- Q1 2024 Revenue Increases 49%, Reflecting 185% RYVYL EU Revenue Growth, from Q1 2023 -
- Company Management to Host Conference Call at 4:30 pm E.T. on Tuesday, May 14, 2024 -
SAN DIEGO, CA, May 14, 2024 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ:RVYL) ("RYVYL" or the "Company"), a leading innovator of payment transaction solutions leveraging proprietary blockchain ledger and electronic payment technology for the diverse international markets, reported its financial results for the quarter ended March 31, 2024.
Operational Highlights First Quarter 2024
- Q1 2024 revenue increased 49% to $16.8 million, compared to Q1 2023.
- RYVYL EU revenue grew to $7.1 million, up 185% compared to Q1 2023.
- North American revenue grew to $9.7 million, up 10% compared to Q1 2023.
- Q1 2024 processing volume of $994 million increased by 4% from Q4 2023.
- RYVYL EU processing business volume increased to $755 million, up 28% over Q4 2023.
- North America processing business volume was $239 million, down 33% over Q4 2023.
"RYVYL makes payment technology simple by enabling intuitive, secure and compliant payments," said Fredi Nisan, RYVYL's CEO. "Leveraging this proprietary technology, we are actively pursuing new verticals and licensing opportunities, such as new PayFac as a service and new independent software vendor (ISV) relationships, which we believe will drive long-term growth.
"In Q1 2024, our RYVYL EU efforts continued to gain traction and delivered processing volume and revenue growth. However, recent changes in the banking compliance environment in the U.S. are affecting some of our high-risk verticals. As we navigate this transition, we remain focused on efficient capital management, to date repatriating $7.5 million from Europe to the U.S. while implementing cost control measures projected to benefit us in future periods. Additionally, we are accelerating business development in new verticals. While we expect Q2 2024 revenue to continue to be impacted, we believe our robust pipeline will fuel growth in the second half of 2024," Nisan concluded.
Financial Summary for the First Quarter Ended March 31, 2024
- Revenue increased to $16.8 million, compared to $11.3 million in Q1 2023, reflecting growth in the acquiring business of RYVYL EU as well as the larger independent sales organization (ISO) and partnership network.
- Cost of revenue was $9.7 million, compared to $6.2 million in Q1 2023, reflecting greater transaction volume, resulting in higher processing fees paid to gateways and commission payments to ISOs.
- Operating expenses increased 2% to $8.9 million, compared to $8.8 million in Q1 2023.
- Other expense totaled $0.6 million, compared to $4.3 million for Q1 2023, reflecting debt reduction strategies.
- Net loss was $2.7 million, with total comprehensive loss of $3.1 million, or ($0.45) per basic share, compared to a net loss and total comprehensive loss of $8.0 million, or ($1.53) per basic share, in Q1 2023.
- Adjusted EBITDA improved to $(0.7) million, compared to ($3.0) million in Q1 2023. Adjusted EBITDA is a non-GAAP measure. Refer to the tables at the end of this press release for a reconciliation to GAAP.
- March 31, 2024 cash and restricted cash was $88.8 million and unrestricted cash was $10.5 million.
RYVYL management will host a conference call at 4:30 p.m. Eastern Time on Tuesday, May 14, 2024 to discuss the Company's financial results for the first quarter ended March 31, 2024, provide a corporate update and end with a question and answer session. To participate, please use the following information and submit your questions in writing prior to the call at [email protected].
Q1 2024 Conference Call and Webcast
Date: May 14, 2024
Time: 4:30 p.m. Eastern Time
US Dial In: 1-877-407-4018
International Dial In: 1-201-689-8471
Webcast: Webcast
Call me: Link
Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ link for instant telephone access to the event and enter pass code 13707901. The Call me™ link will be made active 15 minutes prior to scheduled start time. A replay of the call will be available through July 14, 2024 at 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and entering access ID 13745803. An archived version of the webcast will also be available for 90 days on the IR section of the RYVYL website or by clicking the webcast link above.
About RYVYL
RYVYL Inc. (NASDAQ:RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging proprietary blockchain ledger and electronic token technology for the diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com
Cautionary Note Regarding Forward-Looking Statements
This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company's current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the timing of the filing of the aforementioned periodic reports and are characterized by future or conditional words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.
By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the completion and filing of the aforementioned periodic reports will take longer than expected and that additional information may become known prior to the expected filing of the aforementioned periodic reports with the SEC. Other risk factors affecting the Company are discussed in detail in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
IR Contact: David Barnard, LHA Investor Relations, 415-433-3777, [email protected]
RYVYL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share data)
(Unaudited)
| March 31, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 10,523 | $ | 12,180 | ||||
| Restricted cash | 78,293 | 61,138 | ||||||
| Accounts receivable, net of allowance for credit losses of $40 and $23, respectively | 1,066 | 859 | ||||||
| Cash due from gateways, net of allowance of $2,636 and $2,636, respectively | 1,426 | 12,834 | ||||||
| Prepaid and other current assets | 2,954 | 2,854 | ||||||
| Total current assets | 94,262 | 89,865 | ||||||
| Non-current Assets: | ||||||||
| Property and equipment, net | 290 | 306 | ||||||
| Goodwill | 26,308 | 26,753 | ||||||
| Intangible assets, net | 4,439 | 5,059 | ||||||
| Operating lease right-of-use assets, net | 4,036 | 4,279 | ||||||
| Other assets | 2,536 | 2,403 | ||||||
| Total non-current assets | 37,609 | 38,800 | ||||||
| Total assets | $ | 131,871 | $ | 128.665 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 1,321 | $ | 1,819 | ||||
| Accrued liabilities | 4,653 | 5,755 | ||||||
| Payment processing liabilities, net | 83,916 | 76,772 | ||||||
| Current portion of operating lease liabilities | 717 | 692 | ||||||
| Other current liabilities | 456 | 504 | ||||||
| Total current liabilities | 91,063 | 85,542 | ||||||
| Long term debt, net of debt discount | 16,816 | 15,912 | ||||||
| Operating lease liabilities, less current portion | 3,522 | 3,720 | ||||||
| Total liabilities | 111,401 | 105,174 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock, Series B, par value $0.01, 5,000,000 shares authorized; 55,000 shares issued and outstanding at March 31, 2024 and December 31, 2023 | 1 | 1 | ||||||
| Common stock, par value $0.001, 100,000,000 shares authorized, shares issued and outstanding of 6,001,487 and 5,996,948, respectively | 6 | 6 | ||||||
| Additional paid-in capital | 175,777 | 175,664 | ||||||
| Accumulated other comprehensive income (loss) | (44 | ) | 401 | |||||
| Accumulated deficit | (155,270 | ) | (152,581 | ) | ||||
| Total stockholders' equity | 20,470 | 23,491 | ||||||
| Total liabilities and stockholders' equity | $ | 131,871 | $ | 128,665 | ||||
RYVYL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in thousands, except share and per share data)
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue | $ | 16,774 | $ | 11,291 | ||||
| Cost of revenue | 9,743 | 6,178 | ||||||
| Gross profit | 7,031 | 5,113 | ||||||
| Operating expenses: | ||||||||
| Advertising and marketing | 17 | 75 | ||||||
| Research and development | 1,393 | 1,936 | ||||||
| General and administrative | 2,042 | 1,452 | ||||||
| Payroll and payroll taxes | 3,569 | 2,714 | ||||||
| Professional fees | 1,035 | 1,803 | ||||||
| Stock compensation expense | 224 | 193 | ||||||
| Depreciation and amortization | 657 | 620 | ||||||
| Total operating expenses | 8,937 | 8,793 | ||||||
| Loss from operations | (1,906 | ) | (3,680 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (28 | ) | (1,729 | ) | ||||
| Accretion of debt discount | (908 | ) | (2,622 | ) | ||||
| Changes in fair value of derivative liability | - | 168 | ||||||
| Other income or expense | 343 | (111 | ) | |||||
| Total other income (expense), net | (593 | ) | (4,294 | ) | ||||
| Loss before provision for income taxes | (2,499 | ) | (7,974 | ) | ||||
| Income tax provision | 190 | 5 | ||||||
| Net loss | $ | (2,689 | ) | $ | (7,979 | ) | ||
| Comprehensive income statement: | ||||||||
| Net loss | $ | (2,689 | ) | $ | (7,979 | ) | ||
| Foreign currency translation adjustment | (445 | ) | (58 | ) | ||||
| Total comprehensive loss | $ | (3,134 | ) | $ | (8,037 | ) | ||
| Net loss per share: | ||||||||
| Basic and diluted | $ | (0.45 | ) | $ | (1.53 | ) | ||
| Weighted average number of common shares outstanding: | ||||||||
| Basic and diluted | 5,988,424 | 5,221,060 | ||||||
RYVYL INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
| Three Months Ended March 31 | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (2,700 | ) | $ | (7,979 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 657 | 620 | ||||||
| Noncash lease expense | 70 | 913 | ||||||
| Stock compensation expense | 224 | 193 | ||||||
| Accretion of debt discount | 908 | 2,622 | ||||||
| Changes in fair value of derivative liability | - | (168 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | (207 | ) | 296 | |||||
| Prepaid and other current assets | 159 | 5,741 | ) | |||||
| Cash due from gateways, net | 11,408 | 119 | ) | |||||
| Other assets | (391 | ) | (2,017 | |||||
| Accounts payable | (499 | ) | 8,144 | |||||
| Accrued and other current liabilities | (1,248 | ) | (915 | ) | ||||
| Accrued interest | - | 709 | ||||||
| Payment processing liabilities, net | 7,144 | 8,101 | ||||||
| Net cash provided by operating activities | 15,525 | 16,379 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (22 | ) | (17 | ) | ||||
| Net cash used in investing activities | (22 | ) | (17 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayments on long-term debt | (4 | ) | - | |||||
| Net cash used in financing activities | (4 | ) | - | |||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1 | ) | (58 | ) | ||||
| Net increase in cash, cash equivalents, and restricted cash | 15,498 | 16,304 | ||||||
| Cash, cash equivalents, and restricted cash – beginning of period | 73,318 | 40,834 | ||||||
| Cash, cash equivalents, and restricted cash – end of period | $ | 88,816 | $ | 57,138 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | - | $ | 1,000 | ||||
| Income taxes | $ | - | $ | - | ||||
Use of Non-GAAP Financial Information
Adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") is a non-GAAP measure that represents our net loss before interest expense, amortization of debt discount, income tax expense, depreciation and amortization, changes in the fair value of derivative liabilities, losses on the extinguishment and derecognition expenses on the conversion of convertible debt, non-cash stock-based compensation expense, acquisition-related expense, non-recurring provisions for credit losses on legacy matters, accounting fees related to the restatement of prior period financial statements, non-recurring costs related to the spin-off of a subsidiary, and legal costs and settlement fees incurred in connection with non-ordinary course litigation and other disputes.
We exclude these items in calculating Adjusted EBITDA because we believe that the exclusion of these items will provide for more meaningful information about our financial performance, and do not consider the excluded items to be part of our ongoing results of operations. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: (a) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (b) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (c) Adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (d) Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and (e) other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure.
Because of these and other limitations, you should consider Adjusted EBITDA alongside our other GAAP-based financial performance measures, net income (loss) and our other GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA from net loss, the most directly comparable GAAP measure, for the periods indicated:
Reconciliation of Net Income (Loss) attributable to RYVYL, Inc., to Adjusted EBITDA for the
Three Months Ended March 31, 2024 and 2023
(in thousands, except share and per share data)
Unaudited
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net loss | $ | (2,689 | ) | $ | (7,979 | ) | ||
| Interest expense | 28 | 1,729 | ||||||
| Accretion of debt discount | 908 | 2,622 | ||||||
| Income tax expense (benefit) | 190 | 5 | ||||||
| Depreciation and amortization | 657 | 620 | ||||||
| EBITDA | (905 | ) | (3,004 | ) | ||||
| Other non-cash adjustments: | ||||||||
| Change in fair value of derivative liability | - | (168 | ) | |||||
| Derecognition expense on conversion of convertible debt | - | - | ||||||
| Stock compensation expense | 224 | 193 | ||||||
| Adjusted EBITDA | $ | (682 | ) | $ | (2,978 | ) | ||
| Loss from operations | $ | (1,906 | ) | $ | (3,680 | ) | ||
