RSKD - Riskified: Growth Slowdown Is A Concern Despite Margin Improvements

2024-07-12 08:12:10 ET

Summary

• Shares are up more than 30% this year as the company has demonstrated the operating leverage in its business model.
• However, revenue growth has slowed in recent quarters and is expected to continue into Q2.
• Despite its large net cash position, I see limited upside potential from today’s share price.

Investment thesis

Riskified's ( RSKD ) differentiated offer versus competitors in the online fraud management space stems from its network effect with consumers as well as the merchant-level data that it has access to. Through multiple technological developments, the company has built a platform that can offer its merchants multiple solutions related to fraud and risk intelligence by using machine learning models....

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