Ryvyl (US:RVYL)2023-11-17 17:50Financial Data and Key Metrics Changes - RYVYL reported record financial results for Q3 2023, with revenues increasing nearly 64% year-over-year to $17.5 million, reflecting an 18% sequential increase from $14.9 million in Q2 2023 [8][23] - The processing volume for Q3 totaled $861 million, representing a 28% increase from Q2 2023 [9] - The company recorded a net loss of $3.1 million or $0.60 per share, compared to a net loss of $15.9 million or $3.37 per share in the same quarter a year ago [28] Business Line Data and Key Metrics Changes - North America revenue increased 47% from $8.5 million in Q3 2022 to $12.5 million in Q3 2023, while EU revenue was $5 million, up more than 100% from $2.2 million in the same period last year [23] - The cost of revenues increased by 149% to $10.8 million, primarily due to increased processing fees and commission payments [23][24] - The company launched the coyni mobile point of sale (mPOS) app, transforming devices into payment terminals for secure transactions [16] Market Data and Key Metrics Changes - RYVYL EU revenue saw tremendous year-over-year growth, increasing 100% and currently representing 28.5% of total revenue [10] - The processing volume for the FX and international payments portfolio increased over 21% from Q2 2023 to $517 million, and a 52% increase from Q3 2022 [33] - The company expects to achieve processing volume in Q4 of $900 million to $1 billion, estimating total fiscal year processing volume to exceed $3 billion [38] Company Strategy and Development Direction - The company is focused on expanding its Banking-as-a-Service offering and leveraging its partnership with Visa to enhance service capabilities [11][14] - RYVYL is committed to the spin-off of coyni as part of its value creation strategy, with expectations to complete the process soon [15][45] - The company aims to ramp up to $100 million per month in transaction volume through its Banking-as-a-Service platform [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in Europe and the potential for the coyni platform to generate revenue in the EU market [10][50] - The company anticipates continued momentum in revenue growth, projecting Q4 revenue of $19 million to $21 million, bringing total year revenue to $62 million to $64 million [38] - Management acknowledged challenges related to higher-than-planned expenses but expects adjusted EBITDA to improve in Q4 [39] Other Important Information - The company implemented a 1-for-10 reverse stock split to maintain NASDAQ compliance [18] - RYVYL has taken steps to reduce debt, resulting in a $21 million total debt reduction through convertible preferred stock exchanges [17] Q&A Session Summary Question: Does the company continue to expect to see higher growth in Europe? - Management expects continued revenue growth in Europe, noting the current lower revenue-to-volume ratio is due to the early phase of service rollout [42][44] Question: What is the progress of the coyni spin-off? - The company is committed to completing the spin-off process as quickly as possible, pending FINRA approval [45] Question: What would the recent NASDAQ standard deficiencies issue create as a potential blocker for the coyni spin-off? - The NASDAQ deficiencies are unrelated to the coyni spin-off, which is governed by FINRA rules [46] Question: What is the status of RYVYL completing its transition to the network firm? - The technical migration to the new network has been completed, with service implementation ongoing [47] Question: Can you comment on where the coyni is generating revenue year-to-date? - The company has some immaterial revenues from the coyni ecosystem, with expectations to ramp up revenue in both the U.S. and EU markets [48][50] Question: Does the company intend to hire senior leadership roles to fill vacancies in sales and marketing? - The company plans to fill vacancies to support growth momentum in existing and new verticals [51] Question: How does the company feel about its current staffing level to support growth? - Management believes they maintain adequate resources to support current business and anticipated growth [53] Question: What is the status of illegal proceedings regarding Sky Financial? - The company is unable to discuss ongoing legal proceedings publicly but will disclose progress as appropriate [55]