Transaction Volume and Value - As of September 30, 2024, Tranglo processed approximately 8.56 million transactions with a total processing value of $3.92 billion, representing a 5.5% increase in volume and an 18.8% increase in value compared to the same period in 2023[188]. - For the nine-month period ended September 30, 2024, Tranglo processed 8.56 million remittance transactions with a total value of $3.92 billion, compared to 8.11 million transactions valued at $3.3 billion in the same period of 2023, reflecting a transaction increase of 5.5% and a value increase of 18.8%[237]. - Currenc processed 2.71 million remittance transactions valued at $1.21 billion for the three-month period ended September 30, 2024, compared to 2.72 million transactions valued at $1.14 billion for the same period in 2023[220]. User Growth - The number of unique users for Tranglo increased to 1,024,100 as of September 30, 2024, up from 866,800 a year earlier, while average monthly unique sending accounts rose to 358,900 from 326,500[189]. - The number of unique users increased to 1,024,100 as of September 30, 2024, from 866,800 as of September 30, 2023, representing an increase of 18.1%[238]. - The number of average monthly unique sending accounts increased from 326,500 for the nine-month period ended September 30, 2023, to 358,900 for the same period in 2024, reflecting an increase of 9.9%[238]. Revenue Performance - For the three-month period ended September 30, 2024, Currenc's revenue decreased by 11.0% to $11.3 million compared to $12.7 million for the same period in 2023, primarily due to a 22.1% decline in global airtime revenue[219]. - For the nine-month period ended September 30, 2024, Currenc's revenue decreased by 11.3% to $35.4 million compared to $39.9 million for the same period in 2023, driven by a 22.3% decline in global airtime revenue[236]. - Currenc's global airtime revenue for the nine-month period ended September 30, 2024, declined by 22.3% to $7.3 million compared to $9.4 million for the same period in 2023[239]. Operating Expenses and Losses - Currenc's operating expenses increased sharply from $6.5 million for the three-month period ended September 30, 2023, to $19.1 million for the same period in 2024, largely due to a $13.1 million expense related to incentive shares granted to employees[227]. - Operating expenses for Currenc increased sharply to $30.0 million for the nine-month period ended September 30, 2024, from $18.8 million in the same period of 2023, primarily due to $13.1 million in incentive shares granted to employees[246]. - Currenc's net loss for the three-month period ended September 30, 2024, was $5.0 million, compared to a net loss of $3.8 million for the same period in 2023[218]. - For the nine-month period ended September 30, 2024, Currenc recorded a net loss of $11.261 million, compared to a net loss of $10.447 million for the same period in 2023[262]. Cash and Capital Management - As of September 30, 2024, Currenc had cash balances of $49.1 million, a working capital deficit of $54.1 million, and a net capital deficit of $22.7 million[270]. - The company believes its current cash and cash equivalents will be sufficient to meet anticipated cash needs for at least the next 12 months[273]. - Net cash provided by financing activities amounted to $2.2 million in the nine-month period ended September 30, 2024, primarily from the issuance of convertible bonds[280]. Business Strategy and Market Development - The company aims to develop B2C markets in Southeast Asia and the Middle East to capture retail remittance and airtime markets, which could generate significant clientele and synergy for its businesses[206]. - The company continues to drive adoption of its platform for money transfer and payment processing services, aiming to introduce new B2C financial services in Southeast Asia and the Middle East[207]. - Currenc's ability to maintain and build its partner network is crucial for its business scope and scale, impacting its operational results[213]. Revenue Recognition and Accounting Policies - The Company generates revenue through Fiat Currency Prefunded Remittance Fees, which are fixed and specific for each country's currency, charged at the time of transaction[298]. - The XRP Prefunded Remittance Service allows customers to obtain prefunding through Ripple's solution, with the Company charging an XRP Prefunded Remittance Service Fee upon transfer[299]. - Revenue from airtime sales is recognized when the international airtime transfer or reload request is processed[303]. - The Company performs annual goodwill impairment tests, with no impairment recorded for the periods ended September 30, 2024, and December 31, 2023[306]. Other Financial Metrics - The direct costs for remittance revenue decreased by 18.5% to $2.2 million for the three-month period ended September 30, 2024, from $2.7 million for the same period in 2023[225]. - The direct costs for remittance revenue decreased by 9.4% to $7.7 million for the nine-month period ended September 30, 2024, despite an 18.8% increase in total payment volume (TPV)[244]. - EBITDA for the nine-month period ended September 30, 2024, was a loss of $616,000, an improvement from a loss of $2.449 million in the same period of 2023[257].
Currenc Group Inc.(CURR) - 2024 Q3 - Quarterly Report