Ryvyl (RVYL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $11.9M, down 19.9% year-over-year, as 134% international growth offset a 73.1% North America decline.

• Net loss for Q2 2024 was $12.1M, with $6.7M goodwill impairment and $1.6M restructuring charges in North America.

• U.S. operations faced regulatory headwinds, prompting a shift to licensing, white label partnerships, and cost reductions.

• Strategic focus on expanding Banking-as-a-Service, PayFac-as-a-Service, and technology licensing, with new product launches like NanoKard and RYVYL Fabric.

• Management does not expect North America revenue recovery until early 2025 and has identified a short-term liquidity shortfall in that segment.

Financial highlights

• Q2 2024 processing volumes reached $1.055B, up 55% year-over-year, with $902M from international operations.

• Q2 2024 revenue was $11.9M ($8.9M international), down from $14.8M in Q2 2023.

• Gross margin was 39.9%, down from 41.2% a year ago.

• Adjusted EBITDA was -$1.6M, compared to $900,000 in Q2 2023.

• Net loss for Q2 2024 was $12.1M, or $(1.88) per share.

Outlook and guidance

• 2024 processing volumes expected to exceed $4B.

• 2024 revenue guidance is $65–$70M, with Q3 revenue projected at $14–$15M and a strong Q4 anticipated.

• Adjusted EBITDA profitability targeted for Q4 2024.

• International segment expected to be the largest revenue contributor in 2024.

• North America revenue recovery not expected until early 2025.