SAN DIEGO - RYVYL Inc. (NASDAQ: RVYL), a prominent provider of blockchain-based payment solutions, has outlined significant financial growth and strategic developments. The company preannounced that its fourth quarter 2023 revenue is expected to be around $21 million, contributing to a total annual revenue exceeding $64 million, marking a substantial 94% increase from the previous year.
During the same quarter, RYVYL successfully reduced its debt by $60.3 million, decreasing total indebtedness to $19.7 million as of December 31, 2023. This financial strengthening was aided by the sale of its Chicago office building, which generated $2.7 million in gross proceeds. The company also reported having $61.6 million in cash, cash equivalents, and restricted cash, with $11.7 million available as unrestricted cash.
Looking forward, management has provided revenue guidance for 2024, projecting revenues to be in the range of $95 million to $100 million, representing an increase of over 67% compared to the expected revenue for 2023.
In a strategic move to bolster future revenue growth, RYVYL decided to retain its wholly owned subsidiary, coyni, Inc. The technology platform coyni® will be utilized to broaden the company's payment processing and banking-as-a-service solutions, rather than pursuing a merger and spin-off into a separate publicly traded entity.
RYVYL's Chairman Ben Errez commented on the company's performance and outlook, stating that the processing volume reached $3 billion in 2023, up by 58% from 2022. He attributed this growth to operational advancements and the establishment of a foundation for scaling the company's processing volume, transaction numbers, partnerships, and Banking-as-a-Service platform. Errez expressed confidence that keeping coyni within the RYVYL umbrella will lead to significant revenue growth and enhance long-term shareholder value.
The company intends to report its full fourth quarter and year-end 2023 financial results on March 26, 2024, after the market closes. A conference call to discuss these results is scheduled for 4:30 p.m. ET on the same day.
This article is based on a press release statement from RYVYL Inc.
InvestingPro Insights
In light of RYVYL Inc.'s recent announcement of expected revenue growth and strategic developments, a glance at the real-time data from InvestingPro provides additional context for investors. RYVYL's market capitalization stands at a modest $19.81 million, reflecting the size of the company within its market segment. Despite the challenges, analysts are optimistic about sales growth in the current year, which aligns with the company's own revenue guidance for 2024.
InvestingPro Tips suggest that RYVYL's stock has been subject to considerable price volatility, with a significant hit over the last week and a decline of 55.54% over the past year. This volatility is a critical factor for investors who weigh the potential for growth against the risks of such fluctuations. Notably, the company's revenue has seen an impressive growth of 89.12% over the last twelve months as of Q3 2023, which may signal underlying business strength despite the stock's performance.
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