Slide 1: Nayax Q3 Earnings Presentation
Nayax Q3 Earnings Presentation Nov 7, 2023
Slide 2: Important Disclosure
Important Disclosure This presentation is intended to provide general information only and is not, and should not be considered, as an offer to purchase or sell the Company’s securities, or a proposal to receive such offers. In addition, this presentation is not an offer to the public of the Company
Slide 3: Today's Speakers
Yair Nechmad CEO and Co-Founder Today’s Speakers Sagit Manor CFO
Slide 4: Company Overview
G Company S” Overview
Slide 5: Our Vision and Mission
Our Vision and Mission OUR VISION Redefining commerce to benefit communities around the world OUR MISSION To simplify commerceand payments for retailers while driving growth, optimizing operations,and enhancing consumer engagement
Slide 6: Nayax Q3 23 at a Glance
Recurring revenue includes SaaS revenue and payment processing fees Based on SaaS revenue and payment processing fees. Nayax (Nasdaq & TASE: NYAX) Q3 23 at a Glance Global offices 9 Customer YOY growth 43% Revenue churn 3.6% Markets with distributors 46 Countries with devices 80+ Payment methods 80+
Slide 7: Bringing a Global Solution to the Local Market
Bringing a Global Solution to the Local Market 1 Based on SaaS revenue and payment processing fees. See definition in the Appendix. YoY Revenue Churn Rate Retaining & Growing Customers YoY Revenue Churn Rate YoY Dollar-Based Net Retention Rate1 Low CustomerConcentration Global Reach Strong Track Rec
Slide 8: Nayax's platform increases sales and decreases costs for retailers
Nayax’s platform increases sales and decreases costs for retailers Telemetry and Software Consumers Omni-Channel Acceptance, Consumer Engagement & Loyalty Increase Sales Pricing Remote Monitoring Reporting Reconciliation Dynamic Routing/ Inventory Management Telemetry / IoT Data Collection Decrease
Slide 9: Recent Key Business Highlights
Recent Key Business Highlights Implemented our first Hospitality solution in the Netherland. Includes a unique offering allowing loyalty to be used between different channels. Recently launched the Food & Beverage (F&B) module in Israel. Won major opportunity with a leading online food ordering plat
Slide 10: Proven Growth: Existing Customer Expansion
Proven Growth Existing Customer Expansion ($m) (1) (1) See Appendix for definition of existing customer expansion. For example, revenue from new customers in 2018 grew more than 5 times over the next 4 years. Land and Expand Solving pain points with a scalable, solution-driven sales approach Increa
Slide 11: Strategy for Sustained Long-term Growth
Strategy for Sustained Long-term Growth Retain and grow with existing customers Continue to innovate and develop new solutions Win new large enterprise and SME customers globally Pursue targeted and strategic M&A Continue to expand internationally Enter emerging, high-growth verticals Nayax continue
Slide 12: "One Nayax" Strategy Accelerates Execution of Growth Strategy
"One Nayax" Strategy Accelerates Execution of Growth Strategy "One Nayax” Embedded payment solution Embedded payment solution Embedded financing solution Embedded payment solution Converting loyalty assets to currency Embedded payment solution Omni channel marketing platform New Innovative platform
Slide 13: Financial Overview
Financial Overview
Slide 14: Powerful business model built on solid recurring revenue
Powerful business model built on solid recurring revenue Source: company data Multi Layers of Value Creation ~60% Recurring Revenue Processing fee as % of transaction volume Monthly Subscription Fee (SaaS) per connected POS Purchase fee per sold connected POS “Lock in” Consistently growing recurring
Slide 15: Our Business Model is Working
Highlights Q3 gross Profit grew 37% YoY An increased shift to higher processing payment fees than SaaS revenue. Gross margin was in-line with Q2 2023. Highlights Q3 Gross margin grew 46% YoY The improvement was mainly attributed to hardware gross margin improvement. Highlights Q3 recurring revenue g
Slide 16: Improved Profitability from Moderating Expenses and Higher Operating Efficiencies
Highlights Adjusted EBITDA was a positive $3.5 million, a marked improvement of $7.2 million to Adjusted EBITDA compared to negative $3.7 million in Q3 2022. Depreciation and Amortization ($m) Highlights Increase in Q3 2023 YoY primarily due to investment in automation. Highlights 4% Increase in Q3
Slide 17: Consistent Track Record Of Expanding Footprint
Consistent Track Record Of Expanding Footprint Highlights Q3 2023 reflects momentum in customer base, with YoY growth of 43%, across all geographies Significantly increasing and retaining customer base with high net retention rate at 145% and low churn rate at 3.6% Number of Customers (thousands) Nu
Slide 18: Global Cashless Payment Trends Driving Transactions
Global Cashless Payment Trends Driving Transactions Transaction value ($m) Highlights 61% Growth in Q3 2023 YoY Growth across all geographies driven by consumer behavior trends, and increased transactions processed from our expanding, global customer base Number of Transactions (millions) Highlights
Slide 19: 2023 Outlook
2023 Outlook (1) We cannot reconcile expected 2023 Adjusted EBITDA to expected net income without unreasonable effort because certain items that impact net income and other reconciling metrics are out of our control and/or cannot be reasonably predicted at this time, which unavailable information co
Slide 20: Summary
Summary Founder-led mentality with a mission and performance culture. Growth exposure to large and underpenetrated global markets for cashless payment adoption and secular tailwinds driving growth in our core unattended market. Ability to expand total addressable market and drive additional SaaS rev
Slide 21: Mid-Term and Long-Term Outlook
Looking ahead, we remain excited about our strong long-term growth drivers and the large market opportunities ahead of us. Our durable business model is demonstrated by our diverse customers, verticals and geographies. With strong secular tailwinds and with our high net revenue retention rate, we be
Slide 22: Appendix
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Slide 23: Higher CAPEX
Highlights 13% Growth YOY in Q3 2023 Primarily due to additional capitalized development expenditure Higher CAPEX Capex ($m) 13%
Slide 24: IFRS to Non-IFRS
IFRS to Non-IFRS (1) Equity method investee is related to our 2021 investment in Tigapo. (2) For historical years comparison (2020-2022), when excluding (i) product costs increase due to global components shortage (ii) bonus plan for non-sales employees that was introduced in Q3 2021, Adjusted EBITD
Slide 25: Historical 2020-2022 IFRS to Non-IFRS
Historical 2020-2022 IFRS to Non-IFRS Consists primarily of (i) fees and expenses, other than underwriter discount and commissions, incurred in connection with our May 2021 initial public offering on the TASE and (ii) expenses incurred in connection with our listing on Nasdaq in September 2022. Equi
Slide 26: Key Definitions
Key Definitions Managed and ConnectedDevices that are operated by our customers. End CustomersCustomers that contributed to Nayax revenue in the last 12 months. Recurring RevenueSAAS revenue and payment processing fees. Dollar-based net retention rateMeasured as a percentage of revenue from returnin
Slide 27: Thank you!
Thank you! IR Contact: Virginea Stuart Gibson VP, Investor Relations virgineas@nayax.com Virgineas@nayax.com Virgineas@nayax.com Website: ir@nayax.com