Exhibit |
Description
|
NAYAX LTD.
|
|||
By:
|
/s/ Gal Omer | ||
Name: Gal Omer
|
|||
Title: Chief Legal Officer
|
|||
(1) |
Adjusted EBITDA is a non-IFRS financial measure. Please refer to the tables at the end of this news release for a reconciliation of adjusted EBITDA to the most directly comparable IFRS measure.
|
(2) |
The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income (loss) due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for
such reconciliation, in particular, because special items such as finance expenses and Issuance and acquisition costs used to calculate projected net income (loss) vary dramatically based on actual events. Therefore, the Company is not able
to forecast on an IFRS basis with reasonable certainty all deductions needed in order to provide an IFRS calculation of projected net income (loss) at this time. The amount of these deductions may be material, and therefore could result in
projected IFRS net income (loss) being materially less than projected adjusted EBITDA (non-IFRS).
|
Revenue Breakdown Summary (*)
|
Q1 2024 ($M)
|
Q1 2023 ($M)
|
Growth (%)
|
SaaS revenue
|
17.9
|
13.2
|
36%
|
Payment processing fees
|
28.3
|
19.1
|
48%
|
Total recurring revenue (*)
|
46.2
|
32.3
|
43%
|
POS devices revenue (**)
|
17.8
|
20.1
|
-11%
|
Total revenue (***)
|
64.0
|
52.4
|
22%
|
• |
Revenue of $64.0 million of which recurring revenue from SaaS and processing fees comprised 72% of total revenue and grew 43%.
|
• |
Hardware revenues decreased this quarter by 11% because of a shift in customer mix towards SMBs, as well as a change in product mix which favored devices with lower average selling prices, both of which are characterized with higher
gross margins.
|
• |
Gross margin improved strongly to 43.8% from 34.1%. This was primarily due to significantly improved hardware margins rising to 27% from 12%, as a result of steps taken to increase efficiencies within Nayax’s business and supply chain,
as well as the product and customer mix sold, as mentioned above.
|
• |
Operating loss was reduced to $2.8 million, compared to an operating loss of $5.2 million.
|
• |
Net loss for the period was $5.0 million or ($0.15) per share, compared to a net loss of $5.5 million, or ($0.17) per share.
|
• |
Adjusted EBITDA improved by $4.2 million to a positive $3.6 million, compared to an adjusted EBITDA loss of $0.6 million.
|
• |
Revenue and adjusted EBITDA were negatively impacted by an approximate $1.3 million purchase accounting adjustment, due to a fair-value adjustment to deferred revenue, related to the Retail Pro acquisition.
|
• |
As of March 31, 2024, the company had $93 million in cash and cash equivalents and short-term deposits. The increase was primarily due to the successful completion of a public offering during the quarter.
|
• |
As of March 31, 2024, short-term and long-term debt balances stood at $48.2 million.
|
Key Performance Indicators
|
Q1 2024
|
Q1 2023
|
Growth (%)
|
Total transaction value ($m)
|
1,069
|
796
|
34%
|
Number of processed transactions (millions)
|
540
|
410
|
32%
|
Take rate % (payments) (*)
|
2.65%
|
2.40%
|
10%
|
Managed and connected devices (**)
|
1,108,000
|
769,000
|
44%
|
• |
Total transaction value grew 34% to $1.07 billion.
|
• |
Number of processed transactions increased 32% to 540 million.
|
• |
Growth in the customer base continued at a healthy pace, adding 4,000 new customers in the quarter, bringing the total customer base to over 76,000, an increase of 46% year-over-year.
|
• |
The dollar-based net retention rate remained high at 134%, reflecting strong customer satisfaction, while the customer churn rate remained low at 3.2%.
|
• |
Nayax added 62,000 managed and connected devices in the quarter, a record from organic growth, driven by robust customer demand, bringing the total number of managed and connected devices to 1,108,000, representing an increase of 44%
year-over-year.
|
• |
Nayax announced the opening of a new Technical Support Center for the US market, enhancing its customer support quality, reduced call times and increased customer satisfaction. Nayax has also worked to automate several onboarding
processes. The goal of this new infrastructure is to enable Nayax to continue to scale without compromising on support responsiveness.
|
• |
Nayax, together with subsidiary Retail Pro, exhibited its products at the NRF
2024: Retails Big Show industry exhibition in New York City.
|
• |
Nayax announced the successful closing of an underwritten public offering led by leading US investment banks, of which the Company sold 2,600,000 ordinary shares to institutional investors. The proceeds to Nayax were approximately $63 million
after fees and expenses.
|
• |
Nayax successfully closed the acquisition of Roseman Engineering, a Tel-Aviv based fuel and electric vehicle (EV) management software solution provider that allows managers of gas stations to track fuel
station income, reduce expenses, and increase operational efficiencies. This acquisition complements Nayax’s existing offerings utilized by EV charging station operators worldwide.
|
• |
Nayax entered into a collaboration agreement with DKV Mobility, a B2B platform for on-the-road payment solutions that will further expand Nayax’s payments acceptance across Europe. DKV Mobility offers access
to the largest energy-agnostic acceptance network in Europe, including 66,000 fuel service stations, and 666,000 public and semi-public Electric Vehicle (EV) charging stations. DKV Mobility’s fuel and service cards will be accepted at
Nayax’s payment terminals starting in the second half of 2024.
|
• |
Nayax successfully closed the acquisition of VMtecnologia, a leading financial technology provider for the automated self-service industry in Brazil. This acquisition provides Nayax with a strong entry
point into Latin America and into Brazil in particular and expands Nayax’s total addressable markets. The integration will contribute to revenue and be accretive to net income starting from the second quarter and beyond.
|
• |
Nayax announced that it would be exhibiting its products at The NAMA Show 2024, a conference for vending and convenience service industry professionals, in early May in Dallas, TX
and is organized by the National Automatic Merchandising Association (NAMA).
|
• |
Nayax announced a strategic partnership with Slovakia’s ASO Vending, the country’s largest vending machine operator. This partnership will include the installation of thousands of Nayax card readers on vending
machines throughout the country, and it will more than double Nayax’s active devices in Slovakia.
|
• |
U.S. TOLL-FREE: 1-877-737-7051;
|
• |
ISRAEL TOLL-FREE: 1 809 455 690;
|
• |
INTERNATIONAL: 1-201-689-8878
|
• |
Replay TOLL-FREE: 1-844-512-2921
|
• |
Replay TOLL/INTERNATIONAL: 1-412-317-6671
|
• |
Replay TOLL/Israel: 1-809-458-327
|
• |
Replay Pin Number: 13745550
|
Public Relations Contact:
Scott Gamm
Strategy Voice Associates
Scott@strategyvoiceassociates.com
|
Investor Relations Contact:
Aaron Greenberg
Chief Strategy Officer
Aarong@nayax.com
|
March 31
|
December 31
|
|||||||
2024
|
2023
|
|||||||
U.S. dollars in thousands
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
68,569
|
38,386
|
||||||
Restricted cash transferable to customers for processing activity
|
53,950
|
49,858
|
||||||
Short-term bank deposits
|
24,283
|
1,269
|
||||||
Receivables in respect of processing activity
|
65,650
|
43,261
|
||||||
Trade receivable, net
|
40,606
|
41,300
|
||||||
Inventory
|
19,995
|
20,563
|
||||||
Other current assets
|
9,823
|
8,772
|
||||||
Total current assets
|
282,876
|
203,409
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Long-term bank deposits
|
2,272
|
2,304
|
||||||
Other long-term assets
|
6,398
|
5,883
|
||||||
Investment in associate
|
4,734
|
5,024
|
||||||
Right-of-use assets, net
|
5,369
|
5,341
|
||||||
Property and equipment, net
|
5,233
|
5,487
|
||||||
Goodwill and intangible assets, net
|
96,996
|
96,411
|
||||||
Total non-current assets
|
121,002
|
120,450
|
||||||
TOTAL ASSETS
|
403,878
|
323,859
|
March 31
|
December 31
|
|||||||
2024
|
2023
|
|||||||
U.S. dollars in thousands
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank credit
|
27,428
|
47,477
|
||||||
Current maturities of long-term bank loans
|
1,995
|
1,101
|
||||||
Current maturities of loans from others and other long-term liabilities
|
4,809
|
5,422
|
||||||
Current maturities of leases liabilities
|
2,304
|
2,145
|
||||||
Payables in respect of processing activity
|
130,476
|
104,523
|
||||||
Trade payables
|
12,426
|
17,464
|
||||||
Other payables
|
28,271
|
25,650
|
||||||
Total current liabilities
|
207,709
|
203,782
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Long-term bank loans
|
16,314
|
327
|
||||||
Long-term loans from others and other long-term liabilities
|
14,763
|
14,476
|
||||||
Post-employment benefit obligations, net
|
431
|
427
|
||||||
Lease liabilities
|
3,868
|
4,149
|
||||||
Deferred income taxes
|
2,606
|
3,108
|
||||||
Total non-current liabilities
|
37,982
|
22,487
|
||||||
TOTAL LIABILITIES
|
245,691
|
226,269
|
||||||
EQUITY:
|
||||||||
Equity attributed to parent company’s shareholders:
|
||||||||
Share capital
|
9
|
8
|
||||||
Additional paid in capital
|
217,330
|
153,524
|
||||||
Capital reserves
|
9,812
|
9,643
|
||||||
Accumulated deficit
|
(68,964
|
)
|
(65,585
|
)
|
||||
TOTAL EQUITY
|
158,187
|
97,590
|
||||||
TOTAL LIABILITIES AND EQUITY
|
403,878
|
323,859
|
Three months ended
March 31 |
||||||||
2024
|
2023
|
|||||||
U.S. dollars in thousands
|
||||||||
(Excluding loss per share data)
|
||||||||
Revenues
|
63,962
|
52,410
|
||||||
Cost of revenues
|
(35,975
|
)
|
(34,535
|
)
|
||||
Gross Profit
|
27,987
|
17,875
|
||||||
Research and development expenses
|
(6,345
|
)
|
(5,136
|
)
|
||||
Selling, general and administrative expenses
|
(21,460
|
)
|
(16,431
|
)
|
||||
Depreciation and amortization in respect of technology and capitalized development costs
|
(2,571
|
)
|
(1,140
|
)
|
||||
Other expenses, net
|
(128
|
)
|
-
|
|||||
Share of loss of equity method investee
|
(290
|
)
|
(358
|
)
|
||||
Operating loss
|
(2,807
|
)
|
(5,190
|
)
|
||||
Finance expenses, net
|
(2,388
|
)
|
(78
|
)
|
||||
Loss before taxes on income
|
(5,195
|
)
|
(5,268
|
)
|
||||
Tax benefit (Income tax expense)
|
239
|
(259
|
)
|
|||||
Loss for the period
|
(4,956
|
)
|
(5,527
|
)
|
||||
Attribution of loss for the period:
|
||||||||
To shareholders of the Company
|
(4,956
|
)
|
(5,527
|
)
|
||||
Total
|
(4,956
|
)
|
(5,527
|
)
|
||||
Loss per share attributed to shareholders of the Company:
|
||||||||
Basic and diluted loss per share
|
(0.147
|
)
|
(0.168
|
)
|
Three months ended
March 31 |
||||||||
2024
|
2023
|
|||||||
U.S. dollars in thousands
|
||||||||
Loss for the period
|
(4,956
|
)
|
(5,527
|
)
|
||||
Other comprehensive loss for the period:
|
||||||||
Items that may be reclassified to profit or loss:
|
||||||||
Exchange differences on translation of foreign operations
|
169
|
39
|
||||||
Total comprehensive loss for the period
|
(4,787
|
)
|
(5,488
|
)
|
||||
Attribution of total comprehensive loss for the period:
|
||||||||
Total comprehensive loss for the period
|
(4,787
|
)
|
(5,488
|
)
|
Equity attributed to shareholders of the Company
|
||||||||||||||||||||||||||||
Share
capital |
Additional paid in capital
|
Remeasurement of post-employment benefit obligations
|
Other capital reserves
|
Foreign currency translation reserve
|
Accumulated
deficit |
Total
equity |
||||||||||||||||||||||
U.S. dollars in thousands
|
||||||||||||||||||||||||||||
Balance at January 1, 2024 (audited)
|
8
|
153,524
|
248
|
9,545
|
(150
|
)
|
(65,585
|
)
|
97,590
|
|||||||||||||||||||
Changes in the three months ended March 31, 2024:
|
-
|
|||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(4,956
|
)
|
(4,956
|
)
|
|||||||||||||||||||
Issuance of ordinary shares
|
1
|
62,685
|
62,686
|
|||||||||||||||||||||||||
Other comprehensive income for the period
|
-
|
-
|
-
|
(42
|
)
|
211
|
-
|
169
|
||||||||||||||||||||
Employee options exercised
|
*
|
1,121
|
-
|
-
|
-
|
-
|
1,121
|
|||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
-
|
1,577
|
1,577
|
|||||||||||||||||||||
Balance on March 31, 2024 (unaudited)
|
9
|
217,330
|
248
|
9,503
|
61
|
(68,964
|
)
|
158,187
|
||||||||||||||||||||
Balance at January 1, 2023 (audited)
|
8
|
151,406
|
248
|
9,503
|
20
|
(56,550
|
)
|
104,635
|
||||||||||||||||||||
Changes in the three months ended March 31, 2023:
|
||||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(5,527
|
)
|
(5,527
|
)
|
|||||||||||||||||||
Other comprehensive income for the period
|
-
|
-
|
-
|
-
|
39
|
-
|
39
|
|||||||||||||||||||||
Employee options exercised
|
*
|
304
|
-
|
-
|
-
|
-
|
304
|
|||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
-
|
1,791
|
1,791
|
|||||||||||||||||||||
Balance on March 31, 2023 (unaudited)
|
8
|
151,710
|
248
|
9,503
|
59
|
(60,286
|
)
|
101,242
|
Three months ended
March 31 |
||||||||
2024
|
2023
|
|||||||
U.S. dollars in thousands
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net loss for the period
|
(4,956
|
)
|
(5,527
|
)
|
||||
Adjustments to reconcile net loss to net cash provided by operations (see Appendix A)
|
5,096
|
6,412
|
||||||
Net cash provided by operating activities
|
140
|
885
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capitalized development and acquired intangibles expenditure
|
(4,371
|
)
|
(3,535
|
)
|
||||
Acquisition of property and equipment
|
(160
|
)
|
(96
|
)
|
||||
Loans granted to related company
|
(259
|
)
|
-
|
|||||
Increase in bank deposits
|
(23,027
|
)
|
(59
|
)
|
||||
Interest received
|
433
|
24
|
||||||
Investments in financial assets
|
(284
|
)
|
-
|
|||||
Proceeds from sub-lessee
|
55
|
-
|
||||||
Net cash used in investing activities
|
(27,613
|
)
|
(3,666
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Issuance of ordinary shares
|
62,686
|
-
|
||||||
Interest paid
|
(1,085
|
)
|
(275
|
)
|
||||
Changes in short-term bank credit
|
(19,455
|
)
|
4,231
|
|||||
Receipt of long-term bank loans
|
17,000
|
-
|
||||||
Repayment of long-term bank loans
|
(264
|
)
|
(254
|
)
|
||||
Repayment of long-term loans from others
|
(1,142
|
)
|
(1,206
|
)
|
||||
Repayment of other long-term liabilities
|
(24
|
)
|
(69
|
)
|
||||
Employee options exercised
|
896
|
96
|
||||||
Principal lease payments
|
(586
|
)
|
(574
|
)
|
||||
Net cash provided by (used in) financing activities
|
58,026
|
1,949
|
||||||
Increase (Decrease) in cash and cash equivalents
|
30,553
|
(832
|
)
|
|||||
Balance of cash and cash equivalents at beginning of period
|
38,386
|
33,880
|
||||||
Gains (losses) from exchange differences on cash and cash equivalents
|
(471
|
)
|
113
|
|||||
Gains from translation differences on cash and cash equivalents of foreign activity operations
|
101
|
51
|
||||||
Balance of cash and cash equivalents at end of period
|
68,569
|
33,212
|
Three months ended
March 31 |
||||||||
2024
|
2023
|
|||||||
U.S. dollars in thousands
|
||||||||
Appendix A – adjustments to reconcile net loss to net cash provided by operations:
|
||||||||
Adjustments in respect of:
|
||||||||
Depreciation and amortization
|
4,518
|
2,627
|
||||||
Post-employment benefit obligations, net
|
4
|
4
|
||||||
Deferred taxes
|
(489
|
)
|
(36
|
)
|
||||
Finance expenses, net
|
812
|
(211
|
)
|
|||||
Expenses in respect of long-term employee benefits
|
300
|
60
|
||||||
Share of loss of equity method investee
|
290
|
358
|
||||||
Long-term deferred income
|
309
|
(26
|
)
|
|||||
Expenses in respect of share-based compensation
|
1,453
|
1,560
|
||||||
Total adjustments
|
7,197
|
4,336
|
||||||
Changes in operating asset and liability items:
|
||||||||
Increase in restricted cash transferable to customers for processing activity
|
(4,092
|
)
|
(9,963
|
)
|
||||
Increase in receivables from processing activity
|
(22,391
|
)
|
(2,361
|
)
|
||||
Decrease (Increase) in trade receivables
|
395
|
(2,432
|
)
|
|||||
Decrease (Increase) in other current assets
|
(653
|
)
|
999
|
|||||
Decrease (Increase) in inventory
|
544
|
(3,582
|
)
|
|||||
Increase in payables in respect of processing activity
|
25,953
|
16,415
|
||||||
Increase (Decrease) in trade payables
|
(4,384
|
)
|
2,484
|
|||||
Increase in other payables
|
2,527
|
516
|
||||||
Total changes in operating asset and liability items
|
(2,101
|
)
|
2,076
|
|||||
Total adjustments to reconcile net loss to net cash provided by operations
|
5,096
|
6,412
|
||||||
Appendix B – Information regarding investing and financing activities not involving cash flows:
|
||||||||
Purchase of property and equipment in credit
|
6
|
35
|
||||||
Acquisition of right-of-use assets through lease liabilities
|
521
|
96
|
||||||
Share based payments costs attributed to development activities, capitalized as intangible assets
|
124
|
231
|
Quarter ended as of
(U.S. dollars in
thousands)
|
||
Mar 31, 2024
|
Mar 31, 2023
|
|
Loss for the period
|
(4,956)
|
(5,527)
|
Finance expense, net
|
2,388
|
78
|
Tax benefit (Income tax expense)
|
(239)
|
259
|
Depreciation and amortization
|
4,518
|
2,631
|
EBITDA
|
1,711
|
(2,559)
|
Expenses in respect of share-based compensation
|
1,453
|
1,560
|
Non-recurring issuance (1)
|
128
|
-
|
Share of loss of equity method investee (2)
|
290
|
358
|
ADJUSTED EBITDA
|
3,582
|
(641)
|
(1) |
Consists primarily of fees and expenses, other than underwriter discount and commissions, incurred in connection with our March 2024 underwritten U.S. public offering.
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(2) |
Equity method investee is related to our 2021 investment in Tigapo and IOT Technologies.
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