• Revenue: $315.2 million for 2024, a 34% increase on a constant currency basis.
• Adjusted EBITDA: $35.5 million, more than 4 times increase, exceeding guidance.
• Free Cash Flow: $18 million for the year, converting over 50% of adjusted EBITDA.
• Recurring Revenue: Grew 47% and represents 71% of total revenue.
• Total Transaction Value: Increased 36% to nearly $5 billion.
• Customer Base: Expanded 32% to over 95,000 customers.
• Managed Connected Devices: Grew 21% to 1,260,000 devices.
• Gross Margin: Improved to 45.1% from 37.5% in the previous year.
• Net Income for Q4: $1.6 million, an improvement of $4.9 million from a loss in the previous year.
• Cash Position: $92.5 million in cash and cash equivalents and short-term deposits.
• 2025 Revenue Guidance: Expected growth of 30% to 35%, reaching $410 million to $425 million.
• 2025 Adjusted EBITDA Guidance: Between $65 million and $70 million.

• Warning! GuruFocus has detected 5 Warning Signs with NYAX.

Release Date: March 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nayax Ltd (NASDAQ:NYAX) achieved record revenue in 2024, with a 34% increase to $315.2 million on a constant currency basis.
• The company significantly improved its adjusted EBITDA, increasing it more than four times to $35.5 million, exceeding guidance.
• Recurring revenue grew by 47% for the full year, now representing 71% of total revenue, highlighting a successful shift towards high-margin subscription-driven revenue.
• Nayax Ltd (NASDAQ:NYAX) achieved positive free cash flow of $18 million, converting more than 50% of its adjusted EBITDA into free cash flow.
• The customer base expanded by 32%, reaching over 95,000 customers, and the install base of managing connected devices grew by 21% to 1,260,000 devices.

Negative Points

• Despite the positive results, Nayax Ltd (NASDAQ:NYAX) reported a loss of $5.6 million for the year, although this was an improvement from the previous year.
• The company faces risks and uncertainties that could impact future results, as highlighted in their forward-looking statements.
• There were certification delays on the POS side, which affected the mix of POS versus recurring revenue.
• The company is still working on integrating recent acquisitions, which could impact operational efficiency and costs in the short term.
• Foreign currency volatility had an impact of approximately $1.2 million on revenue, indicating exposure to currency fluctuations.

Q & A Highlights

Q: Can you discuss the 2025 guidance, particularly the minimum organic growth of 25% and the phasing between quarters? Also, how do you plan to maintain tight control over OpEx to support EBITDA growth? A: Sagit Manor, CFO: We are excited about the 30-35% year-over-year revenue increase, driven by expanding market share, customer base, and recurring revenue. The 25% organic growth reflects healthy growth across our unattended and attended businesses. The quarterly progression will mirror 2024, with Q1 slightly lower than Q4 2024, then growing to meet our guidance. Our adjusted EBITDA exceeded expectations due to margin expansion and OpEx efficiency. We expect OpEx to decrease as we integrate acquisitions, maintaining a 50% free cash flow conversion in 2025.

Q: How confident are you in achieving the 25% organic growth, given the 20% growth in Q3 and Q4? A: Yair Nechmad, CEO: We are confident due to our strong product-market fit and go-to-market strategy. Our OEM partnerships are crucial, providing low-cost customer acquisition. We have a robust partner in China and are signing contracts with many OEMs, which will drive organic growth. Additionally, our partnerships with ODMs, like SECO, enhance our market reach and support our growth strategy.

Q: Can you provide details on the M&A contribution to 2025 guidance and the pipeline? A: Aaron Greenberg, Chief Strategy Officer: Recent acquisitions, including Roseman Engineering and UPPay, contribute about $10 million to our inorganic growth. We are confident in our pipeline to bridge the gap for this year's targets. Our focus remains on geographic expansion, channel consolidation, and technology acquisitions, particularly in high-growth regions like Latin America and APAC.

Q: What is the outlook for ARPU growth in 2025, and what are the key drivers? A: Aaron Greenberg, Chief Strategy Officer: ARPU growth is driven by the conversion from cash to cashless transactions and the shift in our business mix towards higher ARPU verticals like micro markets and EV charging. We expect this trend to continue as we expand our existing devices and enter new high-volume verticals.

Q: How do you expect the payment processing gross margins to evolve in 2025? A: Sagit Manor, CFO: Our payment processing margin improved to 36.3% in Q4, driven by renegotiating acquirer contracts and implementing smart routing. We expect margins to remain around 34% in 2025, with continued efforts to expand and optimize our cost structure.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.