Core Viewpoint - Nayax Ltd. will maintain current hardware pricing for U.S. customers despite new tariffs on imports, demonstrating its commitment to customer growth and operational excellence [1][2][3] Group 1: Company Strategy - Nayax has implemented strategic measures over the years to enhance supply chain resilience, including optimizing logistics and strengthening supplier relationships [2] - The company serves over 95,000 customers by providing advanced automated self-service payment technology at competitive prices, enabling efficient operations in a rapidly evolving payments landscape [3] Group 2: Market Context - The U.S. administration announced tariffs on imports from most countries, including the Philippines and Israel, where Nayax's hardware is primarily assembled [2] - Nayax's CEO emphasized the company's goal of facilitating a seamless transition from cash to cashless payments, asserting control over pricing despite external market changes [4] Group 3: Company Overview - Nayax is a global commerce enablement and payments platform that offers a complete solution for cashless payment acceptance, management, and loyalty tools, aimed at helping merchants scale their business [4] - As of December 31, 2024, Nayax operates 11 global offices, employs approximately 1,100 staff, and has connections to over 80 merchant acquirers and payment method integrations [4]

HERZLIYA, Israel, April 02, 2025 (GLOBE NEWSWIRE) -- Nayax Ltd. (NASDAQ:NYAX, TASE: NYAX)), a global commerce enablement and payments platform designed to help merchants scale their business by simplifying payments and maximizing loyalty, today announced the acquisition of Inepro Pay, a subsidiary of Inepro and a Nayax distributor in the Benelux region. Acquiring Inepro Pay will expand Nayax's reach in the Benelux region by consolidating a trusted partnership in-house, improving efficiency, and bringing Nay ...

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]