Riskified Ltd shares based in Israel (NYSE:RSKD) rose 2% to close at $5.60 on Wednesday after the release of its second-quarter results. An increase in sales for the full year 2022 could have triggered growth.
How does risk work?
Based in Tel Aviv, Riskified is an e-commerce risk management platform that enables merchants to generate legitimate revenue. The platform uses machine learning, proxy detection, elastic linking, and behavioral analysis to detect and prevent fraud during an online transaction.
Performance of Riskified Q2
Revenue increased 8% year over year to nearly $60 million and gross merchandise volume (GMV) increased 18% to $25.4 million.
Adjusted EBITDA was flat at ($13.7 million) compared to $1.6 million last quarter. Adjusted net loss was eight cents a share, below Street’s loss estimate of 20 cents a share. In the second quarter of 2021, Riskified reported earnings of one cent per share.
Eido Gal, Riskified CEO, said: “As positive as we are at our peak performance, I am pleased with the progress we have made in reducing and optimizing our cost base. This has allowed us to raise our 2022 Adjusted EBITDA guidance and accelerate our path to profitability while maintaining our long-term growth prospects.”
For the full year 2022, the software-as-a-service (SaaS) provider increased its revenue guidance by $1 million to between $255 million and $258 million. Adjusted EBITDA guidance range updated to ($54M) – ($57M) from ($66M) – ($69M).
The TipRanks tool shows a multiple increase in website visits for high-risk users
TipRank’s website traffic tool using data from SEMrush Holdings (NYSE: SEMR), the world’s largest website usage monitoring service, provides insight into Riskified’s performance.
According to the tool, traffic to Riskified’s website saw a 19.7% increase in global visits in July compared to June. Additionally, year-over-year traffic to the company’s website increased by 3,474.8% compared to the same period last year. A significant increase in access to the company’s website is reflected in sales. Find out how website traffic can help you find your favorite deals.
Is RSKD a good buy?
RSKD stock has a consensus rating of Moderate Buy on TipRanks based on three buys, two holds and one sell. Riskified’s average price target of $6.17 implies upside potential of 10.2% from current levels.
Analysts’ cautious view of the stock is justified as the company is not yet making profits. Investors should wait and watch before investing in the stock, even though Riskified’s stock is trading near its 52-week low of $3.76.
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