Ryvyl Inc. Q1 FY2024 earnings call

• Expanded international business as first Visa partner in Balkan region, completed Visa Direct testing and activated in production. - Collaborated with ACI Worldwide to onboard e-commerce merchant payment service provider customers onto ACH payment orchestration platform, expected release in early Q3. - Retained Coyni technology for mobile-based processing, testing in US and expecting formal launch summer 2024. - Banking-as-a-service platform had over $600 million transaction volume in Q1, with API integrations and foreign exchange capabilities in over 40 currencies. - North America faced revenue decline due to regulatory/compliance issues, implementing cost controls and expanding into new verticals like insurance and online businesses.

Ryvyl Inc reported revenue of $16.8 million in the first quarter of 2024, a 49% increase compared to $11.3 million in the first quarter of 2023. North America revenue was $9.7 million, a 10% increase year-over-year, while international revenue soared to $7.1 million, an 185% increase year-over-year. Processing volumes reached $994 million in Q1 2024, up 5% sequentially and 76% year-over-year. The North America merchant services business processed $239 million, down from Q4, while the international/FX payments portfolio processed $755 million, up 28% sequentially.

• Second quarter processing volume expected $850-900 million, revenue $12-14 million. - Full year 2024 volume expected over $5 billion, adjusted EBITDA $1-5 million. - Anticipate North America volume recovery to pick up steam in Q3 2024 as new verticals and partnerships ramp up.

• Regulatory and compliance challenges in North America affecting processing volumes. - Dependence on changing regulatory environments and partnerships. - Transition challenges from terminal to mobile processing impacting short-term revenue.

Q: Why are you confident of doubling revenues in the second half of 2024?

A: Fredi Nisan cited Europe momentum, PayFac-as-a-service solution, ACI integration, and Visa Direct live with first five currencies.

Q: How did Q1 revenue trend, rebuilding momentum, and profitability?

A: Min Wei discussed Q1 impact of tech/compliance issues, expanding into new verticals, and expected adjusted EBITDA positive in the second half with focus on revenue growth and cost control.