Core Insights - Nayax Ltd. and N-and Group have formed a long-term strategic partnership to integrate Nayax's payment technology into N-and's products, starting with smart screens for automated self-service commerce machines [1][3] - The partnership aims to enhance the user experience by providing seamless and secure embedded payment solutions, benefiting OEMs with cost-optimized hardware and access to over 80 payment methods globally [2][4] Company Overview - Nayax is a global commerce enablement platform that offers payment acceptance, management tools, and loyalty solutions, focusing on helping merchants scale their businesses [5] - N-and Group specializes in advanced Human-Machine Interface (HMI) technologies, providing innovative solutions for various industries, including IoT software platforms and digital payment solutions [6][7] Market Impact - The deployment of thousands of N-PAY™ and N-TOUCH™ smart screens with Nayax payments is expected across multiple verticals, including hospitality, fitness, and transportation [3][4] - The partnership is positioned to streamline access to embedded payment technology for operators, enhancing operational efficiency and unlocking new revenue opportunities [4][6]

Core Insights - Nayax Ltd. has launched its State-of-Charge feature for its EV Kiosk, enhancing the convenience of electric vehicle charging by allowing drivers to access charging information via QR codes without the need for apps or personal details [1][2][4] Group 1: Product Features - The EV Kiosk enables secure, quick payments directly at the kiosk, addressing drivers' concerns about managing multiple charging apps and protecting sensitive payment data [2] - After payment, drivers can scan a QR code to view detailed charging information, including energy usage, charging speed, session duration, total cost, and kWh charged, along with receiving a digital e-receipt [2] - The digital e-receipts are customizable, allowing merchants to enhance brand visibility and customer relationships through promotions and advertisements [3] Group 2: Company Vision and Events - Nayax aims to simplify the EV charging experience by separating secure physical payments from mobile session management, making the process faster and safer for both drivers and charging operators [4] - Nayax will showcase its EV Kiosk and features at the EV Charging Summit & Expo in Las Vegas from March 25-27, 2025, with various speaker sessions planned [4][6] Group 3: Company Overview - Nayax is a global commerce enablement platform that provides payment solutions, management tools, and loyalty programs to help merchants scale their businesses [8][9] - As of December 31, 2024, Nayax operates 11 global offices, employs approximately 1,100 people, and has connections to over 80 merchant acquirers [9]

Core Viewpoint - Nayax Ltd. has successfully completed a Notes and Warrants Offering in Israel, raising approximately $137.1 million, which was oversubscribed by 93.3% [2][3]. Group 1: Offering Details - The offering consisted of 486,291 Units, each comprising NIS 1,000 principal amount of Notes and three Warrants, sold at a price of NIS 1,021 per Unit [2]. - The net proceeds from the Offering are expected to be approximately NIS 486.2 million (around $134.3 million) after deducting commissions, fees, and expenses [3]. Group 2: Terms of the Notes - The Notes have a fixed annual interest rate of 5.9% and will mature on September 30, 2030, with principal repayments starting in September 2027 [4]. - The first two installments will be 10% of the principal amount each (approximately NIS 48.6 million or $13.4 million), while the last two installments will be 40% each (approximately NIS 194.5 million or $53.8 million) [4]. Group 3: Terms of the Warrants - Each Warrant can be exercised into one Ordinary Share at an exercise price of NIS 177.80, representing a 37% premium over the closing price on March 6, 2025 [5]. - The Warrants will expire on March 31, 2027, and the exercise price will be adjusted based on the NIS-to-USD exchange rate [5]. Group 4: Covenants and Restrictions - The Company has committed to maintaining specific financial ratios while the Notes are outstanding, including a minimum Equity of $120 million and an Equity / Assets Ratio of at least 29% [6][8]. - The Company is restricted from paying dividends or conducting share buy-backs unless it meets the aforementioned equity requirements [6]. Group 5: Company Overview - Nayax is a global commerce enablement platform that provides payment solutions and loyalty tools for merchants, focusing on unattended retail [11]. - As of December 31, 2024, Nayax operates 11 global offices with approximately 1,100 employees and connections to over 80 merchant acquirers [11].

Core Viewpoint - Nayax Ltd. has successfully completed a tender offering of Notes and Warrants to classified investors in Israel, raising approximately $137.5 million for general corporate purposes, including debt repayment and potential acquisitions [1][2][3]. Group 1: Offering Details - The offering consisted of 942,452 Units, with each Unit comprising NIS 1,000 principal amount of Notes and three Warrants, totaling an aggregate amount of NIS 959,625,431 [2]. - The Company intends to accept undertakings for 486,291 Units at a price of NIS 1,021 per Unit, resulting in gross proceeds of NIS 496,503,111 (approximately $137,535,488) [2]. Group 2: Use of Proceeds - The net proceeds from the offering, estimated at approximately NIS 486.3 million (around $134.7 million), will be allocated for general corporate purposes, including debt repayment and potential acquisitions [3]. Group 3: Terms of the Notes - The Notes have a fixed annual interest rate of 5.9% and will mature on September 30, 2030, with principal repayments starting in September 2027 [4]. - The repayment structure includes four annual payments, with the first two installments being 10% of the principal amount each (approximately NIS 48.6 million or $13.4 million), and the last two installments being 40% each (approximately NIS 194.5 million or $53.8 million) [4]. Group 4: Terms of the Warrants - Each Warrant is exercisable for one Ordinary Share at an exercise price of NIS 177.80, representing a 37% premium over the closing share price on March 6, 2025, and will expire on March 31, 2027 [5]. Group 5: Covenants and Restrictions - The Company has committed to maintaining specific financial ratios while the Notes are outstanding, including a minimum Equity of $120 million and an Equity / Assets Ratio of at least 29% for dividend distributions or share buy-backs [6][9]. - Non-compliance with these ratios will be considered an event of default [7]. Group 6: Company Overview - Nayax is a global commerce enablement platform that provides payment solutions and loyalty tools for merchants, focusing on enhancing revenue potential and operational efficiency [12]. - As of December 31, 2024, Nayax operates 11 global offices and employs approximately 1,100 staff, with connections to over 80 merchant acquirers [12].

Financial Data and Key Metrics Changes - The company reported a revenue increase of 34% to $315.2 million on a constant currency basis, aligning with guidance [14][44] - Adjusted EBITDA rose to $35.5 million, exceeding guidance and increasing approximately four times from $8.2 million in the prior year [12][50] - Positive free cash flow of $18 million was achieved, converting over 50% of adjusted EBITDA into free cash flow [13][51] - Gross margin improved to 45.1% from 37.5%, with significant margin expansion driven by operational efficiency [48][50] Business Line Data and Key Metrics Changes - Recurring revenue grew by 47% for the full year, now representing 71% of total revenue [14][45] - Payment processing fees and SaaS subscription revenues increased by 47% year-over-year to $222.3 million [45] - Processing revenue grew by 45% to $133.8 million, driven by a 21% increase in the installed base of managed and connected devices [46][48] Market Data and Key Metrics Changes - Total transaction value increased by 36% to nearly $5 billion, with a higher take rate of 2.73% [16] - The customer base expanded by 32%, reaching over 95,000 customers at the end of 2024 [16] - The installed base of managing connected devices grew by 21% to 1.26 million devices [46] Company Strategy and Development Direction - The company aims to drive growth in automated self-service markets and expand within retail and energy verticals [23][27] - Strategic focus includes partnerships with OEMs and enhancing the cashless payment ecosystem [25][30] - The company is targeting a 35% annual revenue growth by 2028, with a gross margin of 50% and an adjusted EBITDA margin of 30% [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential due to low penetration of cashless solutions in various markets [17][30] - The company anticipates continued strong demand for its end-to-end payment solutions as the shift from cash to digital payments accelerates [18][30] - Management reaffirmed guidance for 30% adjusted EBITDA as operational leverage and efficiency are driven [30][58] Other Important Information - The company has made several strategic acquisitions to enhance its technology and market presence, particularly in Brazil and the EV charging space [34][36] - The company is focused on integrating recent acquisitions to drive further growth and operational efficiency [41][58] Q&A Session Summary Question: Can you discuss the 2025 guidance and the moving parts? - Management highlighted that the 30-35% revenue growth is driven by market share expansion and increasing customer base, with a focus on organic growth of at least 25% [65][66] Question: What are the sources of visibility for the guided acceleration in organic revenue growth? - Management noted strong partnerships and a high net retention rate as key factors contributing to confidence in achieving the revenue targets [110][112] Question: How do you expect ARPU to expand in 2025? - Management indicated that ARPU growth is driven by the conversion from cash to cashless transactions and the introduction of higher ARPU verticals [84][86]

Financial Data and Key Metrics Changes - The company achieved record revenue of $315.2 million for 2024, a 34% increase on a constant currency basis, aligning with guidance [14][44] - Adjusted EBITDA increased more than four times to $35.5 million, exceeding guidance [12][50] - Positive free cash flow of $18 million was generated, converting over 50% of adjusted EBITDA into free cash flow [13][51] - Gross margin improved to 45.1% from 37.5%, with gross profit rising 60% to $141.5 million [48][50] Business Line Data and Key Metrics Changes - Recurring revenue grew 47% for the full year, now representing 71% of total revenue [14][46] - Payment processing fees and SaaS subscription revenues increased by 47% year-over-year to $222.3 million [46] - Hardware revenue grew 9% for the year, supported by strong demand for automated cashless solutions [47] Market Data and Key Metrics Changes - Total transaction value increased 36% to nearly $5 billion, with a higher take rate of 2.73% [16] - The customer base expanded 32%, reaching over 95,000 customers by the end of 2024 [16] - The installed base of managed connected devices grew 21% to 1.26 million devices [16] Company Strategy and Development Direction - The company aims to drive growth in automated self-service markets and expand within retail and energy verticals [23][27] - Strategic focus includes partnerships with OEMs and enhancing the cashless payment ecosystem [25][30] - The company is targeting a 35% annual revenue growth by 2028, with a gross margin of 50% and adjusted EBITDA margin of 30% [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 30% to 35% revenue growth in 2025, driven by market share expansion and recurring revenue growth [58] - The company anticipates continued strong demand for cashless solutions as consumer preferences shift [18][30] - Management highlighted the importance of operational efficiency and margin expansion as key drivers for future profitability [50][96] Other Important Information - The company has made several strategic acquisitions, including VMtecnologia and Roseman Engineering, to enhance its market position [34][36] - The company is focused on integrating recent acquisitions to drive inorganic growth [39] Q&A Session Summary Question: Can you discuss the 2025 guidance and organic growth expectations? - Management indicated that the 25% organic growth target reflects healthy expectations based on market share expansion and customer base growth [65] Question: What are the sources of visibility for the guided acceleration in organic revenue growth? - Management cited partnerships and the expansion of the OEM market as key drivers for revenue growth [109] Question: How do you expect ARPU to expand in 2025? - Management noted that ARPU growth is driven by the conversion from cash to cashless transactions and the introduction of higher ARPU verticals [84] Question: Can you elaborate on the improvement in payment processing gross margins? - Management highlighted renegotiated contracts and smart routing as factors contributing to improved margins [104][120]

Group 1: Earnings Performance - Nayax reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, compared to a loss of $0.10 per share a year ago, representing an earnings surprise of 25% [1] - The company posted revenues of $88.96 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.48%, and this is an increase from year-ago revenues of $66.6 million [2] - Over the last four quarters, Nayax has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Group 2: Stock Performance and Outlook - Nayax shares have increased by approximately 27.4% since the beginning of the year, while the S&P 500 has declined by 0.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.06 on revenues of $90.6 million, and for the current fiscal year, it is $0.51 on revenues of $411.15 million [7] Group 3: Industry Context - The Financial Transaction Services industry, to which Nayax belongs, is currently in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5]

Revenue Growth - Full Year 2024 revenue reached $314.0 million, a 33.3% increase from $235.5 million in 2023, with recurring revenue growth of 47.1%[4] - 2025 revenue guidance is set at $410 million to $425 million, indicating a growth rate of 30% to 35%[3] - Nayax expects revenue growth of 30% to 35% for the year ending December 31, 2025, representing a revenue range of $410 million to $425 million on a constant currency basis, with organic revenue growth of at least 25%[21] Financial Performance - Adjusted EBITDA for 2024 was $35.5 million, exceeding guidance, representing a margin of 11.3% of total revenue[9] - Adjusted EBITDA guidance for 2025 is between $65 million and $70 million, with at least 50% conversion from Adjusted EBITDA expected for the full year[21] - The company reported a loss for the year of $5,631 thousand in 2024, an improvement from a loss of $15,887 thousand in 2023[65] - Adjusted EBITDA for 2024 was $35,496,000, a significant increase from $8,147,000 in 2023 and a loss of $12,679,000 in 2022[79] Transaction and Device Metrics - Total transaction value for 2024 grew by 36% to approximately $4.9 billion, with the number of processed transactions increasing by 33% to 2.4 billion[12] - The number of managed and connected devices reached approximately 1.26 million, a 21% increase year-over-year[12] - Recurring revenue accounted for 71% of total revenue, with SaaS revenue growing by 50.3% and payment processing fees by 45.1%[4] Cash Flow and Assets - Free cash flow for 2024 was $18 million, a significant improvement from a negative $7.8 million in the previous year[9] - The company’s cash and cash equivalents increased to $83,130 thousand in 2024, up from $38,386 thousand in 2023, a 116.6% increase[57] - Net cash provided by operating activities increased significantly to $42,902,000 in 2024, compared to $8,798,000 in 2023 and a negative cash flow of $27,547,000 in 2022[71] Market Expansion and Partnerships - The acquisition of UpPay will more than double Nayax's connected devices footprint in Brazil, adding over 25,000 unattended devices, primarily in self-service coffee vending machines[20] - Nayax launched its automated self-service payment solution in El Salvador, enhancing access to cashless payments in an underserved market[19] - The company has introduced attended retail payment solutions in Europe, expanding its reach to 40 new markets and enabling existing customers to access a broader range of solutions[19] - Nayax has partnered with SECO to offer IoT-Integrated Payment Solutions for OEMs, combining secure payments with remote machine management and AI-driven business intelligence[19] Cost Management and Expenses - Gross margin improved to 45.1% from 37.5%, driven by enhancements in recurring and hardware margins[9] - Total operating expenses (OPEX) for 2024 were $135,136,000, compared to $98,678,000 in 2023 and $90,492,000 in 2022[84] - Research and development expenses were $25,374 thousand in 2024, compared to $21,928 thousand in 2023, reflecting a 15.7% increase[62] Balance Sheet and Equity - Total current assets increased to $287,657 thousand in 2024, compared to $203,409 thousand in 2023, representing a 41.5% growth[57] - Total assets grew to $432,893 thousand in 2024, a 33.8% increase from $323,859 thousand in 2023[57] - Total liabilities increased to $267,648 thousand in 2024, compared to $226,269 thousand in 2023, marking an 18.3% rise[60] - Shareholders' equity rose to $165,245 thousand in 2024, up from $97,590 thousand in 2023, indicating a 69.5% increase[60] Future Outlook - Management targets annual revenue growth of approximately 35% by 2028, with a gross margin of 50% and an adjusted EBITDA margin of 30%[23] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[62]

Financial Performance - The company reported net losses of $37.5 million, $15.9 million, and $5.6 million for the years ended December 31, 2022, 2023, and 2024, respectively[47]. - The company experienced significant revenue growth but faces uncertainties in sustaining or increasing this growth due to market conditions and competition[48]. - The company anticipates moderate increases in operating expenses as it expands its customer base and enhances its platform[48]. - The company has incurred significant compliance costs since listing on Nasdaq in September 2022, including expenses related to the Sarbanes-Oxley Act[179]. - The company has observed an immaterial decrease in demand for its products and services in Israel compared to global demand due to reduced mobility during the war[209]. Customer Growth and Satisfaction - The number of customers increased from approximately 14,000 in 2019 to approximately 95,000 as of December 31, 2024[49]. - The company must effectively manage its growth to maintain high levels of service and customer satisfaction, which is critical given its rapid expansion[49]. - The company’s revenue streams are highly dependent on its business reputation and customer referrals, making high-quality customer support essential[59]. Competition and Market Risks - The company faces significant competition in the payment processing market, requiring constant updates to its services to retain customers[40]. - The company is dependent on the growth of cashless transactions, and any reduction in demand could negatively affect its business[38]. - Political and geopolitical tensions, including U.S.-China trade disputes, could adversely affect the company's operations and financial results[81]. - The ongoing Russia-Ukraine war and Middle East conflicts may disrupt the supply chain and negatively impact sales and earnings[82]. Acquisitions and Expansion - The company announced the acquisition of Retail Pro International for an implied enterprise value of $36.5 million, marking a significant step in its market expansion strategy[66]. - In April 2024, the company completed the acquisition of Roseman Engineering and VMtecnologia LTDA, enhancing its capabilities in smart systems and automated self-service technology in Latin America[66]. - The company is actively engaged in M&A pipeline activity to acquire businesses and technologies that could complement its operations[65]. Operational and Supply Chain Risks - The company is exposed to risks of supply shortages and price fluctuations for key components, which could adversely impact its financial condition and results of operations[44]. - The company relies on a limited number of manufacturers for the assembly of its POS devices, which poses risks if relationships are disrupted or quality control fails[60]. - The ongoing war may lead to negative macro-economic effects in Israel, including inflation and depreciation of the Shekel, which could materially impact the company's business[209]. Regulatory and Compliance Challenges - The company may face regulatory challenges related to its acquisitions, as evidenced by the consent decree with the Israeli Competition Authority regarding the acquisition of OTI[68]. - Compliance with evolving ESG regulations may incur substantial costs and operational challenges for the company[86]. - The company is subject to evolving regulations related to privacy and data protection, which may significantly impact its business practices and operations[103]. - The company is licensed as an Electronic Money Institution in the EU, requiring it to maintain a minimum capital of at least €350,000 and comply with extensive regulatory obligations[154]. Data Security and Privacy - The company faces risks related to data security and privacy, with potential breaches leading to significant reputational and financial damage[94]. - Regulatory requirements for data security breach notifications could lead to costly disclosures and reputational harm[99]. - The California Consumer Privacy Act (CCPA) provides California residents with expanded privacy rights, including the right to access and request deletion of their information, potentially increasing litigation risks[105]. Intellectual Property Risks - The ability to protect and enforce intellectual property rights is crucial for the company’s competitive position, and failure to do so could lead to increased competition and loss of customers[126]. - The company faces potential financial liabilities from intellectual property infringement claims, which could require substantial legal and settlement costs[129]. - The company uses open-source software, which carries risks of non-compliance with licensing terms that could lead to costly claims or the need to re-engineer proprietary software[137]. Human Resources and Management - The company has not developed a succession plan for its senior management, which could harm its business if key personnel leave[71][72]. - The company’s ability to recruit and retain qualified personnel is critical for its growth, and competition for talent is intense[73][74]. Economic and Geopolitical Factors - The company may be impacted by geopolitical uncertainties, including conflicts in Israel and Ukraine, which could affect market conditions and demand for its products[171]. - Rising interest rates and inflation could increase the company's future borrowing costs, as various rating agencies have downgraded Israel's credit ratings in 2024[210]. Shareholder and Market Considerations - As of December 31, 2024, the founding shareholders own approximately 61.02% of the company's outstanding ordinary shares, which may influence corporate decisions significantly[165]. - The market price of the company's ordinary shares is subject to fluctuations due to various factors, including operational performance and market conditions[166]. - The company does not anticipate paying dividends on its ordinary shares in the foreseeable future, which may affect investors' ability to achieve returns solely through price appreciation[177].

Core Insights - Nayax Ltd. reported a full year revenue of $314.0 million, reflecting a 33.3% increase from the previous year, with recurring revenue growth of 47% year-over-year [1][6][11] - The company achieved an adjusted EBITDA of $35.5 million, exceeding guidance, and a free cash flow of $18 million for the year [1][9][19] - For 2025, Nayax expects revenue growth of 30% to 35%, projecting revenue between $410 million and $425 million, with adjusted EBITDA guidance of $65 million to $70 million [19][21] Financial Performance - Full Year 2024 Financial Highlights: - Total revenue reached $314.0 million, up from $235.5 million in 2023, with a constant currency revenue increase of 34% [1][6] - Recurring revenue, which includes SaaS subscription and payment processing fees, totaled $222.3 million, a 47.1% increase from $151.1 million in 2023 [6][11] - Payment processing fees grew by 45.1% to $133.8 million, while SaaS revenue increased by 50.3% to $88.5 million [6][11] Operational Metrics - Total transaction value for the year grew by 36% to nearly $4.9 billion, with the number of processed transactions increasing by 33% to approximately 2.4 billion [7][10] - The take rate for payments improved to 2.73% from 2.53%, and the number of managed and connected devices rose by 21% to approximately 1.26 million [10][12] - The customer base expanded by 32%, adding about 23,000 new customers, bringing the total to over 95,000 [10][12] Margins and Profitability - Gross margin improved significantly to 45.1% from 37.5%, driven by enhanced recurring margins and better supply chain efficiencies [9][13] - The company achieved a positive operating profit of $3.1 million, a substantial improvement from an operating loss of $12.4 million in the previous year [9][13] - Net loss for the year was reduced to $5.6 million from $15.9 million, with basic and diluted net loss per share improving to $(0.157) from $(0.479) [9][13] Future Outlook - Nayax anticipates continued growth with a focus on organic revenue expansion, targeting at least 25% of the projected revenue growth for 2025 to come from organic sources [3][19] - The company is also integrating recent acquisitions to enhance its market position and operational efficiency [19][21] - Management aims for a gross margin of 50% and an adjusted EBITDA margin of 30% by 2028, driven by high-margin SaaS revenues and strategic M&A [22]