RYVYL Inc. Reports Q2 2024 Earnings with Strong International Growth
RYVYL Inc., a leader in financial technology solutions, has announced its results for the second quarter of 2024. The company met revenue expectations, thanks to a remarkable 134% increase in international revenue compared to the previous year. However, revenue in North America saw a decline due to reduced processing volumes.
European Operations as a Revenue Driver
RYVYL's European division, RYVYL EU, is set to become the main driver of revenue. This is bolstered by the successful integration of Visa Direct in five countries and plans for further expansion. The company is also collaborating with ACI Worldwide to enhance transaction processing and security, demonstrating its commitment to innovation with new offerings like NanoKard and RYVYL Fabric.
Financial Projections and Challenges
For 2024, RYVYL projects total revenue between $65 million and $70 million, with profitability anticipated by the fourth quarter. Despite these positive projections, Adjusted EBITDA was negative at $1.6 million due to lower North American revenues. However, a recovery is expected by the end of the year.
Strategic Focus
RYVYL is focusing on cost reduction in the US while maximizing cash flow in Europe. The company sees growth potential in services like PayFac-as-a-Service, real-time payments, and crypto-related services. A key part of the strategy is deploying Visa infrastructure in Europe, which is vital for growth.
Opportunities and Obstacles
Revenue in North America decreased by $1.6 million to $7.2 million year-over-year. The gross margin also slightly decreased due to a shift in the product mix. Despite these challenges, RYVYL's processing volumes in Europe reached $1.055 billion in Q2. Operating expenses, excluding non-cash charges, were reduced by $2.3 million.
Looking Ahead
RYVYL is preparing for potential changes in the US economy and digital currency regulations. The company remains confident in its recovery and growth in the international markets, particularly in Europe, where significant technological deployments are planned.
RYVYL Inc. is navigating through challenges by leveraging its international strengths, particularly in Europe, to offset temporary setbacks in North America. The focus on strategic partnerships and innovative products positions the company well for future growth.
