RVYL - Earnings call transcript Q4 2023

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Operator

Good afternoon, everyone, and welcome to RYVYL Inc.'s Fourth Quarter and Full Year 2023 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. The earnings press release accompanying this conference call was issued at the close of the market today. The annual report, which includes the company's results of operations ended December 31, 2023, was filed with the SEC today. call RYVYL's at Quarterly website this section Investor Earnings of the of in replay is the available Relations section. A the Events

reminder, a this is recorded. As call being

and expressed detail undertakes could statements. forward-looking are the publicly over The results statements company's future operations risk materially to results based that turn, contemplated from of information. to our any future and SEC. and concerning I that variety ahead. to I would otherwise, based are cause of currently by discussed Before or contain A statements differ These whether expectations condition on are actual the information, statement, extent events, company state new and Errez revise management's contains the Ben the obligation current from on to events with in we statements remind or are factors regarding of the uncertainties. affecting Other available company or of information financial the filings future begin, in no By the to forward-looking as go those projections company's events their result to hand call by now you a address subject applicable of other future forward-looking certain forward-looking will factors today's forward-looking the like and in nature, are events. which, required risks forward-looking call assumptions RYVYL. beliefs, laws. Please matters to Chairman except or company update

Ben Errez

increase and year bring was us and you for for financial results. momentous to XXXX today. proud Good RYVYL, fiscal operator. everyone, XXXX afternoon, joining you, you our year Thank our fourth quarter year a I'm thank growth strong XXX% we leading our million, XXXX, XXXX. for with delivered full the to a yet a volume of remarkable revenue record over $XX company revenues approximately year business best in

in This XXXX. an quarter $XX approximately of million, the processing of to XX% increase XXXX increase record a range our while setting a tremendous and record also million, a from increased volume, from company exceeding growth XXX% $XX.X million guidance million quarter revenue consecutive derived sequential to year-over-year XXXX. reflects revenue the fourth for quarter. from $XX.X company $XX Our which XX% totaled $X.X was third billion, This fifth

XXXX also We continue XX% from and RYVYL to the to EU North rebranded in Transact nearly impressive The $XX At million. exponential our growth bear to now grew revenue fruit company an of our is same Europe. acquisition increasing time, business million. revenue experienced XXX% $XX America XXXX, as

manway call. various Our performance and will we a full Chief later Operating Officer, strong breakdown once Overall, during performance channels this with pleased our the very again trajectory. are provide operating growth processing of

to initiatives. Now our growth key some of discuss

our for groundbreaking, and technology ledger and collaboration secure of infrastructure. RX digital and blockchain we provider RYVYL designed announced distributed integration by technology During Block services business offer transformative in ledger RYVYL's to platform, simplifying the as enables service distributed blockchain we're merging secure X further with technology, an for processing accessible, solution services innovative sector. APIs is required blockchain setting a features business implementation new services. that offer customers ledger software payments secure businesses blockchain streamlines new leading expertise building rich environments, a with transformation. enterprise effortless the Block, RYVYL our and standard essential will is and solution, adoption block rapid leading the the businesses quarter, develop banking, a and the the high-volume access to to tools rival X streamlined financial and The to cost-effective distributed for and be of a blocks

seeing RYVYL momentum. we where to strong growth EU, are Turning

RYVYL countries XX more in testing. targeting and providers now Visa transfers across with incoming is be customers, create the we which in able their capabilities Once better progressed a its We are offering. enabled allows with new completing outgoing to serve to CEPA a will Direct, This towards now and service retain and X,XXX integration EU Eurozone leverage revenue loyalty provide superior our than we instant and as streams. enabled, service banking service payment

We partner between funds expect secure that transactions. continue European offering Eastern us will by fast, excited accounts, revolutionize integration the convenient to is believe we about Visa in a complete the collaboration makes the are way so be transferred to mid-XXXX. What region and being Direct

affords debit expect local across extensive the banking customers over of cases, beyond. accomplished countries money cards We within benefits send that currencies. Our We to XX opportunity minutes using authorized partners. and opportunity quite in multiple becoming access in the in e-wallets and many funds optimistic Visa's of accounts, days. of with to about available money faster Europe instead the These network remain to

to We continue volume. in transaction and on to per work million ramped institutional have up over platform $XXX our with large our partners month Banking-as-a-Service

reminder, a The on local a currencies by payouts way enables such offers integrations as As transactions solution as hours settlement. XX or XX our in and capabilities and Service payment authorizes business exchange methods different than foreign Banking API service with days more of direct real-time day deposits. approved per

and ability while for transactions all allows strict service readily the requirements. fraud, maintaining addition, the reduce to compliance In trade

in well a to is this technology as view that tap to lucrative long-term growth suited our into. market continue driver We potential a

the strategic the targeted Service a markets expand expect entity. Kony for leverage made a subsidiary. a efficiencies spin optimize we a payment and owned During of bolstering In to the processing of December arrival execution also into complement and This It the note not of the half fourth holder reduced coyni strides million. the issued quarter, the in restructuring the of off as operating new million allows evidences map, was indebted us through our core maintaining and in ongoing convertible we accomplished the traded million, enhanced second amount better lowering existing platform our $XXX noteholders' wholly agreements agreements profitability. decision publicly total note belief And sheet our we made XXXX. exchange these X initially retain convertible to great as The balance principal miss with XX, technology of new through our This $XX.X both balance as in principal support vertical mission. consolidated road solution by $XX.X and to to by and coyni the of to of XXXX, product Banking debt.

our flow cash Chicago December, in to we million building addition In gross office proceeds. sold in operations, $X.X for from late

as of future XXXX, reduction a to to been us we planning. meaningful will during equity background a the fortified our and financial fourth shareholder regain operational of NASDAQ the transaction. debt to Service number Taken rapidly together, Operationally, quarter, role produced net much these stronger ultimately steps platform. foundation NASDAQ while requirement. helping processing in sheet we instrumental equity, us the execution shaping by delivered significantly be satisfying stockholders' increased company. have force and corporate team, initiative balance compliance management Oliva analysis, brings play finance, and in a and of Officer volume, In the growth already for our Financial future a in financial tax partnerships planning and George setting scale our RYVYL vital banking professional strategic as treasury, of transactions, in summary, vast revenue George experience growing continues finance appointing and Chief company. the development of senior international with George has a In the the

by efficiencies, underlying solution addition to and RX momentum RYVYL agile Looking excited and to ahead, scalable retaining our seeking as wholly processing can RYVYL our in the and we businesses about of in improved blockchain secure provide partnership volume a accelerate we're a owned we growth. for the volume, subsidiary business future with Block believe platform coyni

We payments revenue And turn to in another growth, being results, revolutionary like the XXXX. leading to of now discuss floor financial strong Financial details a George year are in of well towards the our way yours. Chief the I'd Oliva; is over call on digital to Officer, And to expect George, our our the landscape. force profitability

George Oliva

to I other and measures. you, adjusted non-GAAP Thank be Ben. referring EBITDA will

quarter revenue and by XXX% reconciliation calculation the expenses this to to is to attributable higher can of call, XX% revenue $X.X compared both company's reflecting on quarter to independent in fourth fourth network totaled issued portfolio in sales $X.X the adjusted Financial in and decreased known quarter processing derecognition million EBITDA, compared accessed the of which please in compared partnership our of EU. the quarter the for volume, for America fourth be for The release million XXXX $X.X transaction quarter International before conversion of IR refer to compared lower growth acquired the increased this million or release non-GAAP press fees associated acquisition XXXX. for organization fourth of to to XXXX. with expense $XX.X our convertible $XX.X fourth International For in compared which Cost increase XXXX, $X.X fourth fourth earnings XXXX. metric $XX.X of Sky of the businesses depreciation the resulted for website of segments. quarter the the $XX.X improved fourth performance. compared our quarter million during the the increased XXXX XXXX million in to contracted million quarter EBITDA million compared XXXX continued quarter Operating a I'll of charge gateways North sections. fourth expansion first fourth XXXX. in fourth The attributable financial the related to ISO to increased XXXX. adjusted fourth the was XXXX. the in to XXXX for in ISOs increase commission in income of RYVYL million positive the million in amortization quarter earnings for fourth to to fourth fourth $XX.X paid of the other to XXXX $XX.X quarter in million $XX.X our to was $X.X expenses quarter write-off million noncash growth reflecting to quarterly quarter million quarter review to primarily $XX.X XXXX revenue quarter Revenue negative equity, XXX% debt million and XXXX an $XX.X fourth our to as fourth North the Other quarter million and payments to America primarily and quarter

and and million continuing unrestricted working to $XX.X XXXX of cash capital compared enhance being $X.X that cash loss with us. EBITDA to adjusted of loss Turning EBITDA $X.XX for XXXX. XXXX, to priority At million restricted our compared offering. processing was in from to million, a top in cash liquidity XXXX growth $XX.X $X.X payment This XXXX XXXX. $XX.X to million Banking-as-a-Service partnership billion in driven network in processing increased growth and doubled by to our in billion million also our significant and $X.X businesses, our year to expansion XXXX, full ISO volume, which $XX.X in global reflects improved XX, December adjusted revenue million of $XX.X million is

Our capital our short-term fund capital expenditures ability U.S. on other working generation raises. cash depends borrowings segments in and activities, to operating and from X the

committed strategy dilutive As our Wei, trajectory. growth operations to cash our we're achieving a and our in I commitment connection review shareholders positive with Min Operating with effects transaction and call to provide turn our Officer, minimizing while consistent outlook. the business any over will flow on to our execute financing to continue ourselves, long-term the Chief now of

Min Wei

George. I'd discuss our the our you, verticals XXXX. for processing of the like fourth outlook walk Thank we results quarter first first and volumes quarter to through and serve for

since our an are fourth volume time processing billion XX% volume quarter third from volume we $XXX pleased million of our XX% again quarter billion quarter $X the $XXX XXXX. the The approximately than of about versus Our better first and XXXX is $X fourth increase volume billion for channels volume. indication our of about quarterly fourth is million XXXX hit to quarter quarter to third published quarter. $X across all

period XX% processing negated services and is which Our the volume portfolios, under and reduced million increased Block, volume quarter, partly third is in than $XXX business, including Savvy quarter's about North the America higher than other largely same by XX% RYVYL processing processed earlier. fourth increase higher Charge $XXX million Savvy. merchant attributable is Charge year block X volume the a the The to

represents $XXX acquired RYVYL million XX% in now business, over business our our million an third fourth portfolio, quarter international For of offering, This XXXX. in Banking-as-a-Service increase including and the processed $XXX FX million to XX%. quarter, the $XX new in the the we in transactor compared increase from of volume fourth and payments an EU quarter

the are international the We for pleased with in very American an on achieved XXXX Samoa. we growth in markets update

started and XX% the million, continue $XX to prior serve sustaining our about XX% the processing the We monthly quarter target our coyni higher at over expect anticipate in fourth the the we market Kony merchant to U.S., $XX about ported With EU In approval processing mobile-based the the in the quarter, months to initial and service of volume our we volume soon. merchants was up market, be processing above in ramp and island. the the on quarter, to than our million. license respect verticals. for first in In volume target the coming is received and business

turn XXXX. the quarter total to to the first and like I'd Now outlook our for

North recent a partner our to change changes with to First quarter in base was and the quarter is in transition requirement products the American $XXX million coincided is processing our the one app-based in compliance terminal than from by This prompted regulations. processing. banking transitioning banking XXXX reported that be volume of us to million. $XXX range volume expected This fourth due of to lower

has were able quarter revenues. volume first impacted processing accomplish we adversely it quickly, our While this and to

is year XXXX expectation over total $X billion. volume Our

first we million, our in approximately to the outlook, revenue of quarter XX% XX% to to be XX% decrease over a million expect $XX of For better year-over-year. sequentially, range but $XX

$X This planned is positive $XXX,XXX XXXX, this expenses before non-GAAP million regard external to quarter than adjusted compliance. expenses technology targeted to to our pro legal is higher forma $XXX,XXX. development, indication in processing, administrative our with the our regain investment, payment the a issued which year million. is quarter, of to is million total refer and fourth please metric due trading $XXX associated at to earnings revenue reconciliation figure With $XX our EBITDA, spending release lower this call, to than For for

referenced turn negative to $X.X these our the EBITDA million total quarter million. to estimating remarks. with EBITDA Q&A. call to $X Ben in back positive first of adjusted expenses continue, This the in investments come I'd be million and begin a million concludes will our like correction, we and Errez, at quarter coupled Some our my to XXXX now year to our are $X volume adjusted a to first $X to Chairman,

Ben Errez

Okay.

have prior few take come they our to a let's So of that questions the this call. way

goes think RX. The with time Operating see of the over you the to in how Min. how term near partnerships term? economics the talk first you and And should Min, those question ACI about Chief development about can in long and you

Min Wei

question. Well, thank you, a is Ben. great This

manage seamless million $XX global FinTechs the omni to ACI leader an software operational secure business and and payment and more a provide integration real-time one million them to payment for This risk. growth. manage and in plan secure payments e-commerce with enabling disruptors XX% $XXX conversion a and its mission-critical revenue software, present on scalable board and and merchant customers process one orchestration in e-commerce optimal minimum platform, to million rates financial and fraud will one in payments the a their API XXXX, ambitious solutions for and achieving bill PSPs EU allow Worldwide RYVYL payments, is empower merchants XX% award-winning have customers enable ACI to to migration to and corporations, will journey. We costs. compared payments, to XXXX, orchestrate reported digital solution, using customer process $XX.X platform leading

by in which currently are to over scale us of the in capacity our business, offering year solution is enable the merchant process this EU into ACI the and place volume. integrating acquiring for will set having in to We increase this XXX%

project Block, solution, international providing as blockchain associated eliminating regulated platform has a a adapt ensure adoption to the smooth long our can a RYVYL's a experience, that RYVYL goal profit institutes for this This booking RX user a revenue is terms This business and expertise diverse into scalable cutting-edge aims XXXX RYVYL t's framework. sector, for this business In and provide brand In partnership needs, collectibility with and a blockchain solutions RYVYL This the simplify sites, business or financial blockchain the of of across to expansion can service to RX extensive and a expedite investments RX, the digital leverage experience in is between working pillar integration to reducing typically technology and and for for will to term, seamless growth. committed for process user with the new cost-effective new Block delivering of become business and delivering to loss. upfront solution. source improve complexity adoption. part businesses plan and pilot significant are RYVYL monetization significant RX RYVYL

Ben Errez

Thank Min. you,

Fredi. Min and Next question, to also

into profitability. On you leverage operating efficiencies and the can how it new coyni and strategy, verticals detail and can how you creates it existing more

Min Wei

up as the the to calls and leverage arrival them. the aligns infrastructure and of share we to path our to processing changes available I'll coyni. With our quarter environment focus coyni and due resources asset prior monetization take for as around our offering more the to the with to it the verticals. In we change operations roll that additional a suitable services adjusted serve. payments banking dynamics already business out it's and spinning the a started in ramp regulatory payments incurred service in the expect our banking, service lot have communications, first existing one. a of months mobile-based that we new shareholders. building industry digital business and a us verticals for coming respect on target U.S., infrastructure and for That as to banking the for and Due we In off interest costs versus volume banking service, our for and we in to

business EU we market, the have for new we and functionality delivery approval to as coyni, processing customers retail we view such clear opportunities as merchant and for with. what in license our start a to received POS businesses. our the introduce to through expect releases, also previously the announced We or In our

Fredi Nisan

by to to Min. question about needed coyni. infrastructure is the the ofcoyni is of reduce that's add to employees going And Coyni the automated. And fully to be part of Thank you, infrastructure amount of from move the customer operation. support, everything coyni was take that's to XX% related optimization risk about care designed to side utilizing money monitoring, coyni the to operations onboarding, to of

So we but of onloading hope operation the process and these speed this reduce through up of cost well, to the as not coyni. just the

Ben Errez

Thank Fredi. you,

again to Operating question, Chief Next Min.

up in the see with you alluded that that see market expect case, past America for well. North the pick still growth, European you growth You've the as the in and focus to as

Min Wei

another good That's question.

first business question growth raised you the the thank Europe, is in RYVYL RYVYL's potentially well, market. why the for now of reason to So to acquired renamed recognizing key who all, in EU That we EU.

We have the with and a and tripled turned and the around, suite We business processing licenses now full team XXXX, the local and banking volume licensees launched for market. revenue Banking-as-a-Service profit acquiring, in our there. and of EU we capacity, and greater we generating offering. our issuing our are we

app-based supporting are from see new more a of products, This be coincided due key business to processing we we report, one we are successful XXXX we our described year is volume focus some transitive we The one service pursuing. RYVYL a In the environment. to to key near-term for processing. today experience on. North mobile-based and vertical terminal-based annual with the the expect we transitioning We American in verticals correction of Having mobile processing remains markets the the market more changes and in combine EU. serve journey

over business the we volume quarters. coming the expect recover So to

Ben Errez

Min. you, Thank

we the Next Fredi. near see RYVYL to expand might look in world What the question regions into of to other future? Chief Executive,

Fredi Nisan

very South region. region this Samoa and X looking and the you, the the -- with the We question. a benefits in location global one and of Asia communicated is -- is regards in great American the already and America. market getting goals actually, to and in Ben, that second RYVYL we regions, into and strategic strategic company, are Thank a into

So our regions. X expansion in those

so will they We available. too are at but share we it. about as Thank working that, the much become very have we soon excited We're on still detail moment, you. don't

Ben Errez

be a go you question to Chief Thank RYVYL and positive, of share earned start? to George, per do you George. Fredi. , will Officer, The when look When Financial next combination will Min

George Oliva

that's to Well, say. difficult

and earnings hard that that think that I terms we be you. But I control will as be is of think per $XXX in revenue of we're Ben, profitable, level, in at upon positive. -- charges such profitability, large will noncash share be debt the terms and believe we looking to dependent to equity. to predict converted when enough million are could we expenses

Min Wei

of adjusted first the negative, expect a Contingent from convertible reduce $X experiencing. So a positive to company. do near achieving by operating million Thank This adjusted positive to is of team. always objectives reduced to expenses. our the our as is line positive is to hard you, shareholders mentioned have key take for on EPS It EBITDA with a EPS, half I earlier, our the fully of a to is the way business commitment to for we debt a the that have. a earlier a right? retired million I we again during in mentioned, a that The referring we're be that, EBITDA Example to positive George deliver positive a do second bottom is of as anticipate right? XXXX, the we the that something transition and product call, we George. EBITDA, that as result decent adjusted mentioned positive to result, our a while upon George of and And one getting steps year do is half want also volume adjusted of as achieved EBITDA, noncash normalized successfully representation due the in XXXX. moment $X to the as total either as term. us a mind, In or results us

earnings is revenue line million consistent the hit per to earlier possible, get in that indicatively that's the with for momentum, what optimistic we George converted share it's through that get XXXX. can anticipate XX% time that in we said, right? we level, to As are $XXX mentioned that, call, successfully it positive of and With we a achieved, during Ben XXXX. we the If month

Ben Errez

questions, you, switch at floor Thank we'll questions we would ahead. analyst time, Operator, Go like or Min. take following. this then to and to the on

Operator

Ladies and you. comes of Instructions] at Wainwright. from Thank session. question-and-answer first your begin H.C. Dede this Our with we doing time, the will line gentlemen, [Operator question Kevin

Michael Donovan

you, on Dede. operator. Ben, in Kevin the Min Congrats for calling actually Thank quarter and This I'm Donovan. Michael George. is

For elaborate Direct the and first the question, impact could and you on of RX worldwide, ACI regarding with Visa partnerships there. expected especially the integration outcomes its

Ben Errez

Min Okay. will Thanks, the Michael, for take that. question.

Min Wei

Michael, not to the by thank one. one question, directly you right. so going actually for There are go are related, X parts. They I'm

First space. in we of press institution space on reputable all, partnership, operating as RX honor the them enterprise as release, the customer solution. financial the as with RYVYL define well RX indicated very the together in We Block company enterprise a

is Block way the to a transform blockchain the day-to-day nutshell ledger a in RYVYL workflows enable the business solution, RYVYL to to workflow. So business in

smart of ledger Because For leveraging for as integrity the example, blockchain leveraging for customer as the right? between completeness of first security, we're that, that, RYVYL we're contracting. data well ourselves,

mentioned business the of us a costs. operating speed beauty able be and on fast our day-to-day human Fredi dependency to As earlier, being allowing faster with lower platform is workflows less with to with track our technology

both service or marketing, using team, the portfolio that can working one successfully benefit we targeted RX with base service. with be believe for our enterprise customer So and sales to potential great own of have that from a using -- done that. our we the closely

business is make to see that full We commercial steam a this customers passing structures reason, same benefit get go it are in have as plan that we realized case. pilot to pilot to of doing we laid we'll this the we out out the can are we so what to they in for out business ahead So to couple that the are And a the actually for model that, ourselves. sure ensure pursue year roll we once space.

answer your piloting you question, XXXX have in rollout Michael, initial this Now case plan. business initial to is the in also the our is question

committed So to that. we're

also also space benefit management. day-to-day lot us and So and this a monitoring because synergy ACI a reputable we and mentioned We strength see for a about is of of in service very of Worldwide, the you together a terms in are a right? risk for in they Now gateway direct, basis. payment and company, partner to lot on ACI have

As we continue the volume the logical as market, we're and to sense. It's I of more XXX% to in provide our secure mentioned more XXXX, made business European in acquiring than European services market. build by targeting grow for our the to We momentum part earlier, better the commitment for is EU great there, right? customer be today, ACI, Direct Visa service time to market, Direct. offering. able get We to we're partner Certainly, to have. base mentioned with in the able going our further ACI mousepaready have to being going elevate partnership Visa but a you with we about is

players we collaborate similar we experience. customer all landscape, that is of ensure payment together the to sure invited a the was a understand like the Visa others can that come to major working that select evolving future to operate the understand in we the which to have council, needs, space we community technology of how understand and RYVYL client Visa in fact, matter with As participate make shape

that Visa. coming and the process and for between Now right, integration monetization We're partnership back integrated us initial process systems, the to work that of the in the Visa Direct. in the integration we finished for only testing

countries. We roll the customers X Phase for a Phase have to X kind identify We out the of are in the already countries. support. We process to

achieve captured of we we for potentially rollout to say But it. plan what So indicated, is as we currently then than part more right? momentum all if have not that's XXXX. our of successful, that that's So can proven very

Michael Donovan

it. Appreciate Very That's helpful. helpful. very

in think a about with Now margins revenue, function the how volume? quarter, cost of we forward of higher fourth should going slightly as

Min Wei

daily I'm as question. good on pressed as we that cost volume, a here we be to because Because basis something continue relevant right? question and scale, very the we Michael, can, with important. are that's the care drivers

for the to the the a cost to our I to existing meaning we have at to scaling. understanding In we volume, understanding good Especially comes service already also revenue hovering gain we asking good decent we understanding, XX% So acquiring be around would time. we as say a built going of Michael, business, volume Kony a I pretty capabilities. we some in business. business vertical, will probably right? evolve to ratio the company, and Banking-as-a-Service just over solution it margin I it's continue myself think term, build really ratio how reliable gained a when had overall scale kind shoes, company, are if your range gross the have potentially for think look to reliable XX% and that the say in Fredi as in that in the of term the leveraging right? to continue for I put said, you're we would as that near probably Kony longer because us

expect for than we the past. think to see the I longer term, better a cost ratio

Michael Donovan

Good... Okay.

Ben Errez

Michael. Maybe one more,

Michael Donovan

Yes, go ahead.

Ben Errez

this Ben. is And

profitability in directions, margins. So both goes especially

So better. go efficiency, in other causes call obviously more in But get common the margins scale scenarios. to direction the them to the

in today us with they today. the we get the we're are shown have get and the bigger. But slightly better that as performance, for margins operating play performance the as maybe to margins expressed numbers the So maintain the happy is very

Michael Donovan

good. Very

costs terminal shift? this this slightly related Now base in about your America, for the what decrease on short how I focusing the it's here? is and right thinking think processing, a acquisition retention of are there is anticipated margins, But customer to shift this term? from going to trends do bit type app-based you shift you regarding suppose. the more Do Or impact to you see North what

Ben Errez

Min take that. will

Min Wei

great another Thank you, is Ben. question. Mike, this

are or experience when from terminal transition dynamics As it. mobile we right? this facets move I have payment journey, say few probably on to are the app of a on some or intricate in verticals this there this in experience few would a transformation you different a -- sectors, business -- experience, base there seen a Because

because transitioning us points First customers. with a customer have of customer all, business is provider interfacing service touch more merchants to as technology the labeler and previously from a you allow as platform primarily

that's mention So us well bit interactions gave important feedback, have get and to and the feedback we're That because interaction to as based direct answer consumers, feedback we us and because customer to You I'm customers right? innovate customer with business which continue little didn't the a feedback consumers, for as time general just sorry we user on not to the to on retention now taking depending the gave So secondhand right? whatnot, from interface you way, us the merchants motivate right? about of the direct the more needed or merchants. from as both

gave merchants and from And Now our on it we the behalf actually second us management visibility. us a business monitoring. and gave visibility great customers. doing the better in point past, of In of have risk and It better feedback directly consumers. we terms job management full is the are

of Now have advanced mobile consumers through the be lot information our directly that involved onboarding commonly in risk to onto we management the this of system. KYC direct monitoring interaction app. A validated is

lead will well consumer term So for about. retention, So level. to customer lot of that as all be in as with level a a both engagement retention, better us also at will customers, right? the long Would allow to this better business customers you business us margin care the our deals

Now is in change of the near are experience. a talking terms in significant term, transition, user it about a because we

say merchants, to expect are our merchants work not it ISOs to to our contracts little lot So of our of we life We still bit taking there But still with will educate But our committed and customers. to to a are have be momentum. them. with our we issue. time a the in Many a us. partners, we do closely time rebuild that's takes

the prepare that benefit user basis system app from on experience. the educate the and also now consumers the can them We better use we to to have

answered your Michael. question, hopefully, So that

Michael Donovan

right. That's

long Now a risk. North high-risk the players and believe licenses. ago, discussed about license you X license in with we I is only this mentioned RYVYL high-risk Are North America PayPal and and the still Stripe America? pursuing high-risk

Min Wei

answer I'll because this the try to depends, question really Michael.

our with offerings renowned reputable market. terms players is markets, not players that head to service of we in niche head general Venmo in others specific are vision and our product verticals overall to focused on understand all, BXC, strategic and in part CXB do the PXP, of RYVYL First those PayPal, very the go very general big payment it of market, right? experience and

continue is and in strength be in we focus Our spot to FL serve. and successful space the

or considered risk. high that's low rate So medium whether risk,

have see near licenses do our the do we in compete a are do answer RRX. -- there right? not again, we the we to been requisite we to space the something in about compliant your have the to, working Venmo have U.S. -- operate working in believe is EU, to banking with PayPal, term a in So in. We is question business both So in channels, that barrier and we absolutely to And perform committed way. that's

our service, do also just ISOs consumers. very or not business fantastic believe answer customers, well that also diplomatic. our as partners, merchant but agents, as offering we as We there a our and It's unique have

Michael Donovan

I of the Samoa you're market American Now Simoa. are all believe also the seeing seen penetration pleasant What market America for whether floor perhaps question about the increasing my in mentioned that surprises before regard for you've final returning and to payments some and XX% that in some you penetration. there. of hurdles

Min Wei

problem. No

So Michael, there. you fair had a reservation

I we As are of be past the already, servicing would merchant quarters twofold. few indicated, in your XX% right? market the and believe supporting for target questions And over it

a us that that penetration prove market So us good of it a of not number have mind, market and in The There's benefit is lot protect the hide kind higher? added us. residents Samoa American Because of we island. contained for a the market, good can a for for territory that transform for is, because job reason in that on do sustainment there a the one for that determination customers merchant total for to the why very the going for bear is to total, gave at environment or island. experience is XX% and a we payment the

at work already right? introduce we have So Samoa right? one, for e-commerce closely momentum, that orders Air that general to more. partner online recently, have our American we'll to Bank the gain significant of retail more ensure penetrated we Most of with territory I day, a well, when Because the have because the cost shot But mom-and-pop credit to kind market, some take always end we of hit for cards want example. wanted you're there of probably on think item, plateau of they the to cash, a the right? to be mindful going We business as be international merchant

about mentioned you secondly, future Now momentum.

tax amazing again, So partner. is an

us to electronic we're transacting a continue them we it with think that stage the out on as collaborate coyni. a getting of to lot I set the success of percentage a Now decent island, payments for roll there,

think I be there a will that perfect opportunity.

indicated, As explore it working we're different roll to with we previously out. them angles to

further them from hopefully, allow a the for experience base mobile public. a phone-based terminal transition, general time also more to over to than experience traditional We

Michael Donovan

you Thank the congrats the for good. And Very on helpful answers. so much quarter.

Ben Errez

And Michael. to Wainwright. at support And job, We the you, an thank for may you when for you coverage. and to to bodies time real it's being from call. Thank switch and HC say your hello Kevin continued you corporate analyst

the take next call. Let's

Operator

Taglich comes Our question with from Brothers. next the of Howard Halpern line

Howard Halpern

that congratulations on question a while, guess all made. getting my verticals. biggest the is that progress new but you've been has into talked Congratulations about you've I

and going and in a to to the you So there are between between enter then in South difference your verticals even Europe America be seek going North to -- is America?

Min Wei

way been Thank good It's us. online have with long you back Howard, time. you. a to

differently new very present, at tailored had been approach Fredi serve, North ensure kind mentioned optimal the far, much and earlier, with retail is In to America, with, as top to type us to has the now so on outrunning we business this great of So getting journey different markets really question. Yes, Min. We getting that general verticals. focused results. market our we do look coyni

Because, the customers in business, on been it with e-commerce We for conversations right? we serve. vertical the we have again, our partners depends and

the from masses traditional automotive through journey transition to going e-commerce payment and are to methods. We

name So of examples a few that. I'll

getting we travel, So it to business America. for example, that, business at now the looking diversify at will a are for looking so, few telecommunication, By portfolio. related at involved name us peripheral our doing to to allow of North looking pharmaceutical into, some and

on risk America. dependent less North So right? we verticals, fuel have just That's

momentum in a the as I mentioned of and have offering. in service For amount tremendous EU banking payments gained earlier, a market, we

not we Over a to a there, business, broaden being we can bit XXXX, we of lot going license landing suite just It's extent, a even for momentum a services have out offer the of really We to also selective got for little business for there. to. by down We in of right? well. we even a e-commerce have lot retail a gain more a as and more. license, certain but space in, terms full invest we're In

there that are work they can at capability right have so EU U.K. But to specific -- onboard those more, buy bit the any business focus them. now, America, America also we for going from accelerate we're to as our then So and registering focus do process their with we EU we over So and Latin South onboarding America, markets, to long a there mentioned are And we little business. potential RYVYL have business meet as on do welcome happy right? actually growth there customers you that requirements them the the because coming about market. our we business Latin have they business requirements

Howard Halpern

Okay.

I improvement talked because of the a -- know half nice the the margin. in your all gross terms on leverage Kony of margin, and of being you about previous within terms operating year in the see embedded should operating in And Okay. systems? of question, technology But in we second

Min Wei

operating and resource right? for recognize expect Kony, that through leverage Definitely, already do So we continue streamlined see improved more to what technology efficiency ratio you by some operations. utilization said Fredi to processes,

at This speak a George, waiting hope we're and the for some the that associated onetime minute George, maybe, is restatement. not that SEC things those in cases a bit, with but year, not incurred some is and really as as continue. repeat level. legacy some other completed the legacy resolving we of to the in XXXX, high will The regaining compliance such costs such going I'm of

ahead, go So George.

George Oliva

Yes.

we see I up where issues gross XX% at legacy term, think if targeting us operating I income. net be we're these That's or margin even less. long breaking think expenses, we at is and to going the XX% a pinged once

to have under we think manage pull should the XX%. road, that to we I enough down able levers be

Howard Halpern

That good. sounds

great Okay. the up work. Guys, keep

Ben Errez

Howard. Thanks,

Looking company. stock the you forward again seeing to cover and the

Operator

I'd in the all there's it to the remarks. hand Errez to like queue. Ben back So that questions for closing are

Ben Errez

answered Thanks, of see the Should your further support MD Feel to that have out posted your thank questions IR to reach and free today. that, and time in you be directly, there you operator. everyone, we'll our for company and all, I those to thank and answered continued for any quarter. been you, the we'll today. website. get or on not With me next

Operator

you Ladies your and teleconference. today's participation. for this conclude Thank does gentlemen,

may day. disconnect time, wonderful this a at your lines have and You

Ryvyl (RVYL) 26 Mar 242023 Q4 Earnings call transcript