Nayax .(NYAX) - 2024 Q4 - Annual Report

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]