Riskified Ltd. (NYSE: RSKD)

Riskified Ltd. operates as a next-generation AI-powered ecommerce risk intelligence platform, empowering businesses to mitigate risk and foster growth in online commerce. The company specializes in providing solutions that help online merchants create trusted relationships with consumers by identifying the individual behind each online interaction. Riskified's platform is designed to eliminate risk and uncertainty from ecommerce, enabling merchants to maximize revenue and profit while providing superior online shopping experiences for consumers. The company's mission is to outsmart risk and unleash ecommerce growth, positioning itself as a leader in the ecommerce risk management industry.

Riskified generates revenue through its AI-powered platform, which offers several key products, including Chargeback Guarantee, Policy Protect, Dispute Resolve, and Account Secure. The Chargeback Guarantee product automatically approves or declines online orders with guaranteed performance levels, generating revenue as a percentage of the gross merchandise value (GMV) approved. Policy Protect uses machine learning to detect and prevent refund and returns policy abuse, charging merchants a fixed fee per transaction. Dispute Resolve helps merchants manage chargebacks and other disputes, with revenue generated through monthly platform fees and additional fees per transaction for representment services. Account Secure cross-checks login attempts against account owners' behavior, providing real-time actions to prevent fraud. The company's primary customer base consists of online merchants, ranging from multi-billion dollar global omnichannel retailers to small pure play merchants, including partnerships with ecommerce platforms like Shopify, Salesforce Commerce Cloud, and AWS Marketplace.

• Chargeback Guarantee: This core product automatically approves or declines online orders with guaranteed performance levels, analyzing hundreds of attributes per transaction to generate accurate decisions in real time. Riskified assumes the cost of fraud associated with approved transactions, providing contractual minimum approval rates for merchants. The product includes advanced configurations like Auth Rate Enhance and Adaptive Checkout, which optimize trust with issuing banks and improve authorization rates.

• Policy Protect: This product uses machine learning to detect and prevent refund and returns policy abuse in real-time, helping merchants balance generous policies while protecting their bottom line. It includes features like Dynamic Returns, which optimizes return flows based on customer behavior and abuse risk. Policy Protect is powered by a proprietary engine that forms identity clusters from billions of historical transactions and hundreds of billions of data attributes.

• Dispute Resolve: This product includes a Chargeback Management System designed to aid merchants in disputing chargebacks for which Riskified is not liable, through a process known as "representment." It provides merchants with a single pane of glass to manage all chargebacks effectively, automating key elements of the dispute process.

• Account Secure: This product cross-checks every login attempt against the account owner's behavior across the merchant network, providing precise real-time actions on compromised accounts such as notification to the true account owner or multi-factor authentication (MFA). It helps good customers by reducing friction while preventing fraudsters from compromising accounts.

Riskified holds a strong position within the ecommerce risk management industry, leveraging its AI-powered platform to provide superior outcomes for online merchants. The company's competitive advantages include its sophisticated transaction matching ability, which improves with each transaction processed and each merchant added to its network. Riskified's platform evaluates millions of transactions daily, using feedback from past transactions to drive real-time predictive insights. The scale of its merchant network and processed volume continues to grow, with total GMV increasing year-over-year. Riskified serves some of the largest and most recognizable ecommerce brands globally, including Ring, Lastminute.com, SHEIN, and Macy's. The company's expertise in serving the enterprise market, strong track record of risk management, and continuous innovation contribute to its leadership position in the industry.

Riskified's customer base is diverse, catering to merchants of all sizes, from multi-billion dollar global omnichannel retailers to small pure play merchants. The company's platform is designed to accommodate and grow with the world's largest merchants, serving diversified online sellers in various industries such as Tickets & Travel, Fashion and Luxury, Money Transfer and Payments, Electronics, and Home. Merchants are located in approximately 36 countries, with a significant portion of billings derived from US-based accounts. Riskified's network includes hundreds of retailers, including some of the largest ecommerce brands in the world. The company's go-to-market strategy focuses on direct sales to online merchants, with a strong emphasis on long-term customer value and a "Land and Expand" approach.