Nayax Ltd. · TASE:NYAX
Nayax — Q3 2024 Earnings Presentation
29 slides from Nayax's earnings presentation, Nov 12, 2024
Slide 1: Nayax Q3 2024 Earnings Presentation
Nayax Q3 2024 Earnings Presentation Nov 12, 2024 1
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 • Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, we undertake no the C
Slide 3: Today's Presenters
Today’s Presenters Yair Nechmad Sagit Manor CEO & Co-Founder CFO 3
Slide 4: Company Overview
Company Overview 4
Slide 5: Company Overview
Company Overview Global offices Countries with devices Markets with distributors 11 120+ 80+ No. of Employees Payment Methods Currencies 1,100+ 80+ 50+ 5
Slide 6: Nayax Q3-24 at a Glance
Nayax (Nasdaq & TASE: NYAX) Q3-24 at a Glance Managed & connected End customers Transactions value devices Sep. 2023: 60k ▲52% processed Sep. 2023: 874K ▲40% Sep. 2023: 989M ▲32% Scale 1.23M 91k $1.3B Revenue Gross Margins Adj. EBITDA(1) Sep. 2023: $60M ▲38% Sep. 2023: 38.1% Sep. 2023: $3.5M ▲217% F
Slide 7: Retaining and Growing Customers
Retaining and Growing Customers 144% 3.6% 3.7% 137% 131% 130% 2.8% 2.6% 2021 2022 2023 Q3-2024 YTD 2021 2022 2023 Q3-2024 YTD YoY Dollar-Based Net Retention Rate (1) YoY Revenue Churn Rate (2) (1) Net retention rate based on SaaS revenue and payment processing fees (2) The percentage of revenue lost
Slide 8: Bringing a Global Solution to the Local Market
Bringing a Global Solution to the Local Market Low Customer Concentration Global Revenue Diversification 8% 5% 9% 7% 38% 4% 11% Top 3 North America Top 4-10 Europe 7% Top 11-20 UK Top 21-50 Rest of the World Others Oceania 12% Israel 74% 25% 8
Slide 9: Bringing Scaled Solutions to Large TAM
Bringing Scaled Solutions to Large TAM Vending Micro Markets Hotels and Hospitality Transportation Office Coffee Service Kiddie & Amusement Rides Beauty Professionals EV Charging Car Wash Massage Chair Food Truck Parking Special Retail Family Entertainment Cafeterias and Canteens Forecourt Centers L
Slide 10: Nayax Solves Multi-Dimensional Challenges Across the Ecosystem
Nayax Solves Multi-Dimensional Challenges Across the Ecosystem Omni-Channel Back Office / Operations Reporting Unattended In-store Mobile Online Accounting Multiple Payment Methods: Schemes, Global Acquirers, Alternative Payment Methods, Digital Wallets Inventory Consumers Retailers Data Analytics /
Slide 11: Driving Growth with One Complete Solution for all Retailers
Driving Growth with One Complete Solution for all Retailers Actionable Integrated POS Cashless Payments Loyalty & Marketing Finance Management Platform VPOS Touch Nova Market Global acceptance of local Manage everything for every Financing, payout and banking Multiple POS options Loyalty out of the
Slide 12: Recent Key Business Highlights
Recent Key Business Highlights Smart cart integration with Cust2Mate Nayax and A2Z Cust2Mate Solutions Corp. have announced a strategic partnership to integrate Nayax’s automated self- service mobile payment system with A2Z Cust2Mate’s cart Launch of Energy EV Kiosk platform for smart retail stores.
Slide 13: Organic Growth Strategy for Sustained Long-term Profitable Growth
Organic Growth Strategy for Sustained Long-term Profitable Growth Continued Execution on Strategic Growth Plan While Remaining Focused on Balancing Top Line Growth Win New Large Continue To Continue Enter Emerging, Retain And Grow Enterprise and SMB Innovate & Develop To Expand High-Growth With Exis
Slide 14: Inorganic Growth: Three Pillars of M&A
Inorganic Growth: Three Pillars of M&A • Adding key technologies to the platform to accelerate development in key strategic verticals • Focus on "tuck-in" M&As with synergistic technologies Technological Upgrade • A focus on strategically leveraging channel • Acquires distributors and payment soluti
Slide 15: Financial Overview
Financial Overview 15
Slide 16: Complete end-to-end solutions secure solid recurring revenue
Complete end-to-end solutions secure solid recurring revenue Device Revenue Recurring Revenue 1. Hardware 2. SaaS 3. Processing Fee VPOS Touch Onyx • Global, localized cashless payment VPOS Media Nova Market acceptance for maximized conversion • SaaS management system for • Full payment suite – EMV
Slide 17: Our Business Model is Working
Strong Revenue Growth ($m) Our Business Model is Working CAGR 41% 38% 250 235 174 84 200 150 119 69 Highlights 83.0 • Q3 revenue grew 38% YoY 48 100 151 60.3 23.1 50 105 20.1 • Benefited from faster growing recurring 71 40.2 59.9 revenues, growth in sold units and - 2021 2022 2023 Q3-2023 Q3-2024 co
Slide 18: Significant Improvements In Gross Margin
Significant Improvements In Gross Gross Profit ($m) Margin 40.4% 34.6% 37.5% 38.1% 45.7% 100 CAGR 35% 88 65% 50. 0% 90 45. 0% 80 16 40. 0% Highlights 70 60 35. 0% 48 6 60 30. 0% • Q3 gross profit grew 65% YoY 50 38.0 25. 0% 8 72 40 20. 0% 23.0 7.9 54 Significant reduction in processing costs 30 15.
Slide 19: Moderating Expenses & Higher Operating Efficiencies
Moderating Expenses & Higher Operating R&D Expense ($m) (1) Efficiencies 25 21 21 27% 20 17 2 2 2 Highlights 15 • Q3 R&D grew 27% YoY 10 19 19 6.5 15 5.1 0.6 5 0.5 • Primarily due to investment in talent 4.6 5.9 acquisitions as well as additional costs - 2021 2022 2023 Q3-2023 Q3-2024 related to our
Slide 20: Improved Profitability From Margins Expansion And Higher Operating Efficiencies
Improved Profitability From Margins Expansion Adjusted EBITDA ($m) (1) And Higher Operating Efficiencies 217% Highlights • Q3 Adj. EBITDA grew strongly 217% YoY 15.0 • Positive $11.1 million in Q3 2024, a 11.1 marked improvement of $7.6 million 10.0 8.2 from Q3 2023. This impressive growth demonstra
Slide 21: Consistent Track Record Of Expanding Footprint
Consistent Track Record Number of Customers (thousands) Of Expanding Footprint CAGR 56% 52% 91 72 Highlights 60 47 • Q3 2024 reflects momentum in customer base expansion, with YoY growth of 52%, across all geographies 30 • Significant increase in customer base with high net retention rate at 130% an
Slide 22: Global Cashless Payment Trends Driving Transactions
Global Cashless Payment Transaction value ($m) Trends Driving Transactions CAGR 60% 32% $3,645 Highlights $2,371 32% Growth in Q3 2024 YoY $1,425 $1,310 $989 • Growth across all geographies driven by trends in consumer behavior and increased transactions processed 2021 2022 2023 Q3-2023 Q3-2024 Numb
Slide 23: 2024 Outlook
2024 Outlook(1) Metric FY 2024 Guidance Assumptions Revenue expectations $315m - $320m • Customer demand continues to be strong • Assumes no material changes in macroeconomic conditions Revenue growth YoY 35% at Mid-Point Hardware margins Above 30% Adjusted EBITDA $30m - $35m (Expected to be at high
Slide 24: Mid-Term and Long-Term Outlook
Mid-Term and Long-Term Outlook (1) 2025 Preliminary Outlook • Looking ahead, we remain excited about our strong long-term growth drivers and Adjusted EBITDA At least 15% the large market opportunities ahead of us. • Our durable business model is demonstrated Mid-Term Outlook by our diverse customers
Slide 25: Appendix
Appendix 25
Slide 26: Higher Operating Efficiencies
Higher Operating Efficiencies Depreciation and Amortization ($m) 12.4 13.0 84% 11.0 2.2 9.0 3.1 9.0 7.2 1.8 7.0 1.1 0.7 5.9 2.3 1.5 0.6 Highlights 5.0 0.8 0.7 3.2 1.9 6.4 0.2 • Q3 D&A grew 84% YoY 3.0 4.3 0.5 0.7 3.8 0.2 3.2 1.0 1.8 • Increase in Q3 2024 YoY primarily due to -1.0 2021 2022 2023 Q3-2
Slide 27: IFRS to Non-IFRS Reconciliation
IFRS to Non-IFRS Reconciliation Quarter ended as of (U.S. dollars in thousands) Sep 30, Sep 30, 2024 2023 Net Profit/Loss for the period 692 (3,094) Finance expense, net 329 1,237 Income tax expense 431 384 Depreciation and amortization 5,934 3,219 EBITDA 7,386 1,746 Expenses in respect of share-bas
Slide 28: Key Definitions
Key Definitions Managed & End Customers Recurring Revenue Revenue Churn Existing Customer Free Cash Flow Connected Expansion Devices that are Customers that SAAS revenue and Revenue generated within a operated by our contributed to Nayax payment processing The percentage of given cohort over the yea
Slide 29: Thank You!
Thank You! IR Contact Website Aaron Greenberg ir.nayax.com Chief Strategy Officer IR@nayax.com 29