Ryvyl Inc (RVYL) 2023 Q3 法說會逐字稿

Good afternoon, everyone, and welcome to RYVYL Inc.'s third-quarter 2023 conference call. (Operator Instructions)

大家下午好，歡迎參加 RYVYL Inc. 2023 年第三季電話會議。 （操作員說明）

Before we begin, I would like to remind you that today's call contains certain forward-looking statements from our management made within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, concerning future events. 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 periodic reports with the SEC, 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 and the aforementioned periodic reports with 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.

在開始之前，我想提醒您，今天的電話會議包含我們管理層根據1933 年《證券法》（修訂版）第27A 條以及1934 年《證券交易法》第21E 條的含義做出的某些前瞻性性聲明。經修訂，涉及未來事件。這些前瞻性陳述是基於公司目前對未來事件的信念、假設和預期，而這些信念、假設和預期又是基於公司目前可獲得的資訊。此類前瞻性陳述包括有關向 SEC 提交定期報告的時間的陳述，並以未來或條件性詞語為特徵，例如可能、將、期望、打算、預期、相信、估計和繼續或類似詞語。您應該仔細閱讀包含這些字詞的聲明，因為它們討論了未來的預期和計劃，其中包含對未來經營業績或財務狀況的預測或陳述其他前瞻性資訊。就其性質而言，前瞻性陳述涉及的是存在風險和不確定性的事項。多種因素可能導致實際事件和結果與前瞻性陳述中表達或設想的事件和結果有重大差異，包括完成和提交上述定期報告所需時間比預期更長的風險，以及額外資訊可能會成為現實的風險。在預期向 SEC 提交文件和上述定期報告之前已知。該公司向 SEC 提交的文件中詳細討論了影響該公司的其他風險因素。本公司不承擔公開更新或修改任何前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因，除非適用法律要求。

I will now hand the call over to Ben Errez, Chairman of RYVYL. Please go ahead.

我現在將電話轉交給 RYVYL 董事長 Ben Errez。請繼續。

Thank you, Sarah. Good afternoon, everyone, and thank you for joining us today. During the third quarter of 2023, once again, RYVYL delivered record financial results. The fourth consecutive quarter, Q3 topline revenues increased nearly 64% year over year to $17.5 million. This also reflects an 18% sequential increase from $14.9 million in the second quarter of 2023. Revenue came in the upper end of our Q3 target range of $16 to $18 million.

謝謝你，莎拉。大家下午好，感謝您今天加入我們。 2023 年第三季度，RYVYL 再次實現創紀錄的財務表現。第三季營收連續第四個季度年增近 64%，達到 1,750 萬美元。這也反映出比 2023 年第二季的 1,490 萬美元環比成長 18%。營收處於我們第三季目標範圍 1,600 至 1,800 萬美元的上限。

Our Q3 revenue was derived from transactions processing volume, which totaled $861 million and represents an increase of 28% from the second quarter of 2023. Strong growth in our international business, RYVYL EU, as well as growth in our North America business, resulting from the establishment of additional processing channels in the US for retail and online businesses, paved the way for the record results.

我們第三季的營收來自交易處理量，交易處理量總計 8.61 億美元，較 2023 年第二季成長 28%。我們的國際業務 RYVYL EU 以及北美業務的強勁成長得益於在美國為零售和線上業務建立額外的處理管道，為創紀錄的業績鋪平了道路。

RYVYL's Chief Operating Officer, Min Wei, will provide a full breakdown of the various processing channel performance later. Overall, we're very pleased with the steady growth trajectory and our improved margin profile.

RYVYL 營運長 Min Wei 稍後將提供各種處理管道效能的完整細分。總體而言，我們對穩定的成長軌跡和改善的利潤率感到非常滿意。

Moving on to some key initiatives. First, for an update on RYVYL EU. On the heels of receiving approval to launch SEPA from the European Payments Council and being chosen as a Visa Direct partner, RYVYL EU revenue saw tremendous year-over-year growth for the quarters ending September 30, 2023, and 2022, respectively, increasing 100% and currently representing 28.5% of our total revenue.

繼續實施一些關鍵措施。首先，了解 RYVYL EU 的最新情況。在獲得歐洲支付理事會批准推出 SEPA 並被選為 Visa Direct 合作夥伴之後，RYVYL EU 的收入在截至 2023 年 9 月 30 日和 2022 年的季度中分別實現了巨大的同比增長，增長了 100 %，目前占我們總收入的28.5%。

Again, with SEPA enabled, we expect RYVYL EU to target the more than 2,000 payment service providers across 36 countries in the Eurozone, with incoming and outgoing instant transfers. Being Visa Direct partner will allow RYVYL EU to leverage its capabilities to provide superior banking-as-a-service offerings, and we are working tirelessly on this initiative, which we believe will enable us to better serve our customers, retain their loyalty, and create new revenue streams.

同樣，啟用 SEPA 後，我們預計 RYVYL EU 將針對歐元區 36 個國家的 2,000 多家支付服務提供商，提供傳入和傳出即時轉帳。成為Visa Direct 合作夥伴將使RYVYL EU 能夠利用其能力提供卓越的銀行即服務產品，我們正在不懈地致力於這一舉措，我們相信這將使我們能夠更好地服務客戶，保持他們的忠誠度，並創造新的收入來源。

Once integration is complete, expected by mid-2024, we believe that the collaboration in the Eastern European region will revolutionize the way funds are transferred between accounts, offering fast, convenient, and secure transactions. It is expected that our customers will have the opportunity to send money to authorized accounts, e-wallets, and debit cards in over 80 countries across multiple currencies through Visa's extensive network of local banking partners and experience the benefit of faster access to funds, with money becoming available in many cases within minutes instead of days.

一旦整合完成（預計在 2024 年中期完成），我們相信東歐地區的合作將徹底改變帳戶之間的資金轉移方式，提供快速、便利和安全的交易。預計我們的客戶將有機會透過 Visa 廣泛的當地銀行合作夥伴網絡，以多種貨幣向 80 多個國家/地區的授權帳戶、電子錢包和借記卡匯款，並體驗更快獲取資金的好處，在許多情況下，資金可以在幾分鐘內而不是幾天內到位。

We remain quite optimistic about the opportunity in Europe, and we believe we are positioned to capitalize on this important market opportunity, which also presents an important segue to the markets in Asia, eventually.

我們對歐洲的機會仍然非常樂觀，我們相信我們有能力利用這一重要的市場機遇，這最終也為亞洲市場帶來了重要的機會。

We continue to work with our large institutional partners on our banking-as-a-service platform, with the goal of ramping up to what we believe will be $100 million per month in transaction volume. Our banking-as-a-service solution offers API integration and foreign exchange capability in more than 40 different currencies, with local settlement. The service authorizes transactions 24 hours per day, on business days, and enables payouts by way of approved methods such as real-time payments and direct deposits.

我們繼續與大型機構合作夥伴在銀行即服務平台上合作，目標是將交易量提高到每月 1 億美元。我們的銀行即服務解決方案提供 API 整合和 40 多種不同貨幣的外匯功能，並提供本地結算。該服務在工作日每天 24 小時授權交易，並允許透過即時支付和直接存款等經批准的方式進行支付。

In addition, the service allows for the ability to readily trace transactions and reduce fraud, all while maintaining strict compliance requirements. We are excited about the long-term potential for this lucrative market we believe our technology is well-suited to tap into.

此外，該服務還能夠輕鬆追蹤交易並減少欺詐，同時保持嚴格的合規性要求。我們對這個利潤豐厚的市場的長期潛力感到興奮，我們相信我們的技術非常適合利用。

Next, we would like to speak about our planned spin-off of coyni. We initiated the process in early Q2 as part of the Broad Value Creation Strategy and truly believe it is the optimal way to drive growth potential. We are currently in the process of completing a comprehensive review with FINRA to finalize the name change of our subsidiary to coyni. This has taken longer than anticipated, but we do expect it to be completed soon and believe that with the thorough review will provide greater assurance to investors of the viability of the coyni business.

接下來，我們想談談我們計劃分拆 coyni 的事情。我們在第二季初啟動了這個流程，作為廣泛價值創造策略的一部分，並堅信這是推動成長潛力的最佳方式。我們目前正在與 FINRA 完成全面審查，以最終確定我們子公司更名為 coyni。這花費的時間比預期要長，但我們確實預計很快就能完成，並相信徹底的審查將為投資者提供對 coyni 業務生存能力的更大保證。

During the third quarter, we launched the coyni Mobile Point of Sale, mPOS, app, transforming iOS and Android devices into payment terminals for secure, efficient transactions. The coyni mPOS app provides merchants with secure and convenient way to quickly add mPOS services and users, through a straightforward registration process, to begin accepting payments. By integrating mPOS capabilities with the coyni platform, businesses and merchants can benefit from the comprehensive and user-friendly payment system, coupled with the rounded foundation of the next beta release of the coyni business platform.

第三季度，我們推出了coyni行動銷售點、mPOS、應用程序，將iOS和Android設備轉變為支付終端，以實現安全、高效的交易。 coyni mPOS 應用程式為商家提供安全且方便的方式，透過簡單的註冊流程快速新增 mPOS 服務和用戶，開始接受付款。透過將 mPOS 功能與 coyni 平台集成，企業和商家可以受益於全面且用戶友好的支付系統，以及 coyni 商業平台下一個測試版的全面基礎。

We also have taken meaningful steps to reduce the debt on our balance sheet. During the third quarter, we entered into an exchange agreement with our holder of a RYVYL-issued convertible note, initially in the principal amount of $100 million. To date, we have exchanged a portion of the outstanding principal and interest of such convertible note for 6,000 shares of our newly designated Series A convertible preferred stock, resulting in a $6 million debt reduction and an increase in cash flow.

我們也採取了有意義的措施來減少資產負債表上的債務。第三季度，我們與 RYVYL 發行的可轉換票據持有人簽訂了交換協議，最初本金額為 1 億美元。迄今為止，我們已將此類可轉換票據的部分未償還本金和利息交換為我們新指定的 A 系列可轉換優先股的 6,000 股，從而減少了 600 萬美元的債務並增加了現金流。

A second exchange was also contemplated and received shareholder approval under the applicable exchange agreement, which would further reduce our debt by $16.7 million, for a total of $21 million of debt reduction, in consideration for issuance of an additional 9,000 shares of Series A convertible preferred stock. We believe this type of institutional-level commitment is a major win for all RYVYL shareholders and illustrates the conviction in our mission as a disruptive force in the digital payment landscape. We also implemented a one-for-ten reverse stock split to increase the market price per share to better assure the maintenance of Nasdaq compliance.

還考慮了第二次交換，並根據適用的交換協議獲得了股東批准，這將進一步減少我們的債務1,670 萬美元，總共減少2,100 萬美元的債務，作為額外發行9,000 股A 系列可轉換優先股的代價庫存。我們相信，這種機構層面的承諾對所有 RYVYL 股東來說都是一場重大勝利，並表明了我們作為數位支付領域顛覆性力量的使命信念。我們也實施了十分之一的反向股票分割，以提高每股市場價格，以更好地確保維持納斯達克合規性。

Operationally, we welcomed George Oliva as Chief Financial Officer of the company. George brings over 30 years of experience as a senior finance professional with a background in corporate finance, treasury, financial planning and analysis, international tax, and strategic planning. We welcome George's capabilities in scaling public technology companies. We believe that his achievements, as well as expertise in financial management of private and listed companies, will make a significant contribution to the strategic operation and development of our company moving forward.

在營運方面，我們歡迎喬治·奧利瓦 (George Oliva) 擔任公司財務長。 George 擁有 30 多年的高階財務專業經驗，擁有公司財務、財務、財務規劃和分析、國際稅務和策略規劃的背景。我們歡迎喬治在擴大公共科技公司規模方面的能力。我們相信，他的成就以及在私人和上市公司財務管理方面的專業知識將為我們公司未來的策略營運和發展做出重大貢獻。

To sum things up, we continue to demonstrate strong growth in our core processing business and margin improvement while making steady progress towards initiatives that we expect to further drive sustainable growth and profitability. We strongly believe in our ability to execute our strategy and to generate long-term value for our shareholders.

總而言之，我們繼續在核心加工業務和利潤率改善方面展現強勁增長，同時在我們期望進一步推動可持續增長和盈利能力的舉措方面取得穩步進展。我們堅信我們有能力執行我們的策略並為股東創造長期價值。

And now to discuss the details of our financial results, I'd like to turn the call over to our Chief Financial Officer, George Oliva. George, the floor is yours.

現在，為了討論我們財務業績的細節，我想將電話轉給我們的財務長喬治·奧利瓦。喬治，地板是你的。

Thank you, Ben. I'll be referring to adjusted EBITDA and other non-GAAP measures. For calculation of adjusted EBITDA, please refer to the reconciliation of this non-GAAP metric in our earnings release issued before this call, which can be accessed on the company IR website in the press release or in quarterly earnings sections.

謝謝你，本。我將指的是調整後的 EBITDA 和其他非 GAAP 指標。有關調整後 EBITDA 的計算，請參閱我們在本次電話會議之前發布的收益報告中的非 GAAP 指標的調節表，您可以在公司 IR 網站的新聞稿或季度收益部分中訪問該數據。

Our revenue increased by $6.8 million, or 64%, to $17.5 million for the quarter ended September 30, 2023, up from $10.7 million for the same quarter a year earlier. The change in net revenue in the third quarter of 2023 compared to the year earlier quarter was primarily attributable to significant growth in processing volume from our acquired business, RYVYL EU, and from a business in American Samoa.

截至 2023 年 9 月 30 日的季度，我們的營收增加了 680 萬美元，即 64%，達到 1,750 萬美元，高於去年同期的 1,070 萬美元。與去年同期相比，2023 年第三季淨收入的變化主要歸因於我們收購的業務 RYVYL EU 和美屬薩摩亞業務的處理量大幅增長。

North America Q3 revenue increased 47% from $8.5 million in Q3 2022 to $12.5 million for the quarter ended September 30, 2023. EU Q3 revenue was $5 million, an increase of more than 100% from $2.2 million in the same period last year.

北美第三季營收從2022 年第三季的850 萬美元成長47% 至截至2023 年9 月30 日的季度的1,250 萬美元。歐盟第三季營收為500 萬美元，比去年同期的220 萬美元增長超過100%。

Cost of revenue is increased by $6.5 million, or 149%, to $10.8 million for the quarter ended September 30, 2023, up from $4.3 million for the year earlier quarter. Payment processing consists of various processing fees paid to gateways, as well as commission payments to independent sales organizations, or ISOs, responsible for establishing and maintaining merchant relationships from which the processing transactions ensue. Cost of revenues increased primarily due to increased volume, resulting in higher processing fees paid to gateways, commission payments to ISOs, and the cost of revenue acquired business in the US and EU.

截至 2023 年 9 月 30 日的季度，收入成本增加 650 萬美元，或 149%，達到 1,080 萬美元，高於去年同期的 430 萬美元。支付處理包括支付給網關的各種處理費以及支付給獨立銷售組織（ISO）的佣金，獨立銷售組織負責建立和維護商家關係，並由此產生處理交易。收入成本增加主要是由於數量增加，導致支付給網關的處理費、支付給 ISO 的佣金以及在美國和歐盟獲得業務的收入成本增加。

Operating expenses decreased by $0.4 million, or 4%, to $9 million for the quarter ended September 30, 2023, from $9.4 million for the year earlier quarter. The decrease was primarily due to a decrease in depreciation, amortization, and stock compensation expense, offset by an increase in general and administrative expenses. The higher general administrative expenses in the quarter of 2023 are primarily attributable to non-recurring provision for credit losses on non-continuing legacy accounts.

截至 2023 年 9 月 30 日的季度，營運費用減少 40 萬美元，或 4%，從去年同期的 940 萬美元減少至 900 萬美元。減少的主要原因是折舊、攤提和股票補償費用的減少，但卻被一般和管理費用的增加所抵銷。 2023 年季度一般管理費用較高，主要是由於非持續遺留帳戶的非經常性信貸損失撥備。

Other expense totaled $0.6 million for the three months ended September 30, 2023, compared to $12.7 million for the three months ended September 30, 2022. Changes in the fair value of derivative liability amounted to a credit of $6.9 million for the three months ended September 30, 2023, and a charge of $4.1 million in the three months ended September 30, 2023.

截至2023年9月30日止三個月的其他費用總計為60萬美元，而截至2022年9月30日止三個月的其他費用為1,270萬美元。截至2023年9月30日止三個月的衍生負債公允價值變動抵減額為690萬美元2023 年 9 月 30 日的費用為 410 萬美元，截至 2023 年 9 月 30 日的三個月費用為 410 萬美元。

Interest expense for accretion of debt discount related to the $100 million convertible note issued in November of 2021 increased by $5.8 million. Additionally, we incurred a charge of $1.3 million in the quarter ended September 30, 2023, related to the conversion of the debt, and we recognized a loss of $8.1 million in the quarter ended September 30, 2022, in connection with the settlement of debt. We recorded expense of $1.9 million relating to non-recurring legal settlements in the quarter ended September 30, 2023.

與 2021 年 11 月發行的 1 億美元可轉換票據相關的債務折扣增加的利息支出增加了 580 萬美元。此外，我們在截至 2023 年 9 月 30 日的季度中因債務轉換產生了 130 萬美元的費用，並在截至 2022 年 9 月 30 日的季度中確認了與債務清償相關的 810 萬美元的損失。截至 2023 年 9 月 30 日的季度，我們記錄了與非經常性法律和解相關的費用 190 萬美元。

In summary, the company recorded a net loss in the third quarter of 2023 of $3.1 million for a loss of $0.60 per basic and diluted share, compared to a net loss of $15.9 million, or $3.37 per basic and diluted share in the same quarter a year ago. In the third quarter 2023, adjusted EBITDA was positive $50,000, compared to a loss of $500,000 in the third quarter last year. We ended the quarter with cash and cash equivalents and restricted cash of $68.4 million, of which $15.8 million of that is being unrestricted cash.

總之，該公司在2023 年第三季的淨虧損為310 萬美元，每股基本股和稀釋股虧損0.60 美元，而同一季度的淨虧損為1,590 萬美元，即每股基本股和稀釋股虧損3.37美元一年前。 2023 年第三季度，調整後 EBITDA 為正 50,000 美元，而去年第三季為虧損 50 萬美元。截至本季末，我們的現金和現金等價物以及限制性現金為 6,840 萬美元，其中 1,580 萬美元為非限制性現金。

I'll now turn the call over to Min Wei, our Chief Operating Officer, to provide a review of the business operations and our outlook.

現在我將把電話轉給我們的營運長魏敏，以回顧我們的業務營運和我們的前景。

Thank you, George. We'll walk through our processing volumes for the verticals we serve and discuss our third-quarter results and outlook for the fourth quarter of 2023. Please note that all the figures are exclusive of the Sky Financial portfolio.

謝謝你，喬治。我們將詳細介紹我們所服務的垂直行業的處理量，並討論我們的第三季度業績和 2023 年第四季度的前景。請注意，所有數據均不包括 Sky Financial 投資組合。

Our Q3 processing volume across all channels exceeded $860 million, versus our published indication of $720 to $800 million for the quarter. This is about 27% better than our Q2 2023 volume of $678 million, and an increase of about 24% from our Q3 2022 volume, not including the Sky Financial volume.

我們第三季所有通路的處理量超過了 8.6 億美元，而我們公佈的該季度處理量為 7.2 至 8 億美元。這比 2023 年第二季 6.78 億美元的交易量高出約 27%，比 2022 年第三季的交易量增加了約 24%（不包括 Sky Financial 的交易量）。

Our Q3 North America acquiring business volume was $171 million, which is 17% higher than the Q2's $146 million volume, and it's 108% higher than the same period one year earlier. Q3 charge-savvy processing was $42 million, or about 21% lower than Q2 2023 processing volume. When compared to the $62 million volume in Q2 2022, it is a 33% decline. The year-over-year decline is due to reduced processing from select merchant base.

我們第三季北美收單業務量為 1.71 億美元，比第二季的 1.46 億美元成長了 17%，比去年同期成長了 108%。第三季的收費處理量為 4,200 萬美元，比 2023 年第二季的處理量低約 21%。與 2022 年第二季的 6,200 萬美元銷量相比，下降了 33%。年比下降是由於特定商家的處理量減少。

For our FX and international payments portfolio, including the acquired Transact Europe business and our new banking-as-a-service offering, we processed $517 million in Q3, compared to $425 million in business volume in Q2, an increase of over 21%. This is a 52% increase from Q3 2022's $340 million.

對於我們的外匯和國際支付組合，包括收購的Transact Europe 業務和新的銀行即服務產品，我們在第三季度處理了5.17 億美元的業務量，而第二季度的業務量為4.25 億美元，成長了21% 以上。這比 2022 年第三季的 3.4 億美元成長了 52%。

For an update on American Samoa, we continue to serve about 60% of the target merchant market on the island. In Q3, our processing volume was about $30 million, about the same as the prior quarter, and our monthly volume is sustaining at about $10 million.

關於美屬薩摩亞的最新情況，我們繼續為島上約 60% 的目標商業市場提供服務。第三季度，我們的處理量約為 3,000 萬美元，與上一季大致相同，每月處理量維持在 1,000 萬美元左右。

With respect to coyni, we continue to execute our service deployment plan. In the US, as communicated prior, due to the US regulatory environment and digital asset banking dynamics, we adjusted our monetization path for coyni to be focused on the EU market. In Q3 and subsequent periods thus far, we have successfully set up our coyni EU entity, completed capital registration, and are expecting to receive our license immediately. All of these are to enable us to onboard the first batch of business customers and start generating value soon.

對於coyni，我們繼續執行我們的服務部署計劃。在美國，如同先前所傳達的，由於美國的監管環境和數位資產銀行動態，我們調整了 coyni 的貨幣化路徑，將重點放在歐盟市場。到目前為止，第三季及後續時期，我們已成功設立了 coyni EU 實體，完成了資本登記，並預計立即獲得許可證。所有這些都是為了讓我們能夠吸引第一批商業客戶並儘快開始創造價值。

In the meantime, we are pleased to share that, in the US, after taking a pause due to the above-mentioned environmental factors, we are now moving ahead with a coyni system for payment processing in the new business verticals. Our coyni merchant processing channel is now approved by our banking partner, and we expect to start the processing in the near term.

同時，我們很高興地告訴大家，在美國，由於上述環境因素而暫停之後，我們現在正在推進新業務垂直領域的 Coyni 支付處理系統。我們的 coyni 商家處理管道現已獲得我們的銀行合作夥伴的批准，我們預計將在短期內開始處理。

Now I'd like to turn to our outlook for the fourth quarter and the total year. With respect to processing volume in Q4, we expect to attain a range of $900 million to $1 billion. If we achieve such processing volume, we estimate that our processing volume for our physical year, ending December 31, 2023, will exceed $3 billion. Based on Q3 revenue of $17.5 million and continuing momentum, we believe our revenue outlook of $19 million to $21 million is achievable for Q4, which will bring our total year revenue to $62 million to $64 million, which is ahead of our forecasted revenue of $60 million for the year.

現在我想談談我們對第四季和全年的展望。至於第四季的處理量，我們預計將達到 9 億至 10 億美元的範圍。如果我們實現這樣的處理量，我們預計截至 2023 年 12 月 31 日的實際年度處理量將超過 30 億美元。基於第三季1,750 萬美元的營收和持續的勢頭，我們相信第四季可以實現1,900 萬美元至2,100 萬美元的營收預期，這將使我們的全年總收入達到6,200 萬美元至6,400 萬美元，這比我們預測的60 美元收入高當年萬元。

With respect to adjusted pro forma EBITDA, please refer to the reconciliation of this non-GAAP metric in our earnings release issued before the call. Our Q3 figure is a positive $50,000. This is lower than our targeted $1 million for the quarter, which is due to higher-than-planned expenses associated with cost scheme fees, technology development investment, external legal spending, and administrative expenses to regain compliance. Some of these reference investments and expenses will continue in Q4, and we are estimating our Q4 adjusted EBITDA to be a positive $0.5 million to $1 million, and our total year, 2023, adjusted EBITDA to come in at negative $2 million to $3 million.

關於調整後的預期 EBITDA，請參閱我們在電話會議之前發布的收益報告中對該非 GAAP 指標的調整。我們第三季的數字為 50,000 美元。這低於我們本季 100 萬美元的目標，這是由於與成本計劃費用、技術開發投資、外部法律支出和恢復合規性管理費用相關的費用高於計劃。其中一些參考投資和支出將在第四季度繼續，我們估計第四季度調整後 EBITDA 為正 50 萬至 100 萬美元，而我們 2023 年全年調整後 EBITDA 為負 200 萬至 300 萬美元。

This concludes my remark for the third quarter and the total year. I would like to now turn the call over to Ben Errez, our Chairman, to begin our Q&A.

我對第三季和全年的演講就到此結束。我現在想將電話轉給我們的主席 Ben Errez，開始我們的問答。

Thank you, Min. Thank you, all, for your interest and commitment to RYVYL. We are grateful for your ongoing support.

謝謝你，敏。感謝大家對 RYVYL 的興趣和承諾。我們感謝您一直以來的支持。

With that, I'll begin our Q&A session. We have received a few questions by mailers, and I'll start with those, and then we'll take questions from the floor.

接下來，我將開始我們的問答環節。我們收到了郵寄者提出的一些問題，我將從這些問題開始，然後我們將回答與會者的問題。

First, does the company continue to expect to see higher growth in Europe? If so, how should we think about the margins for RYVYL EU versus North America? The EU revenues of $5 million on $500 million in processing seems much less than the North American revenues. Min will take that question.

首先，該公司是否繼續期望在歐洲看到更高的成長？如果是這樣，我們應該如何考慮 RYVYL EU 與北美的利潤率？歐盟在 5 億美元的加工中的收入為 500 萬美元，似乎比北美的收入少得多。敏將回答這個問題。

This is a good question. First of all, definitely, we expect to see continuing growth of revenue in Europe. When it comes to a margin for EU versus North America, I think it's a good observation that EU revenue with $5 million versus $500 million processing volume seems to be lower than the same ratio compared to the North America ratio.

這是一個很好的問題。首先，我們肯定希望看到歐洲的收入持續成長。當談到歐盟與北美的利潤率時，我認為這是一個很好的觀察，即歐盟收入 500 萬美元與 5 億美元處理量相比，與北美的比率相比似乎低於相同比率。

That's simply because in the case of the European market, our revenues primarily come from acquiring business and banking-as-a-service offering, as we mentioned earlier. The acquiring revenue for European markets is comparable in terms of ratio to volume when compared to North America acquiring business.

這只是因為就歐洲市場而言，我們的收入主要來自收購業務和銀行即服務產品，正如我們之前提到的。與北美收單業務相比，歐洲市場的收單收入與交易量的比例相當。

However, we do have currently lower revenue-to-volume ratio for the banking-as-a-service offering, part of which is due to the fact that we are still in the early phase of rolling out the services in the EU market. We're still testing the pricing points for that new service offering. We expect to adjust this kind of ratio as we continue to move along to ensure we achieve a good balance between reasonable pricing to revenue and profitability for the business.

然而，目前我們的銀行即服務產品的收入與數量比率確實較低，部分原因是我們仍處於在歐盟市場推出服務的早期階段。我們仍在測試該新服務的定價點。我們預計隨著我們的繼續發展，會調整這種比率，以確保我們在合理的定價與收入和業務盈利能力之間取得良好的平衡。

Thanks, Min. Question two. What is the progress of the coyni spin-off and what remains to be completed to finalize the transaction? I did cover that in my remarks. I'll just reiterate and say that we are fully committed to the process and intend to complete it as quickly as FINRA will allow us to do so.

謝謝，敏。問題二。 Coyni分拆的進度如何？還有哪些工作需要完成才能完成交易？我在發言中確實談到了這一點。我只是重申並表示，我們完全致力於該流程，並打算在 FINRA 允許的情況下盡快完成。

The next question. What would the recent Nasdaq standard deficiency issue create as a potential blocker for the coyni spin-off? The two are unrelated. The Nasdaq standard deficiencies are a known issue and will be dealt with within the Nasdaq organization and the hearing panel during the upcoming January. Coyni is not currently a Nasdaq entity. It is an OTC spin-off and therefore under FINRA rules.

下一個問題。最近的納斯達克標準缺陷問題會為科尼分拆帶來什麼潛在阻礙？兩者無關。納斯達克標準缺陷是一個已知問題，將在即將到來的一月份在納斯達克組織和聽證小組內進行處理。 Coyni 目前不是納斯達克實體。它是場外交易分拆公司，因此受 FINRA 規則的約束。

Next question. What is the status of RYVYL completing its transition to the network firm?

下一個問題。 RYVYL 完成轉型為網路公司的情況如何？

I'll answer the question. First of all, technically, we have completed our system efforts to migrate from [network firm] to Trust Explorer, which is a technology formerly owned by the [test station] service provider. However, from a service implementation point of view, as we continue the rollout of coyni service offering, we'll introduce that feature into Utah.

我來回答這個問題。首先，在技術上，我們已經完成了從[網路公司]遷移到Trust Explorer的系統工作，這是以前由[測試站]服務提供者擁有的技術。然而，從服務實施的角度來看，隨著我們繼續推出 coyni 服務產品，我們將將此功能引入猶他州。

Thank you. The next question is with regards to coyni revenues. Can you comment on whether RYVYL is generating revenue due to date from coyni since it went operational and what those are, if material?

謝謝。下一個問題是關於 coyni 的收入。您能否評論一下 RYVYL 自投入營運以來是否從 coyni 產生了應有的收入？如果重要的話，這些收入是什麼？

Thank you for the question. First of all, we do have some immaterial revenues from the service fees from the coyni ecosystem as soon as it went live and became operational. As I covered during my earnings remarks, in the US, as also we communicated prior, given the fallout of FTX and also the banking industry's risk appetite for digital asset banking, we took a pause for coyni in the US market.

感謝你的提問。首先，coyni生態系統上線營運後，我們確實從服務費中獲得了一些無形的收入。正如我在收益演講中提到的，在美國，正如我們之前溝通的那樣，考慮到 FTX 的影響以及銀行業對數位資產銀行業務的風險偏好，我們暫停了美國市場的 Coyni。

But as I mentioned earlier, now that we have approved by our banking partner, we are now about to move out to make sure that we can process for our business customers in the US in the approved verticals. We expect to ramp up revenue in the US.

但正如我之前提到的，既然我們已經獲得了銀行合作夥伴的批准，我們現在就要搬出去，以確保我們可以在批准的垂直領域為美國的商業客戶提供服務。我們預計美國的收入將增加。

Also, as I mentioned earlier during the earnings remarks, we now have set up the entity in European market. We finished the registration of capital. We actually are getting our license this week. We're also about to roll out the services and ensure that we earn revenue for coyni in the EU market as well.

此外，正如我之前在收益報告中提到的，我們現在已經在歐洲市場設立了實體。我們完成了資本登記。事實上，我們本週就拿到了許可證。我們也即將推出這些服務，並確保我們也在歐盟市場為 coyni 賺取收入。

I will add to that that a lot of the coyni activity depends on the spin-off and once FINRA gives us the go-ahead, we'll publicly discuss what that business looks like and its potential.

我還要補充一點，coyni 的許多活動都取決於分拆，一旦 FINRA 批准我們，我們將公開討論該業務的情況及其潛力。

Next question. Does the company intend to hire senior leadership role to fill vacancies in sales and marketing?

下一個問題。公司是否打算聘請高階領導職位來填補銷售和行銷方面的空缺？

That's the easiest question. The answer is yes. We intend to, as we continue to grow momentum into existing verticals as well as new verticals we have for 2024, we plan to fill the vacancies we have.

這是最簡單的問題。答案是肯定的。隨著我們繼續在現有垂直領域以及 2024 年新垂直領域發展勢頭不斷增強，我們計劃填補現有的職位空缺。

Thanks, Min. A related question. How does the company feel about its current staffing level to support the growth of the organization? Are customer support and operations roles adequate to respond to customer inquiries as well as initiative and efficiencies to support growth?

謝謝，敏。一個相關的問題。公司對目前支持組織發展的人員配置水準有何看法？客戶支援和營運角色是否足以回應客戶詢問以及支援成長的主動性和效率？

We appreciate the comment there. For a business to build sustaining success together with our business partners, with our business customers, we always maintain a satisfactory merchant experience, customer experience at the forefront of our operations. So yes, we do maintain adequate resources to support the current business as well as anticipate business growth. We are always very conscious to strike a good balance between the right resource level in a cost and to ensure that we also fulfill obligations for our shareholders.

我們感謝那裡的評論。為了使企業與我們的業務合作夥伴、我們的企業客戶一起建立持續的成功，我們始終保持滿意的商家體驗，將客戶體驗放在我們營運的最前沿。所以，是的，我們確實保持足夠的資源來支援當前業務並預測業務成長。我們始終非常有意識地在適當的資源水平和成本之間取得良好的平衡，並確保我們也履行對股東的義務。

The final question that was submitted in writing prior to the call pertains to illegal proceedings with regards to the Sky Financial. There's not a lot that we can discuss publicly today about this process. It's ongoing and it's being handled by our professional teams. We will disclose any progress on that front as appropriate and when the time comes. With that, operator, we'll move to questions from the floor. Go ahead, please.

在電話會議之前以書面形式提交的最後一個問題涉及天空金融的非法訴訟。關於這個過程，我們今天可以公開討論的內容並不多。它正在進行中，並由我們的專業團隊處理。我們將在適當的時候披露這方面的任何進展。接線員，接下來我們將開始提問。請繼續。

(Operator Instructions) Kevin Dede, HC Wainwright.

（操作員說明）Kevin Dede，HC Wainwright。

Afternoon, gentlemen. Kevin Dede.

下午好，先生們。凱文·德德.

Hi, Kevin.

嗨，凱文。

Hi. Thanks for having me on. I've got a few questions. Cut me off whenever you think it's reasonable. I think --

你好。謝謝你邀請我參加。我有幾個問題。只要你認為合理就打斷我。我認為 -

We'll try.

我們會嘗試。

First of all, I just wanted to say, Ben, that I appreciated real people and not an AI bot. So, thanks for doing that.

首先，我只想說，Ben，我欣賞真實的人，而不是人工智慧機器人。所以，謝謝你這麼做。

You're part of the reason that we did it this way. Unfortunately, we all have cold, so you suffered the other way. But hopefully, people will appreciate the effort.

你是我們這樣做的部分原因。不幸的是，我們都感冒了，所以你卻以另一種方式受苦。但希望人們會欣賞我們的努力。

Oh, I certainly do. And I agree. Hopefully, they will. First off, can you help me understand the app that you're developing with coyni and I guess how we should look at it, say, vis-à-vis Square?

哦，我當然知道。並且我同意。希望他們會的。首先，您能幫我了解您與 coyni 一起開發的應用程式嗎？我想我們應該如何看待它，比如說，相對於 Square？

Okay. So, for that, I will invite a new speaker. That's Fredi Nisan, CEO. Go ahead, Fredi.

好的。因此，為此，我將邀請一位新演講者。那是執行長弗雷迪·尼桑。繼續吧，佛萊迪。

Hi, Kevin. Thank you for the question. Coyni mobile app was designed to replace the traditional credit card processing through e-wallet. They allow us, coyni, to receive payment in a closed loop, very similar, like you mentioned, Square, but with instant pay and reducing risk, fraud, and allow the merchant to receive payment from a customer that went through KYC, meaning know your customers. So, we can show the merchant as well who is on the other side, if it's a good customer or bad customer, and allow us to monitor the network and everything that goes through that network. So, the end pose is a first step in entering the retail space with our new technology and then open up other cool stuff with that technology.

嗨，凱文。感謝你的提問。 Coyni 行動應用程式旨在透過電子錢包取代傳統的信用卡處理。它們允許我們，coyni，在閉環中接收付款，非常類似於您提到的 Square，但具有即時付款並減少風險和欺詐，並允許商家從經過 KYC 的客戶那裡接收付款，這意味著知道您的客戶。因此，我們也可以向商家展示誰是另一方，是好客戶還是壞客戶，並允許我們監控網路以及透過該網路的所有內容。因此，最終姿勢是利用我們的新技術進入零售領域的第一步，然後利用該技術開闢其他很酷的東西。

Okay. Thanks, Fredi. The convertible note, I think it was hard to see how debt levels slid a little bit. Maybe George can point me in the right direction. Or maybe that conversion was post-September?

好的。謝謝，弗雷迪。對於可轉換票據，我認為很難看出債務水準有什麼下降。也許喬治可以為我指引正確的方向。或者也許這種轉變​​是在九月之後？

I'll let George take that. Go ahead, George.

我會讓喬治接受這個。繼續吧，喬治。

We -- the Series A is in two tranches. The first was in July, and the second needed Board approval, and we recently got that in the shareholder meeting. And so, that -- I don't think that one is completely reflected yet. But it will be shortly.

我們－A 輪融資分為兩部分。第一次是在 7 月份，第二次需要董事會批准，我們最近在股東大會上得到了批准。所以，我認為這一點還沒有完全反映出來。但這很快就會發生。

Okay. So, we should see year-end financials.

好的。因此，我們應該看到年終財務數據。

Yeah. So, the current balance sheet only shows the July transaction. So, the total was, I believe, $21 million, and we only show $6.7 million in these financials.

是的。因此，目前的資產負債表僅顯示 7 月的交易。因此，我認為總額為 2,100 萬美元，而我們在這些財務數據中只顯示了 670 萬美元。

Okay. Thanks. That helps. Maybe Fredi or Min can help me understand this, Ben. Why is it that the integration into Visa's backend takes the better part of a year?

好的。謝謝。這有幫助。也許弗雷迪或敏可以幫助我理解這一點，本。為什麼整合到 Visa 後端需要大半年的時間？

Fredi will take that.

弗雷迪會接受的。

That's a great question. Actually, the time that it takes to integrate is not on our side. It's actually on the Visa side. As you go through the compliance process and integration process, each country has its own compliance.

這是一個很好的問題。事實上，整合所需的時間並不在我們這邊。其實是在Visa這邊。當您完成合規流程和整合流程時，每個國家都有自己的合規性。

So, to open up all of those locations that we want to operate in, for example, Colombia or South America or Canada, it doesn't matter. Each one require separate compliance process from Visa to be able to operate in the space.

因此，要開放我們想要經營的所有地點，例如哥倫比亞、南美洲或加拿大，這並不重要。每家公司都需要透過 Visa 的單獨合規流程才能在該領域運作。

But I can tell you that the great news about that relationship, even though we're trying to finish all of that in a shorter period of time, is that it allows us to do, as well, the high-risk through Visa. And that means something that nobody else offers, like gaming, and send money instantly globally.

但我可以告訴你，關於這種關係的好消息是，儘管我們試圖在更短的時間內完成所有這些工作，但它也使我們能夠透過 Visa 承擔高風險。這意味著其他人無法提供的東西，例如遊戲，以及在全球範圍內即時匯款。

And we are very excited about it, and we'll do our best to overcome the time by trying to accelerate the process. But that depends on Visa, not on us.

我們對此感到非常興奮，我們將盡最大努力透過加快這一進程來克服時間。但這取決於 Visa，而不是我們。

Okay. Thanks for helping me see that better. My understanding was one of the advantages that you bring to the integration is your understanding of the end customer and creditworthiness. I'm wondering how you've been able to develop a database in countries that you haven't necessarily operated in before.

好的。感謝您幫助我更了解這一點。我的理解是，您為整合帶來的優勢之一是您對最終客戶和信用度的了解。我想知道您如何能夠在以前不一定經營過的國家/地區開發資料庫。

And that's part of the technology and KYC. So as we onboarding customers and we verify who they are, we're getting a better understanding of the demographic and the people we serve. On the other side of it, we require from our partners, different companies that are utilizing our service, to create their own KYC and understand who the client is, as well, so we can work together in servicing them. So it requires a little bit more work than a traditional business, but we have the technology and the partnership to do so.

這是技術和 KYC 的一部分。因此，當我們吸引客戶並驗證他們是誰時，我們可以更好地了解我們所服務的人群和人群。另一方面，我們要求我們的合作夥伴、使用我們服務的不同公司創建自己的 KYC 並了解客戶是誰，以便我們可以共同為他們提供服務。因此，它比傳統業務需要更多的工作，但我們擁有這樣做的技術和合作夥伴關係。

As the integration process goes forward, will you be able to offer maybe more insight on the progress you're making?

隨著整合過程的推進，您能否為您所取得的進展提供更多見解？

You mean by integration with Visa or in general?

您指的是與 Visa 的整合還是一般整合？

Well, first with Visa, because I mean, would we see maybe like the number of countries that you have working on the platform or an increased international revenue? How do you think we should look at it?

好吧，首先是 Visa，因為我的意思是，我們是否會看到在該平台上工作的國家數量或國際收入的增加？您認為我們應該如何看待它？

Oh, absolutely. The moment this vertical will be available, we're going to share more details specifically on which countries we operate in with Visa, what is the volume in each country that will be easier for us to educate the market with. But at the moment, because it's just in the integration stage, we cannot share any more details.

哦，絕對是。當這個垂直市場推出時，我們將分享更多詳細信息，具體說明我們在哪些國家/地區開展 Visa 業務，以及每個國家/地區的業務量是多少，以便我們更容易向市場進行宣傳。但目前，由於還處於整合階段，我們無法透露更多細節。

I'm going to switch quickly just to American Samoa. The idea of that closed-loop system, at one point, maybe two, three quarters ago, you saw an opportunity to take that technology, show it to other markets, and hopefully pick up other customers. So I'm wondering how that process is progressing, and maybe a little bit on why you think adoption has stalled out at 60%.

我很快就會切換到美屬薩摩亞。這個閉環系統的想法，在某個時刻，也許是兩三個季度前，你看到了一個機會，可以採用該技術，向其他市場展示它，並希望吸引其他客戶。所以我想知道這個過程進展如何，也許還想知道為什麼您認為採用率停滯在 60%。

Kevin, I'll answer the question. This is Min. Great question again. There are really probably two or three parts of the question, right? First of all, we continue to work very closely with our partner on the island, the Territorial Bank of American Samoa, to ensure that we provide great services to the merchants on the island. At the moment, we are going through further planning with them. There are a couple of major developments.

凱文，我來回答這個問題。這是敏。又是一個好問題。這個問題實際上可能有兩到三個部分，對吧？首先，我們繼續與島上的合作夥伴美屬薩摩亞領土銀行密切合作，以確保我們為島上的商人提供優質的服務。目前，我們正在與他們進行進一步的規劃。有幾個重大進展。

One of them is we introduced the [AmPass] solution. This is actually a very ideal solution for the island, for the business and the users on the island, because it does provide a very sleek way for us to make a conversion from a conventional power solution to something that's very easy, less restrictions quite quickly. So that's point number one.

其中之一是我們推出了[AmPass]解決方案。對於島上、島上的企業和用戶來說，這實際上是一個非常理想的解決方案，因為它確實為我們提供了一種非常時尚的方式，可以很快地將傳統電源解決方案轉換為非常簡單、限制較少的解決方案。這是第一點。

Point number two is, as we previously mentioned, American Samoa Island is a very contained environment to allow us to test coyni, and we've been working very closely with our partner on the island. As a matter of fact, we presented a proposal for their 2024 plan to vote it out. So that obviously will go through the required government approval, and we're very optimistic that we'll move ahead in the new year. That's really going to transform the payments experience on the island.

第二點是，正如我們之前提到的，美屬薩摩亞島是一個非常封閉的環境，可以讓我們測試 coyni，而且我們一直與島上的合作夥伴密切合作。事實上，我們提出了一項關於他們 2024 年計劃的提案，以投票否決該計劃。因此，這顯然將獲得所需的政府批准，我們非常樂觀地認為我們將在新的一年裡取得進展。這確實會改變島上的支付體驗。

Hopefully, those two parts together will help answer the question, right? The conventional way of processing is plateauing a little bit because there are better ways to do it, and we have a plan to do it together with our partner there.

希望這兩部分結合起來有助於回答這個問題，對嗎？傳統的加工方式有點停滯不前，因為有更好的方法可以做到這一點，而且我們計劃與我們的合作夥伴一起做到這一點。

Okay. Thank you, Min. That helps a lot. One little hole for me, I didn't quite understand. $861 million total processing, $517 million in the US, and $171 million in Europe, but there just seems to be a gap between those two figures and the $861 million. What am I missing?

好的。謝謝你，敏。這很有幫助。對我來說是一個小洞，我不太明白。總處理量為 8.61 億美元，其中美國為 5.17 億美元，歐洲為 1.71 億美元，但這兩個數字與 8.61 億美元之間似乎存在差距。我缺什麼？

Yeah. So Kevin, is actually the reverse. It's $500-plus million out of the European market, and $171 million for the North American acquiring business, $42 million for ChargeSavvy, and about $30 million for American Samoa. Yeah. They are probably a couple of other pieces, but those are the major pieces in the equation as I went over in my session. Okay.

是的。所以凱文，實際上是相反的。歐洲市場的成本超過 5 億美元，北美收單業務的成本為 1.71 億美元，ChargeSavvy 的成本為 4,200 萬美元，美屬薩摩亞的成本約為 3,000 萬美元。是的。它們可能是其他幾個部分，但這些是我在會議中討論的等式中的主要部分。好的。

Got it. Thanks, Min. I'll leave the floor back to you, Ben. Thank you.

知道了。謝謝，敏。本，我將把發言權留給你。謝謝。

Thanks, Kevin. Sarah, go ahead.

謝謝，凱文。莎拉，繼續吧。

Showing no further questions, I'd like to turn the conference back over to Ben Errez for any closing remarks.

由於沒有再提出任何問題，我想將會議轉回 Ben Errez 進行閉幕致詞。

Okay. Thank you all for submitting questions and your interest in RYVYL. So, Sarah, back to you, and you can close the session.

好的。感謝大家提交問題以及對 RYVYL 的興趣。那麼，莎拉，回到您身邊，您可以結束會議了。

Thank you. This concludes today's conference call. You may now disconnect.

謝謝。今天的電話會議到此結束。您現在可以斷開連線。