Riskified Ltd. (RSKD): History, Ownership, Mission, How It Works & Makes Money

In today's e-commerce landscape, are online merchants truly equipped to build trusted relationships with consumers while safeguarding against fraud? Riskified Ltd. (RSKD), a comprehensive e-commerce fraud prevention platform, utilizes advanced machine learning and data analytics to ensure the legitimacy of online transactions. With a recent announcement of exceeding its fiscal year 2024 revenue guidance and achieving a full year of positive Adjusted EBITDA, Riskified is making waves in the industry, but how exactly does it work and generate revenue?

Riskified Ltd. (RSKD) History

Riskified's Founding Timeline

Year established

The company was established in 2012.

Original location

The company was founded in Tel Aviv, Israel.

Founding team members

The company was founded by Eido Gal and Assaf Feldman.

Initial capital/funding

In 2013, the company secured $625,000 in seed funding. Later, in 2014, it raised $4 million in Series A funding.

Riskified's Evolution Milestones

Riskified's Transformative Moments

• Shift to E-commerce Focus: Recognizing the growing need for fraud prevention in online transactions, the company strategically focused on serving e-commerce merchants.
• Machine Learning Adoption: Implementing machine learning algorithms significantly enhanced the accuracy and efficiency of fraud detection, setting the company apart from competitors.
• Expansion into New Markets: Strategic decisions to expand services geographically and target new e-commerce verticals broadened the company's customer base and revenue streams.
• Development of Chargeback Guarantee: Introducing a chargeback guarantee model provided merchants with financial protection against fraudulent transactions, increasing trust and adoption of the company's services.
• Acquisition and Partnerships: Forming strategic partnerships and acquisitions expanded the company's capabilities and market reach, contributing to its growth and competitiveness.

To gain more insights into the investors and stakeholders behind Riskified, explore this resource: Exploring Riskified Ltd. (RSKD) Investor Profile: Who’s Buying and Why?

Riskified Ltd. (RSKD) Ownership Structure

Understanding Riskified's ownership structure provides valuable insights into who controls the company and how its governance is shaped. As a public company, Riskified's shares are held by a mix of institutional investors, individual shareholders, and company insiders.

Riskified's Current Status

Riskified Ltd. is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol RSKD. This means that ownership is distributed among numerous shareholders, both institutional and individual, who can freely trade shares on the open market.

Riskified's Ownership Breakdown

While specific real-time ownership percentages fluctuate with trading activity, a general overview can be provided based on the most recent filings and available data. Please note that these figures represent a snapshot in time and are subject to change.

Riskified's Leadership

The leadership team is responsible for the strategic direction and day-to-day operations of Riskified. As of April 2025, key members of the leadership team include:

• CEO: [Insert CEO Name Here]
• CFO: [Insert CFO Name Here]
• CTO: [Insert CTO Name Here]

The Board of Directors provides oversight and guidance to the management team. The board composition and committee structures play a crucial role in corporate governance.

For more in-depth information about Riskified's investor profile, you can explore this resource: Exploring Riskified Ltd. (RSKD) Investor Profile: Who’s Buying and Why?

Riskified Ltd. (RSKD) Mission and Values

Riskified's mission is to empower businesses to realize the full potential of e-commerce by making it safe, accessible, and frictionless. The company values innovation, customer focus, and a commitment to excellence.

Riskified's Core Purpose

Official mission statement

Riskified's official mission statement is: We empower businesses to realize the full potential of e-commerce by making it safe, accessible, and frictionless.

• Making e-commerce safe: Riskified aims to eliminate online fraud and ensure secure transactions.
• Making e-commerce accessible: Riskified strives to enable merchants of all sizes to participate in the e-commerce ecosystem.
• Making e-commerce frictionless: Riskified seeks to create a seamless and positive shopping experience for consumers.

Vision statement

While a specific, formally declared vision statement may not be publicly available, Riskified's actions and stated goals suggest a vision centered on leading the next generation of e-commerce risk management. This involves:

• Becoming the standard for fraud prevention in the e-commerce industry.
• Expanding its solutions to address a wider range of risk-related challenges beyond fraud.
• Building a trusted network connecting merchants and consumers to facilitate secure online commerce.

Company slogan/tagline

Riskified's tagline, 'The eCommerce Risk Management Platform,' encapsulates its core offering. This highlights:

• Focus on e-commerce: Riskified concentrates specifically on the needs of online businesses.
• Comprehensive risk management: Riskified offers a suite of tools and services to address various risk factors.
• Platform approach: Riskified provides an integrated platform for managing risk, rather than isolated solutions.

To delve deeper into Riskified's mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Riskified Ltd. (RSKD).

Riskified Ltd. (RSKD) How It Works

Riskified operates by using machine learning to analyze e-commerce transactions and identify potential fraud, helping merchants to approve more orders and reduce fraud-related losses.

Riskified's Product/Service Portfolio

Riskified's Operational Framework

Riskified's operational framework revolves around several key processes:

• Data Analysis: Riskified gathers and analyzes data from various sources, including transaction details, customer behavior, and device information, to identify patterns indicative of fraud.
• Machine Learning: The company uses machine learning algorithms to continuously improve the accuracy of its fraud detection models. These models are trained on a vast dataset of e-commerce transactions.
• Real-Time Decisioning: Riskified's platform provides real-time risk assessments, enabling merchants to make immediate decisions about whether to approve or decline an order.
• Chargeback Guarantee: For approved orders, Riskified provides a chargeback guarantee, meaning that merchants are reimbursed for any fraud-related chargebacks.
• Integration: Riskified integrates with various e-commerce platforms and payment gateways to streamline the fraud prevention process.

Riskified's Strategic Advantages

Riskified's strategic advantages include:

• Machine Learning Expertise: Riskified’s core strength lies in its sophisticated machine learning algorithms, which are continuously refined using vast datasets to improve fraud detection accuracy.
• Chargeback Guarantee Model: By offering a chargeback guarantee, Riskified aligns its interests with those of its merchants, fostering trust and long-term partnerships.
• Global Merchant Network: Riskified's global merchant network provides a wealth of data and insights, enabling the company to identify emerging fraud trends and patterns.
• Scalability: The platform is designed to handle large volumes of transactions, making it suitable for e-commerce businesses of all sizes.
• Focus on Revenue Enablement: Riskified not only reduces fraud but also helps merchants increase revenue by approving more legitimate orders that might otherwise be declined due to fraud concerns.

Learn more about Riskified and its investors: Exploring Riskified Ltd. (RSKD) Investor Profile: Who’s Buying and Why?

Riskified Ltd. (RSKD) How It Makes Money

Riskified primarily generates revenue by helping e-commerce merchants prevent fraud and increase sales. They achieve this through their chargeback guarantee, which reimburses merchants for fraud-related chargebacks on transactions approved by Riskified. In essence, Riskified makes money by charging merchants for each transaction they approve and guarantee.

Riskified's Revenue Breakdown

While precise percentage breakdowns can fluctuate year to year, Riskified's revenue streams can be generally categorized as follows:

Riskified's Business Economics

Riskified's business model is built on a few key economic principles:

• Transaction Volume: Revenue is directly tied to the volume of e-commerce transactions Riskified approves and guarantees. More transactions mean more fees.
• Chargeback Rate vs. Fee Structure: Riskified's profitability hinges on accurately predicting and preventing fraudulent transactions. Their fees must be high enough to cover chargeback losses and operational costs, while remaining competitive for merchants.
• Scalability: The company's technology platform allows it to scale efficiently as transaction volumes grow. This scalability is crucial for maintaining profitability.
• Data Advantage: Riskified leverages its vast data on e-commerce transactions to improve fraud detection accuracy. This data advantage strengthens its competitive position.

Riskified's Financial Performance

Key aspects of Riskified's financial performance include:

• Revenue Growth: Riskified has demonstrated substantial revenue growth in recent years, driven by the expansion of e-commerce and increased adoption of its fraud prevention solutions. For example, in 2023, Riskified reported revenue of $302.9 million, a 19% increase compared to $254.9 million in 2022.
• Gross Margin: A critical metric, gross margin reflects the efficiency of Riskified's core fraud prevention services. In 2023, Riskified's gross profit was $119.6 million, representing a gross margin of 39.5%, compared to $95.7 million and 37.5% in 2022.
• Net Loss: While Riskified has achieved significant revenue growth, it has also experienced net losses. The net loss for 2023 was $65.6 million, compared to a net loss of $93.3 million in 2022.
• Cash Flow: Monitoring cash flow is essential to assess Riskified's financial stability. In 2023, Riskified's net cash used in operating activities was $18.9 million, compared to $48.7 million in 2022.

To gain more insights into Riskified's mission and values, explore: Mission Statement, Vision, & Core Values of Riskified Ltd. (RSKD).

Riskified Ltd. (RSKD) Market Position & Future Outlook

As of April 2025, Riskified continues to navigate the competitive landscape of fraud prevention and risk management in the e-commerce sector. The company's future hinges on its ability to innovate and adapt to the evolving threats in online transactions.

Competitive Landscape

Opportunities & Challenges

Industry Position

Riskified holds a significant position in the e-commerce fraud prevention industry. Key aspects of its standing include:

• Technology and Innovation: Known for its machine learning-driven approach, which helps in accurately identifying and preventing fraudulent transactions.
• Client Base: Serves a diverse range of e-commerce merchants, from luxury brands to online marketplaces.
• Market Recognition: Recognized as a key player in the fraud prevention landscape, often cited in industry reports and analyses.

To delve deeper into the investor profile, check out: Exploring Riskified Ltd. (RSKD) Investor Profile: Who’s Buying and Why?