Feedzai, a provider of financial crime and risk management solutions, announced results for its 2024 fiscal year, delivering a strong combination of revenue growth acceleration and positive free cash flow margins.
Business expansion was highlighted by “the expansion of Feedzai’s behavioral biometrics business, which grew 88% year-over-year.”
The global cost of online payments fraud is “expected to grow by 140% by 2028,” according to a recent study by Juniper Research.
Against this epidemic of rising financial crime levels worldwide, regulators are increasing enforcement and penalties, “resulting in growing anti-money laundering (AML) fines and compliance costs.”
Feedzai’s RiskOps platform addresses these challenges, “protecting people and payments with a comprehensive suite of AI-based solutions designed to stop fraud and financial crime.”
Today, Feedzai solutions help “defend over 1 billion people from financial crime, safeguarding more than $6 trillion in transactions each year, while helping financial institutions reduce their growing costs of AML compliance.”
Feedzai’s AI-based technology helps businesses fight fraud “across the entire risk-cycle, from new account creation and customer onboarding, to payments and other transactions, to ongoing regulatory compliance.”
Feedzai closed several landmark transactions in FY24, including:
- An upsell with a top 10 European banks worth $100M across its multi-year term.
- A partnership with a global systems integrator that includes distribution rights and a commitment to work together to build out a major RiskOps practice within the integrator.
- A reseller relationship with a player in the risk, compliance, identity, and investigation space. This large, multi-billion dollar media and data company will promote and sell Feedzai’s behavioral biometrics solution to new markets through its large and international sales channel.
- A multi-year, multi-million ARR (annual recurring revenue) transaction facilitating migration of a US government agency’s fraud detection system to Feedzai’s cloud managed service.
In addition, Feedzai introduced various product and technology improvements “to extend its RiskOps vision,” notably among these:
- Feedzai introduced Railgun, Feedzai’s next-generation, patented AI engine, which enables enhanced fraud detection accuracy, 4x faster risk strategy update speeds, enabling improved decisions with low latency and scalability.
- Feedzai added new ScamPrevent™ capabilities that deliver industry-leading detection, classification, and interception of the widest variety of payment scams and financial fraud typologies, by combining transactional fraud detection with behavioral biometrics with out-of-the-box AI improvements and support for inbound payments monitoring.
- Feedzai submitted eight new patent applications and was granted six new patents in the US, including critical intellectual property in the areas of automatic performance monitoring, new ways of using graph algorithms to improve fraud detection, model explainability, algorithms to improve model fairness, and our new Railgun AI engine.
- Downloads of Feedzai’s open source contributions more than doubled, reaching over 90 thousand total downloads. Feedzai is a leader in AI fairness and its open-sourced FairGBM algorithm has received industry accolades as a game-changing contribution that makes Fair Machine Learning accessible to all.
Nuno Sebastiao, CEO of Feedzai said:
“The past year was a successful one for us as we’ve significantly expanded both our operations and product offering, while delivering strong positive cash flow. The need for our RiskOps solutions continues to grow as criminals become more sophisticated, leveraging new technologies like generative AI, and as fraud levels continue to rise globally. As a result, we’re laser-focused on helping our customers succeed by providing the world’s best RiskOps technology and expertise, so they can deliver innovative banking solutions secure from financial crime.”