Financial Data and Key Metrics Changes - The company reported a revenue increase of 34% to 35.5 million, exceeding guidance and increasing approximately four times from 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 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]
Nayax .(NYAX) - 2024 Q4 - Earnings Call Transcript