RYVYL Inc. (NASDAQ: RVYL) ("RYVYL" or the "Company"), a leading
innovator of payment transaction solutions leveraging electronic
payment technology for diverse international markets, announced it
expects to report 2024 total revenue of $56.0 million, within the
range of 2024 full year revenue guidance of $56 million to $60
million. Management intends to report financial results in
mid-March 2025.
“Robust business development and sales
initiatives in 2024 have positioned us to resume strong growth in
2025,” said Fredi Nisan, CEO of RYVYL. “In addition, our efforts to
grow our high-margin, banking-related revenue at RYVYL EU are
coming to fruition. Our product mix has been shifting. As this
continues, we expect to drive significantly higher overall gross
margin in 2025.”
RYVYL 2025 Guidance
Based on the strength of its RYVYL EU as well as
newly signed business and a solid pipeline for both RYVYL EU and
NEMS, the Company expects 2025 revenue to be in the range of $80
million to $90 million. This represents over 50% growth at the
mid-point of the range in comparison to 2024 preliminary revenue
results. The Company also expects to increase gross margins to the
mid-40s percent, which would yield a positive annual adjusted
EBITDA and positive operating cash flow in the second half of the
year.
The foregoing guidance is based on the Company’s
continuation of the business, as currently conducted. On January
24, 2025, the Company entered into an agreement with a financing
source that was structured as a pre-funded asset sale with a 90-day
closing period, which ends on April 23, 2025 and may be extended an
additional 30 days to May 23, 2025, if the Company pays $500,000
for such extension. Shares in the Company’s RYVYL EU subsidiary
were placed in escrow during the closing period. Although there are
no guarantees, the Company intends to terminate the asset sale
within the closing period by paying $16.5 million in consideration
of such termination. The Company’s financial guidance for 2025 is
based on fully retaining its RYVYL EU subsidiary.
Strengthened Balance Sheet
With the recent January 27, 2025 payment of
$13.0 million to the Securityholder, the outstanding balance of the
Series B Convertible Preferred Stock (“Preferred Stock”) was fully
retired and the 8% Senior Secured Note (the “Note”) balance was
reduced to $4.0 million. The Company previously had converted $55.0
million of the Note principal into the Preferred Stock.
George Oliva, CFO of RYVYL, stated, “I am very
pleased that the net effect of these two transactions was to
increase shareholder equity by over $50 million without any
associated dilution to the common shareholders. We expect the
impact of this balance sheet restructuring will lower the cost of
capital as we invest in our growth in 2025.”
The Company has recently filed an S-1
registration statement to raise up to $24 million, including the
overallotment, and intends to explore all fund-raising options,
including term debt, equity or some combination to fund the
termination payment of $16.5 million. There is an option to extend
the closing period 30 days to May 23, 2025, in exchange for a
payment of an additional $500,000.
Transaction Processing Volumes as a Percentage of
Revenue
Transaction processing volumes in the Company’s
merchant acquiring business is one measure of the Company’s
business, and this has been correlated with overall revenue growth.
The Company is providing the following additional information
regarding processing volumes in relation to revenue for the period
from January 1, 2021 through December 31, 2024 (estimated). During
this period, the blended percentage has been trending lower due to
the rapid growth in the Company’s International business, which, as
compared to North America, has a higher mix of banking revenues
that carry a lower residual rate versus acquiring. The Company
expects this trend to continue in 2025 as its International revenue
is expected to increase as a percentage of total revenue compared
to 2024.
$ in Millions
|
Processing |
|
2021 |
|
|
2022 |
|
|
2023 |
|
2024E |
|
Q1 24 |
Q2 24 |
Q3 24 |
Q4 24E |
|
North America |
$ |
1,514.5 |
|
$ |
1,000.5 |
|
$ |
1,360.0 |
|
$ |
738.5 |
|
|
$ |
239.0 |
|
$ |
152.6 |
|
$ |
170.6 |
|
$ |
176.3 |
|
|
International |
|
- |
|
$ |
683.0 |
|
$ |
1,690.0 |
|
$ |
3,746.4 |
|
|
$ |
755.0 |
|
$ |
902.1 |
|
$ |
952.3 |
|
$ |
1,137.1 |
|
|
Total |
$ |
1,514.5 |
|
$ |
1,683.5 |
|
$ |
3,050.0 |
|
$ |
4,485.0 |
|
|
$ |
994.0 |
|
$ |
1,054.6 |
|
$ |
1,122.9 |
|
$ |
1,313.5 |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
North America |
$ |
26.4 |
|
$ |
28.6 |
|
$ |
48.9 |
|
$ |
18.2 |
|
|
$ |
9.7 |
|
$ |
3.0 |
|
$ |
2.8 |
|
$ |
2.7 |
|
|
International |
|
- |
|
$ |
4.3 |
|
$ |
16.9 |
|
$ |
37.8 |
|
|
$ |
7.1 |
|
$ |
8.9 |
|
$ |
10.4 |
|
$ |
11.4 |
|
|
Total |
$ |
26.4 |
|
$ |
32.9 |
|
$ |
65.9 |
|
$ |
56.0 |
|
|
$ |
16.8 |
|
$ |
11.9 |
|
$ |
13.2 |
|
$ |
14.1 |
|
| Revenue as %
Processing |
|
|
|
|
|
|
|
|
|
North America |
|
1.7 |
% |
|
2.9 |
% |
|
3.6 |
% |
|
2.5 |
% |
|
|
4.1 |
% |
|
2.0 |
% |
|
1.6 |
% |
|
1.5 |
% |
|
International |
|
- |
|
|
0.6 |
% |
|
1.0 |
% |
|
1.0 |
% |
|
|
0.9 |
% |
|
1.0 |
% |
|
1.1 |
% |
|
1.0 |
% |
|
Total |
|
1.7 |
% |
|
2.0 |
% |
|
2.2 |
% |
|
1.2 |
% |
|
|
1.7 |
% |
|
1.1 |
% |
|
1.2 |
% |
|
1.1 |
% |
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 electronic payment technology for 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 timely payment of the second tranche, the benefit to
stockholders from the repayment of the Note and repurchase of the
Preferred Stock, and the timing and expectation of revenues from
the license described herein and are charactered 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 licensee understands and complies with various banking
laws and regulations that may impact the licensee's ability to
process transactions. For example, federal money laundering
statutes and Bank Secrecy Act regulations discourage financial
institutions from working with operators of certain industries -
particularly industries with heightened cash reporting obligations
and restrictions - as a result of which, banks may refuse to
process certain payments and/or require onerous reporting
obligations by payment processors to avoid compliance risk. These
statements are also subject to any damages the Company could suffer
as the result of previously announced litigation or actions of any
governmental agencies. These and other risk factors affecting the
Company are discussed in detail in the Company's periodic filings
with the SEC. The Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether because of
the latest information, future events or otherwise, except to the
extent required by applicable laws.
Disclaimer Regarding Financial
Information
The financial information presented in this
press release, for the year ended December 31, 2024, is based on
preliminary financial statements prepared by management, for the
year ended December 31, 2024. Accordingly, such financial
information may be subject to change. All such information
contained in this press release will be qualified with reference to
the audited financial results for the year ended December 31, 2024,
which the Company intends to release or before March 13, 2025, and
in any event by March 31, 2025, and will be posted
on www.sec.gov. While the Company does not expect there to be
any material changes to the financial information provided in this
press release, any variation between the Company’s actual results
and the preliminary financial information set forth herein may be
material.
IR Contact: David Barnard,
Alliance Advisors Investor Relations, 415-433-3777,
ryvylinvestor@allianceadvisors.com
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