Riskified Ltd. CEO Eido Gal Discusses E-Commerce Fraud Solutions and Market Strategy at JPMorgan Global Technology Conference
Key Takeaways
TL;DR: Riskified (RSKD) reiterated its growth trajectory, emphasizing $140B 2024 reviewed GMV (vs. $6T global e-commerce TAM), ~70% competitive win rates, and platform expansion into policy abuse/dispute mgmt. Targeting 15%+ EBITDA margins by 2026, mgmt sees durable growth from enterprise e-commerce demand, global GTM momentum, and AI-driven product differentiation. Key risks include exposure to discretionary categories (travel/fashion).
1. Platform Expansion Driving Share Gains:
- Policy abuse solutions (e.g., fraudulent refunds, scalping prevention) now block >10% of refund requests with no incremental false positives.
- Dispute resolution product is "core to client workflows" (vs. traditional chargeback guarantee solutions).
- Platform breadth (fraud + policy + account security) credited for >70% competitive win rates, up Y/Y.
2. Financials / Guidance:
- GMV: Processed $140B in 2024, with take rates stable.
- Margins: Delivering ~50% GP margins, targeting 15%+ EBITDA margins by 2026 (vs. prior ~10% in 2023).
- Reiterated 2025 guidance: Confidence anchored in strongest-ever pipeline (Q1 acceleration) and resilient consumer trends (April ~in line).
- Segments: ~1/3 exposure each to travel, fashion (luxury/sneakers), and others (electronics, remittance).
3. Competitive Differentiation:
- Guaranteed model: Reduces merchant fraud costs by ~30% + 7-8% approval rate uplift.
- Data moat: Integrates 3x more data points vs. payment processors (e.g., Stripe, Adyen).
- Bank partnerships (Capital One, Bank of America) boost approval rates by 100–200 bps.
- Global / GTM Optimization:
- Recent GTM investments in APAC/LATAM showing traction ("referenceable clients" driving pipeline).
- Sales cycles: 2–3 quarters for large enterprises; shorter for $50M–$1B merchants.
4. Mgmt Commentary: