Company: RSKD
Filing Date: 2025-03-06
Form Type: 20-F
Source: 0001851112-25-000006
Chunk: 3

Company: RISKIFIED LTD.
Filing Date: 2025-03-06
Form: 20-F
Item: Item 3
Chunk 3
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 or competitor offerings, and that meet the evolving needs of our merchants and changes in the regulatory environment in which we operate;

• difficulties providing high quality support or maintaining a high level of merchant satisfaction, including satisfaction with our pricing and bundling models, which could reduce demand for our products if existing merchants terminate their relationship with us or stop referring prospective merchants to us;

• increases in our merchant churn rates, including discounting and churn of significant merchants from whom we derive a significant percent of our revenue, which have in the past occurred and may occur for various reasons including, but not limited to, competition, financial condition of our merchants, corporate reorganizations, mergers and acquisitions or bankruptcies affecting our merchant base;

• perceived or actual security, availability, integrity, privacy, reliability, quality, or compatibility problems with our products, including related to unscheduled downtime, outages, or network security breaches; and

• continued or increased competition in our industry, including greater marketing efforts or investments by our competitors in advertising and promoting their brands or in product development.

Our future success depends, in part, on our ability to sell additional products to our existing merchants. If our merchants do not purchase additional products from us, or do not renew their agreements upon expiration, our business, financial condition, and results of operations may be adversely affected.

Our merchant expansions and renewals have in the past, and may continue to, fluctuate as a result of a number of factors, including merchant usage, merchant satisfaction with our products and AI-powered ecommerce risk intelligence platform capabilities and merchant support, the capabilities of competing products, our prices, the prices of competing products, corporate reorganizations, mergers and acquisitions or bankruptcies affecting our merchant base, consolidation of affiliates’ multiple paid business accounts into a single paid business account, the effects of global economic conditions, including recession and inflation, or reductions in our merchants’ spending levels generally. These factors may be exacerbated if, consistent with our growth strategy, our merchant base continues to grow to encompass large online enterprises.

We have a history of net losses and there are no assurances that we will achieve profitability in the future.

We have not been profitable since our inception in 2012 and have incurred significant net losses in prior years, including net losses of $34.9 million and $59.0 million for the years ended December 31, 2024 and 2023, respectively. In addition, our ability to achieve and maintain profitability will depend, in part, on our ability to effectively manage and decrease our chargeback expenses,