Company: RSKD
Filing Date: 2025-03-06
Form Type: 20-F
Source: 0001851112-25-000006
Chunk: 216

Company: RISKIFIED LTD.
Filing Date: 2025-03-06
Form: 20-F
Item: Item 19
Chunk 216
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 a third party to relieve ourselves from our obligations under issued guarantees. The fair value of the chargeback guarantee is primarily determined by utilizing the historical percentage of guarantees issued that resulted in a chargeback plus a risk premium fee that we would have incurred from a third-party in order to relieve ourselves from our legal obligation under the guarantee.

Changes in the percentage of revenue that are recorded as revenue for review services recognized under ASC 606 and revenue for indemnification guarantees recognized under ASC 460 are a function of changes in the aforementioned fair value of the chargeback guarantee and changes in the speed in which we resolve chargeback claims which impacts the systematic and rational approach that we utilize to record revenue associated with our guarantee obligation.

Cost to Obtain a Contract

The following table represents a roll-forward of deferred contract acquisition costs:

                                                           Year Ended December 31,                                                                  
                                                           2024                                     2023                      2022                  
                                                           (in thousands)                                                                           
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Beginning balance                                        $                            15,562      $             14,383      $             10,365  
  Additions to deferred contract acquisition costs                                      10,535                     8,894                     9,707  
  Amortization of deferred contract acquisition costs      ( 8,583)                                 ( 7,715)                  ( 5,689)              
  Impairment of deferred contract acquisition costs        ( 956)                                   —                         —                     
  Ending balance                                           $                            16,558      $             15,562      $             14,383  

F-21

RISKIFIED LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cost to Fulfill a Contract

The following table represents a roll-forward of deferred contract fulfillment costs:

                                                           Year Ended December 31,                                                               
                                                           2024                                    2023                     2022                 
                                                           (in thousands)                                                                        
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Beginning balance                                        $                            4,456      $             3,673      $             2,930  
  Additions to deferred contract fulfillment costs                                      3,010                    2,635                    2,189  
  Amortization of deferred contract fulfillment costs      ( 2,201)                                ( 1,852)                 ( 1,446)             
  Impairment of