Nayax Ltd. Reports Strong Revenue Growth and Strategic Expansions

Nayax Ltd. ((IL:NYAX)) has held its Q1 earnings call. Read on for the main highlights of the call.

Nayax Ltd. recently held its earnings call, showcasing a strong start to the fiscal year with significant revenue growth and strategic expansions. The company expressed optimism despite facing challenges such as foreign currency volatility and negative free cash flow. Overall, the sentiment was positive, highlighting Nayax’s confidence in its growth trajectory and strategic initiatives.

Strong Revenue Growth

Nayax reported a remarkable 27% increase in revenue over Q1 2024, reaching $81 million. On a constant currency basis, the revenue growth was even higher at 28%, totaling $82 million. This robust performance underscores the company’s successful strategies in expanding its market presence.

Increase in Recurring Revenue

The company saw a substantial 35% growth in recurring revenue compared to Q1 2024. Recurring revenue now accounts for 77% of Nayax’s total revenue, up from 72% in the same quarter last year. This increase highlights the company’s focus on building a stable and predictable revenue stream.

Expansion of Customer Base

Nayax’s customer base expanded by more than 30% since Q1 2024, now exceeding 100,000 customers. This growth reflects the company’s successful efforts in attracting new clients and strengthening its market position.

Growth in Managed Devices

The installed base of managed and connected devices grew by 20% since Q1 2024, reaching over 1.3 million devices. This expansion is indicative of Nayax’s technological advancements and its ability to meet increasing customer demands.

Profitability Increase

Nayax achieved an adjusted EBITDA of $9.7 million, representing 12% of total revenue, a significant improvement from 6% in the previous year. This increase in profitability demonstrates the company’s effective cost management and operational efficiency.

Strategic Acquisitions

The company made strategic acquisitions, including UPPay and increased its ownership in Tigapo to 84%. Additionally, Nayax acquired Inpro Pay in the Benelux region, further strengthening its market position and expanding its service offerings.

Impact of Foreign Currency Volatility

Nayax experienced a revenue impact of approximately $700,000 due to foreign currency volatility during the quarter. Despite this challenge, the company remains optimistic about its financial performance and strategic initiatives.

Negative Free Cash Flow

The company reported a negative free cash flow of $5.7 million for the quarter, primarily due to the timing of cash settlements from processing activities. Nayax is addressing these challenges to improve its cash flow position in the future.

Forward-Looking Guidance

Nayax provided positive guidance for the fiscal year, projecting a revenue growth of 30% to 35% and an adjusted EBITDA range of $65 million to $70 million. The company remains committed to expanding its market share, enhancing its recurring revenue mix, and exploring strategic M&A opportunities while prioritizing organic growth.

In conclusion, Nayax Ltd.’s earnings call reflected a positive sentiment with strong revenue growth, strategic expansions, and a focus on profitability. Despite challenges such as foreign currency volatility and negative free cash flow, the company remains optimistic about its future growth and strategic initiatives.