The following is a summary of the Ryvyl Inc. (RVYL) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Ryvyl Inc. reported Q2 2024 processing volumes across all channels totaling $1.055 billion, a 55% increase from Q2 2023, with international processing volumes at $902 million and North America processing volumes at $153 million.

• Revenue for Q2 2024 was $11.9 million, a decrease from $14.8 million in Q2 2023, with international revenue contributing $8.9 million after a 134% growth.

• Gross margin for Q2 2024 was 39.9%, compared to 41.2% in Q2 2023, indicating a shift in product mix with an expectation of higher gross margins as licensing gains prominence in the revenue mix.

Business Progress:

• Ryvyl Inc. focused on expanding its European operations (RYVYL EU), which are expected to be the largest revenue generator in 2024, through initiatives such as Visa Direct integrations, expanding partnerships, and enhancing technology applications.

• In the U.S., Ryvyl adapted to regulatory changes impacting certain markets by restructuring operations and expanding into new verticals with high-risk processing.

• The company is actively pursuing private and white label licensing, expecting to begin transactions in Q4 2024, which will lower per-transaction fees but increase gross margins and reduce operational risk.

Opportunities:

• Significant growth in international markets, particularly in Europe, driven by banking-as-a-service offerings and strategic partnerships with entities like Visa and ACI Worldwide.

• Expansion into high-margin verticals and product offerings such as NanoKard and RYVYL Fabric, which are expected to enhance the company's processing capabilities and secure financial transactions.

Risks:

• Regulatory changes in the U.S. impacted a niche industry customer base and North American revenue, requiring operational restructuring and a strategic shift towards licensing to mitigate risks.

• Economic uncertainties and regulatory challenges might affect the speed and scale of expansion, especially in high-risk verticals and new market entries.

More details: Ryvyl IR

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