What happened
Shares of Riskified (RSKD -0.99%) 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.
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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.
