Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ryvyl Inc (NASDAQ:RVYL) reported a significant 96% growth in international revenue for Q3 2024, indicating strong global demand for their services.
• The company successfully expanded its Visa Direct integration to 13 countries, enhancing its global footprint and revenue potential.
• Ryvyl Inc (NASDAQ:RVYL) launched the NANO card, offering a seamless alternative to traditional payments, which is expected to capture high-margin processing opportunities.
• The company has entered into strategic partnerships to onboard new verticals in North America, starting with an initial rollout for 1,000 merchants.
• Ryvyl Inc (NASDAQ:RVYL) reported a 31% increase in processing volumes compared to Q3 2023, demonstrating robust growth in transaction handling.

Negative Points

• Ryvyl Inc (NASDAQ:RVYL) experienced a decrease in total revenue from $17.5 million in Q3 2023 to $12.6 million in Q3 2024, indicating a decline in financial performance.
• The company faced delays in European software integrations, impacting growth expectations in the region.
• Adjusted EBITDA for Q3 2024 was a negative $1.7 million, compared to a positive $50,000 in Q3 2023, reflecting deteriorating profitability.
• Ryvyl Inc (NASDAQ:RVYL) had to repatriate $3.8 million from Europe to support U.S. capital resources, indicating potential liquidity challenges.
• The company adjusted its 2024 revenue guidance downward to $56-$60 million, citing several factors impacting revenue in Q3 and early Q4.

Q & A Highlights

• Warning! GuruFocus has detected 4 Warning Signs with RVYL.

Q: George, can you comment further on the key growth drivers in processing volumes and how we should model this going forward? A: Yes, we're looking at approximately $1.3 billion of processing in Q4, with 85% of that in Europe. The residual rate in Europe is about 1%, and the US is closer to 2%, so a blended average of just over 1.1% is how I would model the volume to revenue.

Q: Freddie, can you elaborate on the third-party or partner software issues that affected the results in the third quarter? A: Most challenges were in Europe, with delays from partners like ACI and Visa. These issues have been resolved, and we are now seeing faster onboarding and deployment of merchants. We are back on track and seeing results already in November.

Q: George, you indicated you expect substantial growth in 2025 but did not provide specifics. When do you expect to provide more specific 2025 guidance? A: We are starting the planning process for 2025, which is not completed yet. We expect to have it completed by January, as there are many moving parts.

Q: Freddie, how many licensing deals are you targeting to close between now and the end of 2025? What verticals do you consider most promising? A: We have a few more licensing deals in our pipeline, focusing on both high-risk and lower-risk verticals. These deals allow us to provide software and infrastructure without the burden of compliance, making them highly profitable.

Q: What areas do you consider to be the most attractive market for growth, both domestically and internationally? A: We see significant growth in cryptocurrency and demand for conversion services, particularly in Latin America. There is also a shift in credit card processing, with increased demand from partners in various verticals.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.