Ryvyl (RVYL) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Company background and growth

• Founded in 2017, initially as GreenBox, with rapid evolution to a public company and Nasdaq uplisting in 2021 after raising $160 million in financing.

• Dramatic growth from $30 million in monthly processing volume in 2019 to over $1 billion in the best month of 2023.

• 2023 gross revenues reached $65 million, with internal estimates suggesting significant undervaluation compared to peer enterprise values.

• Workforce expanded from two founders to several hundred employees, with 80% of business now outside the U.S.

Business model and technology

• Operates as a technology-driven payment company, offering processing for credit cards, ACH, and cryptocurrencies, with a wallet-based system supporting multiple currencies.

• Revenue model based on a 1%-2% residual rate of transaction volume, with a focus on high-margin processing (40% average margin).

• Provides services in issuing (debit/prepaid cards), acquiring (merchant processing), banking-like services (ACH), and technology licensing.

• Proprietary blockchain layer (Fabric) underpins the platform, offering security and rapid implementation, with compatibility for Corda and Hyperledger.

Geographic and market diversification

• Shifted from U.S.-centric operations to 80% international, with Europe as a major growth driver, especially in online and underserved markets.

• U.S. business is transitioning from terminal-based to app-based processing, with a move to a licensing model for a legacy vertical.

• Europe supports company growth during U.S. transition, with recovery expected in the second half of the year and a target for flat annual revenue.

• Active in over 30 vertical markets, including high-risk sectors like online gambling and adult content.