Q1 2025 Riskified Ltd Earnings Call
Operator: Good day, and thank you for standing by.
Good day, and thank you for standing by walking through the risk of five first quarter 2025 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone you didn't hear an automated message of washing your hands. This race to withdraw your question. Please press star one.
Operator: Welcome to the Riskified first quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message device, and your hand is raised. To withdraw your question, please press star 11 again.
Operator: Please be advised, today's conference is being recorded.
Chett Mandel: I would now like to hand the conference over to your speaker today, Chett Mandel, Head of Investor Relations. Please go ahead.
Speaker Change: Please be advised today's conference is being recorded I would now like to hand, the conference over to your speaker today, Chet Mendell head of Investor Relations. Please go ahead.
Chett Mandel: Good morning and thank you for joining us today. My name is Chett Mandel, Riskified's Head of Investor Relations. We are hosting today's call to discuss Riskified's financial results for the first quarter of 2025.
Chat Mandel: Good morning, and thank you for joining US today My name is chat Mandel risk about as head of Investor Relations. We are hosting today's call to discuss risk applied financial results for the first quarter of 2025 participating on today's call are Ido golf risk of hides co founder and Chief Executive Officer, and argue don't care about most of the fights Chief Financial Officer.
Chett Mandel: Participating on today's call are Eido Gal, Riskified's Co-Founder and Chief Executive Officer, and Aglika Dotcheva, Riskified's Chief Financial Officer. We released our results for the first quarter of 2025 earlier today. Our earnings materials, including a replay of today's webcast, will be available on our Investor Relations website at ir.riskified.com.
Chat Mandel: We released our results for the first quarter of 2025 earlier today, our earnings materials, including a replay of today's webcast will be available on our Investor relations website at IR that risk of Hy Dot com.
Chett Mandel: Certain statements made on the call today will be forward-looking statements related to our operating performance, business and financial goals, outlook as to revenues, gross profit margin, adjusted EBITDA profitability, adjusted EBITDA margins, and expectations as to positive cash flows, which reflect management's best judgment based on currently available information and are not guarantees of future performance. We intend all forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our expectations as of the date of this call, and except as required by law, we undertake no obligation to revise this information as a result of new developments that may occur after the time of this call.
Certain statements made on the call today will be forward looking statements related to our operating performance business and financial goals, our cost of revenues gross profit margin adjusted EBITDA profitability, adjusted EBITDA margins and expectations as the positive cash flows which reflect management's best judgment based on currently available information and are not guarantees of future.
Chat Mandel: <unk>.
Chat Mandel: We intend all forward looking statements to be covered by the safe Harbor provisions contained in the private Securities Litigation Reform Act of 1995.
Chat Mandel: These forward looking statements reflect our expectations as of the date of this call and except as required by law. We undertake no obligation to revise this information as a result of new developments that may occur after the time of this call.
Chett Mandel: These forward-looking statements involve risks, uncertainties, and other factors, some of which are beyond our control, and that can cause actual results to differ materially from our expectations. You should not put undue reliance on any forward-looking statement. Please refer to our annual report on Form 20-F for the year ended December 31st, 2024 and subsequent reports we file or furnish with the SEC for more information on the specific factors that could cause actual results to differ materially from our expectations.
Chat Mandel: Forward looking statements involve risks uncertainties and other factors some of which are beyond our control and that can cause actual results to differ materially from our expectations you should not put undue reliance on any forward looking statements.
Chat Mandel: Please refer to our annual report on form 20-F for the year ended December 31, 2024, and subsequent reports, we file or furnished with the SEC for more information on the specific factors that could cause actual results to differ materially from our expectations.
Chett Mandel: Additionally, we will discuss certain non-GAAP financial measures and key performance indicators on the call. Reconciliations and the most directly comparable GAAP financial measures are available in our earnings release issued earlier today and also furnished with the SEC on Form 6K and in the appendix of our investor relations presentation, all of which are posted on our investor relations website.
Additionally, we will discuss certain non-GAAP financial measures and key performance indicators on the call reconciliations to the most directly comparable GAAP financial measures are available in our earnings release issued earlier today and also furnished with the SEC on form 6K and in the appendix of our Investor Relations presentation, all of which are posted on our Investor relations.
Eido Gal: I will now turn the call over to Eidal. Thanks, Chett, and hello, everyone. Overall, I am pleased with our strong start to the year, despite the recent market uncertainty. We continue to generate positive adjusted EBITDA, and our revenue growth of 8% in the first quarter was driven by execution on our global go-to-market strategy of landing new customers to drive further vertical depth and geographic diversification, while continuing to upsell to our existing market. As we discussed on our last call, our key focus areas for 25 and beyond are expanding top of funnel efforts to generate more pipeline, converting that pipeline into new business at high rates, and retaining and growing with those merchants once onboarded.
Chat Mandel: Website, I will now turn the call over to readout.
Speaker Change: Thanks, Chad and Hello, everyone overall, I'm pleased with our strong start to the year. Despite the recent market uncertainty we continue to generate positive adjusted EBITDA and a revenue growth of 8% in the first quarter was driven by execution on our global go to market strategy of finding new customers to drive further vertical depth and geographic diversification.
Chat Mandel: Vacation, while continuing to up sell to our existing merchants.
Chat Mandel: As we discussed on our last call our key focus areas for 25 and beyond are expanding top of funnel efforts to generate more pipeline converting that pipeline into new business at high rates and retaining and growing with those merchants once onboard it.
Eido Gal: So far, in 25, we have executed very well on each front. Our pipeline has grown substantially, both year over year and sequentially, and our retention and renewal strategy has continued to yield strong results. We achieved 100% renewal rate across our top 20 contracts up for renewal during the first quarter, with nearly half extended as multi-year agreements, averaging a term with an ending date in 27. We also ended the quarter with more committed revenue for 25 and beyond as compared with the prior period. These achievements are a reflection of the value and performance we continue to deliver to our merchants.
Chat Mandel: So far in 'twenty five we have executed very well on each front.
Chat Mandel: Our pipeline has grown substantially both year over year and sequentially and our retention and renewal strategy has continued to yield strong results.
Chat Mandel: We achieved 100% renewal rate across our top 20 contracts up for renewal during the first quarter with nearly half extended multi year agreements.
Chat Mandel: Average near term with an ending date in 2007.
Chat Mandel: We also ended the quarter with more committed revenue for 25 and beyond as compared with the prior period.
Chat Mandel: These achievements are a reflection of the value and performance, we continue to deliver to our merchants.
Eido Gal: As it relates to the pipeline, expansion has primarily been driven by unlocking additional opportunities to demonstrate the sophistication and differentiated performance of our platform. Our expanded product portfolio, powered by our proprietary AI decisioning engine, is designed to intelligently solve a wider, more complex range of use cases for merchants beyond chargeback fraud, including omni-channel return and refund abuse prevention, and chargeback management. Our multi-product platform has enabled us to engage with a broader set of senior functional leaders across our merchant network, expanding our strategic reach and allowing us to more clearly demonstrate the full value we bring to the table.
Chat Mandel: As it relates to the pipeline expansion has primarily been driven by unlocking additional opportunities to demonstrate the sophistication and differentiated performance of our platform.
Chat Mandel: Our expanded product portfolio.
Chat Mandel: <unk> by our proprietary AI Decisioning engine.
Chat Mandel: Designed to intelligently solve a wider more complex range of use cases for merchants beyond chargeback fraud, including Omnichannel return and refund abuse prevention and Chargeback management.
Chat Mandel: Our multi product platform has enabled us to engage with a broader set of senior functional leaders across our merchant network, expanding our strategic reach and allowing us to more clearly demonstrate the full value we bring to the table.
Eido Gal: With new product revenue growth up approximately 190% year over year, we have seen the platform continue to gain track. In addition, we believe that our expanding revenue pipeline can also be attributed to growing recognition among large enterprise merchants of the breadth and effectiveness of our innovative AI products. As fraud patterns grow more complex and evolve faster than in prior years, we believe that we are well positioned to help merchants address fraud challenges that can often exceed their in-house capability. Riskified's advanced AI technology and data network was built from day one to stay ahead of fraud.
Chat Mandel: With new product revenue growth up approximately 190% year over year, we have seen the platform continued to gain traction.
Chat Mandel: In addition, we believe that our expanding revenue pipeline can also be attributed to growing recognition among large enterprise merchants of the breadth and effectiveness of our innovative AI product suite.
Chat Mandel: Fraud patterns grow more complex and evolve faster than in prior years. We believe that we are well positioned to help merchants address fraud challenges that can often exceed their in house capabilities.
Chat Mandel: Risk of fires advanced AI technology and data network was built from day one to stay ahead of fraudsters, we are strategically investing in our machine learning capabilities through the expansion of our R&D team in order to continue generating strong performance for our merchants to support them in their most critical time of need.
Eido Gal: We are strategically investing in our machine learning capabilities through the expansion of our R&D teams in order to continue generating strong performance for our merchants to support them in their most critical time of need.
Eido Gal: Before I turn it over to Agi, I want to take a moment to address the broader macro environment and the progress that we have made on diversifying our business. The global backdrop, particularly around tariffs and international trade, remains fluid and uncertain. Despite recent volatility, our internal data suggests that overall, the consumer has remained resilient with April trends relatively stable to March. Over the past several years, we've continuously grown our top line while intentionally diversifying across both verticals and geographies. We believe this diversification enhances the resilience and durability of our business model, allowing us to better navigate periods of economic uncertainty.
Speaker Change: Before I turn it over target I wanted to take a moment to address the broader macro environment and the progress that we've made on diversifying our business.
Speaker Change: The global backdrop, particularly around tariffs and international trade remains fluid and uncertain.
Speaker Change: Spite recent volatility our internal data suggest that overall the consumer has remained resilient with April trends relatively stable to March.
Speaker Change: Over the past several years, we have continuously grown our top line, while intentionally diversifying across both verticals and geographies. We believe this diversification enhances the resilience and durability of our business model, allowing us to better navigate periods of economic uncertainty.
Eido Gal: Notably, one of our top new logo wins this quarter came from a remittance merchant within the money transfer and payments category, an area of emerging growth that may be relatively less exposed to broader macroeconomic pressure. While it is still early days, we have begun to see evidence that the network effect within this category is starting to develop, just like we witnessed in the tickets and live events sub-vertical recently and the fashion and luxury goods vertical before that. We believe that we have additional opportunities in our pipeline to continue expanding our market share and to further build out our powerful flywheel in the money transfer and payments area.
Speaker Change: Notably one of our top new logo wins this quarter came from our remittance merchant within the money transfer and payments category and area of emerging growth that may be relatively less exposed to broader macroeconomic pressures.
Speaker Change: While it is still early days, we have begun to see evidence that the network effect within this category is starting to develop just like we witnessed in the tickets and live events up vertical recently and the fashion and luxury goods vertical before that.
Speaker Change: We believe that we have additional opportunities in our pipeline to continue expanding our market share and to further build out our powerful flywheel in the money transfer and payments area.
Eido Gal: Furthermore, eight of our top 10 ULOGOs won during the first quarter were headquartered outside of the United States as we continue to expand our geographic footprint to fuel international growth.
Speaker Change: Furthermore, eight of our top 10, new logos won during the first quarter were headquartered outside of the United States as we continued to expand our geographic footprint to fuel international growth.
Eido Gal: In conclusion, our team remains focused on advancing our product roadmap and on executing across the business to capture the large opportunity in front of us. We remain confident that our scaled network, powerful AI platform, increasingly diversified business and strong balance sheet will allow us to keep advancing our strategic growth drivers to generate additional adjusted EBITDA margin expansion for our shareholders.
Speaker Change: In conclusion, our team remains focused on advancing our product roadmap and on executing across the business to capture the large opportunity in front of us.
Speaker Change: We remain confident that our scaled network powerful AI platform increasingly diversified business and strong balance sheet will allow us to keep advancing our strategic growth drivers to generate additional adjusted EBITDA margin expansion for our shareholders.
Aglika Dotcheva: Thank you for your continued support, and I will now turn it over to Auggie. Thank you, Eido, team, and everyone for joining today's call. LNG for the first quarter was $34.2 billion, reflecting a 7% increase year over year. We achieved first quarter revenue of $82.4 million, up 8% year over year. Our GNV and revenue growth during this quarter was primarily driven by continued new merchants and upsell activity. Our two largest categories, Tickets and Travel, and Fashion and Luxury, each grew in the mid-teens range year over year, driven primarily by strong new business wins and upsell activity.
Speaker Change: Thank you for your continued support and I will now turn it over to Avi.
Avi: Thank you Rita team and everyone for joining today's call.
Avi: Our JV for the first quarter was $34 2 billion, reflecting a 7% increase year over year.
Avi: We achieved first quarter revenue of $82 4 million up 8% year over year.
Avi: <unk> revenue growth during this quarter was primarily driven by continued margin and upsell activity.
Avi: Our two largest category ticket from travel and freshman luxury <unk> grow in the mid teens range year over year, driven primarily by strong new business wins and upsell activity.
Aglika Dotcheva: Consistent with recent years, growth in our fashion and luxury category was partially offset by continuous same-store sales pressure, particularly within our high-end fashion and sneakers sub-verticals. Looking ahead, we currently expect year-over-year growth in both categories to moderate slightly over the course of the year, reflecting a continuation of the same store self-pressure observed in the first quarter. However, we remain confident that both of these categories will deliver full year growth supported by a strong pipeline of new business opportunities that we believe will more than offset ongoing same-store softness. Building on positive momentum in our money transfer and payments category in 2024, we achieved approximately 90% year-over-year growth in the first quarter.
Eric: Systems with reason, Eric the growth in our fashion and luxury category was partially offset by continued same store sales pressure, particularly within our highest question as sneakers.
Avi: It does.
Avi: Looking ahead, we currently expect year over year growth in both category to moderate slightly over the course of the year, reflecting a continuation of the same store sales pressure observed in the first quarter.
Avi: However, we remain confident that both of these categories will deliver full year growth supported by a strong pipeline of new business opportunity that we believe will more than offset ongoing same store softness.
Avi: Building on positive momentum in our money transfer and payments category in 2024, we achieved approximately 90% year over year growth in the first quarter. This growth was driven by new merchant activity, which continued to be a key area of expansion.
Aglika Dotcheva: This growth was driven by new merchant activity, which continues to be a key area of expansion. As anticipated, we saw year-over-year declines in our home category, which contracted by 74% and drove a 5% year-over-year decline in the United States. However, the impact was partially offset by continued strength in overall new business activity, and we continue to view the U.S. as a key long-term growth driver for Riskified. Outside of the United States, growth accelerated across all regions compared to the fourth quarter. During the first quarter, AIPAC grew approximately 70%, and Outer Americas, which represents Canada and Latin America, grew approximately 13%, both primarily due to momentum in new and upsell activity.
Avi: As anticipated we saw year over year declines in our home category, which contracted by 74% and drove a 5% year over year decline in the United States.
Avi: However, the impact was partially offset by continued strength in overall, new business activity and we continue to view the U S. As a key long term growth driver for rectified.
Avi: Outside of the United States growth accelerated across all regions compared to the fourth quarter.
Avi: During the first quarter APAC grew approximately 70% and at our America, which represents Canada and Latin America grew approximately 13%, both primarily gets momentum in new and upsell activity.
Aglika Dotcheva: AMIA delivered approximately 15% growth, with the strongest performance concentrated in our largest verticals, supported by both new business and absorbent momentum. We believe that our continued growth in regions outside of the United States reflects continued progress in capturing market share.
Avi: <unk> delivered approximately 15% growth with the strongest performance concentrated in our largest vertical supported by both new business and upsell momentum.
Avi: We believe that our continued growth in regions outside of the United States reflects continued progress in capturing market share.
Aglika Dotcheva: Unless otherwise noted, I'll be referencing non-GAAP financial measures with respect to the discussion of our gross profit margin, operating expenses, and adjustability diametrics. We have provided our conciliation of gaps and non-gap financial measures in our earnings release. Moving on to gross margin, our non-GAAP gross profit margin for the first quarter of 2025 was approximately 50%. The year-over-year decline in cross-margin was primarily driven by the impact of ramping up significant new merchants in newer categories such as money transfer and payments, and geographies such as other Americas. The impact of these factors was partially offset by improvements in our core machine learning models and continued growth in new product revenue.
Avi: Unless otherwise noted I'll be referencing non-GAAP financial measures with respect to the discussion of our gross profit margin operating expenses and adjusted EBITDA metrics.
Avi: We have provided our conciliation of GAAP to non-GAAP financial measures in our earnings release.
Avi: Moving onto gross margin our non-GAAP gross profit margin for the first quarter of 2025 was approximately 50%.
Avi: The year over year decline in gross margin was primarily driven by the impact of ramping a significant new marches in newer categories, such as money transfer and payment and geography, such as other Americas.
Avi: The impact of these factors was partially offset by improvements in our core machine learning models and continued growth in product revenue.
Aglika Dotcheva: We continue to target a non-GAAP cross-profit margin between 52 to 53 and a half for the full year. For modeling purposes, we currently expect our second quarter non-GAAP cross-profit margin to be below the range, the third quarter to be at the bottom of the range, and the fourth quarter to be higher than the range. As a reminder, I encourage you to continue analyzing our growth margin on an annual basis. Given individual quarters can vary due to various factors, including the ramping of new merchants and the risk profile of transactions approved. Moving to expenses, we continue to manage the business in a focused and disciplined manner.
Avi: We continue to target a non-GAAP gross profit margin between 52 to 53 and a half for the full year.
Avi: For modeling purposes, we currently expect our second quarter non-GAAP gross profit margin to be below the range the third quarter to be at the bottom of the range and the fourth quarter to be higher than the range.
Avi: As a reminder, I encourage you to continue analyzing our gross margin on an annual basis, given individual quarters can Bryan it's of various factors, including the ramping of new margin and the risk profile of transactions approved.
Avi: Moving to expenses, we continue to manage the business and our focused and disciplined manner.
Aglika Dotcheva: Total non-GAAP operating expenses were $39.8 million for the first quarter. Our non-GAAP operating expenses as a percentage of revenue declined year over year from 53% to 48%, reflecting ongoing leverage in the business model. We expect slightly higher second quarter expenses as compared to the first quarter and expect our expenses in the second half of the year to be lower than the first half of the year by approximately $2 million. We achieved positive adjusted EBITDA of $1.3 million in the first quarter, the sixth consecutive quarter of positive adjusted EBITDA.
Avi: non-GAAP operating expenses were $39 8 million for the first quarter.
Avi: Our non-GAAP operating expenses as a percentage of revenue declined year over year from 53% to 48%, reflecting ongoing leverage in the business model.
Avi: We expect slightly higher second quarter expenses as compared to the first quarter and expect our responses in the second half of the year to be lower than the first half of the year by approximately $2 million.
Avi: We achieved positive adjusted EBITDA of $1 3 million in the first quarter, the sixth consecutive quarter of positive adjusted EBITDA.
Aglika Dotcheva: Moving to the balance sheet. We ended the first quarter with approximately $357 million of cash deposits and investments. We carry zero debt. In addition, we continue to maintain a healthy cash flow model, and in the first quarter, we achieved quarterly free cash flow of $3.6 million. We continue to expect approximately $30 million of positive free cash flow in 2025, with the majority of the cash flow generation expected to occur in the second half of the year. In the first quarter, we repurchased 4.1 million shares for a total price of approximately 20.7 million, which helped drive a decrease of approximately 2.2 million shares from the fourth quarter of 2024 net of issuances.
Avi: Moving to the balance sheet.
Avi: We ended the first quarter with approximately $357 million of cash deposits and investments we carry zero debt.
Avi: In addition, we continue to maintain a healthy cash flow model and in the first quarter, we achieved quarterly free cash flow of $3 6 million.
Avi: We continue to expect approximately $30 million of positive free cash flow in 2025 with the majority of the cash flow generation expected to occur in the second half of the year.
Avi: In the first quarter, we repurchased four 1 million shares for a total price of approximately $27 million, which helped drive a decrease of approximately two 2 million shares from the fourth quarter of 2024 net of issuances.
Aglika Dotcheva: Reflecting our strong buyback activity and our commitment to managing dilution prudently, we continue to expect our share accounts to decline on an year-over-year basis. We believe that our strong balance sheet and liquidity position are strategic assets that provide flexibility in navigating a range of operating environments. We remain disciplined and thoughtful in how we deploy capital to create long term shareholder value.
Avi: Reflecting our strong buyback activity and our commitment to managing dilution prudently. We continue to expect our share count declined on a year over year basis.
Avi: We believe that our strong balance sheet and liquidity position are strategic assets that provide flexibility in navigating a range of operating environments.
Avi: We remain disciplined and thoughtful in how we deploy capital to create long term shareholder value.
Aglika Dotcheva: Now turning to our outlook, I'm encouraged by our strong start to the year, the opportunities surrounding the pipeline, and increased level of anticipated new business activity. That being said, given the uncertainty around potential impact of tariffs on our merchants and overall spending activity, we believe it is appropriate to maintain our revenue and adjusted EBITDA guidance that we set on our previous call, which we believe reflects a balanced view of risk and opportunities. We continue to anticipate revenue of between $333 million and $346 million, or $339.5 million to the midpoint. Our adjusted EBITDA guidance remains between $18 million and $26 million, or approximately $22 million to the midpoint.
Avi: Now turning to our outlook.
Avi: I'm encouraged by our strong start to the year the opportunities surrounding the pipeline and increased level of anticipated new business activity.
That being said given the uncertainty around potential impact of tariffs on our merchants and overall spending activity. We believe it is appropriate to maintain our revenue and adjusted EBITDA guidance that we said on our previous call, which we believe reflects the balanced view of risk and opportunity.
Avi: We continue to anticipate revenue of between $333 million and $346 million or $339 5 million to the midpoint.
Our adjusted EBITDA guidance remains between 18 million and $26 million or approximately $22 million to the midpoint.
Aglika Dotcheva: Overall, I'm encouraged to the start to 2025. I believe that our leading market positioning and ability to execute on the elements within our operational control positions as well to grow and deliver value to shareholders.
Avi: Overall I'm encouraged with the start to 2025, I believe that our leading market positioning and ability to execute on the elements within our operational control positions us well to grow and deliver value to our shareholders.
Operator: Operator, we're ready to take the first question, please. Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star 11 on your telephone. If your question has been answered, you wish to move yourself from the queue, please press star 11 again. We'll pause for a moment while we compile our Q&A roster.
Avi: Operator, we're ready to take the first question. Please.
Speaker Change: Thank you ladies and gentlemen, if you have a question or a comment at this time. Please press star one on your telephone mixture question has been answered you were seeing with yourself from the queue. Please press star one again, we will pause for a moment, while we compile the Q&A roster.
Operator: Our first question comes from Terry Tillman with Truist Securities. Your line is open. Oh, great.
Terry Tillman: Our first question comes from Terry Tillman with <unk> Securities. Your line is open.
Connor Passarella: Good morning, Tim. This is Connor Passarella on for Gary. I appreciate you taking the questions. I just wanted to ask maybe one more high level to start here. Just as you talked about, you know, the execution on the product roadmap, the increasing pipeline build, and, you know, some better revenue visibility, just from the multi-year contracts. I guess, how do you think about these factors and the impact on the confidence that you have for growth picking up into, you know, next year and beyond?
Speaker Change: Great. Good morning, Tim This is <unk> on for Gary I appreciate you taking the questions.
Terry Tillman: Wanted to ask maybe one more high level to start here.
Terry Tillman: You talked about the execution on the product road map, the increasing pipeline build.
Terry Tillman: Some better revenue visibility from the multi year contracts I guess, how do you think about these factors and the impact on the confidence that you have for growth picking up into next year and beyond.
Eido Gal: Connor, it's Eido. I mean, look, we're really happy with the strong start to the year, especially how it pertains to the pipeline growth. And when we think about, you know, unpacking some of the reasons for that growth, we think, number one, it is because of the platform and the wider value proposition that we have, and the more touch points we have within organizations that can relate to that increasing value. So I think we've always had great competitive win rates. This is just helping us have more at-bats. A second thing that we see is that our global go-to-market motion that we started a few years ago is starting to pay off.
Terry Tillman: I mean look we're really happy with our strong start to the year, especially highlighted.
Terry Tillman: As to the pipeline growth.
Terry Tillman: When we think about attacking some of the reasons for that growth. We think number one it is because of the platform and the wider value proposition that we have and the more touch points. We have within organizations that can relate to that increasing values and we've always had a great competitive win rate. This is just helping us have more.
Terry Tillman: Vas.
Terry Tillman: Second thing that we see is that our global go to market motion that we started a few years ago.
Eido Gal: We're seeing more opportunities diversified and kind of more revenue come from outside the U.S. And, you know, probably the last thing that drove merchants to us this quarter is we've had They've seen an increase in sophisticated fraud, and that's obviously something that we're better equipped to handle than some of their legacy systems and internal teams. So I think that's all created a very positive outlook on the pipeline.
Terry Tillman: It's starting to pay off we're seeing more opportunities diversifying into more revenue come from outside the U S.
Terry Tillman: And probably the last thing that drove merchants to us this quarters we've had.
<unk> seen an increase in sophisticated fraud, and Thats, obviously something that we're better equipped to handle and then some of their legacy systems and internal teams. So I think thats all created a very positive outlook on the pipeline side.
Eido Gal: Okay, great. That's, that's really helpful. And, you know, maybe just as a follow up, some of the puts and takes around the gross margins, you're continuously, you know, adding new logos to the platform, some bigger ones, but, you know, take some time to kind of ramp and maybe there's some headwinds associated with that. I'm just kind of curious on, you know, maybe what a timeline looks like to get to maybe a steady state on some of the transaction approvals and, you know, have the margins kind of shift to be more in line with the base of, you know, maybe the ML models kind of adjust.
Terry Tillman: Okay, Great. That's that's.
Speaker Change: Really helpful and maybe just as a follow up some of the puts and takes around the gross margins.
Speaker Change: We are continuously adding new logos to the platform some bigger ones, but it takes some time to kind of ramp maybe there are some headwinds associated with that just kind of curious on maybe what's a timeline looks like to get to maybe a steady state on some of the transaction approvals have the margins kind of shift to be more in line with the base of maybe the ml models kind of adjust I'll just kind of curious on anything you can share there.
Eido Gal: I'm just kind of curious, you know, on anything you can share there. I mean, I would continue to encourage people to look at it on an annual basis. And I think we kind of reiterated the annual expectations that we set on the previous call, maybe just as we get further into the year, some tweaks between the quarterly spread. But, like, we thought we anticipated some large client wins in Q1 within certain categories for Mints and Matam, they did have an impact on a year over year basis. But we do think they're great categories and we continue to see, you know, kind of the improvements and expectations there in the long term trajectory and the opportunity there is very good for us.
Speaker Change: Sure.
Speaker Change: Continued to encourage people to look at it on an annual basis.
Speaker Change: I think we kind of reiterated the annual.
Speaker Change: Patients that we said on the previous call.
Speaker Change: Maybe just as we get further into the year some tweaks between the quarterly spread.
Speaker Change: I'd like we thought we anticipated some large client wins in Q1 within certain categories remains in Lasalle.
Speaker Change: They did have an impact on a year over year basis, but we do think there are any categories and we continue to see.
Speaker Change: The improvements in expectations there in the long term trajectory and the opportunity there is very diverse.
Unknown Attendee: Thank you.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Okay.
Ryan Tomasello: Our next question comes from Ryan Tomasello with KBW, your line is open. Morning, everyone. Thanks for taking the questions.
Speaker Change: Our next question comes from Ryan Tom Sullivan with <unk>. Your line is open.
Speaker Change: Good morning, everyone. Thanks for taking the questions.
Eido Gal: You know, last quarter, I think as part of your focus on top of funnel expansion, you talked about taking a more thoughtful approach to go to market in the mid-tier. And I think you mentioned investing more in channel distribution. So I was hoping you can give us an update on that strategy. It is generally how you're thinking about the opportunity for Riskified to move more down market in the coming year. I think that's still an interesting opportunity.
Speaker Change: Last quarter I think as part of your focus on top of funnel expansion you talked about.
Speaker Change: Taking a more thoughtful.
Speaker Change: Approach to go to market in the mid tier.
Speaker Change: And I think you mentioned investing more channel distribution. So I was hoping you can give us an update on that strategy strategy and just generally how you're thinking about.
Speaker Change: The opportunity for risk if I had to move more down market in the coming years.
Speaker Change: Yes.
Speaker Change: Interesting opportunity.
Eido Gal: I would categorize strength of the pipeline that we've seen year to date still in kind of our core focus of enterprise very large as we think about mid-market channel and further downstream. That's probably later in the year from an activation. So it's still something that we believe that we've built the most powerful engine, and now it's not just powering fraud decisions, it's also powering policy decisions and managing the dispute process and helping secure accounts. And we do think that there's more opportunity to package and distribute. Okay, great.
Speaker Change: <unk> categorized strength of the pipeline that we've seen year to date is doing kind of our core focus up enterprise very large as we think about.
Speaker Change: Mid market channel and further downstream.
Speaker Change: Later in the year.
Speaker Change: From an activation perspective, so its still something that we believe that we build the most powerful engine and now it's not just power and fraud decisions. It's also powering policy decisions and managing the dispute process in helping secure accounts and.
Speaker Change: And we do think that there is more opportunity to package and distribute it better.
Eido Gal: And then on the, you know, momentum, you're, you continue to see in money transfer and the payments category, you talked about this flywheel starting to emerge, realizing it's early, but any way to frame kind of the longer term potential of that category of that vertical to the extent it continues to move in the direction of some of your higher market share categories, like tickets and travel, just trying to understand, you know, this is obviously a more more niche category. So just trying to understand how you guys tend to size sizes for I mean, I think for us, it's always important to continue to expand our SAM and take some of the TAM and convert it into SAM, and some of the ways we do that is by supporting more categories, more payment methods, and as you think about money transfer, that can be a wide range of use cases, whether it's account-to-account, kind of peer-to-peer, remittance companies, I think there's a relatively Broad range of use cases there, and it can also be across various forms of payments from things like obviously traditional credit cards, to ACH transactions, to even digital currencies.
Okay, Great and then on the <unk>.
Speaker Change: Mentum you continue to see in money transfer payments category, you talked about this flywheel starting to emerge realizing it's early but any.
Speaker Change: Any way to frame kind of the longer term potential of that of that vertical to the extent. It continues to move in the direction of some of your higher market share categories like tickets traveled just trying to understand.
Speaker Change: This is obviously a more more niche categories. So just trying to understand how you guys tend to size size is vertical.
Speaker Change: Sure I mean, I think for US it's always important to continue to expand our our Sam and based on the Tam and converted into the same and some of the ways. We do that is by supporting more categories more payment methods.
You think about money trains for that could be a wide range of use cases, whether it's account to account.
Speaker Change: Okay peer to peer remittance companies I think theres a relatively.
Speaker Change: Broad range of use cases, there and you can also be across various forms of payments from <unk>.
Obviously traditional credit cards.
Speaker Change: <unk> transactions.
Speaker Change: Even digital currencies. So we do think there is a pretty broad opportunity set there.
Eido Gal: So we do think there's a pretty broad opportunity set there. And the way we focus on these categories is by creating... Features Specific, Model Specific Capabilities, and that resonates well with our merchants because it just leads to better performance, and we're excited about what we have in store. Thanks for taking the question.
Speaker Change: And.
Speaker Change: The way we focus on these categories is that by creating <unk>.
Speaker Change: Specific models specific capabilities.
Speaker Change: And that resonates well with our merchants because it just leads to better performance.
Speaker Change: And we're excited about what we have in store there.
Speaker Change: Thanks for taking the questions.
Operator: One moment for our next question.
Speaker Change: One moment for our next question.
Timothy Chiodo: Our next question comes from Timothy Chiodo with UBS. Your line is open. Great. Thank you for taking the question. I want to talk a little bit about the competitive landscape. There's a great slide in the deck which compares some of your approval rates and some of the chargeback rates compared to competitor A and competitor B, not to get into name competitors all too much, but there is one that clearly has been more in discussions with investors, which is Stripe and Stripe Radar.
Speaker Change: Our next question comes from Timothy Chiodo with UBS. Your line is open.
Speaker Change: Great. Thank you for taking the question I wanted to talk a little bit about the competitive landscape. There is a great slide in the deck, which compares some of your approval rates in some of the charge back rates compared to competitor a competitor b.
Speaker Change: Not to get into named competitors, all too much but there is one.
Speaker Change: That clearly has been more in discussions with investors, which is stripe and stripe radar and I was just hoping you could do a little bit of a compare and contrast and talk about how the risk if I'd offering compares and contrasts to strike radar and what it offers.
Eido Gal: And I was just hoping you could do a little bit of a compare and contrast and talk about how the Riskified offering compares and contrasts to Stripe Radar and what it offers. Tim, thanks for the questions. think that inherently Unknown Attendee, Aglika Dotcheva, Ziggy真的是 more limited capabilities. And let me expand on that. The level of data that we receive per transaction, and I think we recently did an analysis is In most cases, three times the level of data that some of these other solutions have. and leveraging that data enables us to create more features, more capability.
Tim: Hey, Tim Thanks for thanks for the question.
Speaker Change: Thanks.
In theory lead.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: More limited capabilities and let me expand on that.
Speaker Change: The level of data that we receive per transaction that we recently did an analysis is.
Speaker Change: As in most cases three times the level of data that some of these other solutions are seeing.
Speaker Change: Leveraging that data enables us to create more features more capabilities. So if you think about the lifecycle of a transaction.
Eido Gal: So if you think about the life cycle of a transaction. Riskified now receives data from when you log into the account, how you're browsing on the website, the full checkout information, data tied into the customer support system in case you're calling in and requesting an address. Anything related to returns and refund requests, if you submit a chargeback for fraud or non-fraud reason codes, and that's per transaction. So when you think about that granularity of data, and maybe one thing I should add is we have kind of merchant-specific data points. So we mentioned the remittance industry, which we're growing into.
Speaker Change: Risk if I now receive data from when you log into the account.
Speaker Change: Europe browsing on the web site the full checkout information.
Speaker Change: Data tied into the customer support system in case, you are calling in and requesting an address change anything related to returns and refund request. If you submit a charge back for fraud or non fraud reason codes and that's per transaction. So when you think about that granular.
Speaker Change: Narrative data and maybe one thing I should add as we have.
Speaker Change: <unk> specific data points. So we mentioned remains industry, which we're growing into.
Eido Gal: So a lot of those companies are sending specific data points around. Entity, and various agents. And we, in just all that data, create custom features and model based on that in our entire environment. It's kind of custom built to support that type of data enrichment and feature engineering and different modeling environments.
Speaker Change: Those companies are sending specific data points around the customer identity. Their various ages, we adjust all of that data create custom features and model based on that and our entire environment. This dynamic custom built to support that type of data enrichment and feature engineering and different model.
Eido Gal: When you compare that to a gateway solution, whether it's STRIPE or others... but the amount of data is more limited because obviously they need a smaller subset to go live with their payment processing and I think that's the theoretical explanation. The results that we see with our merchant base clearly demonstrates that I think this is not one of the solutions that we come up against or see competitively in the market. So hopefully that explains both kind of more why we believe that and the actual results that way. It really does.
Speaker Change: Let me environments.
Speaker Change: When you compare it back to a gateway conclusion, whether its stripe or others.
Speaker Change: But the amount of data is more limited because obviously they need a smaller subset.
Their payment processing and I think thats the theoretical explanation.
Speaker Change: The results that we see with our merchant base clear.
Speaker Change: Clearly demonstrates that I think this is not one of the solutions that we come up against four see competitively in the market. So hopefully that explains both kind of more why we believe that in the actual results that we're seeing.
Timothy Chiodo: Thank you so much.
It really does thank you so much.
Timothy Chiodo: My second question or follow-up is more about the industry growth. So, during the prepared remarks, you mentioned some of the continued same-store sales weakness in certain categories. The overall GMV growth was, I believe, 7% during the quarter.
Speaker Change: Second question or follow up is more about the industry growth. So during your prepared remarks, you mentioned some of the continued same store sales weakness in certain categories.
Speaker Change: Overall GMB growth was I believe 7% during the quarter.
Eido Gal: If you have to look across your core verticals on sort of a blended average, riskified specific industry growth rate, do you think that the growth rate across your categories would have been well below that 7% number indicative of share gains, or do you think that the industry growth would have been kind of more similar to that 7%? Any directional sense there would be really helpful. Yeah, thank you for the question. If I think about our categories, they don't always align with kind of the external AECOM growth metrics that are shared out there. And just to give you an example, when I think about some of the strengths that we showed this quarter came from travel.
Speaker Change: If you have to look across your core verticals I am sort of blended average risk <unk> specific industry growth rate do you think that the growth rates across your categories would have been well below that 7% number indicative of share gains or do you think that the industry growth would have been kind of more similar to <unk>.
Speaker Change: That 7% any directional.
Speaker Change: Since there would be really helpful.
Speaker Change: Yes.
Speaker Change: Thank you for the question if I think about our categories that don't always align with kind of a big thermal E com Ralph metric that our share out there and just to give you. An example, when I think about some of the strength that we saw this quarter, where I came from travel and.
Eido Gal: And while we heard a lot of companies and a lot of airlines kind of sharing weaker demands in travel, even some companies suspended guidance, we saw the opposite. Actually, for travel for us was a very strong category. We saw a lot of growth there. And some of the new assets there that we have made a stronger presence in Europe. And maybe we were able to support kind of like some of the consumer preference change to travel outside of the U.S.
Speaker Change: Well, we heard a lot of companies a lot of airlines kind of sharing weaker demand in travel.
Speaker Change: The company suspended guidance, we saw the opposite actually for travel for US was a very strong category.
Speaker Change: So a lot of growth there and.
Speaker Change: Some of the nuances there.
Speaker Change: We have made a stronger presence in Europe, and maybe we're able to support kind of like some of the consumer preference changed.
Eido Gal: But this is just one example. And some of the other categories we kind of shared, we have more than 30, around 30% of our revenue is coming from fashion and luxury goods. So that might be potentially disproportionate to some of the industries that are presented in the brighter EECOM space. And we have shared, we think, you know, some of these categories like high fashion or sneakers performing or declining in Europe. So this is something we continue to see in Q1. And having said that, some of the declines were actually lower than what we saw prior year.
Speaker Change: Outside of the U S. But this is just one example is one of the other categories. We kind of shared we have more than 30 around 30% of our.
Speaker Change: Well, having any coming from fashion and luxury goods, so that might be.
Speaker Change: It is proportionate to the.
Speaker Change: The illustrated that represented the brighter E comm space.
And we have shared with income.
Speaker Change: Some of these categories like high customer sneakers.
Speaker Change: Performing.
Speaker Change: Our declining year over year.
Speaker Change: So this is something we continue to see in Q1.
Speaker Change: Having said that some of the declines were actually lower than what we saw prior year. So maybe there is a light at the end of the tunnel there as well so all in all Im happy with our performance.
Eido Gal: So maybe there is a light at the end of the tunnel there as well.
Eido Gal: So all in all, I'm happy with our performance. And, you know, there's kind of strength and opportunity to continue to diversify more, which definitely helps in terms of kind of like overall performance. And we'll continue to watch this category.
Speaker Change: There's kind of strengths and opportunities to continue to diversify more which definitely helps.
Speaker Change: In terms of kind of like overall performance.
And we will continue to watch this category.
Eido Gal: Great, thank you. I just make sure I understood that. So for the luxury and fashion, you were saying negative last year for same store sales this year negative as well, but not quite as negative. So some slight improvement relative to last year's negativity. That's what you were saying. Correct. That's what I was saying.
Speaker Change: Great. Thank you I would just make sure I understood that the luxury and fashion you were saying negative last year for same store sales this year negative as well, but not quite as negative so some slight improvement.
Speaker Change: Relative to last year's negativity that that's what you were saying.
Speaker Change: Correct, that's what I would think actually we are expecting a little bit better. This quarter. So maybe the question was a little bit sluggish and our protection, but let's try and compared to last year.
Timothy Chiodo: Actually, we were expecting a little bit better this quarter. So maybe fashion was a little bit sluggish than our projection, but the trend compared to last year, I All right, great. Thank you for taking both of those. Thanks.
Speaker Change: Okay. Good alright, great. Thank you for taking both of those thanks.
Speaker Change: One moment for our next question.
Speaker Change: Okay.
Chris Kennedy: Our next question comes from Chris Kennedy with William Blair. Your line is open. Thanks for taking the question. It's good to see the growth in the new products. Can you just talk a little bit about what you're what's resonating in the market between policy protect policy decisions, etc. I think what we're seeing is the platform resonate. And I think different merchants have, you know, at a specific point in time, a different set of problems. But the wider platform is what resonates. And to call out, we've continuously said that the value and ROI that we're able to unlock with policy protect, is very meaningful.
Our next question comes from Chris Kennedy with William Blair. Your line is open.
Chris Kennedy: Thanks for taking the question, it's good to see the growth and the new products can you just talk a little bit about what you're what's resonating in the market between policy protect policy decisions et cetera.
Speaker Change: I think what we're seeing is the platform resonate and I think different merchants have.
Speaker Change: At a specific point in time, a different set of problems.
Speaker Change: But the wider platform is what resonates.
Speaker Change: To call out we have continuously said that the value and ROI that we're able to unlock with policy protect is very meaningful and we continue to see that.
Eido Gal: And we continue to see that. So just to share a few kind of testimonials, we've had one merchant where we're able to block 10% of refund and return requests, because they're abusive, right? Instead of stealing your card, I could just call the merchant and say, hey, I never received my package, please provide me with a refund. And they're able to block that 10% of requests without any incremental increase in false positives.
Speaker Change: So just to share with you.
Speaker Change: As the millennials, we've had one merchant, where we're able to block, 10% refund and return requests because their abuse. It right instead of stealing your card I can just call the merchant, but I never received my package. Please provide me with a refund.
Speaker Change: And they are able to block that 10% of requests without any incremental increase in both positives.
Unknown Attendee: Another one of our merchants recently shared a very Unknown Attendee, Aglika Dotcheva, Ryan Tomasello, William Nance, Cristopher Kennedy, Ryan Tomasello, Unknown Attendee, Aglika Dotcheva, Ryan Tomasello, William Nance, Cristopher Kennedy, Ryan Tomasello, William Nance, Chris Great. Thanks for that.
Speaker Change: Another one of our merchants recently shared a very.
Speaker Change: R&D and kind of.
Speaker Change: Internal business kind of analysis that they did and they have seen that while they've actually decrease the amount of refunds that they need to issue.
Speaker Change: <unk> satisfaction has actually increased because they are doing in a more accurate way. So I think we're really seeing greatest ammonium and great traction across that.
Speaker Change: Great. Thanks for that and then just as a follow up.
Eido Gal: And then just as a follow-up, you've had kind of a long-term target of generating 15 to 20% EBITDA margins kind of by the end of 2026. Is that still kind of in your plan? Thanks for taking the question. I think we're excited by the start of the year and looking forward to continuing to execute on it. Thank you.
Speaker Change: You've had kind of a long term target of.
Speaker Change: Generating 15% to 20% EBITDA margins kind of by the end of 2026 is that still kind of in your and your plan. Thanks for taking the questions.
Speaker Change: Nothing we're excited by the start of the year and looking forward to continue to execute on them.
Speaker Change: Thank you one moment for our next question.
Clark Wright: Our next question comes from Clark Wright with D. A. Davidson. Your line is open. Awesome, thank you.
Speaker Change: Our next question comes from Clark <unk> with D. A Davidson your line is open.
Eido Gal: We'd love to kind of better understand the limitations of homegrown solutions versus Riskified's value proposition in the wake here of AI and the related benefits, I guess, that would provide for bad actors in this space. And then I'll have a follow-up afterwards.
Clark: Awesome. Thank you would love to kind of better understand the limitations of homegrown solutions versus risk if I its value proposition and the way care of AI and the related benefits I guess that would provide for bad actors in the space and then I'll have a follow up afterwards.
Eido Gal: Sure, let me give a concrete example from Q1. So specifically with the Gen AI, we've seen an increase in product vector, where people are targeting, you know, support or chatbots and, you know, doing it with great language and using that to gain access into accounts. A separate form of sophisticated product that we've seen is where there are remote, you know, remote desktop takeovers and leveraging good computers to place fraudulent transactions. And when you think about an individual merchant experiencing that type of attack, which is very challenging to identify because it requires, you know, various cyber capabilities and network abilities, it can be hard.
Clark: Sure Let me give a concrete example from Q1 so.
Speaker Change: Generally, yes, we've seen an increase in Brian Baxter, where people are targeting.
Supporter chat box and doing it with a great language and using that to gain access into accounts.
Speaker Change: Separate 400 sophisticated fraud that we've seen is where there are remote.
Speaker Change: Remote desktop takeovers and leveraging good computers to place a fraudulent transactions.
Speaker Change: And when you think about an individual merchant experiencing that type of attack, which is very challenging to identify because it requires various cyber capabilities and network abilities.
Eido Gal: And by the time they catch up to it, it's costing them a meaningful amount of money. And if you think about the Riskified Networking Capability Set, we were able to see a specific organized fraud ring attack one of our merchants. Because of, you know, different anomaly detection capabilities we have on the cyber front, we were able to identify that. And then we actually saw it propagate in a handful of other merchants that we service. So if you think about it, each one of these individual merchants, if they were trying to catch this standalone, it would take them a longer time to identify it on, you know, but also every subsequent merchant where we are already kind of familiar and able to block that attack vector, it would have been the first time for them.
It can be heartened by the time, they catch up to it its customer a meaningful amount of money.
Speaker Change: And if you think about the risk side network and capabilities that we.
We were able to see a specific organized fraud, Greg attack one of our merchants.
Speaker Change: Because of different anomaly detection capabilities, we have on the cyber front and we were able to identify that and then we actually saw propagated in the haynesville of other merchants that we service.
Speaker Change: So if you think about it each one of these individual merchant that they were trying to catch this sustained alone it would take them a longer time to identify it on.
Speaker Change: Upon the onset of the effects, but also every subsequent merchant where we are already familiar enables a block that attack vector it would've been the first time for them.
Eido Gal: So it's this combination of the network and some of the capabilities that we have.
Speaker Change: So it's this combination.
Speaker Change: Network and some of the capabilities that we have.
Eido Gal: And when you think about, you know, the majority of the company, or the size, let's say, the size of the data science and analytical teams that we have continuously churning out updates to some of the new attack vectors, that's something outside of the scope and scale of an individual. Awesome, that was helpful and appreciate the clarity around that with the with the example.
Speaker Change: When you think about the majority of the company or the size, let's say there is inside of a data science and analytical team that we have continuously churning out updates.
Speaker Change: <unk>, that's something outside of the scope and scale of individual merchant.
Speaker Change: That's helpful. I appreciate the clarity around that.
Eido Gal: My second is just around the mix of growth that you're assuming for 2025. How much of that right now versus the beginning of the year would you attribute to new logo growth versus what you're seeing expansion within your base? Thank you for the question.
Speaker Change: With the example.
Speaker Change: Second is just the mix of growth that you're assuming for 2025, how much of that right now versus the beginning of the year would you attribute to new logo growth versus what youre seeing expansion within your base.
Speaker Change: Thank you for the question I'll take this one.
Eido Gal: I'll take this one. What do we see right now? It's like, I'm just looking at the trends from Q1 and for the rest of the year, maybe kind of like, some of the new revenue is a little bit higher than what we expected. And maybe the macro, I'm just looking at the uncertainty out there and what we're projecting, maybe just slightly worse than what we expected. So, I know very similar. That's why it allows us to kind of reiterate the guide. So, I'd expect that new logo, maybe just slightly bit higher and dollar retention rate, maybe just slightly lower, but still around.
Speaker Change: What do we see it right now.
Speaker Change: They're looking at the trends from Q1 and for the rest of the year maybe.
Speaker Change: Maybe kind of like some of the new revenue as a little bit higher than what we expected and maybe the macro just looking at the uncertainty out there and what we're projecting might be maybe just slightly worse than what we expected. It's all in all very similar and that's why it allows us to.
Speaker Change: Kind of reiterate the guidance.
<unk> new logo, maybe just slightly a bit higher than the dollar retention rate, maybe just slightly lower but still around kindred.
Eido Gal: He said still around 100, so would that imply above her? Oh, 100. Above, but close to 100. Got it. Okay.
Speaker Change: Okay.
Is it still around 100, and so would that imply above or.
Speaker Change: Yeah.
Speaker Change: 100 <unk>.
Speaker Change: Above.
Speaker Change: Close to 100.
Eido Gal: Thank you. Appreciate that.
Speaker Change: Got it okay. Thank you appreciate that.
Eido Gal: And I'm not showing any further questions at this time, I turn the call back over to Eido for any closing remarks. Thank you for joining today's call and we look forward to continuing to update you on our progress throughout the Thank you, ladies and gentlemen, this does conclude today's presentation.
Ed: And I'm not showing any further question at this time I turn the call back over to Ed for any closing remarks.
Speaker Change: Thank you for joining today's call and we look forward to continuing to update you on our progress throughout the year.
Speaker Change: Thank you ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.
Operator: You may now disconnect and have a wonderful day.
Unknown Attendee: Thanks for watching!
Speaker Change: Okay.
Speaker Change: [music].