Nayax Ltd. Reports Strong Earnings and Growth

Nayax Ltd. ((IL:NYAX)) has held its Q4 earnings call. Read on for the main highlights of the call.

Nayax Ltd. recently held its earnings call, revealing a robust financial performance characterized by record revenue growth, a substantial increase in EBITDA, and positive free cash flow. The company also highlighted an expanded customer base and strategic partnerships, all of which support its future growth trajectory. Despite facing challenges such as certification delays and currency volatility, these issues did not overshadow the overall positive outcomes of the call.

Record Revenue and Growth

Nayax reported a record revenue of $315.2 million for 2024, marking a 34% increase on a constant currency basis, aligning with their guidance. The recurring revenue saw a significant growth of 47%, now making up 71% of the total revenue, underscoring the company’s strong market position and consistent performance.

Strong Adjusted EBITDA Growth

The company’s adjusted EBITDA surged more than fourfold to $35.5 million, surpassing the guidance provided earlier. This impressive growth indicates that approximately 30% of the incremental revenue growth has effectively scaled into adjusted EBITDA, showcasing Nayax’s operational efficiency.

Positive Free Cash Flow

Nayax achieved a positive free cash flow of $18 million for the year, successfully converting more than 50% of its adjusted EBITDA into free cash flow. This financial health indicator highlights the company’s ability to generate cash and reinvest in its growth strategies.

Expanding Customer Base and Devices

The company expanded its customer base by 32%, reaching over 95,000 customers. Additionally, the install base of managed connected devices grew by 21% to 1,260,000 devices, reflecting Nayax’s successful market penetration and customer retention strategies.

Strategic Partnerships and Expansion

Nayax formed notable partnerships with companies like CandyMachines in the US and Pelican Group, while also expanding into Latin America with a launch in El Salvador. Agreements with Tesco and other large buying groups in Europe further cement Nayax’s strategic expansion efforts.

Challenges in Certification Delays

The company faced delays in the certification processes for its POS systems, which impacted the rollout and growth expectations. Despite these challenges, Nayax remains optimistic about overcoming these hurdles in the near future.

Currency Volatility Impact

Nayax’s revenue was impacted by approximately $1.2 million due to foreign currency volatility. While this posed a challenge, the overall financial performance remained strong, mitigating the adverse effects of currency fluctuations.

Forward-Looking Guidance

Looking ahead to 2025, Nayax is aiming for a revenue growth of 30% to 35% and an adjusted EBITDA between $65 million and $70 million. The company plans to continue expanding its market presence and enhancing profitability, building on the momentum of its recent achievements.

In summary, Nayax Ltd.’s earnings call painted a positive picture of the company’s financial health and strategic direction. With record revenue growth, increased profitability, and strategic expansions, Nayax is well-positioned for continued success despite minor challenges. Investors and stakeholders can look forward to the company’s ambitious growth targets for 2025.