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 [16] - Revenue for the third quarter was $104.3 million, an increase of 26% compared to Q3 2024 [17] - Recurring revenue grew by 29% year-over-year, reaching $77 million, representing 74% of total revenue [18] - Gross margin increased to 49.3% from 45.7% in the prior year, driven by higher recurring and hardware margins [19] - Net income for the quarter was $3.5 million compared to $0.7 million in the prior year [20] 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 [18] - Hardware revenue grew 18% to $27 million compared to $23 million in the same quarter last year [18] - The install base of managed and connected devices grew 17% year-over-year, reaching over 1.4 million devices [17] Market Data and Key Metrics Changes - Customer base expanded by 21% compared to Q3 2024, with nearly 110,000 customers at the end of Q3 [16] - Average transaction value increased from $2.15 to $2.40, reflecting strong positioning in emerging verticals such as EV charging, amusement, and car wash [16] Company Strategy and Development Direction - The company is focused on profitable growth and expanding market share in automated self-service, with strong demand for its solutions [4] - Plans to launch embedded banking products in the U.S. in early 2026, which is expected to drive higher recurring revenue [10] - The company is pursuing acquisitions that align with its objectives of geographic expansion and technology enhancement [11] Management Comments on Operating Environment and Future Outlook - Management reiterated organic revenue growth guidance of at least 25%, driven by enterprise hardware sales in the fourth quarter [14] - The company expects to maintain strong recurring revenue growth and has a robust hardware sales pipeline [14] - Management expressed confidence in the long-term opportunities ahead, supported by a growing base of connected devices and disciplined focus on profitability [15] Other Important Information - The company completed the acquisition of Tigapo, enhancing its arcade gaming business and global scalability [11] - The acquisition of Integral Vending is expected to deepen the company's presence in Latin America and expand software capabilities [11] 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 [25][27] Question: Demand for smart coolers and growth potential - Management highlighted partnerships in the U.S. and Europe for smart coolers, viewing it as a significant growth driver [29][30] Question: Embedded banking and e-commerce opportunities - Management stated that embedded banking will launch in Q1 2026, with e-commerce solutions following in the same year [38][41] 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 [44][46] Question: M&A appetite and market dynamics - Management indicated a continued prudent approach to M&A, with potential for larger acquisitions in the future [61][63]
Nayax .(NYAX) - 2025 Q3 - Earnings Call Transcript