Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 22% year-over-year, reaching $96 million [7][16] - Recurring revenue grew by 32% year-over-year, accounting for 74% of total revenue [7][17] - Adjusted EBITDA was nearly $13 million, representing approximately 13% of total revenue, an increase of $4.5 million compared to the previous year [8][21] - Net income for the quarter was nearly $12 million, compared to a net loss of $3 million in the prior year [21][22] - Total transaction value increased by over 34% year-over-year, reaching nearly $1.6 billion [15] Business Line Data and Key Metrics Changes - Processing revenue grew by 35% to $43 million, driven by a 16% increase in the installed base of managed and connected devices [17][18] - Hardware revenue was $25 million, slightly higher than the prior year's quarter [18] - The installed base of managed and connected devices grew by 16% year-over-year, reaching almost 1.38 million devices [15][18] Market Data and Key Metrics Changes - The company is experiencing strong global demand, particularly in emerging segments such as EV chargers and smart coolers [9][10] - The customer base expanded by approximately 24% year-over-year, approaching 105,000 customers [15] Company Strategy and Development Direction - The company is focused on expanding its geographic footprint and gaining market share across core verticals [4][5] - Strategic partnerships, such as with Ortel Energy for EV charging solutions, are expected to drive future growth [10][11] - The company is pursuing both organic growth and strategic M&A to enhance its market position [13][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about near-term growth opportunities, driven by the ongoing shift from cash to digital payments [13] - The company reaffirmed its full-year 2025 guidance, expecting revenue growth of 30% to 35% [23][24] - Management highlighted the importance of customer retention and engagement, with a churn rate of under 3% annually [5][40] Other Important Information - The company has made significant acquisitions, including Innopropay and a majority stake in NICE Capital, to strengthen its position in Europe and enhance its embedded banking division [11][12] - The gross margin improved to 48.3%, up from 44.3% in the previous year, driven by higher recurring and hardware margins [19] Q&A Session Summary Question: How should we think about the larger opportunity in terms of EV as a percentage of revenue? - Management indicated that the EV market presents a significant growth opportunity, with partnerships expected to drive customer acquisition and revenue growth [26][30] Question: Can you talk about NRR and how you think it will trend over the next couple of years? - Management noted that NRR remains strong, driven by growth in service and processing, and highlighted the importance of emerging verticals [37][40] Question: Can you provide an update on your hospitality and retail initiatives? - Management reported strong demand in the retail sector and ongoing integration efforts in the hospitality space, particularly in Brazil [42][44] Question: What is the expected revenue contribution from M&A this year? - Management expects around $10 million in inorganic growth for the year, with ongoing efforts to complete additional acquisitions [48][50] Question: Can you elaborate on the competitive landscape for the new EV charging partnerships? - Management emphasized their first-mover advantage and technical expertise in the EV charging industry, which has facilitated recent partnerships [59][61]
Nayax .(NYAX) - 2025 Q2 - Earnings Call Transcript