Nayax's Impressive Financial Performance and 2025 Outlook

Nayax Reports Fourth Quarter and Year-End Financial Success

Full Year revenue of $314.0 million, with recurring revenue growth of 47% YoY

On a constant currency basis, revenue reached $315.2 million, representing a 34% increase

Adjusted EBITDA stood at $35.5 million and Free Cash Flow totaled $18 million for 2024.

Guidance for 2025 is set between $410 million and $425 million in revenue.

Adjusted EBITDA guidance for 2025 is projected to be $65 million to $70 million.

Overview of Nayax's Performance

Nayax Ltd. (NASDAQ: NYAX, TASE: NYAX) has announced its financial results for the fourth quarter and full year ended December 31, 2024. With a strong performance throughout the year, Nayax has successfully achieved key milestones including impressive revenue growth, margin expansion, and robust cash flow generation.

Chief Executive Officer Yair Nechmad expressed satisfaction with the company's achievements, highlighting a planned revenue growth forecast of 30% to 35% for 2025, with a substantial portion expected to stem from organic growth. The company aims to expand its global reach, particularly within its payment processing capabilities, where a notable shift towards cashless transactions has been observed.

Financial Highlights for 2024

Throughout 2024, Nayax's financial indicators reflect a solid upward trend:

• Revenue increased by 33% to $314.0 million, up from $235.5 million in the previous year.
• Constant currency revenue grew by 34%, totaling $315.2 million.
• Organic growth was recorded at 23% for the year.
• Recurring revenue took the lead in growth, with a 47% increase driven by strong performance in payment processing fees and SaaS revenue.
• Hardware revenue also showed resilience, increasing by 9% as demand for cashless product solutions surged.
• Gross margin improved significantly to 45.1%, attributed to better contract negotiations and enhanced supply chain efficiency.

Operational Metrics of the Year

Nayax's operational metrics further illustrate its successful year:

• Total transaction value surged by 36%, reaching nearly $4.9 billion.
• The number of processed transactions rose by 33%, amounting to approximately 2.4 billion.
• The take rate increased to 2.73% from 2.53%, showcasing the efficiency of Nayax's payment processing capabilities.
• Managed and connected devices topped approximately 1.26 million, marking a 21% increase.
• The customer base expanded by around 32%, totaling more than 95,000 customers.
• Average revenue per unit rose by 12%, reflecting the growing value of services provided.

Fourth Quarter Results: A Sustained Performance

Nayax's performance in the fourth quarter of 2024 was indicative of strong market demand. The financial results continued to bolster confidence in the company's business model:

• Q4 revenue surged by 33.6% to $89.0 million compared to $66.6 million in Q4 2023.
• Recurring revenue increased by 48.7%, underscoring the company's commitment to its SaaS and payment processing segments.
• Operating profit improved significantly to $3.6 million, a stark contrast to the previous operating loss.
• Net income totaled $1.6 million for the quarter, demonstrating a strong turnaround from previous losses.
• Free cash flow reached $9.3 million, a stark contrast to the $0.6 million of the prior year.

Recent Business Initiatives

Nayax has also made strides in expanding its service offerings internationally. Key initiatives include:

• Launching an automated self-service payment solution in Latin America to enhance cashless payment access.
• Expanding its suite of retail payment solutions across Europe, serving merchants in 40 new markets.
• Integrating with Discover Global Network, facilitating payments for cardholders across EMEA.
• Deploying fuel management systems for large clients, including Tesco, to automate operations and support sustainability initiatives.

Looking Ahead: Strategic Forecasts

Nayax's outlook for 2025 is optimistic, projecting continued revenue growth driven by existing strengths and completed acquisitions. The guidance anticipates:

• Revenue growth between 30% to 35%, with organic growth playing a crucial role.
• Adjusted EBITDA guidance between $65 million to $70 million, reflecting ongoing operational efficiencies.
• Leadership remains committed to scaling its recurring revenue streams, particularly within its payment solutions.

Investor Engagement

Nayax will hold a conference call to discuss these detailed results further, inviting both existing and prospective investors to engage with company leadership.

Frequently Asked Questions

1. What is Nayax's revenue for the full year 2024?

Nayax reported a full-year revenue of $314.0 million for 2024.

2. How much did Nayax's recurring revenue grow in 2024?

Recurring revenue grew by 47% year-over-year.

3. What is the adjusted EBITDA guidance for Nayax in 2025?

Nayax's adjusted EBITDA guidance for 2025 is projected to range between $65 million and $70 million.

4. How many connected devices does Nayax manage as of 2024?

Nayax manages approximately 1.26 million connected devices.

5. What new initiatives did Nayax launch in 2024?

Nayax launched an automated self-service payment solution in Latin America and expanded its retail payment solutions in Europe.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

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