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Why Shares of Riskified Tumbled Today

By Chris Neiger – Sep 9, 2021 at 2:29PM

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The company's losses widened from the year-ago quarter.

What happened 

Shares of Riskified (RSKD -5.06%) fell today after the fraud management platform company reported its second-quarter results. The company's revenue and earnings in the quarter outpaced analysts' consensus estimates, but investors were disappointed that the company losses widened.

The tech stock was down by 14.8% as of 2:13 p.m. EDT.  

So what 

Riskified's revenue grew 47% from the year-ago quarter to $55.7 million. That was enough to beat Wall Street's consensus estimate of $54.98 million for the quarter. 

A white line pointing down on a red background.

Image source: Getty Images.

Additionally, the company's $1.41 loss per share was better than analysts' consensus estimate of a loss of $1.49 per share for the quarter. 

But even though Riskified beat Wall Street's expectations, the company's second-quarter earnings loss per share of $1.41 was much wider than the loss of $0.52 in the year-ago quarter. Investors were likely disappointed that the company's losses are moving in the wrong direction and drove Riskified's stock down as a result. 

Now what 

Riskified just became a publicly traded company a few weeks ago, so a big share price plunge following the company's first earnings report after its IPO isn't all that surprising. New publicly traded companies tend to have more volatile share prices.

But long-term investors should certainly keep a close eye on whether the company can close the gap -- and eventually reverse course -- on its widening losses.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Riskified Ltd. Stock Quote
Riskified Ltd.
RSKD
$5.07 (-5.06%) $0.27

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