Financial Data and Key Metrics Changes - Total transaction value increased by 35% year-over-year, reaching $1.8 billion, driving processing revenue growth of 33% for the quarter [14][15] - Revenue for the third quarter was $104.3 million, a 26% increase compared to Q3 2024, with organic revenue growth of 25% [15][16] - Recurring revenue grew by 29% year-over-year, reaching $77 million, representing 74% of total revenue [16][19] - Gross margin increased to 49.3% from 45.7% in the prior year, with adjusted EBITDA rising to $18.2 million, representing 17.5% of revenue [17][19] Business Line Data and Key Metrics Changes - Processing revenue grew by 33% to $48 million, driven by a 17% increase in the install base of managed and connected devices [16][19] - Hardware revenue increased by 18% to $27 million, reflecting strong demand for products and solutions [16][19] - The install base of managed and connected devices grew by 17% year-over-year, exceeding 1.4 million devices [15][16] Market Data and Key Metrics Changes - The customer base expanded by 21% compared to Q3 2024, reaching nearly 110,000 customers [14][15] - The company is gaining market share in high transaction value verticals such as EV charging, amusement, and car wash, which drive significantly more revenue per customer [5][14] Company Strategy and Development Direction - The company is focused on profitable growth and expanding its market share in automated self-service solutions [4][5] - Nayax is pursuing acquisitions that align with its objectives of geographic expansion and technology enhancement, including a recent letter of intent to acquire Integral Vending in Mexico [9][10] - The launch of embedded banking products and e-commerce solutions is planned for early 2026, aimed at increasing recurring revenue per customer [9][39] Management's Comments on Operating Environment and Future Outlook - Management reiterated organic revenue growth guidance of at least 25% for the full year, driven by enterprise hardware sales and strong recurring revenue growth [12][20] - The company expects to maintain a robust hardware sales pipeline and is well-positioned to capture larger enterprise opportunities [12][20] - Management expressed confidence in the long-term opportunities ahead, supported by a growing base of connected devices and a disciplined focus on profitability [13][20] Other Important Information - The company has successfully integrated Nayax Capital into its broader embedded payment initiative, enhancing operational efficiency [11][19] - Cash and cash equivalents totaled $173 million, with a solid balance sheet and net cash position [19] Q&A Session Summary Question: Update on EV partnerships and shipment timing - Management confirmed that EV charging partnerships are accelerating, with expectations for significant hardware revenue growth in Q4 [24][25] Question: Smart Coolers market offerings and demand - Management highlighted partnerships in the U.S. and Europe for Smart Coolers, viewing it as a significant growth driver [27][28] Question: Embedded banking and e-commerce opportunities - Management indicated that embedded banking will launch in Q1 2026, with e-commerce solutions following for the EV market [36][39] Question: Average transaction values across different verticals - Management noted that average transaction values are growing faster in higher ticket verticals like EV charging and car washes [42][44] Question: M&A appetite and market dynamics - Management stated a continued prudent approach to M&A, with potential for larger acquisitions in the future while focusing on organic growth [59][60]

Financial Data and Key Metrics Changes - Total transaction value increased by 35% year-over-year, reaching $1.8 billion, driving processing revenue growth of 33% for the quarter [14] - Revenue for Q3 was $104.3 million, a 26% increase compared to Q3 2024, with organic revenue growth of 25% [15][19] - Recurring revenue grew by 29% year-over-year, reaching $77 million, representing 74% of total revenue [16] - Gross margin increased to 49.3% from 45.7% in the prior year, with adjusted EBITDA rising to $18.2 million, representing 17.5% of revenue [17][18] Business Line Data and Key Metrics Changes - The customer base expanded by 21% year-over-year, totaling nearly 110,000 customers [14] - The install base of managed and connected devices grew by 17% year-over-year, exceeding 1.4 million devices [15] - Hardware revenue increased by 18% to $27 million, driven by strong demand for products and solutions [16] Market Data and Key Metrics Changes - The company is gaining market share in high transaction value verticals such as EV charging, amusement, and car wash, which contribute significantly to revenue [5][14] - Average transaction value rose from $2.15 to $2.40, reflecting strong positioning in emerging verticals [14] Company Strategy and Development Direction - The company is focused on profitable growth and expanding its one-stop-shop solution, which differentiates it in the automated self-service space [4] - Plans to launch an embedded banking product in the U.S. in early 2026, aiming to drive higher recurring revenue per customer [9] - The company is pursuing acquisitions that align with its objectives of geographic expansion and technology enhancement, including a recent letter of intent to acquire Integral Vending [10][12] Management's Comments on Operating Environment and Future Outlook - Management reiterated organic revenue growth guidance of at least 25% for the full year, driven by enterprise hardware sales [12] - The company expects to maintain strong recurring revenue growth and has a robust hardware sales pipeline [12][20] - Management expressed confidence in the long-term opportunities ahead, supported by a growing base of connected devices and disciplined focus on profitability [13] Other Important Information - The company completed the purchase of the remaining shares of Tigapo, enhancing its arcade gaming business [10] - Cash and cash equivalents totaled $173 million, with a solid balance sheet and net cash position [19] Q&A Session Summary Question: Update on EV partnerships and shipment timing - Management confirmed that EV charging partnerships are progressing well, with expectations for significant acceleration in Q4 [24][25] Question: Demand and growth in the smart cooler market - Management highlighted partnerships in the U.S. and Europe for smart coolers, viewing it as a significant growth driver [27][28] Question: Update on embedded banking and e-commerce opportunities - Management stated that the embedded banking product is set to launch in Q1 2026, with e-commerce solutions following [36][39] Question: Average transaction values across different verticals - Management noted that average transaction values are increasing, particularly in higher growth verticals like EV charging and car washes [42][44] Question: M&A appetite and market dynamics - Management indicated a continued prudent approach to M&A, with potential for larger acquisitions in the future [59][60]

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]