RYVYL Inc. Q4 FY2022 earnings call

• Ben mentioned using AI to edit and produce portions of the call, RYVYL's growth in 2022 with record revenue and processing volume, merchant acquiring and geographic expansion from Transact Europe acquisition.
• Coyni stablecoin launched in Oct 2022, plan to spin off coyni, partnership with Territorial Bank of American Samoa where they process majority electronic payments in Samoa.
• Bank-as-a-Service solution with six global financial institutions adding $100M monthly volume.
• Mary discussed restatement of financial statements and various adjustments to revenue, net loss, etc.
• Min talked about processing volume excluding Sky Financial portfolio, growth in merchant base, pivot of ACH business to banking as a service, coyni platform enhancements.

For the fourth quarter of 2022, net revenue increased by $4.0 million or 56% to $11.1 million from $7.1 million in the prior year. For the full year 2022, net revenue increased by $6.6 million or 25% to $32.9 million from $26.3 million in 2021. North America revenue was $28.6 million while international revenue was $4.3 million in 2022, compared to all North America revenue in 2021. The acquiring business Q4 volume was $98 million. ChargeSavvy processed $67 million in Q4 2022, with full year 2022 processing volume of $250 million. The foreign exchange and international payments business had over $315 million in Q4 2022 volume, with full year volume of $1 billion, a 25% increase from the original budget. American Samoa had over 250 merchants, with Q4 2022 volume exceeding $27 million.

• Target processing volume of $6 billion+ in 2023.
• Revenue from existing and planned business expansion targeted at $60 million in 2023.
• Adjusted pro forma EBITDA target for 2023 is a positive $4 million.

• Volatility in crypto exchanges and bank failures.
• Increased regulation in the digital payments and stablecoin markets.
• Uncertainty with access to customer merchandise and business IPs from the Sky Financial acquisition, leading to omission of volume and revenue from that portfolio in financial reporting.

Q: Could you refresh on the opportunity in the coyni spin?

A: Ben discussed removing the derivative expression of cryptocurrency from the main business, identifying a launch vehicle, investment banking team, and plan for a dividend to shareholders.

Q: Any customer perception on working with RYVYL and coyni?

A: Some clients prefer working directly with coyni for speed, etc., while banks and partners are worried about reputational risks; separation is seen as positive.

Q: Details on banking as a service?

A: Fredi Nisan mentioned banking as a service product with demand in Europe, packaging services like card issuing, IBAN, FX, leveraging coyni's infrastructure and technology.

Q: Why was processing volume missing targets?

A: Omission of Sky Financial portfolio volume due to not receiving access to customer merchandise and business IPs as per seller's obligation, in line with US GAAP.

Q: Has growth in American Samoa opened opportunities into other countries?

A: Min stated there's interest from other countries and islands in utilizing RYVYL's technology and ledger infrastructure for similar services.