Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was 14.8 million in Q2 2023, with international revenue increasing by 134% to 1.055 billion, exceeding guidance and representing a 55% increase compared to Q2 2023 [16] - Gross margin for Q2 2024 was 39.9%, down from 41.2% in Q2 2023, reflecting a shift in product mix [17] Business Line Data and Key Metrics Changes - International Banking-as-a-Service offering saw transaction volume growth from 781 million in Q2 2024 [5] - North American processing volumes were 902 million, indicating strong growth in the EU market [16] - The company is leveraging partnerships with Visa and ACI to enhance transaction processing capabilities in Europe [6][14] - The EU is expected to be the largest revenue generator for the company in 2024 [4] Company Strategy and Development Direction - The company is expanding its European operations and addressing banking changes in North America through new licensing arrangements [4] - A focus on private and white label licensing opportunities is aimed at increasing customer access and reducing regulatory challenges [8] - The company is pursuing growth in high-risk verticals such as gaming, adult, and crypto businesses in Europe [27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for the second half of 2024, with expectations for renewed sequential growth [20] - The company anticipates achieving adjusted EBITDA profitability in Q4 2024 [19] - Management acknowledged challenges in the U.S. market due to regulatory issues but believes these are largely behind them [20] Other Important Information - The company repatriated 2.5 million from Europe to support U.S. capital resources [18] - Upcoming conferences include the H.C. Wainwright Conference in September and the LD Micro Main Event in October [21] Q&A Session Summary Question: What areas are being focused on to reach profitability? - The company is reducing costs in the U.S. by approximately 25% in payroll headcount and controlling discretionary costs while maximizing cash flow in Europe [23] Question: Can you provide insights on trends in verticals? - Management sees huge demand for real-time payments, international settlements, and crypto services as key growth areas [25][26] Question: Why is Europe performing well? - The company has implemented significant infrastructure and partnerships in Europe, leading to growth in high-risk verticals [27] Question: What data points are tracked to manage business health? - The company monitors transaction volumes and residual rates across different segments to forecast results [28][29] Question: How is the U.S. market being managed? - The company decided to license technology to a partner to navigate regulatory challenges and ensure stable revenue [30][31] Question: What is the confidence level in the 65 million to $70 million revenue guidance? - The guidance includes significant growth expected in Q4, with a strong pipeline of business to onboard [36]
Ryvyl (RVYL) - 2024 Q2 - Earnings Call Transcript