RVYL

• The third quarter of 2024 saw sequential revenue growth, driven by strong international performance. International revenue grew by 96% year-over-year. • The North American business showed improvement with a more than 10% sequential growth in the third quarter. • The private label partnership announced in August went live during the week, with initial licensing revenue expected to start in December 2024. • Visa Direct integration was expanded to new countries, extending the footprint to 13 out of the targeted 80 countries. • International transaction volumes increased from $781 million in Q2 2024 to $952 million in Q3 2024. • In the EU, there has been strong growth in recent quarters and a robust pipeline for further expansion; in the U.S., the business diversified and gained traction in other verticals.

• Ryvyl reiterates the expectation that processing volumes will grow year-over-year to over $4 billion in 2024. • The company adjusts its 2024 total revenue guidance to a range of $56 million to $60 million. • Ryvyl anticipates substantial revenue growth in 2025 compared to 2024, buoyed by recent deals closed and a strong business pipeline.

In the third quarter of 2024, Ryvyl achieved sequential revenue growth. International revenue saw a significant 96% year-over-year increase, reaching $9.8 million. North American business grew more than 10% sequentially in the third quarter, with North American processing volumes amounting to $171 million in Q3 2024. International processing volumes surged from $781 million in Q2 2024 to $952 million in Q3 2024. Total processing volumes across all channels reached $1.123 billion in Q3 2024, which was 6% higher than the second quarter of 2024 and 31% higher than the third quarter of 2023. Revenue in the third quarter of 2024 was $12.6 million, down from $17.5 million in the third quarter of 2023, while international revenue experienced a notable 96% growth.

• Initially, delays in European software integrations impacted the third quarter results. • Regulatory changes and antitrust actions could have an impact on the payment processing and banking landscape. • Changes in debt discount accretion and the fair value of the derivative liability affected other expenses.

Q: Can you comment further on the key growth drivers in processing volumes and how we should model this going forward?

A: George Oliva responded that approximately $1.3 billion of processing is expected in Q4, with 85% of it in Europe, a residual rate of about 1% in Europe, and closer to 2% in the U.S., with a blended average of just over 1.1% for modeling volume to revenue.

Q: Can you elaborate on the third party or partner software issues that affected results in the third quarter?

A: Fredi Nisan stated that the main challenges were in Europe with delays from companies like ACI and Visa in going live and implementation. However, now Visa has finalized certification of Visa Direct, ACI received certification at the end of last month, and they have started moving merchants into the new gateway, with faster onboarding and deployment now.

Q: When do you expect to provide more specific 2025 guidance and why are you not providing it at this time?

A: George Oliva mentioned that the planning process for 2025 is not yet completed, with many moving parts, and it will be completed by January.

Q: How many licensing deals are you targeting to close between now and year-end 2025? What verticals do you consider most promising?

A: Fredi Nisan said there are a few licensing deals in the pipeline but couldn't disclose specifics. They are interested in high-risk and lower-risk verticals where they provide software/infrastructure and make money on transactions.

Q: What areas do you consider to be the most attractive market for growth, both domestically and internationally?

A: Fredi Nisan noted huge growth in cryptocurrency, significant traction in money remittance in Latin America, and a strong shift in credit card processing with demand from partners.

Q: Have the data science elements used to monitor the health of your business changed? Are there some specific improvements you made and continue to plan in your management systems that you can share with us?

A: Fredi Nisan said they have a great team, tools, and dashboards that monitor real-time data on volume, transaction, risk, and compliance, and can project future business based on the data.

Q: Could you provide more details on the potential licensing partnerships in North America and their expected impact on revenue?

A: George Oliva said the main licensing agreement is for the exclusive processing of a vacated vertical, and they are optimistic to approximate peak volumes over time, with other licensing deals being more modest.

Q: How do you foresee regulatory changes in the U.S. Under the incoming administration?

A: George Oliva stated they are happy about potential changes but have no details yet and look forward to the ideas and guidance from the incoming administration.

Q: What sort of M&A opportunities do you see for 2025?

A: George Oliva said they are not prepared to answer this question at this time.

Q: Can you provide an update on Coyni?

A: George Oliva said they decided not to spin out Coyni, adopted its technology throughout the company in the U.S. and Europe, and rebranded it internally.

Q: What differentiates the latest NanoKard platform upgrade and the NEMS score in terms of market demand and competitive positioning?

A: Ben Errez explained that NanoKard is a closed loop focused on high-risk gift card processing, while the NEMS score has acquiring and core banking sides with streamlined onboarding and new technology.

Q: In terms of new customer acquisitions and using ISOs and using the technology to get new customers, how should we view that going into 2025?

A: Ben Errez said they are gaining momentum with ISO partnerships, especially in Europe due to changes like Worldpay shutting down, and are working on onboarding new verticals like insurance companies with white label technology.

Q: Is there a place or are you finding a place for like generative AI technologies in terms of the customer base, and maybe internally developing new technologies or getting technologies to market faster?

A: Fredi Nisan said they are researching generative AI to streamline development, reduce the time from idea to deployment, and are using AI in various aspects like UI design, KYC, and transaction monitoring