Ryvyl (US:RVYL)2023-08-17 19:37Financial Data and Key Metrics Changes - The company reported record top line revenue of $14.8 million for Q2 2023, an increase of nearly 113% year-over-year and a 31% sequential increase from $11.3 million in Q1 2023 [1][15] - Adjusted EBITDA for Q2 2023 was a loss of $0.9 million compared to a loss of $3.1 million in the same quarter last year [38] - The company recorded a net loss of $12 million in Q2 2023, compared to a net income of $12 million in the same period last year, primarily due to changes in the fair value of derivative liabilities [27] Business Line Data and Key Metrics Changes - Processing volume for the quarter reached $678 million, exceeding the target range of $580 million to $610 million, and representing a 20% increase from Q1 2023 [6][39] - ChargeSavvy processing volume was $53 million, about 19% lower than Q1 2023, and a 15% decline compared to Q1 2022 [30] - The FX and international payments portfolio processed $425 million in Q2 2023, a 23% increase from Q1 2023 and a 248% increase from Q2 2022 [30] Market Data and Key Metrics Changes - North America Q2 revenue increased 86% from $5.9 million in Q2 2022 to $11 million in Q2 2023, while EU Q2 revenue was $3.8 million, increasing by 270% from $1 million in the year earlier quarter [22] - RYVYL EU received approval from the European Payments Council to launch SEPA instant payments, enabling faster payment transfers across 36 SEPA countries [19] Company Strategy and Development Direction - The company is pursuing a spin-off of coyni as part of a value creation strategy, aiming to establish it as a premier electronic token solution in the market [8][9] - The Banking-as-a-Service platform is gaining momentum with several new partners and is projected to process over $100 million per month when fully ramped up [17] - The company is focusing on specific verticals and geographies with less competition to maximize profit margins, particularly in the European market [64][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory domestically and internationally, raising Q3 revenue outlook to $16 million to $18 million, which would bring total year revenue to exceed $60 million [43] - The company is optimistic about the potential of the Visa Direct program and SEPA instant payments to enhance service offerings and processing volumes [47][48] - Management acknowledged the challenges in the U.S. regulatory landscape but sees opportunities in Europe where regulations are more established [78] Other Important Information - The company welcomed Gene Jones as Interim Chief Financial Officer, bringing over 35 years of experience in various executive roles [21] - The company ended the quarter with cash, cash equivalents, and restricted cash of $63.9 million, with $13.2 million being unrestricted cash [38] Q&A Session Summary Question: Update on NASDAQ minimum compliance - The company has regained compliance and will remain on a 6-month watch list [45] Question: Progress on financial partnerships, including Visa and SEPA integrations - The SEPA system is fully integrated and expected to commence in Q3, with Visa Direct targeting to go live with initial countries in the same timeframe [58] Question: Strategy regarding PayPal's stablecoin and competitive landscape - Management views PayPal's entry as positive for the industry, but believes their offerings can target medium to high-risk markets that PayPal does not [81][82] Question: Timeline for the coyni spin-off and related dividend - The registration statement for the dividend shares is anticipated to be approved by the SEC within 30 to 60 days, with completion expected by the end of the year [62] Question: Focus on larger economies versus smaller ones - The company is focusing on specific verticals and geographies with less competition, particularly in Europe, to maximize profit margins [64][85]