RYVYL Reports Q2 2024 Results
RYVYL Inc. (NASDAQ: RVYL) reported Q2 2024 financial results, with revenue at $11.9 million, including $8.9 million from RYVYL EU. International revenue grew 134% year-over-year, partially offsetting lower North American revenue. Processing volume increased 55% to $1,055 million. The company aligned its U.S. operations to manage banking regulation impacts and is expanding into new verticals with private and white label licensing solutions.
Key financial highlights include:
- Gross margin at 39.9%
- Operating expenses of $15.6 million, including $8.3 million in mostly non-cash charges
- Adjusted EBITDA of negative $1.6 million
- Cash and restricted cash totaled $75.2 million as of June 30, 2024
RYVYL expects full-year 2024 revenue between $65-70 million and processing volumes to exceed $4 billion. Q3 2024 revenue is projected at $14-15 million, with strong sequential growth and Adjusted EBITDA profitability expected in Q4 2024.
RYVYL Inc. (NASDAQ: RVYL) ha riportato i risultati finanziari del secondo trimestre 2024, con un fatturato di 11,9 milioni di dollari, di cui 8,9 milioni provenienti da RYVYL EU. I ricavi internazionali sono aumentati del 134% rispetto all’anno precedente, compensando parzialmente il calo dei ricavi in Nord America. Il volume di elaborazione è aumentato del 55% raggiungendo 1.055 milioni di dollari. L'azienda ha allineato le proprie operazioni negli Stati Uniti per gestire l'impatto delle regolamentazioni bancarie e si sta espandendo in nuovi settori con soluzioni di licenza private e a marchio bianco.
I principali punti finanziari includono:
- Margine lordo al 39,9%
- Spese operative di 15,6 milioni di dollari, di cui 8,3 milioni in oneri principalmente non monetari
- EBITDA rettificato negativo di 1,6 milioni di dollari
- Liquidità e liquidità vincolata totalizzano 75,2 milioni di dollari al 30 giugno 2024
RYVYL prevede un fatturato annuale per il 2024 compreso tra 65 e 70 milioni di dollari e volumi di elaborazione superiori ai 4 miliardi. Si prevede che i ricavi del terzo trimestre 2024 saranno compresi tra 14 e 15 milioni, con una forte crescita sequenziale e un EBITDA rettificato positivo atteso nel quarto trimestre 2024.
RYVYL Inc. (NASDAQ: RVYL) reportó los resultados financieros del segundo trimestre de 2024, con ingresos de 11,9 millones de dólares, de los cuales 8,9 millones provienen de RYVYL EU. Los ingresos internacionales crecieron un 134% interanual, compensando parcialmente la disminución de los ingresos en América del Norte. El volumen de procesamiento aumentó un 55%, alcanzando los 1.055 millones de dólares. La compañía ha alineado sus operaciones en EE. UU. para gestionar el impacto de la regulación bancaria y se está expandiendo a nuevos verticales con soluciones de licencias privadas y de marca blanca.
Los aspectos financieros clave incluyen:
- Margen bruto del 39,9%
- Gastos operativos de 15,6 millones de dólares, incluidos 8,3 millones en cargos mayormente no monetarios
- EBITDA ajustado negativo de 1,6 millones de dólares
- El efectivo y el efectivo restringido totalizaron 75,2 millones de dólares al 30 de junio de 2024
RYVYL espera ingresos anuales para 2024 entre 65 y 70 millones de dólares y volúmenes de procesamiento que superen los 4 mil millones. Se proyecta que los ingresos del tercer trimestre de 2024 estarán entre 14 y 15 millones, con un fuerte crecimiento secuencial y se espera rentabilidad de EBITDA ajustado en el cuarto trimestre de 2024.
RYVYL Inc. (NASDAQ: RVYL)는 2024년 2분기 재무 실적을 보고했습니다. 매출은 1,190만 달러였으며, 이 중 890만 달러는 RYVYL EU에서 발생했습니다. 국제 매출은 전년 대비 134% 증가하여 북미 매출 감소를 부분적으로 상쇄했습니다. 처리량은 55% 증가하여 10억5500만 달러에 달했습니다. 회사는 미국 내 운영을 금융 규제 영향을 관리하도록 조정했으며, 프라이빗 및 화이트 라벨 라이선스 솔루션으로 새로운 분야로 확장하고 있습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 총 이익률 39.9%
- 운영 비용 1,560만 달러, 이 중 830만 달러는 대부분 비현금성 비용입니다.
- 조정 EBITDA는 -160만 달러입니다.
- 2024년 6월 30일 기준 현금 및 제한된 현금 총액은 7,520만 달러입니다.
RYVYL은 2024년 전체 수익을 6,500만 달러에서 7,000만 달러 사이로 예상하며, 처리량은 40억 달러를 초과할 것으로 보입니다. 2024년 3분기 매출은 1,400만 달러에서 1,500만 달러 사이로 예상되며, 강력한 순차적 성장과 2024년 4분기에는 조정 EBITDA에서 수익성을 기대하고 있습니다.
RYVYL Inc. (NASDAQ: RVYL) a publié ses résultats financiers pour le deuxième trimestre 2024, avec un chiffre d'affaires de 11,9 millions de dollars, dont 8,9 millions proviennent de RYVYL EU. Les revenus internationaux ont augmenté de 134 % par rapport à l'année précédente, compensant partiellement la baisse des revenus en Amérique du Nord. Le volume de traitement a augmenté de 55 % pour atteindre 1.055 millions de dollars. L'entreprise a aligné ses opérations aux États-Unis pour gérer l'impact de la réglementation bancaire et s'est étendue à de nouveaux secteurs avec des solutions de licence privées et en marque blanche.
Les points financiers clés comprennent :
- Marge brute de 39,9 %
- Dépenses d'exploitation de 15,6 millions de dollars, dont 8,3 millions en charges principalement non monétaires
- EBITDA ajusté négatif de 1,6 million de dollars
- Le montant total de liquidités et de liquidités restreintes s'élevait à 75,2 millions de dollars au 30 juin 2024
RYVYL s'attend à un chiffre d'affaires annuel 2024 compris entre 65 et 70 millions de dollars et à un volume de traitement supérieur à 4 milliards de dollars. Les revenus du troisième trimestre 2024 devraient se situer entre 14 et 15 millions de dollars, avec une forte croissance séquentielle et une rentabilité de l'EBITDA ajusté attendue pour le quatrième trimestre 2024.
RYVYL Inc. (NASDAQ: RVYL) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit einem Umsatz von 11,9 Millionen Dollar, darunter 8,9 Millionen Dollar aus RYVYL EU. Der internationale Umsatz wuchs im Jahresvergleich um 134 %, was den Rückgang des Umsatzes in Nordamerika teilweise ausglich. Das Verarbeitungsvolumen stieg um 55 % auf 1.055 Millionen Dollar. Das Unternehmen hat seine US-Operationen angepasst, um die Auswirkungen von Bankregulierungen zu steuern, und erweitert sich in neue Bereiche mit privaten und weißen Label-Lizenzlösungen.
Wichtige finanzielle Highlights sind:
- Bruttomarge bei 39,9 %
- Betriebskosten von 15,6 Millionen Dollar, einschließlich 8,3 Millionen Dollar aus überwiegend nicht-liquiditätswirksamen Aufwendungen
- Bereinigtes EBITDA von -1,6 Millionen Dollar
- Bargeld und eingeschränktes Bargeld beliefen sich zum 30. Juni 2024 auf insgesamt 75,2 Millionen Dollar
RYVYL erwartet für das Gesamtjahr 2024 einen Umsatz zwischen 65 und 70 Millionen Dollar und Verarbeitungsvolumen von über 4 Milliarden Dollar. Der Umsatz für das dritte Quartal 2024 wird auf 14 bis 15 Millionen Dollar geschätzt, mit starkem sequenziellen Wachstum und erwarteter Rentabilität beim bereinigten EBITDA im vierten Quartal 2024.
- International revenue grew 134% year-over-year
- Processing volume increased 55% to $1,055 million
- Expansion into new verticals with private and white label licensing solutions
- Full-year 2024 revenue projected between $65-70 million
- Processing volumes expected to exceed $4 billion in 2024
- Adjusted EBITDA profitability anticipated in Q4 2024
- Lower revenue in North America
- Gross margin decreased to 39.9% from 41.2% in Q2 2023
- Operating expenses increased to $15.6 million, including $8.3 million in mostly non-cash charges
- Adjusted EBITDA negative at $1.6 million
- Unrestricted cash decreased to $6.4 million from $12.2 million at end of 2023
Insights
RYVYL's Q2 2024 results present a mixed picture. While international revenue grew impressively by
RYVYL's technological innovations are promising. The Gen 4 software and NanoKard app demonstrate a focus on advanced fintech solutions. The RYVYL Fabric's compatibility with R3's Corda and Hyperledger positions the company well in the blockchain space, offering potential for enterprise adoption. The shift towards private and white-label licensing could enhance margins and reduce regulatory challenges. However, the success of these initiatives depends on market acceptance and the company's ability to effectively monetize these technologies. The partnership with R3 is particularly noteworthy, as it could open doors in regulated industries where trust and security are paramount.
RYVYL's strategic realignment towards new verticals like insurance and online businesses is a smart move given the regulatory challenges in their traditional markets. The
- RYVYL EU continues strong growth, increasing International revenue
- Northeast Merchant Systems business unit aligned to focus on new verticals and licensing -
- Management to Host Conference Call at 4:30 pm E.T. on Tuesday, August 13, 2024 -
SAN DIEGO, CA, Aug. 13, 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 June 30, 2024.
“RYVYL delivered second quarter 2024 revenue in line with expectations, as lower revenue in North America was partially offset by revenue generated from international operations, which grew
New Solutions Highlights
“We believe our new private and white-label licensing, which integrates our proprietary technology will attract new customers, lower certain processing costs and operational risks, and expand gross margins. We are enthusiastic about the potential of developing this high-margin business and have made it a strategic focus in North America. To bolster our team and drive this strategy, we have appointed a fintech expert as our Managing Director of Northeast Merchant Systems (NEMS), as well as a VP of Compliance and a VP of Revenue,” Nisan continued.
- Under a private label arrangement, partners will use their own banks, while RYVYL will benefit from increased customer access, reduced regulatory challenges, and enhanced operating leverage.
- With white-label licensing, customers apply their own branding to our technology, while RYVYL retains control of processing and bank servicing operations.
“RYVYL remains at the forefront of delivering innovative technology and solutions to our customers. Our latest Gen 4 software employs RYVYL’s solutions, provides businesses and merchants with highly customizable, advanced, and efficient fintech payment solutions,” Nisan concluded.
- The NanoKard app offers users an alternative to cash and charge cards while also enabling merchants to process transactions securely and more efficiently. We provide cutting-edge solutions tailored to businesses of all types, bridging the gap between businesses and customers. By transforming traditional payment processing with innovative methods, we streamline payment acceptance and checkout processes. By focusing on specific verticals with these convenient and secure solutions, RYVYL is introducing a new product designed for high-margin processing.
- RYVYL Fabric offers tools and building blocks to ensure easy blockchain access with multi-layer security compatible with both R3’s Corda and Hyperledger, allowing customers to implement blockchain faster with a low-cost pay-per-API structure. RYVYL’s partnership with R3 expands its reach in enterprise via its distributed ledger technology and services in regulated industries where trust is critical.
Financial Summary for the Second Quarter Ended June 30, 2024
- Revenue in the second quarter of 2024 was
$11.9 million , including$8.9 million in RYVYL EU. This compared to$14.8 million in the second quarter of 2023, which included$3.8 million of revenue generated from RYVYL EU. - Processing volume increased
55% to 1,055 million in the second quarter of 2024, compared to$679 million in the second quarter of 2023. Revenue from international operations contributed$902 million in the second quarter of 2024, up from$317 million in the second quarter of 2023, which was driven mostly by growth in banking volumes. Revenue from North American operations contributed$153 million in the second quarter of 2024, down from$362 million in the second quarter of 2023 due to the impact of the changes in one niche industry customer base that reduced processing volume of acquiring business in February 2024. - Cost of revenue was
$7.2 million in the second quarter ended 2024, compared to$8.7 million in the second quarter 2023, which was due to decreased processing volumes of acquiring business in the US. - Gross margin was
39.9% in the second quarter of 2024, compared to,41.2% in the second quarter of 2023, reflecting the shift in product mix. - Operating expenses were
$15.6 million in the second quarter of 2024, including$8.3 million of mostly noncash charges for goodwill impairment, restructuring costs, and employee severance. This compares to$9.6 million in operating expenses in the second quarter of 2023. Excluding the nonrecurring charges, operating expenses were lower by$2.3 million in the second quarter of 2024, compared to the second quarter of 2024, primarily as a result of$1.3 million in lower professional fees and$0.7 million in lower G&A costs. - Other expense totaled
$0.8 million in the second quarter of 2024, and mostly related to debt discount accretion, compared to$8.5 million in the second quarter of 2023, of which$5.0 million was related to debt interest, debt discount accretion and changes in fair value of the derivative liability. - Adjusted EBITDA was negative
$1.6 million for the second quarter of 2024, compared to negative$0.9 million for the second quarter 2023. - During the second quarter of 2024,
$0.2 million of debt principal and$0.9 million of preferred stock was retired, and the due date of an outstanding8% Senior Convertible Note repayment obligation was extended by one year to April 5, 2026. - As of June 30, 2024, cash and restricted cash totaled
$75.2 million , and unrestricted cash was$6.4 million , compared to$73.3 million and$12.2 million , respectively at December 31, 2023.
2024 Financial Outlook
The company expects full year 2024 revenue to be in the range of
Investor Conference Call
RYVYL management will host a conference call at 4:30 p.m. Eastern Time on Tuesday, August 13, 2024, to discuss the Company's financial results for the second quarter ended June 30, 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 RYVYL@lhai.com.
Q2 2024 Conference Call and Webcast
Date: Tuesday, August 13, 2024
Time: 4:30 p.m. Eastern Time
US Dial In: 1-833-816-1437
International Dial In: 1-412-317-0529
Webcast: Q2 2024 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 1713018. The Call me link will be made active 15 minutes prior to scheduled start time.
A replay of the call will be available through October 13, 2024, by calling 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and entering access ID 10191677. 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 Securities and Exchange Commission (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, RYVYL@lhai.com
RYVYL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share data)
| June 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 6,387 | $ | 12,180 | ||||
| Restricted cash | 68,773 | 61,138 | ||||||
| Accounts receivable, net of allowance for credit losses of | 793 | 859 | ||||||
| Cash due from gateways, net of allowance of | 1,136 | 12,834 | ||||||
| Prepaid and other current assets | 2,408 | 2,854 | ||||||
| Total current assets | 79,497 | 89,865 | ||||||
| Non-current Assets: | ||||||||
| Property and equipment, net | 792 | 306 | ||||||
| Goodwill | 19,468 | 26,753 | ||||||
| Intangible assets, net | 4,071 | 5,059 | ||||||
| Operating lease right-of-use assets, net | 3,824 | 4,279 | ||||||
| Other assets | 1,381 | 2,403 | ||||||
| Total non-current assets | 29,536 | 38,800 | ||||||
| Total assets | $ | 109,033 | $ | 128,665 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 3,156 | $ | 1,819 | ||||
| Accrued liabilities | 4,780 | 5,755 | ||||||
| Payment processing liabilities, net | 70,575 | 76,772 | ||||||
| Current portion of operating lease liabilities | 787 | 692 | ||||||
| Other current liabilities | 358 | 504 | ||||||
| Total current liabilities | 79,656 | 85,542 | ||||||
| Long term debt, net of debt discount | 17,437 | 15,912 | ||||||
| Operating lease liabilities, less current portion | 3,311 | 3,720 | ||||||
| Total liabilities | 100,404 | 105,174 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock, Series B, par value | 1 | 1 | ||||||
| Common stock, par value | 7 | 6 | ||||||
| Additional paid-in capital | 176,220 | 175,664 | ||||||
| Accumulated other comprehensive (loss) income | (218 | ) | 401 | |||||
| Accumulated deficit | (167,381 | ) | (152,581 | ) | ||||
| Total stockholders' equity | 8,629 | 23,491 | ||||||
| Total liabilities and stockholders’ equity | $ | 109,033 | $ | 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 June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 11,900 | $ | 14,849 | $ | 28,674 | $ | 26,140 | ||||||||
| Cost of revenue | 7,151 | 8,725 | 16,894 | 14,903 | ||||||||||||
| Gross profit | 4,749 | 6,124 | 11,780 | 11,237 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Advertising and marketing | 17 | 33 | 33 | 108 | ||||||||||||
| Research and development | 819 | 1,184 | 2,212 | 3,119 | ||||||||||||
| General and administrative | 1,621 | 2,317 | 3,665 | 3,669 | ||||||||||||
| Payroll and payroll taxes | 2,850 | 2,913 | 6,419 | 5,627 | ||||||||||||
| Professional fees | 1,261 | 2,614 | 2,295 | 4,417 | ||||||||||||
| Stock compensation expense | 182 | (32 | ) | 406 | 161 | |||||||||||
| Depreciation and amortization | 578 | 623 | 1,235 | 1,242 | ||||||||||||
| Impairment of goodwill | 6,675 | - | 6,675 | - | ||||||||||||
| Restructuring charges | 1,636 | - | 1,636 | - | ||||||||||||
| Total operating expenses | 15,639 | 9,652 | 24,576 | 18,343 | ||||||||||||
| Loss from operations | (10,890 | ) | (3,528 | ) | (12,796 | ) | (7,106 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (125 | ) | (1,517 | ) | (153 | ) | (3,246 | ) | ||||||||
| Accretion of debt discount | (797 | ) | (2,821 | ) | (1,705 | ) | (5,443 | ) | ||||||||
| Changes in fair value of derivative liability | 14 | (497 | ) | 14 | (329 | ) | ||||||||||
| Derecognition expense on conversion of convertible debt | (69 | ) | (188 | ) | (69 | ) | (188 | ) | ||||||||
| Legal settlement expense | - | (2,113 | ) | (2,214 | ) | |||||||||||
| Other income (expense) | 195 | (1,337 | ) | 537 | (1,447 | ) | ||||||||||
| Total other expense, net | (782 | ) | (8,473 | ) | (1,376 | ) | (12,867 | ) | ||||||||
| Loss before provision for income taxes | (11,672 | ) | (12,001 | ) | (14,172 | ) | (19,973 | ) | ||||||||
| Income tax provision | 439 | 4 | 629 | 9 | ||||||||||||
| Net loss | $ | (12,111 | ) | $ | (12,005 | ) | $ | (14,801 | ) | $ | (19,982 | ) | ||||
| Comprehensive income statement: | ||||||||||||||||
| Net loss | $ | (12,111 | ) | $ | (12,005 | ) | $ | (14,801 | ) | $ | (19,982 | ) | ||||
| Foreign currency translation loss | (174 | ) | (13 | ) | (619 | ) | (71 | ) | ||||||||
| Total comprehensive loss | $ | (12,285 | ) | $ | (12,018 | ) | $ | (15,420 | ) | $ | (20,053 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ | (1.88 | ) | $ | (2.33 | ) | $ | (2.39 | ) | $ | (3.90 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic and diluted | 6,438,409 | 5,141,710 | 6,205,492 | 5,128,790 | ||||||||||||
RYVYL INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (14,800 | ) | $ | (19,982 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 1,235 | 1,242 | ||||||
| Noncash lease expense | 141 | 67 | ||||||
| Stock compensation expense | 406 | 161 | ||||||
| Accretion of debt discount | 1,705 | 5,443 | ||||||
| Derecognition upon conversion of convertible debt | 68 | 188 | ||||||
| Changes in fair value of derivative liability | (14 | ) | 329 | |||||
| Impairment of goodwill | 6,675 | - | ||||||
| Restructuring charges | 1,636 | - | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 66 | 507 | ||||||
| Prepaid and other current assets | 445 | 7,366 | ||||||
| Cash due from gateways, net | 11,699 | 445 | ||||||
| Other assets | (299 | ) | (1,781 | ) | ||||
| Accounts payable | 1,337 | 11,161 | ||||||
| Accrued and other current liabilities | (1,408 | ) | 782 | |||||
| Accrued interest | - | 506 | ||||||
| Payment processing liabilities, net | (6,197 | ) | 16,695 | |||||
| Net cash provided by operating activities | 2,695 | 23,129 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (7 | ) | (17 | ) | ||||
| Capitalized software development costs | (546 | ) | - | |||||
| Purchases of intangible assets | (92 | ) | - | |||||
| Net cash used in investing activities | (645 | ) | (17 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayments on long-term debt | (9 | ) | (7 | ) | ||||
| Treasury stock purchases | (190 | ) | - | |||||
| Net cash used in financing activities | (199 | ) | (7 | ) | ||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (9 | ) | (13 | ) | ||||
| Net increase in cash, cash equivalents, and restricted cash | 1,842 | 23,092 | ||||||
| Cash, cash equivalents, and restricted cash – beginning of period | 73,318 | 40,834 | ||||||
| Cash, cash equivalents, and restricted cash – end of period | $ | 75,160 | $ | 63,926 | ||||
| Supplemental cash flow disclosures | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | - | $ | 2,709 | ||||
| Income taxes | $ | - | $ | - | ||||
| Non-cash financing and investing activities: | ||||||||
| Convertible debt conversion to common stock | $ | 200 | $ | 300 | ||||
| Interest accrual from convertible debt converted to common stock | $ | 380 | $ | 3 | ||||
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 Loss attributable to RYVYL, Inc., to Adjusted EBITDA for the
Three and Six Months Ended June 30, 2024 and 2023
(in thousands, except share and per share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (12,111 | ) | $ | (12,005 | ) | $ | (14,801 | ) | $ | (19,982 | ) | |||
| Interest expense | 125 | 1,517 | 153 | 3,246 | |||||||||||
| Accretion of debt discount | 797 | 2,821 | 1,705 | 5,443 | |||||||||||
| Income tax expense | 439 | 4 | 629 | 9 | |||||||||||
| Depreciation and amortization | 578 | 623 | 1,235 | 1,242 | |||||||||||
| EBITDA | (10,172 | ) | (7,040 | ) | (11,079 | ) | (10,042 | ) | |||||||
| Other non-cash adjustments: | |||||||||||||||
| Change in fair value of derivative liability | (14 | ) | 497 | (14 | ) | 329 | |||||||||
| Derecognition expense on conversion of convertible debt | 68 | 188 | 68 | 188 | |||||||||||
| Stock compensation expense | 182 | (32 | ) | 406 | 161 | ||||||||||
| Impairment of goodwill | 6,675 | - | 6,675 | - | |||||||||||
| Restructuring charges | 1,636 | - | 1,636 | - | |||||||||||
| Special items: | |||||||||||||||
| Non-recurring legal settlements and ongoing matters and related legal fees | - | 3,279 | - | 3,279 | |||||||||||
| Carryover effects of financial statement restatements in prior periods | - | 1,222 | - | 1,222 | |||||||||||
| Non-recurring provision for credit losses on legacy matters | - | 625 | - | 625 | |||||||||||
| Accounting fees related to the restatement of prior period financial statements | - | 237 | - | 237 | |||||||||||
| Non-recurring impairment of right of use asset | - | 100 | - | 100 | |||||||||||
| Non-recurring costs of spin-off | - | 29 | - | 29 | |||||||||||
| Adjusted EBITDA | $ | (1,625 | ) | $ | (895 | ) | $ | (2,308 | ) | $ | (3,872 | ) | |||
| Loss from operations | $ | (10,890 | ) | $ | (3,528 | ) | $ | (12,796 | ) | $ | (7,106 | ) | |||
FAQ
What was RYVYL's revenue for Q2 2024?
How much did RVYL's international revenue grow in Q2 2024?
What is RYVYL's (RVYL) revenue forecast for full-year 2024?
When does RYVYL (RVYL) anticipate reaching Adjusted EBITDA profitability?
What was RYVYL's (RVYL) processing volume in Q2 2024?
