Nayax Achieves Impressive First Quarter Growth and Expansion
Nayax Reports First Quarter Financial Performance
Expands global customer base to over 100,000
Achieves total revenue of $81.1 million, with recurring revenue growth of 35% year-on-year
Reports gross margin increase to 49%
Net income reaches $7.2 million, and adjusted EBITDA stands at $9.7 million
Company reaffirms its full-year guidance for substantial revenue growth in 2025
Nayax Ltd. (NASDAQ: NYAX, TASE: NYAX), a leader in global commerce payments and loyalty solutions, has shared its remarkable financial results for the first quarter ending March 31, 2025. With a surge in customer base and substantial revenue growth, Nayax is well-poised for continued success.
CEO Yair Nechmad remarked, "Nayax is off to a fantastic start in 2025, demonstrating our commitment to achieve profitable growth. Our efforts in increasing our recurring revenue, enhancing market share, and expanding geographically have led us to surpass 100,000 customers globally. This accomplishment speaks volumes about our reputation as a reliable partner in the payments space. I am extremely pleased with our current trajectory and the scaling of our business for the long term."
Financial Highlights Overview
As the company outlines its financial achievements, Nayax's highlights indicate substantial progress:
- Revenue rose by 27% to $81.1 million from $64.0 million in the prior year.
- At constant currency, revenue increased by 28%, approaching $82 million.
- Organic revenue growth for the quarter was marked at 18%.
- Recurring revenue from SaaS and payment processing fees saw significant growth of 35%, making up 77% of total revenue.
- Hardware revenue reached $19 million, reflecting a 6% increase fueled by high demand for the company's innovative products.
- Gross margin improved to 49.2%, compared to 43.8% in the previous year.
- Operating profits stood at $7.9 million, boosted by a $6.1 million one-time gain from the share purchase of Tigapo Ltd.; excluding this, operating profits improved significantly from a loss of $2.8 million in the prior period.
- Net income for Q1 was $7.2 million, with a figure reaching $1.1 million when accounting for one-time gains.
- Basic and diluted earnings per share for the quarter were $0.195 and $0.192, respectively.
Operational Achievement Metrics
In terms of operational metrics, Nayax has highlighted strong growth indicators:
- Total transaction value surged by over 18% to reach $1.3 billion.
- The number of processed transactions climbed 20.4% to 650 million.
- Take rate for payments increased to 2.75% from 2.65%, reflecting ongoing expansion into new verticals.
- The total number of managed and connected devices stood at approximately 1.33 million, marking a 20% year-over-year increase.
- Customer growth was robust, with an addition of nearly 5,000 new clients, totaling over 100,000 customers.
- The dollar-based net retention rate remained high at 128%, underscoring customer satisfaction and retention.
Recent Developments and Future Outlook
Nayax has been proactive in positioning itself for future growth as evidenced by recent strategic acquisitions and partnerships:
- The acquisition of UPPay has enhanced Nayax's footprint in Brazil by adding over 25,000 devices, primarily in the unattended space.
- A Notes and Warrants Offering raised approximately $133 million, intended for general corporate purposes, including debt repayment and future acquisitions.
- Nayax has rolled out innovative features, such as the State-of-Charge feature for EV kiosks, enhancing digital payment experiences.
- A strategic partnership with N-and Group has been established to incorporate Nayax's technology into next-generation self-service commerce machinery.
Guidance for the Future
Looking ahead, Nayax maintains its strong outlook for the full year:
Management projects revenue growth between 30% to 35%, targeting approximately $410 million to $425 million on a constant currency basis. This includes a commitment to at least 25% organic revenue growth.
Furthermore, Nayax anticipates adjusted EBITDA of between $65 million to $70 million, driven by continuous market expansion and operational optimization.
The firm's strategic goals for 2028 involve sustained annual growth of around 35%, targeting a gross margin of 50% and an adjusted EBITDA margin of 30% as efforts in high-margin SaaS revenues evolve.
Frequently Asked Questions
What are the significant financial highlights for Nayax in Q1 2025?
Nayax reported a total revenue of $81.1 million, a 27% increase from the previous year, with a gross margin of 49% and a net income of $7.2 million.
How has Nayax expanded its customer base recently?
The company has surpassed 100,000 customers globally, reflecting a strong growth trajectory and successful market penetration.
What are the key operational metrics Nayax achieved?
Nayax processed approximately 650 million transactions, growing the total transaction value to over $1.3 billion, with a notable increase in connected devices.
What strategic initiatives has Nayax implemented recently?
The acquisition of UPPay and strategic partnerships, including developments in EV charging solutions, signal Nayax's commitment to innovation and expansion.
What is Nayax's revenue outlook for 2025?
The company anticipates revenue growth of 30% to 35% for 2025, targeting between $410 million to $425 million in total revenue.
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