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]
Nayax .(NYAX) - 2025 Q3 - Earnings Call Transcript