Ryvyl Inc (RVYL) 2024 Q3 法說會逐字稿

Good afternoon, everyone, and welcome to RYVYL Inc.'s third-quarter 2024 conference call.

大家下午好，歡迎參加RYVYL Inc. 2024 年第三季電話會議。

(Operator Instructions)

（操作員指令）

The second quarter end results press release accompanying this conference call was issued at the close of the market today.

本次電話會議附帶的第二季最終業績新聞稿於今日收盤時發布。

Our quarterly report on Form 10-Q, which includes the company's results of operations ended September 30, 2024, was filed with the SEC today.

我們今天向美國證券交易委員會提交了 10-Q 表季度報告，其中包括公司截至 2024 年 9 月 30 日的經營業績。

A replay of this call is available at the Investor Relations section of the RYVYL website in the Events Quarterly Results section.

本次電話會議的重播可在 RYVYL 網站的「活動季度業績」部分的「投資者關係」部分中找到。

As a reminder, this call is being recorded.

提醒一下，本次通話正在錄音。

Before we begin, I would like to remind you that today's call contains certain forward-looking statements from our management concerning future events.

在我們開始之前，我想提醒您，今天的電話會議包含我們管理層對未來事件的一些前瞻性陳述。

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 and contain projections of future results of operations or financial condition or state other forward-looking information.

這些前瞻性陳述是基於公司目前對未來事件的信念、假設和期望，而這些信念、假設和期望又基於公司目前可用的信息，並包含對未來經營業績或財務狀況的預測或其他前瞻性資訊。

By their nature, forward-looking statements address matters that are subject to risks and uncertainties.

從本質上來說，前瞻性陳述處理的是受風險和不確定因素影響的問題。

A variety of factors could cause actual events and results to differ materially from those expressed and/or contemplated by the forward-looking statements.

多種因素可能導致實際事件和結果與前瞻性陳述表達和/或設想的結果有重大差異。

Other risk factors affecting the company are discussed in detail in the company's filings with the SEC.

影響公司的其他風險因素在公司向美國證券交易委員會提交的文件中詳細討論。

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.

除適用法律要求的範圍外，本公司不承擔公開更新或修改任何前瞻性聲明的義務，無論是否出現新資訊、未來事件或其他原因。

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

現在我將把電話交給 RYVYL 主席 Ben Errez。

Please go ahead.

請繼續。

Thank you, operator.

謝謝您，接線生。

We delivered sequential revenue growth in the third quarter of 2024, driven by consistently strong international performance.

在持續強勁的國際業績的推動下，我們在 2024 年第三季實現了連續的營收成長。

In conjunction with recent business development successes, we believe we reached a turning point.

結合最近業務發展的成功，我們相信我們已經到達了一個轉折點。

We expect RYVYL's top line growth trajectory will continue to gain momentum exiting 2024 and into 2025.

我們預計，RYVYL 的營收成長軌跡將在 2024 年至 2025 年繼續保持強勁勢頭。

Our third-quarter 2024 international revenue grew 96% year over year, even with two European software integrations postponed to Q4 2024 and offsetting some challenges in US operation.

儘管兩項歐洲軟體整合推遲至 2024 年第四季並抵消了美國營運中的一些挑戰，但我們 2024 年第三季的國際營收年增了 96%。

In October, these two European partners started activating business on these new platforms, marking a pivotal achievement that sets the stage for continued expansion in the region.

10月份，這兩家歐洲合作夥伴開始在這些新平台上開展業務，這項關鍵成就為雙方在該地區繼續擴張奠定了基礎。

In Q3, our North American licensing partner nears launch, which will build momentum and expand our pipeline of opportunities.

在第三季度，我們的北美授權合作夥伴即將推出產品，這將增強我們的發展勢頭並擴大我們的機會管道。

International transaction volumes continued a strong growth trajectory, rising from $781 million in Q2 2024 to an impressive $952 million in Q3 2024.

國際交易量持續保持強勁成長軌跡，從 2024 年第二季的 7.81 億美元成長至 2024 年第三季的驚人 9.52 億美元。

This remarkable growth reflects the rapidly increasing demand for our PayFac licensing, Banking as a Service, and comprehensive support for money remittance across global markets.

這一顯著的成長反映了對我們的 PayFac 授權、銀行即服務以及全球市場匯款全面支援的需求迅速成長。

With powerful API integrations, seamless foreign exchange and real-time electronic fund transfers, we're delivering compliance and operational efficiency, empowering our clients to excel in global finance.

憑藉強大的 API 整合、無縫外匯和即時電子資金轉賬，我們實現合規性和營運效率，幫助我們的客戶在全球金融領域中脫穎而出。

Additionally, we expanded our Visa Direct integration to new countries, bringing our footprint to 13 of the targeted 80 countries.

此外，我們將 Visa Direct 整合擴展到新的國家，使我們的足跡遍及目標 80 個國家中的 13 個國家。

Through this initiative, we're tapping into Visa Direct's extensive network capabilities to fuel revenue growth and showcase our value to Visa.

透過這項舉措，我們利用 Visa Direct 廣泛的網路能力來促進收入成長並向 Visa 展示我們的價值。

By leveraging Visa's payment enabler network, we're providing the infrastructure for efficient, secure electronic payments, empowering banks, merchants and consumers to transact seamlessly across Visa's global platform.

透過利用 Visa 的支付支援網絡，我們提供高效、安全的電子支付基礎設施，使銀行、商家和消費者能夠在 Visa 的全球平台上無縫進行交易。

In the EU, we've experienced strong growth over recent quarters and developed a robust pipeline to drive further expansion.

在歐盟，我們最近幾季經歷了強勁成長，並開發了強大的管道來推動進一步擴張。

In the US, our business grew more than 10% sequentially in the third quarter.

在美國，我們的業務第三季較上季成長超過 10%。

This is a marked improvement, and we continue to diversify our business and gain traction into other verticals.

這是一個顯著的進步，我們將繼續實現業務多元化，並向其他垂直領域進軍。

I am pleased to report our private label partnership announced in August went live this week, and we expect to see initial licensing revenue starting in December 2024.

我很高興地報告，我們在 8 月宣布的自有品牌合作夥伴關係已於本週生效，我們預計將於 2024 年 12 月開始獲得初始授權收入。

This licensing arrangement enables us to reenter a high-risk vertical through a third-party partner via a private label approach under our payment processing as-a-service model.

透過這種授權安排，我們能夠在支付處理即服務模式下，透過自有品牌方式，透過第三方合作夥伴重新進入高風險垂直產業。

It highlights the power of a fully branded rollout of our e-wallet and POS merchant management system and website support.

它凸顯了我們的電子錢包和 POS 商家管理系統和網站支援的全面品牌化的強大功能。

In this model, we handle deployment, maintenance and system integration.

在這種模型中，我們處理部署、維護和系統整合。

Our partner is responsible for banking and operations of consumer transactions, ensuring merchant connectivity and compliance.

我們的合作夥伴負責銀行業務和消費者交易的運營，確保商家的連接性和合規性。

This approach allows us to receive per transaction fees, reduce our operational costs, enhance our margins, and minimize compliance risks.

這種方法使我們能夠收取每筆交易的費用，降低營運成本，提高利潤率，並最大限度地降低合規風險。

I'll now turn it over to our CEO, Fredi Nisan, for further insights into our competitive position, operations and business development activities.

現在，我將把主題交給我們的執行長 Fredi Nisan，以進一步了解我們的競爭地位、營運和業務發展活動。

Fredi, the floor is yours.

佛萊迪，現在請你發言。

Thank you, Ben.

謝謝你，本。

In recent months, we have achieved significant progress in winning new business deals and expanding our pipeline, both in the US and internationally.

最近幾個月，我們在美國和國際上贏得新業務交易和擴大管道方面取得了重大進展。

Our focus remains firmly on onboarding new clients across multiple jurisdictions, laying the groundwork for what we anticipate will be a strong growth year in 2025.

我們始終專注於吸引來自多個司法管轄區的新客戶，為我們預期的 2025 年強勁成長奠定基礎。

We are positioned to capture substantial opportunities as we continue expanding our reach.

隨著我們業務範圍的不斷擴大，我們有能力抓住巨大的機會。

I'd like to take a moment to highlight our competitive edge value proposition and the strategic focus behind our growth.

我想花點時間來強調我們的競爭優勢價值主張和我們成長背後的策略重點。

First, our approach is targeted.

首先，我們的做法是有針對性的。

We focus on high-margin market segments, specifically merchants and retail clients who are underserved by traditional processors or have lost access to the ecosystem altogether.

我們專注於高利潤的細分市場，特別是傳統處理器服務不足或完全失去生態系統存取權的商家和零售客戶。

By offering robust banking and payment solutions, we're able to target 40% gross margins.

透過提供強大的銀行和支付解決方案，我們能夠實現 40% 的毛利率。

Our value is clear.

我們的價值是明確的。

We provide end-to-end processing and banking solutions for clients that larger processors prefer to avoid and that smaller competitors cannot support at sufficient scale.

我們為客戶提供端到端的處理和銀行解決方案，而大型處理商不願提供此類解決方案，而小型競爭對手又無法提供足夠的規模支援。

We deliver transparency, speed and specialized processing capabilities for verticals that others cannot reach, along with customized turnkey solutions powered by advanced technologies.

我們為其他公司無法觸及的垂直行業提供透明度、速度和專業處理能力，以及由先進技術支援的客製化交鑰匙解決方案。

No other acquiring solution leverages the blockchain ledger like we do, reducing overhead and errors, making it highly efficient and scalable.

沒有其他收單解決方案能像我們一樣利用區塊鏈分類賬，減少開銷和錯誤，從而實現高度高效和可擴展。

For example, through Hyperledger, we're now processing at speeds of over 3,000 transactions per second.

例如，透過 Hyperledger，我們現在的處理速度超過每秒 3,000 筆交易。

Regulatory compliance and rapid onboarding are core to our business model.

法規合規和快速入職是我們商業模式的核心。

We excel in both areas, creating a significant competitive advantage in this high potential market.

我們在這兩個領域都表現出色，在這個潛力無窮的市場中創造了顯著的競爭優勢。

Demand in this space is strong.

該領域的需求強勁。

We're well positioned to meet these clients' unique needs further securing our leadership in this growing market.

我們有能力滿足這些客戶的獨特需求，從而進一步鞏固我們在這個不斷成長的市場中的領導地位。

To maximize the impact of our resources and technology, we recently entered into a strategic partnership with a firm specializing in payment tech and digital processing.

為了最大限度地發揮我們的資源和技術的影響力，我們最近與一家專門從事支付技術和數位處理的公司建立了策略合作夥伴關係。

This collaboration allows us to onboard new verticals in North America.

此次合作使我們能夠在北美拓展新的垂直市場。

We will begin with an initial rollout for 1,000 merchants across the US and have significant potential for future expansion.

我們將首先向美國 1,000 家商家推出這項服務，未來將具有巨大的擴展潛力。

Our product and service initiatives are generating enthusiastic responses and making a strong impact across key markets.

我們的產品和服務措施正在各主要市場引起熱烈反響並產生強烈影響。

I'll review some recent accomplishments.

我將回顧一些最近的成就。

In Q3 2024, we successfully launched NanoKard, offering a seamless alternative to traditional cash or card payments and providing enhanced security and flexibility for users.

2024 年第三季度，我們成功推出了 NanoKard，為傳統現金或卡片支付提供了無縫替代方案，並為用戶提供了增強的安全性和靈活性。

This innovative app, complete with the new website and mobile capabilities enables merchants to process prepaid gift cards with ease.

這款創新的應用程式配備了新的網站和行動功能，使商家能夠輕鬆處理預付禮品卡。

By targeting high-demand sectors, NanoKard is positioned to capture high-margin processing opportunities for us and our partners.

透過瞄準高需求產業，NanoKard 能夠為我們和我們的合作夥伴抓住高利潤的加工機會。

Our PayFac as a Service model has also rapidly expanded our merchant network in Europe.

我們的 PayFac 即服務模式也迅速擴展了我們在歐洲的商家網路。

We recently onboarded 2 large PayFac accounts.

我們最近新增了 2 個大型 PayFac 帳戶。

One is already actively processing.

其中一個已在積極處理中。

The other is set to go live shortly.

另一個也將很快上線。

A third major account is in the final stages of closing.

第三個主要帳戶目前正處於關閉的最後階段。

Together, these European accounts are expected to contribute $50 million to $70 million in monthly processing volumes, significantly strengthening our presence in this critical market.

預計這些歐洲帳戶每月的處理量將達到 5,000 萬至 7,000 萬美元，大大增強我們在這個關鍵市場的地位。

With our Banking as a Service offering supported by robust API and global integration, we are enabling banks to extend their reach more effectively.

憑藉我們由強大的 API 和全球整合支援的銀行即服務，我們能夠幫助銀行更有效地擴展其業務範圍。

This solution has gained strong traction.

該解決方案已獲得廣泛認可。

In Q3 2024 alone, we onboarded 6 new clients across Europe, underscoring the scalability and demand for this service.

光是 2024 年第三季度，我們就在歐洲引進了 6 位新客戶，凸顯了這項服務的可擴展性和需求。

Central to our infrastructure, RYVYL Fabric acts as our transaction highway, providing a cost-effective platform that simplifies blockchain integration with a multilayered security structure.

RYVYL Fabric 是我們基礎設施的核心，充當我們的交易高速公路，提供一個經濟高效的平台，透過多層安全結構簡化區塊鏈整合。

Compatible with both R3 Corda and Hyperledger frameworks, RYVYL Fabric is set to power all of our product lines.

RYVYL Fabric 相容於 R3 Corda 和 Hyperledger 框架，將為我們所有的產品線提供支援。

We are fully prepared to support new partnerships, reflecting our commitment to secure, scalable blockchain solution.

我們已做好充分準備來支持新的合作夥伴關係，這體現了我們對安全、可擴展的區塊鏈解決方案的承諾。

Additionally, we started onboarding on NEMS Core, further supporting our clients with secure streamlined payment solutions that are customized to meet their specific needs.

此外，我們開始加入 NEMS Core，進一步為客戶提供安全、簡化的支付解決方案，這些解決方案可根據他們的特定需求進行客製化。

These developments underscore our strategic focus on high-margin, high-demand sectors, positioning us to deliver industry-leading solutions that resonate across multiple markets.

這些發展凸顯了我們對高利潤、高需求領域的策略重點，使我們能夠提供在多個市場引起共鳴的產業領先解決方案。

With this momentum, we are laying a strong foundation for sustained growth and further establishing our leadership in the global payments and banking solutions arena.

憑藉這一勢頭，我們為持續成長奠定了堅實的基礎，並進一步確立了我們在全球支付和銀行解決方案領域的領導地位。

I'll take a moment to add some context about why we are so excited about our current position in the industry and our growth opportunities.

我將花一點時間來補充說明為什麼我們對目前在行業中的地位和成長機會感到如此興奮。

The shift towards credit cards, mobile wallets and real-time payment systems is accelerating consumers' adoption of new technologies, which aligns perfectly with our core strengths and long-standing investment in proprietary payment and banking technology.

向信用卡、行動錢包和即時支付系統的轉變正在加速消費者對新技術的採用，這與我們的核心優勢和對專有支付和銀行技術的長期投資完全契合。

While real-time platforms such as the FedNow Service offer faster transactions, they face gradual adoption given the enduring popularity of credit cards.

儘管 FedNow Service 等即時平台提供了更快的交易速度，但鑑於信用卡的持續流行，它們面臨著逐漸被接受的局面。

Meanwhile, increased regulatory scrutiny and antitrust actions are beginning to reshape competition and operations across dominant networks, impacting the broader payment processing and banking landscape.

同時，加強監管審查和反壟斷行動開始重塑主導網路的競爭和運營，影響更廣泛的支付處理和銀行業格局。

Advancements in AI and blockchain are driving improvements in fraud detection, transaction security and seamless banking integration and fintech start-ups are adding competitive pressure with their innovative cost-effective solutions.

人工智慧和區塊鏈的進步正在推動詐欺檢測、交易安全和無縫銀行整合的改進，金融科技新創公司則透過其創新且具有成本效益的解決方案增加了競爭壓力。

These trends are transforming the payment processing and banking landscape, creating an environment that favors agile innovators like RYVYL.

這些趨勢正在改變支付處理和銀行業務格局，創造有利於像 RYVYL 這樣的敏捷創新者的環境。

Looking ahead to 2025, we're excited by the momentum we're building.

展望 2025 年，我們對正在形成的勢頭感到興奮。

With recent deals closed and strong visibility into our pipeline, we are well positioned to further diversify our customer base and revenue streams.

隨著最近達成的交易和對我們管道的強大洞察力，我們有能力進一步實現客戶群和收入來源的多樣化。

This trajectory strengthens our business relationships and amplifies our reach through private and white-label licensing, setting the stage for continued growth and influence in the payments and banking industry.

這一軌跡加強了我們的業務關係，並透過私人和白標許可擴大了我們的影響力，為支付和銀行業的持續成長和影響力奠定了基礎。

With that, I'll now hand the call to George Oliva, our CFO, who will review the financial results and provide an update for our 2024 financial guidance.

說完這些，我現在將電話交給我們的財務長喬治·奧利瓦 (George Oliva)，他將審查財務結果並提供 2024 年財務指引的最新資訊。

Thank you, Freddy.

謝謝你，弗雷迪。

I'll review our third quarter 2024 financial performance.

我將回顧我們 2024 年第三季的財務表現。

Processing volumes across all channels reached a total of $1.123 billion, 6% higher than the second quarter of 2024 and 31% higher than the third quarter of 2023.

所有通路的處理量總計達到 11.23 億美元，比 2024 年第二季高 6%，比 2023 年第三季高 31%。

International processing volumes were $952 million, up 6% from the second quarter of 2024, and North America processing volumes were $171 million, up 12% from the second quarter 2024.

國際處理量為 9.52 億美元，比 2024 年第二季成長 6%，北美處理量為 1.71 億美元，比 2024 年第二季成長 12%。

Third-party software implementation slowed growth in the EU from our original expectations.

第三方軟體實施在歐盟的成長速度低於我們最初的預期。

However, those issues were resolved in October.

但這些問題已於十月解決。

And also, we believe the double-digit gains in processing in North America point to the return of growth in the US business.

此外，我們認為北美加工業務的兩位數成長顯示美國業務恢復成長。

Revenue in the third quarter of 2024 was $12.6 million compared to $17.5 million in the third quarter of 2023.

2024 年第三季的營收為 1,260 萬美元，而 2023 年第三季的營收為 1,750 萬美元。

International revenue increased 96% to $9.8 million for the third quarter of 2024 compared to the third quarter of 2023.

2024 年第三季的國際營收與 2023 年第三季相比成長 96%，達到 980 萬美元。

Cost of revenue decreased $3.1 million to $7.7 million for the third quarter of 2024 compared to the third quarter of 2023 due to lower processing in North America, partially offset by an increase in processing volumes in the International segment.

2024 年第三季的收入成本與 2023 年第三季相比減少了 310 萬美元至 770 萬美元，原因是北美加工量下降，但國際部門加工量增加部分抵消了這一影響。

Gross margin in the third quarter 2024 was 38.5% versus 38.2% in the third quarter of 2023.

2024 年第三季的毛利率為 38.5%，而 2023 年第三季的毛利率為 38.2%。

Operating expenses in the third quarter of 2024 were $7.3 million compared to $9.1 million in operating expenses in the third quarter of 2023, reflecting lower G&A expenses, professional fees and R&D expenses.

2024 年第三季的營運費用為 730 萬美元，而 2023 年第三季的營運費用為 910 萬美元，反映了 G&A 費用、專業費用和研發費用的降低。

Other expense totaled $2.1 million in the third quarter of 2024 compared to $600,000 in the third quarter of 2023, increasing primarily due to changes in debt discount accretion and in fair value of the derivative liability.

2024 年第三季的其他費用總計 210 萬美元，而 2023 年第三季為 60 萬美元，增加的主要原因是債務折扣累積和衍生負債公允價值的變動。

Adjusted EBITDA in the third quarter of 2024 was a negative $1.7 million compared to $50,000 in the third quarter of 2023.

2024 年第三季的調整後 EBITDA 為負 170 萬美元，而 2023 年第三季為 5 萬美元。

During the third quarter 2024, we repatriated $3.8 million from Europe to support US capital resources.

2024 年第三季度，我們從歐洲匯回 380 萬美元以支持美國資本資源。

At the corporate level, as of September 30, 2024, cash and restricted cash balance was $91.5 million.

在公司層面，截至 2024 年 9 月 30 日，現金和受限現金餘額為 9,150 萬美元。

Unrestricted cash was $4.3 million and net working capital was negative.

無限制現金為 430 萬美元，淨營運資本為負。

Most significantly, this week, we announced a memorandum of understanding to restructure our balance sheet, which will strengthen our financial foundation and increase our financial flexibility for funding growth.

最重要的是，本週我們宣布了一份諒解備忘錄，旨在重組我們的資產負債表，這將加強我們的財務基礎，提高我們為資金成長提供的財務靈活性。

Under the terms of the MOU, $16.5 million is to be paid for termination of our 8% senior convertible note and redemption of our Series B convertible preferred stock.

根據諒解備忘錄的條款，我們需支付 1,650 萬美元以終止 8% 的高級可轉換票據並贖回 B 系列可轉換優先股。

As of October 31, 2024, the outstanding note principal was $19 million and the liquidation value of the preferred stock was $53.5 million.

截至 2024 年 10 月 31 日，未償還票據本金為 1,900 萬美元，優先股清算價值為 5,350 萬美元。

For the full redemption of the preferred stock and redemption of a portion of the outstanding balance of the note, $12.8 million is to be paid in a first tranche on or before November 22, 2024.

為了全部贖回優先股並贖回部分未償還票據餘額，第一批款項 1,280 萬美元將於 2024 年 11 月 22 日或之前支付。

The remaining principal balance of $3.7 million of the note is to be paid on or before January 31, 2025.

該票據剩餘的 370 萬美元本金將於 2025 年 1 月 31 日或之前支付。

Turning to guidance.

轉向指導。

We reiterate that we anticipate processing volumes to grow year-over-year to over $4 billion in 2024.

我們重申，預計到 2024 年處理量將逐年成長至 40 億美元以上。

However, as discussed, several factors impacted revenue in the third quarter and the start of the fourth quarter.

然而，正如討論的那樣，有幾個因素影響了第三季和第四季初的收入。

Thus, we are adjusting our revenue guidance for the balance of the year.

因此，我們正在調整今年餘額的收入預期。

Now we expect 2024 total revenue to be in the range of $56 million to $60 million.

現在我們預計 2024 年的總收入將在 5,600 萬美元至 6,000 萬美元之間。

Based on recent contracts and ongoing business development activities, we do expect to gain momentum throughout Q4 to be very strong with accelerating momentum into 2025 with our International segment comprising the largest portion of revenue in 2024 and 2025.

根據最近的合約和正在進行的業務發展活動，我們確實預計第四季度的成長勢頭將非常強勁，並在 2025 年加速發展，其中我們的國際部門將在 2024 年和 2025 年佔據收入的最大份額。

We expect to resume substantial revenue growth in 2025 compared to 2024.

我們預計 2025 年的營收將較 2024 年恢復大幅成長。

I'll now hand the call back to Ben for some final remarks before Q&A.

現在我將把電話交還給本，讓他在問答環節之前做一些最後的評論。

Thank you, George.

謝謝你，喬治。

In conclusion, RYVYL is poised to resume strong growth in 2025.

總之，RYVYL 有望在 2025 年恢復強勁成長。

Europe has established strong growth trends and proven execution, and our North America segment appears to have bottomed from the downturn experienced earlier this year as it reported double-digit sequential growth in revenue.

歐洲已經建立了強勁的成長趨勢和經過驗證的執行力，而我們的北美分部似乎已從今年稍早的低迷中觸底，報告稱其收入實現了兩位數的連續成長。

With recently closed transactions and our growing new business pipeline, we are excited about our plan for 2025 and look forward to updating you on our progress in the coming months.

隨著最近完成的交易和不斷增長的新業務管道，我們對 2025 年的計劃感到興奮，並期待在未來幾個月向您通報我們的進展。

Before we open the call to analysts, there are several questions we received in advance of the call that we will address.

在我們向分析師開放電話會議之前，我們在電話會議之前收到了幾個問題，我們將予以解答。

The first question is to George.

第一個問題是問喬治的。

Can you comment further on the key growth drivers in processing volumes and how we should model this going forward?

您能否進一步評論一下處理量的主要成長動力以及我們未來應如何建模？

Yes.

是的。

We're looking at approximately $1.3 billion of processing in Q4, 85% of that will be in Europe.

我們預計第四季的處理金額約為 13 億美元，其中 85% 將在歐洲。

The residual rate in Europe is about 1% and the US is closer to 2%.

歐洲的殘值率約為1%，美國的殘值率接近2%。

So a blended average of just over 1.1% is how I would model the volume to revenue.

因此，我將採用略高於 1.1% 的混合平均值來模擬銷售與收入。

Second question is for Fredi.

第二個問題是問 Fredi 的。

Can you elaborate on the third-party or partner software issues that affected results in the third quarter?

能否詳細說明影響第三季業績的第三方或合作夥伴軟體問題？

You discussed this in your remarks.

您在評論中討論了這一點。

However, can you offer some more color on how the affected operations are running now?

不過，能否詳細介紹一下受影響的操作目前的運作情況？

Thank you very much, Ben.

非常感謝，本。

Most of the challenges we had was in Europe.

我們面臨的大多數挑戰都在歐洲。

Company like ACI, Visa had a lot of different delays in going live and implementation.

ACI、Visa 等公司在上線和實施過程中遇到了許多不同的延遲。

On our side, we didn't have delay.

在我們這邊，我們沒有遇到延誤。

But now Visa finalized their certification of Visa Direct.

但現在 Visa 已完成 Visa Direct 的認證。

ACI received all their certification in the end of last month from First Data, and we turned this on and we start moving our merchants into ACI and every new customer get onboarded directly through the new gateway.

ACI 上個月底從 First Data 獲得了所有認證，我們啟用了這項認證並開始將我們的商家轉移到 ACI，每個新客戶都直接透過新的網關加入。

So now we see a much faster onboarding, faster deployment and implementation of our merchants.

所以現在我們看到商家的入職、部署和實施速度都更快了。

That's in regards to Visa and ACI.

這是關於 Visa 和 ACI 的。

In regards to Banking as a Service, we had some delay with new banking relationship due to compliance.

就銀行即服務而言，由於合規性問題，我們與新的銀行關係有些延遲。

We overcome those as well, and we got some new banking that allow us to operate in different countries, especially in the Latin American side of that.

我們也克服了這些問題，並獲得了一些新的銀行業務，使我們能夠在不同的國家開展業務，特別是在拉丁美洲。

But we are now back on track, and we see the results already in November.

但現在我們已經重回正軌，並且我們已經在11月看到了成果。

Thank you.

謝謝。

Thanks, Fredi.

謝謝，弗雷迪。

Back to George with the next question.

回到喬治，問下一個問題。

You indicated you expect substantial growth in 2025, but not provide specifics or range.

您表示預計 2025 年將大幅成長，但沒有提供具體細節或範圍。

When do you expect to provide more specific 2025 guidance?

您預計何時提供更具體的 2025 年指引？

And why are you not providing it at this time?

那您為什麼現在不提供呢？

Well, we are starting the planning process for 2025.

好吧，我們正在開始 2025 年的規劃過程。

It's not completed yet.

它還沒有完成。

There's a lot of moving parts, and we will have that completed by January.

有很多活動部件，我們將在一月份之前完成。

But I think most companies don't have their plans yet at this point.

但我認為大多數公司目前還沒有製定計劃。

Thanks, George.

謝謝，喬治。

Back to Fredi on the next one.

下期再回來說 Fredi。

How many licensing deals are you targeting to close between now and year-end 2025?

從現在到 2025 年底，您計劃完成多少項授權交易？

What verticals do you consider most promising?

您認為哪些垂直產業最有前景？

Thank you, Ben.

謝謝你，本。

That's a great question.

這是一個很好的問題。

As we mentioned already, the license -- the first license deal went live.

正如我們已經提到的，許可證——第一個許可協議已經生效。

We're very excited about that.

我們對此感到非常興奮。

We have a few more in our pipeline.

我們還有一些其他產品正在籌備中。

We cannot disclose at the moment, but we're working really hard to bring more of such business.

我們目前無法透露，但我們正在努力帶來更多這樣的業務。

And the verticals, some of them are in the high risk, some of them in the lower risk.

對於垂直產業來說，有些風險較高，有些風險較低。

But what we like about the license deal is that we don't have the burden of compliance of the vertical itself.

但我們喜歡這份授權協議的原因是，我們不需要承擔垂直產業本身的合規負擔。

We're just providing the software, the infrastructure to move money and we make money on every transaction that go through the ecosystem.

我們只是提供軟體和資金轉移的基礎設施，並透過生態系統中的每筆交易賺錢。

And most of that money is pure profit.

其中大部分錢都是純利潤。

So we're really excited about the opportunity of other license deals that we're working on.

因此，我們對正在進行的其他許可交易的機會感到非常興奮。

Thank you, Ben.

謝謝你，本。

Thanks Fredi, we are staying with you on the next question.

謝謝 Fredi，我們將繼續討論下一個問題。

What areas do you consider to be the most attractive market for growth, both domestically and internationally?

您認為哪些領域是國內和國際最具吸引力的成長市場？

Thank you, Ben.

謝謝你，本。

What we see based on certain, we'll call it, what we track as a company, we see a huge growth in the cryptocurrency.

基於某些我們稱之為的觀察，我們作為一家公司所追蹤的，我們看到加密貨幣的巨大成長。

It become very large.

它變得非常大。

The demand for conversion CAT to crypto, banking for consumers are something really big.

對於消費者銀行業務而言，將 CAT 轉換為加密貨幣的需求確實很大。

And we see a lot of money remittance in the Latin America getting a lot of traction as well.

我們也看到拉丁美洲的匯款業務也得到了很大的發展。

When it comes to the credit card processing, we see a huge shift, a good shift, a lot of companies getting out of certain verticals that we are servicing today, and we are seeing a huge demand from our partners and it's come with a lot of different applications, and we're building a very large pipeline towards the next year.

在信用卡處理方面，我們看到了一個巨大的轉變，一個很好的轉變，許多公司擺脫了我們今天服務的某些垂直市場，我們看到了來自合作夥伴的巨大需求，它伴隨著許多不同的應用程序，我們正在為明年建立一個非常大的渠道。

Thank you.

謝謝。

Thanks, Fredi.

謝謝，弗雷迪。

The next one is, again, staying with Fredi and handles one of my favorite subjects in the business.

下一個是再次與弗雷迪一起處理我最喜歡的業務主題之一。

Have the data science elements used to monitor the health of your business changed?

用於監控業務健康狀況的數據科學元素是否發生了變化？

Are there some specific improvements you made and continue to plan in your management systems that you can share with us?

您在管理系統中是否做了一些具體的改進並計劃繼續進行改進，可以與我們分享嗎？

Thank you, Ben.

謝謝你，本。

Yes, that's a great question.

是的，這是一個很好的問題。

And as I know, you really like data.

據我所知，你非常喜歡數據。

We have a great team in-house that specialize in unpacking the data.

我們擁有優秀的內部團隊，專門負責解析資料。

We have great tools and dashboards that we monitor daily.

我們擁有出色的工具和儀表板，可供日常監控。

We have access to all of the data points of the company in real time from volume, transaction, risk, compliance.

我們可以即時取得公司的所有數據點，包括交易量、交易、風險、合規性。

We're monitoring all of the aspects of the business, and we can adjust as needed based on data that we receive.

我們正在監控業務的各個方面，並可以根據收到的數據進行必要的調整。

We can project number into the future, understanding what the business is going to look like in every quarter, every year, and we're getting better and better at that.

我們可以預測未來的數字，了解每季、每年的業務狀況，而且我們在這方面做得越來越好。

It took us a little bit longer, but now we have full visibility into all data points of the company.

雖然我們花了一點時間，但現在我們已經可以全面了解公司的所有數據點。

Thank you, Ben.

謝謝你，本。

Thanks, Fredi.

謝謝，弗雷迪。

At this time, Operator, we are ready to take questions from the floor.

接線員，現在我們可以回答現場觀眾的提問了。

Should there be any.

應該有嗎？

We do have a few follow-up sessions with analysts.

我們確實與分析師進行了幾次後續會議。

But should there be any questions from the floor, we'll take them now.

但如果現場有任何問題，我們現在就回答。

(Operator Instructions) Michael Donovan, H.C. Wainwright.

(操作員指示) Michael Donovan，H.C.溫賴特。

Ben, Fredi, George, congrats on the quarter.

本、佛萊迪、喬治，恭喜本季取得佳績。

Could you provide more details on the potential of licensing partnerships in North America and their expected impact on revenue?

您能否提供有關北美授權合作夥伴關係的潛力及其對收入的預期影響的更多詳細資訊？

Also, how do you foresee regulatory changes in the US under the incoming administration?

此外，您如何預見新政府領導下美國將會發生哪些監管變化？

Okay.

好的。

I'll deliver the mic to George.

我會把麥克風交給喬治。

So the main licensing agreement that we are looking at is the exclusive processing of the vertical that we vacated in Q1.

因此，我們正在考慮的主要授權協議是對我們在第一季放棄的垂直領域的獨家處理。

At its peak, we were doing 1 million transactions a month.

在巔峰時期，我們每個月的交易量達到 100 萬筆。

And we're optimistic that over time, that we could approximate that.

我們樂觀地認為，隨著時間的推移，我們可以接近這個目標。

And again, that would be largely a profit.

再說一遍，這基本上是一筆利潤。

So we might have slightly lower revenue per transaction, but we won't have any costs associated with that.

因此，我們每筆交易的收入可能會略低，但不會產生任何相關成本。

I think it's going to take time, but I would expect that over the next year, we should see some significant volumes from that.

我認為這需要時間，但我預計明年我們就能看到顯著的成長。

The other licensing deals are probably more modest.

其他許可協議可能更為溫和。

It's kind of a mini ecosystem that somebody wants to bring in-house and process their own payments within their customer base.

這是一種微型生態系統，有人想將其帶入公司內部，並在其客戶群內處理自己的付款。

But we'll be releasing -- we'll do a press release on the next licensing deal as soon as we close it.

但我們將會發布—我們將在下一個許可協議完成後立即發布有關該協議的新聞稿。

Very good.

非常好。

And then just the second part of that question about the incoming administration; how do you foresee any regulatory changes there?

接下來是有關新政府的問題的第二部分；您如何預見那裡的監管變化？

Well, we're happy about the potential changes coming to the industry in general and the technology that pertains to our business, in particular.

嗯，我們對整個行業以及與我們的業務相關的技術即將發生的潛在變化感到高興。

We don't have any details as of yet.

目前我們還沒有任何詳細資料。

But we are familiar with the individuals involved, and we look forward to their ideas and guidance for this industry moving forward.

但我們熟悉參與其中的個人，我們期待他們為這個行業的未來發展提供想法和指導。

Fair enough.

很公平。

I appreciate that.

我很感激。

What sort of M&A opportunities do you see for 2025?

您認為 2025 年有什麼樣的併購機會？

I don't know that we're prepared to answer that question at this time.

我不知道我們現在是否準備好回答這個問題。

We have not looked at the M&A opportunities domestically or internationally for 2025.

我們還沒有研究2025年的國內或國際併購機會。

And even if we had one on deck, we would not be able to discuss it before disclosing it to the market at this time.

即使我們有一個計劃，我們也無法在向市場披露之前對其進行討論。

So I'm going to skip that question.

所以我將跳過這個問題。

That makes sense.

這很有道理。

Can you provide an update on coyni?

您能提供有關 coyni 的最新消息嗎？

So we decided not to spin out coyni.

因此我們決定不再分拆 coyni。

We have adopted the coyni technology throughout the company in US and Europe, and we've rebranded it internally.

我們在美國和歐洲的公司範圍內採用了 coyni 技術，並且在內部對其進行了重新品牌化。

And so we're taking the advantage of the technology, but it's not something that we're going to really talk to individually specifically.

因此，我們正在利用這項技術，但這並不是我們真正要具體單獨討論的事情。

We're going to have to see as well how the US regulation will play out with the new White House and understand what is our next step.

我們還必須觀察美國法規在新白宮將如何發揮作用，並了解我們的下一步。

But at the moment in the US is a little bit difficult.

但目前在美國有點困難。

Europe is still working on the infrastructure, but the technology it's here live, and we're going to see what's going to happen next year.

歐洲仍在致力於基礎建設，但其技術已投入使用，我們將拭​​目以待明年將會發生什麼。

And final question before I hop back in the queue.

在我重新回到隊列之前，還有最後一個問題。

What differentiates the latest NanoKard platform upgrade and the NEMS Core in terms of market demand and competitive positioning?

就市場需求和競爭定位而言，最新的 NanoKard 平台升級和 NEMS Core 有何不同？

That's a great question.

這是一個很好的問題。

Thank you.

謝謝。

NanoKard is a closed loop that we are focusing that technology into more high risk with a gift card processing.

NanoKard 是一個閉環，我們將該技術重點放在禮品卡處理方面的更高風險領域。

It's a more aggregate -- we aggregate the payment.

它是一種更聚合的方式——我們將付款聚合起來。

NEMS Core have 2 sides to it.

NEMS 核心有兩個面向。

NEMS Core, the acquiring side and the payment, what we call core banking.

NEMS Core，收單方和支付方，我們稱之為核心銀行業務。

NEMS Core offer payment, wire, ACH, real-time payment and the acquiring side offer licenses opportunity for PayFac for ISOs and agents.

NEMS Core 提供付款、電匯、ACH、即時支付，收單方為 ISO 和代理商提供 PayFac 授權機會。

We offer streamlined onboarding and new technology that can help us onboard faster.

我們提供簡化的入職流程和新技術，以幫助我們更快入職。

And our main goal with NEMS Core is to offer those services and technology to our ISOs so they can onboard faster on their side.

我們對 NEMS Core 的主要目標是向我們的 ISO 提供這些服務和技術，以便他們可以更快地加入。

But NanoKard is focused on a more high risk in a closed-loop environment.

但 NanoKard 專注於閉環環境中更高的風險。

Howard Halpern, Taglich Brothers.

霍華德‧哈爾彭 (Howard Halpern)，塔格利奇兄弟。

Congratulations on the quarter.

恭喜本季取得佳績。

In terms of new customer acquisitions and using ISOs and using the technology to get new customers, how should we view that going into 2025 in new customer acquisitions throughout the different verticals?

在新客戶獲取、使用 ISO 和使用技術獲取新客戶方面，我們應該如何看待 2025 年不同垂直領域的新客戶獲取？

That's a great question.

這是一個很好的問題。

We don't disclose the amount of ISO we have but we're gaining more and more momentum with those partnerships, especially in Europe, due to some changes over there.

我們不會透露我們擁有的 ISO 數量，但我們正透過這些合作夥伴關係獲得越來越大的動力，尤其是在歐洲，因為那裡發生了一些變化。

For example, one of the biggest changes is Worldpay that belong to FIS.

例如，最大的變化之一是屬於FIS的Worldpay。

They are shutting down in Europe and communicate with ISOs and partners that they are no longer going to support.

他們正在歐洲關閉業務，並與 ISO 和合作夥伴溝通，表示他們將不再提供支援。

So we see a huge demand there.

因此我們看到那裡有巨大的需求。

In the US under NEMS, we appointed Christian Murray as the Managing Director.

在美國，根據 NEMS，我們任命 Christian Murray 為董事總經理。

He's a veteran in the industry.

他是這個行業的資深人士。

And his goal is to bring as many ISOs and what we call super ISOs into NEMS.

他的目標是將盡可能多的 ISO 以及我們所謂的超級 ISO 納入 NEMS。

And what we see is actually one of the new products that we put together is the ability for local ISOs and partners to submit and get access to Europe.

我們所看到的實際上是我們整合的新產品之一，它使本地 ISO 和合作夥伴能夠提交並獲得進入歐洲的權利。

And that's something very, very unique that don't exist really in the US today.

這是非常非常獨特的事情，在當今的美國實際上並不存在。

And we're leveraging our license in Europe, we created the bridge between the US and Europe to be able to open up for our ISOs that side of the world, and we see a huge demand for that.

我們正在利用我們在歐洲的許可證，在美國和歐洲之間架起橋樑，以便能夠為世界各地的 ISO 開放，我們看到了巨大的需求。

And Christian Murray managing that and really work side-by-side with the managing director in Europe to really bring this program into 2025.

克里斯蒂安·莫瑞 (Christian Murray) 負責管理該項目，並與歐洲總經理並肩工作，真正將該項目帶入 2025 年。

And we already see huge demand for that.

我們已經看到了對此的巨大需求。

So we're very excited about it.

所以我們對此感到非常興奮。

That's one side.

這是一方面。

And the other side of the ISO is what I just mentioned in my answer when it comes to NEMS Core.

ISO 的另一面就是我剛剛在答案中提到的 NEMS Core。

We're working very hard on onboarding new verticals.

我們正在努力引入新的垂直行業。

For example, insurance companies that want to be their own almost processors; they want to offer services to their own, call it, subagent, like a franchise type, for example.

例如，希望成為自己的幾乎處理器的保險公司；他們希望為自己提供服務，稱之為分代理，例如特許經營類型。

They don't have the money, the time, the expertise to build, manage, and we're going to offer our technology as a white label for them to manage their own kind of business under NEMS umbrella.

他們沒有資金、時間和專業知識來建造和管理，而我們將以白標形式提供我們的技術，讓他們在 NEMS 保護傘下管理自己的業務。

That sounds really good.

聽起來確實不錯。

And I'll go back and maybe try to enhance a little bit on the data science question.

我會回過頭來嘗試稍微加強一下數據科學問題。

Is there a place or are you finding a place for like generative AI technologies in terms of the customer base and maybe internally developing new technologies or getting technologies to market faster?

就客戶群而言，您是否正在尋找生成式人工智慧技術的應用領域，也許在內部開發新技術或更快地將技術推向市場？

Absolutely.

絕對地。

Actually, that's my kind of goal for 2025.

實際上，這是我 2025 年的目標。

In our business, one of the areas that take the longest is development when it's from idea to deployment.

在我們的業務中，耗時最長的領域之一是從構思到部署的開發過程。

And AI today offer amazing opportunities to streamline and accelerate, especially in the front-end design, UI design and go to market and actually come up with a concept that can be in the market not in six months, maybe in a couple of months.

如今，人工智慧提供了令人驚嘆的簡化和加速機會，特別是在前端設計、UI 設計和上市方面，實際上提出一個可以在六個月甚至幾個月內推向市場的概念。

So we're absolutely researching that and looking into how to streamline and how to use those tools compliantly but our team is on top of it.

因此，我們正在對此進行研究，並研究如何簡化和如何合規地使用這些工具，但我們的團隊正在掌握它。

And on the other hand, is the operations side.

另一方面是營運方面。

We're using AI, for example, for our earnings calls.

例如，我們在收益電話會議中使用人工智慧。

We're using AI in our management, the dashboarding.

我們在管理、儀表板中使用人工智慧。

We're using AI in KYC and underwriting.

我們在 KYC 和承保中使用人工智慧。

We're using it for transaction monitoring.

我們用它來進行交易監控。

But we see a huge impact for 2025 will be actually in the development side to accelerate and reduce the cost and go to market faster because as we mentioned as well, the market keeps shifting and you need to be innovator and you have to have your product out to the market as soon as possible.

但我們看到 2025 年的巨大影響實際上將在開發方面加速並降低成本並更快地進入市場，因為正如我們所提到的，市場不斷變化，你需要成為創新者，你必須盡快將你的產品推向市場。

There are no further questions at this time.

目前沒有其他問題。

I would now like to turn the floor back over to Ben Errez for closing comments.

現在我想把發言權交還給 Ben Errez，請他發表最後評論。

Thank you, operator.

謝謝您，接線生。

I would like to thank everybody on this call for their time and attention.

我要感謝參加這次電話會議的每個人的時間和關注。

We appreciate each and every shareholder for the company.

我們感謝公司的每一位股東。

And anticipate further comments from us that pertain to the restructure of our note coming next week.

預計我們將在下週就我們的註釋重組發表進一步的評論。

And we will see you otherwise in the next earnings call.

我們將在下次收益電話會議上與您會面。

Thank you all for coming.

感謝大家到來。

This concludes today's teleconference.

今天的電話會議到此結束。

You may disconnect your lines at this time.

現在您可以斷開您的線路。

Thank you for your participation.

感謝您的參與。