Nayax Ltd. · TASE:NYAX
Nayax — Q2 2023 Earnings Presentation
27 slides from Nayax's earnings presentation, Aug 9, 2023
Slide 1: Nayax Q2 Earnings Presentation
Nayax Q2 Earnings Presentation Aug 9, 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 Q2 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) Q2 23 at a Glance Global offices 9 Customer YOY growth 47% Revenue churn 4.1% 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 Q2 2023 Q2 2023
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 Oils Unkut is expanding in Nova Market in gas station stores. Recently launched the Food & Beverage (F&B) module in Israel Building presence in Hotel vertical, with three locations up and running. Added Synergy Energy as a new Tier 1 customer. Synergy Energy is Western
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: End-to-End Platform
"One Nayax" Strategy: End-to-End PlatformExpanding TAM and Driving SaaS "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
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: Highlights: Revenue and Gross Profit
Highlights Gross Profit grew 32% YoY. Q2 gross margin reflects an increased shift to higher processing payment fees than SaaS revenue. Highlights Q2 Gross margin improvement was mainly attributed to our hardware component cost management execution and favorable hardware selling prices. Highlights Hi
Slide 16: Improved Profitability from Moderating Expenses
Highlights Adjusted EBITDA was a positive $1.3 million for the first time in two years, since Q1 2021, a marked improvement of $4.5 million to Adjusted EBITDA compared to negative $3.2 million in Q2 2022. Depreciation and Amortization ($m) Highlights Increase in Q2 2023 YoY primarily due to investme
Slide 17: Consistent Track Record Of Expanding Footprint
Consistent Track Record Of Expanding Footprint Highlights Q2 2023 reflects momentum in customer base, with YoY growth of 47%, across all geographies Significantly increasing and retaining customer base with high net retention rate at 139% and low churn rate at 4.1% Number of Customers (thousands) Nu
Slide 18: Global Cashless Payment Trends Driving Transactions
Global Cashless Payment Trends Driving Transactions Transaction value ($m) Highlights 51% Growth in Q2 2023 YoY Growth across all geographies driven by consumer behavior trends, and increased transactions processed from our expanding, global customer base Number of Transactions (millions) Highlights
Slide 19: 2023 Outlook
2023 Outlook (1) We cannot reconcile expected 2023 Adjusted EBITDA to expected net income without unreasonable effort because certain items that impact net income and other reconciling metrics are out of our control and/or cannot be reasonably predicted at this time, which unavailable information co
Slide 20: Summary
Summary Founder-led mentality with a mission and performance culture. Growth exposure to large and underpenetrated global markets for cashless payment adoption and secular tailwinds driving growth in our core unattended market. Ability to expand total addressable market and drive additional SaaS rev
Slide 21: Mid-Term and Long-Term Outlook
Looking ahead, we remain excited about our strong long-term growth drivers and the large market opportunities ahead of us. Our durable business model is demonstrated by our diverse customers, verticals and geographies. With strong secular tailwinds and with our high net revenue retention rate, we be
Slide 22: Appendix
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Slide 23: Capex Highlights
Highlights 31% Growth YOY in Q2 2023 Increase primarily due to additional capitalized development expenditure CAPEX growth due to additional capitalization Capex ($m) 31%
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 (2018-2020), 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 2018-2022 IFRS to Non-IFRS
Historical 2018-2022 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 Equit
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