RTB Digital Inc

Ryvyl said first-quarter gross revenue rose $7.1 million, or 169%, to $11.3 million from $4.2 million a year ago. Gross profit was $5.1 million, or 45.3% of revenue, versus $1.4 million, or about 34%, in the prior-year quarter. Operating expenses were $8.8 million, up from $8.5 million, and other expense fell to $4.3 million from $22.3 million. Net loss improved to $8 million, or $0.15 per basic and diluted share, versus a net loss of $29.3 million, or $0.72 per share, last year. Cash, cash equivalents and restricted cash were $57.1 million at quarter-end. For Q2, management guided to processing volume of $580 million to $610 million and revenue of $12.5 million to $14 million; full-year revenue remains targeted at $60 million, with adjusted pro forma EBITDA expected to be positive $4 million.

Ben Errez emphasized that the quarter showed both record top-line performance and strategic progress, despite macro uncertainty, banking-sector disruption and increased regulation risk in digital payments. He said the company has been focused on improving bottom line performance, processing efficiency, workforce and technology, and noted that removing non-income-producing volume helped improve operating margins and corporate efficiencies. He also framed coyni as a key value-creation initiative, saying the spin-off, public offering plans and eventual special dividend are central to unlocking shareholder value. His tone was confident and forward-looking, with repeated emphasis on long-term opportunity in digital payments and global expansion.

Mary Hoitt focused on the financial bridge from growth to profitability. She said gross revenue rose to $11.3 million, gross profit reached $5.1 million, operating expenses were $8.8 million, other expense declined to $4.3 million, and the net loss improved to $8 million, helped by lower interest expense and changes in derivative liability versus the prior year. She also highlighted that Q1 adjusted pro forma EBITDA was negative $3 million, including more than $2 million of one-off restatement-related expenses, while the company ended with $57.1 million of cash, cash equivalents and restricted cash. Management kept the 2023 target at $60 million in revenue and positive $4 million adjusted EBITDA, with Q2 expected around breakeven on adjusted pro forma EBITDA.

Analysts focused on margin expansion, payment volume growth, getting paid on the processing pipeline, and the regulatory and competitive backdrop for stablecoins. Management said higher volumes should continue to improve contribution margins because the platform business can scale revenue faster than people and certain fixed costs. On stablecoins, Ben Errez said the regulatory path in the U.S. remains uncertain, and the company is preparing for the possibility that progress comes first in other markets, especially Europe. On coyni timing, he said the launch vehicle has been acquired, asset transfer is next, and the overall process is expected to take approximately 6 months.