our business remains broad-based and diversified, and I am especially encouraged by our recent growth in the Tickets and Travel industry,” said Aglika Dotcheva, Chief Financial Officer of Riskified.

“We thoroughly analyzed our budget for 2022 and took decisive action to identify areas of cost savings, which resulted in strong bottom line improvements in the second quarter, and our ability to make a meaningful update to our Adjusted EBITDA outlook for the second half of the year. We believe that our new optimized cost structure should increase the ROI of certain projects, and I am very excited about our progress in this area.”

Financial Outlook

Our record first half performance and a solid second half pipeline of merchant activity has resulted in an upward revised revenue outlook for the company. We are increasing our revenue guidance for the year ending December 31, 2022 as follows:

• Revenue between $255 million and $258 million, up from between $254 million and $257 million