Q3 2024 RYVYL Inc Earnings Call
Good afternoon, everyone and welcome to rival Inc. Third quarter 'twenty 'twenty four conference call. At this time all participants are in a listen only mode. A question and answer session will follow management's remarks.
Second quarter end results press release accompanying this conference call was issued at the close of the market today and our quarterly report on Form 10-Q, which includes the company's results of operations ended September 30th 2024 was filed with the SEC Today, a replay of this call is.
At the Investor Relations section of the rival website in the events quarterly results session. As a reminder, this call is being recorded before we begin I would like to remind you that today's call contains certain forward looking statements from our management 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 and contain projections of future results of operations or financial condition or other forward looking information.
Their nature forward looking statements address matters that are subject to risks and uncertainty a variety of factors could cause actual events and results to differ materially from those expressed <unk> contemplated by the forward looking statements other risk factors affecting the company are discussed in <unk>.
The tail in the company's filings with the U S. D. C. 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 law.
Speaker Change: I will now hand, the call over to Ben Erez Chairman have Ryan.
Please go ahead. Thank you operator, we delivered sequential revenue growth in the third quarter of 2024, driven by consistently strong international performance in conjunction with the recent business development successes. We believe we've reached a turning point, we expect rivals topline growth trajectory will continue to gain momentum exiting 2020.
Speaker Change: Before going into 2025, 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 the U S. Operation in October. These two European partners started activating business on these new platforms, marking a pivot.
Speaker Change: <unk> achievement that sets the stage for continued expansion in the region in Q3, our North American licensing partner launch, which will build momentum and extend our pipeline of opportunities International transaction volumes continued their strong growth trajectory rising from $781 million in Q2, 'twenty 'twenty four to an impressive.
Speaker Change: $952 million in Q3 2020 for this remarkable growth reflects the rapidly increasing demand for pesach licensee banking as a service and comprehensive support for money, we're making across global markets with powerful API integrations seamless foreign exchange and real time electronic fund transfers.
Speaker Change: We're delivering compliance and operational efficiency empowering our clients to excel in global finance. Additionally, we expanded our visa direct integration to new countries, bringing our footprint to 13 of the targeted 80 countries through this initiative, we're tapping into visa direct so extensive network capabilities to fuel revenue.
Speaker Change: Growth.
Speaker Change: And showcase our value to visa by leveraging visa's payment, enabling network, while providing the infrastructure for efficient secure electronic payments empowering banks merchants and consumers to transact seamlessly across visa's global platform in the EU, we've experienced strong growth over recent quarters and developed a robust pipe.
Speaker Change: To drive further expansion in the U S. Our business grew more than 10% sequentially in the third quarter. This is a marked improvement and we continue to diversify our business and gain traction into other verticals I am pleased to report a private label partnership announced in August went live this week and we expect to see initial licensing revenue.
Speaker Change: Starting in December 'twenty, two before this licensing arrangement enables us to reenter our high risk vertical to a third party partner via private label approach under our payment processing.
This model it highlights the power of a fully branded rollout of our E wallet N. P. O S merchant management system and website support in this model, we handle deployment maintenance and system integration partner is responsible for banking and operations of consumer transactions, ensuring merchant connectivity.
And compliance this approach allows us to receive per transaction fees reduce our operational costs enhance our margins and minimize compliance risks I'll now turn it over to our CEO for the mission for further insights into our competitive position operations and business development activities for the floor is yours.
Ben Erez: Thank you Ben in recent months.
Ben Erez: Have achieved significant progress in winning new business and.
And expanding our pipeline both in the U S and internationally, 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.
Ben Erez: You have condition to capture an expansion opportunity as we continue expanding our reach I'd like to take a moment to highlight our competitive edge value proposition and the strategic focus behind our growth.
Ben Erez: First our approach targeting we focus on high margin market segments, specifically mentioned and we have clients who are underserved by traditional processors or have lost access to the ecosystem altogether.
Ben Erez: By offering a robust banking and payment solutions, we're able to target a 40% gross margin.
Speaker Change: Thats clear.
Speaker Change: <unk> end to end processing and banking solutions for clients that management processes to avoid and that smaller competitors cannot support at sufficient scale.
Speaker Change: With transparency speed and specialized processing capabilities for vertical that others cannot reach along with customized turnkey solutions powered by advanced technology node.
Speaker Change: No I've been acquiring solution leverages, the blockchain ledger and might be doing reducing overhead and errors, making it highly efficient and scalable for example, heightened measure we're now processing at speeds of over 3000 transactions per second regulatory compliance and rapid onboarding. According to us.
Business model.
Speaker Change: We excel in both areas, creating a significant competitive advantage and high potential market.
Speaker Change: And in this space and strong.
Well positioned to meet these clients' unique needs.
Speaker Change: Securing our leadership in this growing market 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.
Speaker Change: This collaboration allows us to onboard new vertical in North America, you will begin with an initial enrollment for 1000 merchants across the U S and have significant potential for future expansion project.
Speaker Change: Product and service initiatives are generating enthusiastic responses and making a strong impact across key markets.
We use the recent accomplishments in Q3 2024, we successfully launched <unk> offering a seamless alternatives to traditional cash on time payments and providing enhanced security and flexibility for use of.
Speaker Change: This innovative.
Speaker Change: Complete with a new website and mobile capability enables merchants to process a gift cards Magee.
Speaker Change: Targeting high demand factors in a car that is positioned to capture higher margin opportunities for us and our partners are paid back as a service model has also rapidly expanded mentioned network in Europe. We recently on boarded two large paying back a couple one is already actively processing.
Speaker Change: Yeah.
Speaker Change: To go live shortly.
Speaker Change: Third major accounts in the final stages of closing together European accounts are expected to contribute $50 million to $70 million in monthly processing volume significantly strengthening our presence in this critical America.
Speaker Change: Our banking as a service offering supported by robust API and global integration and.
Speaker Change: And maybe even banks to extend their reach more effectively missed.
Speaker Change: This dilution has gained strong traction in Q3 2020, calling on Onboarding, new clients across Europe, underscoring the availability and demand for this service are central to our infrastructure wireless fabric.
Speaker Change: Transaction highlights, providing a cost effective platform that simplifies block chain integration with a multi layered security instruction.
Compatible with both.
Speaker Change: Quota and hyphen mentioned frameworks rival family consent to empower all of our product lines.
Only prepared to support new partnerships and reflecting our commitment to secure scalable blockchain solution. Additionally, you started onboarding on men's core further supporting our clients procure streamline payment solutions that are customized to meet their specific needs.
Speaker Change: Elements underscore our strategic focus on high margin high demand sectors positioning us to deliver industry, leading solutions that resonate across multiple markets.
Speaker Change: This momentum we are laying a strong foundation for sustained growth and further establishing our leadership in the global payments and banking solutions Arena 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.
Speaker Change: And a shift toward credit cards mobile wallets and real time payment systems is accelerating consumer adoption of new technology, which aligns perfectly with our core strength and long standing investments in proprietary payments and banking technology, while real time platform such as the fed no service offering faster transit.
Speaker Change: Actions may face bedroom adoption, given the enduring popularity of credit card. Meanwhile, increased regulatory scrutiny and antitrust action are beginning to reshape competition in operation across dominant networks.
Speaker Change: <unk> brought her payment processing and banking landscape.
Speaker Change: <unk> and AI and blockchain and driving improvements in cross infection transaction security and Siemens banking integration and Fintech startups are adding competitive pressure with their innovative cost effective solutions.
Speaker Change: These trends are transforming the payment processing and banking landscape.
Speaker Change: Meaning an environment that favors agile innovative nice driver looking ahead to 2025, we are excited by the momentum we're building.
Speaker Change: With recent deals closed and strong visibility into our pipeline, we are well positioned to further diversify our customer base and revenue streams.
Speaker Change: This trajectory and strengthened our business relationships and amplify our reach through pilot and white labeled licensing setting the stage for continued growth and influence in the payments and banking industry.
Speaker Change: I'll now hand, the call to George Oliver Our CFO, who will review the financial results and provide an update for our 2024 financial guidance. Thank you Freddie I'll review, our third quarter 2024 financial performance processing volumes across all channels reached a total of.
George Oliver: $1.123 billion, 6% higher than the second quarter of 2024, and 31% higher than the third quarter of 2023 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 'twenty 'twenty four third party software implementation slowed growth in the EU from our original expectations. However, those issues were resolved in October and also we believe the double digit gains in processing in north.
George Oliver: America point to the return of growth in the U S business revenue in the third quarter of 2024 was $12.6 million compared to $17 $5 million in the third quarter of 2023 International revenue increased 96% to nine $8 million for.
George Oliver: The third quarter of 2024 compared to the third quarter of 2023 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.
George Oliver: <unk> and processing volumes in the international segment gross margin in the third quarter 'twenty 'twenty four was 38, 5% versus 38, 2% in the third quarter of 2023 operating expenses in the third quarter of 'twenty 'twenty four were seven $3 million compared to nine.
George Oliver: One $1 million in operating expenses in the third quarter of 2023, reflecting lower G&A expenses professional fees and R&D expenses.
George Oliver: Other expense totaled $2 $1 million in the third quarter of 2024 compared to $600000 in the third quarter of 2023, increasing primarily due to changes in debt discount accretion and then fair value of the derivative liability adjusted EBITDA in the third quarter of.
George Oliver: 'twenty 'twenty four was a negative $1.7 million compared to $50000 in the third quarter of 2023 during the third quarter 2024, we repatriated $3.8 million from Europe to support U S capital resources at the corporate level as of September 30.
George Oliver: 2024, cash and restricted cash balance was 91 $5 million unrestricted cash was $4.3 million and net working capital was negative most significantly this week, we announced the memorandum of understanding to restructure our balance sheet, which will strengthen.
Our financial Foundation and increase our financial flexibility for funding growth under the terms of the Mou $16 $5 million is to be paid for termination of our 8% senior convertible notes and redemption of our series B convertible preferred stock as of October 31.
George Oliver: 'twenty 'twenty four the outstanding note principal was $19 million and the liquidation value of the preferred stock was $53 $5 million 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.
George Oliver: First tranche on or before November 22020 for the remaining principal balance of $3 $7 million of the notes is to be paid on or before January 31, 2025, turning to guidance, we reiterate that we anticipate processing volumes to grow year over.
George Oliver: A year or two over $4 billion in 2024, However, as discussed several factors impacted revenue in the third quarter and the start of the fourth quarter. Thus we are adjusting our revenue guidance for the balance of the year now we expect 'twenty 'twenty four total revenue to be in the range of 56 to 60.
George Oliver: Millions of dollars 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 we.
Expect to resume substantial revenue growth in 2025 compared to 2024.
Ben Erez: Now I'll hand, the call back to Ben for some final remarks before Q&A. Thank you George and conclusion rival is poised to resume strong growth in 2025, 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.
Ben Erez: Double digit sequential growth in revenue 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 before we open the call to analyst. There are several questions. We received in advance of the call that we will address.
The first question is to George.
Speaker Change: Can you comment further on the key growth drivers and processing volumes and how we should model this going forward.
Speaker Change: Yes, we're looking at approximately 1.3 billion of processing in Q4, 85% of that will be in Europe.
Speaker Change: The residual rate in Europe, it's about 1% in the U S. A is closer to 2%. So blended average of just over 1.1% is how I would model the the volume to revenue.
Okay.
Speaker Change: Second question is sports ready.
Speaker Change: Can you elaborate on the third party or a partner software issues.
Affected results in the third quarter you discussed this in your remarks. However, can you offer some more color on how the affected operations are running now.
Speaker Change: Thank you very much Ben.
Speaker Change:
The most of the challenges we had was in Europe.
Speaker Change: Company like ACI.
Speaker Change: These had a lot of different delays.
Speaker Change: Going live and implementation.
Speaker Change: On our side, we didn't have delay.
Speaker Change: But now these oh.
Speaker Change: Finalized there.
Speaker Change: Sophistication of visa direct.
Speaker Change: I received all their certification.
Speaker Change: At the end of last month from first data.
Speaker Change: We can be.
Speaker Change: On and we started moving our merchants.
Speaker Change: Into ACI and every new customer.
Speaker Change: Again automotive directly through it then you get to it so now we see them much faster onboarding faster deployment.
Certain of our merchant.
That's in regards to visa and ACI.
Speaker Change: In regards to banking as a service.
Speaker Change: We had some delay with new banking relationship.
Speaker Change: Due to compliance we overcome those as well.
And we got some new banking that allow us to operate in different countries.
Speaker Change: Actually in the Latin American.
Speaker Change: Side of that.
Speaker Change: But we are now back on track and are we seeing the results already in November.
Speaker Change: In November.
Thanks.
Speaker Change: Thanks, Patty Berg to George with the next question.
You indicated you expect substantial growth in 2025.
Speaker Change: But not the bite specifics or range. When do you expect to provide more specific to any 25 guidance and why are you not providing it at this time.
Speaker Change: Well, we we are starting the planning process for 2025, we're not it's not completed yet there's some a lot of moving parts.
Speaker Change: We will have that completed by January but.
Speaker Change: I think most companies don't have their plans are.
Speaker Change: At this point.
Speaker Change: Yeah.
Speaker Change: Thanks, George back to Fred you and the next one.
Speaker Change: How many licensing deals are you targeting to close between now and year end 2025.
Speaker Change: What verticals do you consider most promising.
Speaker Change: Thank you Brenda for Great question, as we mentioned already.
Speaker Change: The license the first license deal went live.
Speaker Change: Very excited about that.
Speaker Change: We have a few more.
Speaker Change: In our pipeline and we cannot disclose at the moment, but we're working really hard to bring more.
Such.
Speaker Change: Business in the vertical.
Speaker Change: Some of them are in the hiring some of them in the lower rates, but what we like.
Speaker Change: About the license deal is that we don't have the burden of compliance of.
Speaker Change: The vertical itself, we're just providing the software the infrastructure to.
Speaker Change: Move money and we make money on every transaction they go through the ecosystem.
Speaker Change: And most of that money is pure profit. So we're really excited about the opportunity of other license deals that are we working hard thank you Beth.
Speaker Change: Okay.
Speaker Change: Thanks, Buddy we're staying with you for the next question.
Speaker Change: What areas do you consider to be the most attractive markets with growth both domestically and internationally.
Ben Erez: Thank you Ben.
Ben Erez: What we see based on you know sedan.
Ben Erez: I will call it what we track as a company we see a huge book in the crypto currency.
Ben Erez: It become.
Ben Erez: Very large demand for our converged MCR to crypto.
Ben Erez: Thinking forward the consumers are something really big.
Ben Erez: And we see a lot of money, we had maintenance in the Latin America.
Getting a lot of traction as well.
Ben Erez: When it comes to the credit card processing.
Ben Erez:
Ben Erez: We see a huge shift a good shift.
Ben Erez: A lot of companies getting out of certain vertical that we are servicing today and we are seeing a huge demand from our partners and it's really.
Ben Erez: It's come with.
Ben Erez: A lot of different application and we're building a very large pipeline.
Ben Erez: Go to the next year. Thank you.
Speaker Change: Thanks Brady. The next one is again staying with Brady and the Andaz one of my favorite subject in the business.
Have their data science elements used to monitor the health of your business changed.
Speaker Change: Are there some specific improvement you made and continue to play in.
Speaker Change: Management systems that you can share with us.
Dan: Thank you Dan.
Speaker Change: Yeah, that's a great question and as I know you really like that.
Speaker Change: We have a great team in house.
Speaker Change: Specialty.
Speaker Change: And back in the data.
Speaker Change: We have a great tools and dashboards that we monitor daily.
Speaker Change: Access to all of the data point of the company will time from a volume transaction with compliance.
Speaker Change: We are monitoring all of the aspects of the business.
Speaker Change: And we can adjust.
Speaker Change: Based on data that we receive weekend.
Speaker Change: Jack number into the future understanding what the business is going to look like in every quarter every year.
Speaker Change: And we're getting better and better at that.
Speaker Change:
Speaker Change: It took us a little bit longer, but now we have full visibility to all data points of the company.
Speaker Change: Thank you Beth.
Brady: Thanks Brady.
Brady: At this time.
Brady: Operator, we are ready to take questions from the floor should there be any we do have a few follow up sessions.
Brady: Italy.
Brady: But should there be any questions from before we think about.
Speaker Change: Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Speaker Change: You May press star two if he would like to remove your question from a cute.
Speaker Change: Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please while we poll for questions.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Our first question comes from Michael Donovan with H C. Wainwright. Please proceed with your question.
Speaker Change: Okay.
Speaker Change: Hey, George Congrats on the quarter.
Oh My God.
Speaker Change: Ed.
Speaker Change: To provide more details on the potential licensing partnerships in North America and their expected impact on revenue also how do you foresee regulatory changes and the U S under the incoming administration.
Speaker Change: Yeah.
George Oliver: Okay, I will deliver the mic to George.
George Oliver: So the the main licensing agreement that we are looking at is the.
George Oliver: As the exclusive processing of the vertical that we vacated in Q1 are at its peak, we were doing a million transactions a month.
George Oliver: And we're optimistic that over time that we could approximate that and again that would be largely a profit. So we we will might have slightly lower revenue per transaction, but we.
George Oliver: We won't have any costs associated with that I think it's going to take time, but I would expect that over the next year, we should we should see some significant volumes from that.
George Oliver: The other licensing deals are probably more more modest it's a kind of a mini ecosystem that somebody wants to bring in house and.
George Oliver: And.
George Oliver: It's their own payments within their customer base, but well we'll be releasing.
Do a press release on the next license is it seeing deal as soon as we close it.
George Oliver: Hey, good thank you George and then I'm.
George Oliver: Just the second part of that question about the incoming administration.
George Oliver: How do you how do you foresee any regulatory changes there.
Speaker Change: Well, we were happy about.
About the potential changes coming to the industry in general and the technology.
Speaker Change: That they pertain to our business.
Speaker Change: Hello.
Speaker Change: We.
Speaker Change: Don't have any details as of yet.
Speaker Change: But we are familiar with the individuals involved in the.
We look forward to their ideas and and guidance for this industry moving forward.
Speaker Change: Fair enough appreciate that.
Speaker Change: They know what's your M&A opportunities do you see for 2025.
Speaker Change: I don't know that we're prepared to answer that question at this time.
Speaker Change: We have not looked at the M a M&A opportunities.
Speaker Change: Domestically or internationally.
Speaker Change: For 2025.
Speaker Change: And even if we had one.
Speaker Change: One day, we would not be able to discuss it before disclosing to the market.
Speaker Change: At this time so.
Speaker Change: I'm going to escape that question.
Speaker Change: That makes sense.
Speaker Change: Can you provide an update on cleaning.
Speaker Change: Yeah.
Speaker Change: So so when he decided not to spin out Connie.
We have adopted the corny technology throughout the company in the Us and Europe, and we've rebranded it internally and so.
Speaker Change: It's we're taking the advantage of the technology, but it's not something that we're going to really talk to individually specifically.
Speaker Change: Okay.
Speaker Change: We're going to have to stay there as well how is the U S.
Speaker Change: Regulation.
Speaker Change: Lay out with them.
Speaker Change: You know.
Speaker Change: The White house and.
Speaker Change: I understand what he's out next step, but at the moment in the U S is a little bit difficult Europe. They still work your R&D infrastructure.
Speaker Change: But the technology is.
Speaker Change: Dear life, and we're gonna be.
Speaker Change: Well, what's going to happen next year.
Speaker Change: Thank you and final question hop back in the queue.
Speaker Change: What what differentiates the latest Nan acquired platform upgrade.
Speaker Change: And and the Nims core in terms of market demand and competitive positioning.
Speaker Change: That's a great question. Thank you.
Speaker Change: No.
Speaker Change: <unk> is a closed loop.
Speaker Change: That we are focusing that technology into more highways.
Speaker Change: With a gift card.
Speaker Change: Processing become more aggregate.
Speaker Change: We get that payment Nims core.
Speaker Change: <unk> has two sides to it NIM score the acquiring side and the payments would be called core banking.
Speaker Change: Nims call offer a payment Y N C H, a real time payment and the acquiring side, though for you know licenses up at pretty full pay Farc are far I suppose that agents Oh for streamlined onboarding, a new technology that can.
Speaker Change: Help us.
Speaker Change: On both faster and all.
Speaker Change: Our main goal with them scores to offer those.
Speaker Change: Services and technology to our icos, so they can onboard faster.
On their side, but.
No problem.
Speaker Change: Focus on or more high risk in a closed loop environment.
Speaker Change: Okay. Appreciate it thank you gentlemen, and congrats again on the quarter.
Speaker Change: Thank you very much.
Speaker Change: Our next question comes from Howard Halpern with <unk> Brothers. Please proceed with your question.
Congratulations on the quarter.
Speaker Change: Thanks Howard.
In terms of new.
Speaker Change: New customer acquisitions, and using a I used those using that technology.
Speaker Change: Get new customers.
Speaker Change: How should we view that going into 2025, you know in case you know.
Speaker Change: New customer acquisitions throughout the different verticals.
Speaker Change: That's a great question.
Speaker Change: We don't disclose the amount of device. So we have.
Speaker Change:
Speaker Change: But we are gaining more and more momentum with those partnerships, especially in Europe due to some changes over there.
Speaker Change: For example, one of the biggest changes it would pay.
Speaker Change: Belonged to I'm sorry, yes.
Speaker Change: Dow shutting down in Europe, and communicated I suppose and partners that are no longer going to support so we see a huge.
Speaker Change: Men there in the U S.
Speaker Change: And the names we appointed.
Speaker Change: Christian Murray.
Speaker Change: Managing director.
Speaker Change: He is a veteran in the industry.
Speaker Change: And he's goal is too.
Speaker Change: Bringing as many I suppose I must be close to supervise those into names and what we see is actually one of the new product that we put together is the ability for a local icos and partners to submit and.
Speaker Change: Actress to Europe, and that's something very very unique they don't exist really the U S and we leveraging our related license in Europe.
Speaker Change: Plus we're trying to bridge between the U S and Europe to be able to open up for all those that side of the wall because we see a huge demand for that Christian Moore, managing that and really work had side by side with the managing director in Europe to really.
Speaker Change: Bring these are program.
Speaker Change: Into 2025, and we're already seeing huge demand for that so we're very excited about it that's one side and the other side of the IDE studies, what I just mentioned in my answer when it comes to your NIM score, we working very hard to bring onboard a new verticals for example insurance companies that wanted to be.
Speaker Change: <unk> their own almost processors, they're wanting to offer services to their own called Saba agent like a franchise type for example, I just don't have the money the time the extra D.
Speaker Change: <unk> build manage and we are going to also have technology as a white label for them to manage their own kind of business under <unk> umbrella.
Speaker Change: Okay, Okay, as Oh that sounds really good.
Speaker Change: And I'll go back and maybe try to enhance a little bit on the data science question is there a place or are you finding a place for.
Speaker Change: Like generative AI technologies in terms of the customer base and maybe internally developing new our new technologies are getting technologies to market faster.
Speaker Change: Oh, absolutely actually.
Speaker Change: That's my kind of our goal for 2025.
Speaker Change: And our business one of the areas that.
Speaker Change: Take the longest ease development Ah.
Speaker Change: When he is from from idea.
Speaker Change: Q2 deployment.
Speaker Change: And AI today.
Speaker Change: Offer amazing opportunities to streamline and accelerate especially in the front end design UI design.
Speaker Change: And go to market and actually come up with a concept that can be in the market not even six months, maybe a couple of months. So we absolutely researching that and looking into how to streamline and how to use those tools.
Speaker Change: Compliance me.
Speaker Change: But our team is on top of it and on the other hand is the operation side.
Speaker Change: We're using AI for example for earning calls.
Speaker Change: We're using AI.
Speaker Change: Management dashboard D. We're using AI and AR carefully underwriting we using etch for transaction monitoring.
But we see a huge impact we're talking 25 will be actually in the development side.
Speaker Change: Just.
Speaker Change: To accelerate and reduce their costs and go to market faster because.
Speaker Change: As we mentioned as well as 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.
Speaker Change: Oh, Thanks, and keep up the great work guys. Thank you.
Yeah.
Speaker Change: There are no further questions at this time I would now like to turn the floor back over to <unk> for closing comments.
Thank you operator.
Speaker Change: Okay.
Speaker Change: Do I think everybody on this call for their time and attention.
Speaker Change: We appreciate the each and every shareholder.
Speaker Change: The company.
Speaker Change: Anticipate further comments, we're much with the that pertain to the restructure of our notes.
Speaker Change: Coming next week.
Speaker Change: And we will see you otherwise them. The next day, earning call. Thank you all for coming.
Speaker Change: Yeah.
Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
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