Nayax Reports Record Fourth Quarter and Full Year 2023 Financial Results
Nayax Ltd. reports impressive full-year financial results for 2023, with revenue reaching $235.5 million, a 36% YoY growth, and positive cash flow. The company also provides a strong revenue guidance of $325-335 million for 2024, showcasing a 38%+ YoY growth. Nayax emphasizes its focus on expanding its automated self-service platform and entering new markets, with a target of 50% gross margins and 30% adjusted EBITDA margin by 2028.
The reported 36% year-over-year growth in full-year revenue to $235.5 million by Nayax Ltd. indicates a robust expansion trajectory, which is particularly noteworthy in the context of a competitive payments and loyalty platform industry. The increase in gross margin from 34.6% to 37.5% suggests effective cost management and an enhanced profitability profile, possibly attributed to improved hardware margins. An operating loss reduction and a positive full-year cash flow from operations underscore operational efficiency and financial health. However, an operating loss of $12.4 million, despite being a reduction from the previous year, still raises questions about the company's path to profitability.
Investors should consider the forward-looking revenue guidance of $325-335 million for 2024, which forecasts a continued aggressive growth rate of over 38%. This projection, along with an anticipated adjusted EBITDA of $30-35 million, could signal confidence in the company's strategic direction and operational leverage. The high dollar-based net retention rate of 144% reflects strong customer satisfaction and hints at a sustainable recurring revenue model, which is critical for long-term valuation. However, the lack of IFRS net income reconciliation due to 'inherent difficulty in forecasting' could be a red flag for investors seeking full financial transparency.
Nayax's focus on scaling its core automated self-service platform and geographic expansion aligns with broader industry trends towards automation and global digital payment solutions. The milestone of 1,000,000 managed and connected devices showcases the company's ability to scale operationally. The acquisition of Retail Pro International, which is expected to triple the distributor network, presents potential for cross-selling opportunities and market penetration. However, the integration of such acquisitions also carries execution risk that could affect future performance.
Another key highlight is the company's strategic initiative to offer leasing options for IoT POS, which could enhance market penetration by lowering upfront costs for customers. This strategy, coupled with the growing SaaS revenue and payment processing fees, could be a significant driver for the projected 35% CAGR on revenue. Yet, investors should be mindful of the competitive landscape and the potential for market saturation in the payments space, which could affect long-term growth prospects.
The grant of a license for Nayax Financial services (NFS) from the UK FCA represents compliance with stringent financial regulations, which is a critical aspect for companies operating within the financial services sector. This regulatory approval not only enhances the company's credibility but also allows for the expansion of services within the UK market. However, the regulatory environment is dynamic and ongoing compliance will be essential to maintain operational status and avoid potential legal challenges that could impact financial performance.
Investors should note the regulatory considerations associated with the financial outlook provided by Nayax, which constitutes forward-looking information. The lack of IFRS net income reconciliation due to 'inherent difficulty in forecasting' may also have legal implications regarding the transparency and reliability of financial disclosures. While forward-looking statements are common in the industry, they are subject to uncertainties and should be evaluated with caution.
02/28/2024 - 07:30 AM
Full y ear r evenue reached $23 5.5 million , representing 36% YoY growth; r ecurring revenue up 44 % YoY
Positive full year c ash flow from operations – $ 8.8 m illion
2024 full year r evenue g uidance of $ 3 25 -3 3 5 million , representing 3 8 % + YoY g rowth ; 2024 full year a djusted EBITDA guidance of $ 30-35 m illion (1)
HERZLIYA, Israel, Feb. 28, 2024 (GLOBE NEWSWIRE) -- Nayax Ltd. ( Nasdaq : NYAX , TASE: NYAX) , a global commerce payments and loyalty platform designed to help merchants scale their business, today announced its financial results for the fourth quarter and full year 2023.
Management Commentary
“2023 was a fantastic year for Nayax from both a strategic and financial perspective. The inherent operating leverage in our business model continues to be a key driver of our improving margins, as we progress towards our long-term 2028 target of 50% gross margins and 30% adjusted EBITDA margin,” commented Yair Nechmad, Chief Executive Officer and Chairman of the Board.
“2023 also marked a big milestone for Nayax in which we crossed 1,000,000 managed and connected devices. Over the course of the year, we expanded our offering, advanced our level of automation in the company, and significantly improved our operational efficiency. Looking ahead, we see strong tailwinds as we continue to build on our core automated self-service platform and expand to other geographies.”
Sagit Manor , Chief Financial Officer added, “We ended 2023 with very strong fourth quarter results and we are set up very well for 2024, showcasing the strength and scalability of our business model. Recurring revenue grew by 44% year over year, making up 64% of our total 2023 revenue. Our dollar-based net retention rate remains healthy at 144% , which reflects strong customer satisfaction and loyalty for our comprehensive solutions.”
(1) The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income (loss) due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, in particular, because special items such as finance expenses and Issuance and acquisition costs used to calculate projected net income (loss) vary dramatically based on actual events. Therefore, the Company is not able to forecast on an IFRS basis with reasonable certainty all deductions needed in order to provide an IFRS calculation of projected net income (loss) at this time. The amount of these deductions may be material, and therefore could result in projected IFRS net income (loss) being materially less than projected adjusted EBITDA (non-IFRS).
Full Year 2023 Financial Highlights
( All comparisons are relative to the twelve -month period ended December 31, 2022, unless otherwise stated )
Revenue of $235.5 million , an increase of 36% year-over-year; recurring revenue from SaaS and processing fees increased 44% year-over-year, comprising 64% of total revenue. Gross margin improved to 37.5% from 34.6% mainly due to higher hardware margins, from 9% to 19% . Operating loss reduced to $12.4 million , compared to an operating loss of $34.0 million . Loss for the period improved by $21.6 million to $15.9 million or ($0.48) per share for 2023, compared to a net loss of $37.5 million , or ($1.14) per share. Adjusted EBITDA improved by $20.9 million to $8.2 million , compared to adjusted EBITDA loss of $12.7 million . Generated positive operating cash flow of $8.8 million and ended the year with $38 million in cash and cash equivalents. As of December 31, 2023, debt balances stood at $52.8 million , out of which approximately $20 million was used to acquire Retail Pro International. Total transaction value grew 54% to $3.65 billion . Number of processed transactions increased 41% to 1.84 billion. Fourth Quarter 2023 Financial Highlights
( All comparisons are relative to the three-month period ended December 31, 2022, unless otherwise stated )
Revenue of $66.6 million , an increase of 31% year-over-year; recurring revenue from SaaS and processing fees increased 43% year-over-year, comprising 63% of total revenue. Revenue Breakdown Summary Q4 2023 ($M) Q4 2022 ($M) Growth (%) SaaS revenue 16.2 12.8 27% Payment processing fees 26.0 16.8 55% Total recurring revenue (*) 42.2 29.6 43 % POS devices revenue (**) 24.4 21.3 15% Total revenue (***) 66.6 50.9 31%
(*) Recurring revenue comprised of SaaS revenue and payment processing fees. (**) POS devices revenue includes revenues that are derived from the sale of our hardware products. (***) Retail Pro P&L results are included for the first time in the fourth quarter of 2023
Gross margin improved to 39.9% from 33.4% mainly due to higher hardware margins, from 9% to 24% . Operating loss reduced to $2.0 million , compared to an operating loss of $7.4 million . Adjusted EBITDA improved by 6.5 million, to $4.0 million , compared to adjusted EBITDA loss of $2.5 million . Loss for the period reduced to $3.3 million , or ($0.10) per share, from a loss of $7.5 million or ($0.23) per share. Fourth Quarter Business and Operational Highlights
Customer expansion continued at a healthy pace, adding 12,000 new customers in the quarter, bringing the total customer base to over 72,000 as of December 31, 2023, an increase of 53% year-over-year. The number of customers includes 7,500 Retail Pro customers, which were included for the first time in Q4 2023. Dollar-based net retention rate remains high at 144% , reflecting strong customer satisfaction, while customer churn rate remained low at 3.4% . Nayax added 171,000 managed and connected devices during the quarter, driven by robust customer demand, bringing the total number of managed and connected devices to 1,044,000 as of year-end 2023, a year over year increase of 44% . The number of managed and connected devices includes 130,000 generated by Retail Pro, included for the first time in Q4 2023. Total transaction value increased by 43% to $975 million , and number of processed transactions grew by 35% to 511 million. On November 30, 2023, we acquired Retail Pro, a global leader in retail POS software with Tier 1 global brand names across the world and an extensive distribution network of over 80+ partner resellers. This transaction will triple our distributor network to over 120 partner resellers and will extend our scale and provide additional meaningful opportunities to cross-sell our payment solutions to Retail Pro’s customer base and their distribution channels. Success with Nayax’s new support hub rollout, increasing efficiencies, reducing technical support calls and case times to desired service level agreement (“SLA”). License granted for Nayax Financial services (NFS) from the UK FCA. Nayax transferred all UK customers from European licenses to NFS in line with regulation requirements. Started introducing Deferred Online functionality in readers on trains of the Deutsche Bahn (German Railways), enabling Nayax to increase card acceptance and sales in tunnels and regions with bad cellular network reception. Operational Metrics Summary
Key Performance Indicators Q4 2023 Q4 2022 Growth (%) Total transaction value ($m) 975 681 43% Number of processed transactions (millions) 511 378 35% Take rate % (payments) (*) 2.66% 2.47% 0.19% Managed and connected devices (**) 1,044,000 725,000 44%
(*) Payment service providers typically take a percentage of every transaction in exchange for facilitating the movement of funds from the buyer to the seller. Take rate % (payments) is calculated by dividing the total dollar transaction value by the Company’s processing revenue in the same quarter. (**) Number of managed and connected devices includes 130,000 generated by Retail Pro, included for the first time in Q4 2023.
Financial Outlook
For the full year 2024, management provided the following outlook:
Revenue is expected to be in the range of $325 million to $335 million (based on constant currency), representing year-over-year organic and inorganic growth of over 38% . Adjusted EBITDA is expected to be in the rangeof$30 t o $35 million as Nayax continues to scale its business.
Over the long term, management expects to maintain an approximate 35% CAGR on revenue, driven by organic growth initiatives and strategic M&A. The long-term adjusted EBITDA margin and gross margin target is 30% and 50% , respectively. Improvements over the coming years are expected to be driven by leasing options for IoT POS, growing SaaS revenue and payment processing fees, and emerging growth initiatives.
It is noted that the financial outlook provided by Nayax constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Please see the cautionary note regarding Forward-looking Statements below.
Conference Call s :
Nayax will host two conference calls and webcasts on February 28, 2023, the first in English and the other in Hebrew to discuss its fourth quarter and full year 2023 results. The call in English will be held at 8:30 a.m. Eastern Time, 3:30 p.m. Israel Time and 5:30 a.m. Pacific Time, followed by the conference call in Hebrew at 9:30 a.m. Eastern Time, 4:30 p.m. Israel time and 6:30 a.m. Pacific Time.
Participating on the calls will be Yair Nechmad, Chief Executive Officer and Sagit Manor, Chief Financial Officer.
For the conference call in English, we encourage participants to pre-register using the link below. Those who pre-register will be given a unique PIN to gain immediate access to the call, bypassing the live operator. Participants may pre-register any time, including up to and after the call/webcast start time. You will immediately receive an online confirmation, an email with the dial in number and a calendar invitation for the event.
To pre-register, go to: https://services.choruscall.ca/DiamondPassRegistration/register?confirmationNumber=10022962&linkSecurityString=1a935cf038
For those who are unable to pre-register, kindly join the conference call/webcast by using one of the dial-in numbers or clicking the webcast link below.
U.S. TOLL-FREE : 1-855-327-6837ISRAEL TOLL-FREE : 1-809-458-327INTERNATIONAL TOLL-FREE : 1-631-891-4304
WEBCAST LINK: https://viavid.webcasts.com/starthere.jsp?ei=1652425&tp_key=7561fc2df4
Participants may also register and join the conference call/webcast by visiting the Events section of the Nayax website, found here: Events
Following the conference call, a replay will be available until March 13, 2024. To access the replay, please dial one of the following numbers:
Replay TOLL-FREE: 1-844-512-2921Replay TOLL/INTERNATIONAL: 1-412-317-6671Replay Pin Number: 10022962
An archive of the audio webcast will be available on Nayax's Investor Relations website. Nayax - Investor Relations
To access the conference call/webcast in Hebrew, use the link with below:https://us02web.zoom.us/j/85105523849
Forward-Looking Statements
This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. Forward-looking statements include, but are not limited to, statements regarding our intent, belief, or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to of various factors, including, but not limited to: our expectations regarding general market conditions, including as a result of the COVID-19 pandemic and other global economic trends; changes in consumer tastes and preferences; fluctuations in inflation, interest rate and exchange rates in the global economic environment over the world; the availability of qualified personnel and the ability to retain such personnel; changes in commodity costs, labor, distribution and other operating costs; our ability to implement our growth strategy; changes in government regulation and tax matters; other factors that may affect our financial condition, liquidity and results of operations; general economic, political, demographic and business conditions in Israel , including ongoing military conflicts in the region ; the success of operating initiatives, including advertising and promotional efforts and new product and concept development by us and our competitors; factors relating to the acquisition of Retail Pro International , including but not limited to the financing for and payment of the acquisition and our ability to effectively and efficiently integrate the acquired business into our existing busines s; and other risk factors discussed under “Risk Factors” in our annual report on Form 20-F filed with the SEC on Feb 28 , 202 4 (our "Annual Report"). The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. The forward-looking statements are based on our beliefs, assumptions, and expectations of future performance, taking into account the information currently available to us. These statements are only estimates based upon our current expectations and projections about future events. There are important factors that could cause our actual results, levels of activity, performance, or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements. In particular, you should consider the risks provided under “Risk Factors” in our Annual Report. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, to conform these statements to actual results or to changes in our expectations.
Use of Non-IFRS Financial Information
In addition to various operational metrics and financial measures in accordance with accounting principles generally accepted under International Financial Reporting Standards, or IFRS, this press release contains Adjusted EBITDA, a non-IFRS financial measure, as a measure to evaluate our past results and future prospects .
Adjusted EBITDA
Adjusted EBITDA is a non-IFRS financial measure that we define as loss for the period plus finance expenses, tax expense, depreciation and amortization, share-based compensation costs, non-recurring issuance and acquisition related costs and our share in losses of associates accounted for by the equity method.
We present Adjusted EBITDA in this press release because it is a measure that our management and board of directors utilize as a measure to evaluate our operating performance and for internal planning and forecasting purposes. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
We believe that Adjusted EBIT D A, when taken collectively with financial measures prepared in accordance with IFRS, may be helpful to investors because it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies because it provides consistency and comparability with past financial performance. However, our management does not consider this non-IFRS measure in isolation or as an alternative to financial measures determined in accordance with IFRS.
Adjusted EBIT D A is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Adjusted EBIT D A may be different from similarly titled measures used by other companies. The principal limitation of Adjusted EBIT D A is that it excludes significant expenses that are required by IFRS to be recorded in our financial statements, as further detailed above. In addition, it is subject to inherent limitations as it reflects the exercise of judgment by management about which expenses are excluded or included in determining Adjusted EBIT D A.
A reconciliation is provided at the end of this press release for Adjusted EBIT D A to net loss, the most directly comparable financial measure prepared in accordance with IFRS. Investors are encouraged to review net loss and the reconciliation to Adjusted EBIT D A included below and to not rely on any single financial measure to evaluate our business.
Constant Currency
Nayax presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. Future expected results for transactions in currencies other than United States dollars are converted into United States dollars using the exchange rates in effect in the last month of the reporting period. Nayax provides this financial information to aid investors in better understanding our performance. These constant currency financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with IFRS.
The Company cannot provide expected 202 4 net income without unreasonable effort because certain items that impact net income are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s IFRS financial results.
About Nayax
Nayax is a global commerce enablement, payments and loyalty platform designed to help merchants scale their business. Nayax offers a complete solution including localized cashless payment acceptance, management suite, and loyalty tools, enabling merchants to conduct commerce anywhere, at any time. With foundations and global leadership in serving unattended retail, Nayax has transformed into a comprehensive solution focused on our customers' growth across multiple channels. Today, Nayax has 9 global offices, approximately 870 employees, connections to more than 80 merchant acquirers and payment method integrations and is a recognized payment facilitator worldwide. Nayax's mission is to improve our customers' revenue potential and operational efficiency. For more information, please visit www.nayax.com
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NAYAX LTD. NAYAX LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31 2023 2022 (Audited) Note U.S. dollars in thousands ASSETS CURRENT ASSETS: Cash and cash equivalents 7 38,386 33,880 Restricted cash transferable to customers for processing activity 8 49,858 34,119 Short-term bank deposits 1,269 83 Receivables in respect of processing activity 43,261 25,382 Trade receivable, net 9 41,300 27,412 Inventory 20,563 23,807 Other current assets 8,772 5,777 Total current assets 203,409 150,460 NON-CURRENT ASSETS: Long-term bank deposits 2,304 1,336 Other long-term assets 5,883 2,948 Investment in associate 5,024 6,579 Right-of-use assets, net 10 5,341 7,381 Property and equipment, net 11 5,487 6,668 Goodwill and intangible assets, net 12 96,411 55,116 Total non-current assets 120,450 80,028 TOTAL ASSETS 323,859 230,488
NAYAX LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31 2023 2022 (Audited) Note U.S. dollars in thousands LIABILITIES AND EQUITY CURRENT LIABILITIES: Short-term bank credit 13 47,477 7,684 Current maturities of long-term bank loans 13 1,101 1,052 Current maturities of loans from others and other long-term liabilities 14, 15 5,422 4,126 Current maturities of lease liabilities 10 2,145 2,206 Payables in respect of processing activity 104,523 63,336 Trade payables 17,464 14,574 Other payables 25,650 17,229 Total current liabilities 203,782 110,207 NON-CURRENT LIABILITIES: Long-term bank loans 13 327 1,444 Long-term loans from others and other long-term liabilities 14,15 14,476 7,062 Post-employment benefit obligations, net 427 403 Lease liabilities 10 4,149 5,944 Deferred income taxes 16 3,108 793 Total non-current liabilities 22,487 15,646 TOTAL LIABILITIES 226,269 125,853 EQUITY: 17 Shareholders Equity: Share capital 8 8 Additional paid in capital 153,524 151,406 Capital reserves 9,643 9,771 Accumulated deficit (65,585) (56,550) TOTAL EQUITY 97,590 104,635 TOTAL LIABILITIES AND EQUITY 323,859 230,488
NAYAX LTD. CONSOLIDATED STATEMENTS OF PROFIT OR LOSS Year ended December 31 2023 2022 2021 (Audited) U.S. dollars in thousands Note (Excluding loss per share data) Revenues 18 235,491 173,514 119,134 Cost of revenues 19 (147,198) (113,476) (70,970) Gross Profit 88,293 60,038 48,164 Research and development expenses 20 (21,928) (22,132) (19,040) Selling, general and administrative expenses 21 (70,320) (64,092) (45,379) Depreciation and amortization in respect of technology and capitalized development costs 12 (6,430) (4,268) (3,810) Other expenses 1a,6b (444) (1,790) (1,879) Share of loss of equity method investee (1,555) (1,794) (538) Loss from ordinary operations (12,384) (34,038) (22,482) Finance expenses, net 22 (2,288) (3,020) (1,655) Loss before taxes on income (14,672) (37,058) (24,137) Tax expenses 16 (1,215) (451) (632) Loss for the year (15,887) (37,509) (24,769) Attribution of loss for the year: To shareholders of the Company (15,887) (37,509) (24,763) To non-controlling interests - - (6) Total (15,887) (37,509) (24,769) Loss per share attributed to shareholders of the Company: Basic and diluted loss per share 23 (0.479) (1.143) (0.820)
NAYAX LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year ended December 31 2023 2022 2021 (Audited) U.S. dollars in thousands Loss for the year (15,887) (37,509) (24,769) Other comprehensive income (loss) for the year: Items that will not be recycled to profit or loss: Gain (loss) from remeasurement of liabilities (net) in respect of post-employment benefit obligations - 146 431 Items that may be recycled to profit or loss: Gain (loss) from translation of financial statements of foreign activities (170) (374) 87 Gains on cash flow hedges 42 - - Total comprehensive loss for the year (16,015) (37,737) (24,251) Attribution of total comprehensive income (loss) for the year: To shareholders of the Company (16,015) (37,737) (24,181) To non-controlling interests - - (70) Total comprehensive loss for the year (16,015) (37,737) (24,251)
NAYAX LTD. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Equity attributed to shareholders of the Company Share capital Additional Remeasurement Other Foreign Accumulated deficit Total equity Non- controlling interests Total equity U.S. dollars in thousands Balance at January 1, 2021 7 16,689 (329 ) 9,324 243 (13,433 ) 12,501 - 12,501 Loss for the year - - - - - (24,763 ) (24,763 ) (6 ) (24,769 ) Other comprehensive income (loss) for the year - - 431 - 151 - 582 (64 ) 518 Non-controlling interests from business combination - - - - - - - 1,530 1,530 IPO (See note 1a2) 1 132,559 - - - - 132,560 - 132,560 Transactions with non-controlling interests - - - 205 - - 205 (1,460 ) (1,255 ) Business combination under common control - - - (26 ) - - (26 ) - (26 ) Employee options exercised * 1,118 - - - - 1,118 - 1,118 Share-based payment - - - - - 9,499 9,499 - 9,499 Balance at December 31, 2021 8 150,366 102 9,503 394 (28,697 ) 131,676 - 131,676 Changes during the year; Loss for the year (37,509 ) (37,509 ) (37,509 ) Other comprehensive income (loss) for the year - - 146 - (374 ) - (228 ) - (228 ) Employee options exercised * 1,040 - - - - 1,040 - 1,040 Share-based payment - - - - - 9,656 9,656 - 9,656 Balance at December 31, 2022 8 151,406 248 9,503 20 (56,550 ) 104,635 - 104,635 Changes during the year; Loss for the year - - - - - (15,887 ) (15,887 ) - (15,887 ) Other comprehensive (loss) for the year - - - 42 (170 ) - (128 ) - (128 ) Employee options exercised * 2,118 - - - - 2,118 - 2,118 Share-based payment - - - - - 6,852 6,852 - 6,852 Balance at December 31, 2023 8 153,524 248 9,545 (150 ) (65,585 ) 97,590 - 97,590 *Presents less than 1 thousand
NAYAX LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS Year ended December 31 2023 2022 2021 (Audited) U.S. dollars in thousands CASH FLOWS FROM OPERATING ACTIVITIES: Net loss for the year (15,887) (37,509) (24,769) Adjustments required to reflect the cash flow from operating activities (see Appendix A) 24,685 9,962 11,963 Net cash provided by (used in) operating activities 8,798 (27,547) (12,806) CASH FLOWS FROM INVESTING ACTIVITIES: Capitalized development costs (15,948) (13,706) (6,059) Acquisition of property and equipment (611) (1,518) (2,637) Loans extended to others (1,432) - - Investments in associates - - (6,449) Loans repaid by shareholders - - 61 Increase in bank deposits (2,154) (480) (352) Payments for acquisitions of subsidiaries, net of cash acquired (18,330) 440 418 Payment of deferred consideration with respect to business combinations - (4,500) (7,335) Interest received 1,684 76 2 Investments in financial assets (195) (6,856) (446) Proceeds from sub-lessee 155 - 158 Net cash used in investing activities (36,831) (26,544) (22,639) CASH FLOWS FROM FINANCING ACTIVITIES: Initial public offering (IPO) - - 132,560 Interest paid (2,651) (504) (630) Changes in short-term bank credit 39,135 5,874 (11,393) Support received (royalties paid) in respect to government assistance plans (55) (40) (199) Transactions with non-controlling interests - (186) (1,069) Repayment of long-term bank loans (998) (2,282) (1,971) Receipt of long-term loans from others - 6,908 - Repayment of long-term loans from others (3,626) (2,577) (2,175) Receipt of loans from shareholders - - 8,900 Repayment of loans from shareholders - - (8,900) Decrease in other long-term liabilities (249) (288) (295) Employee options exercised 2,177 1,152 718 Principal lease payments (2,182) (1,851) (1,406) Net cash provided by financing activities 31,551 6,206 114,140 Increase (Decrease) in cash and cash equivalents 3,518 (47,885) 78,695 Balance of cash and cash equivalents at beginning of year 33,880 87,332 8,195 Gains (losses) from exchange differences on cash and cash equivalents 906 (6,189) 626 Gains (losses) from translation of cash and cash equivalents of foreign activity 82 622 (184) Balance of cash and cash equivalents at end of year 38,386 33,880 87,332
NAYAX LTD. Year ended December 31 2023 2022 2021 (Audited) U.S. dollars in thousands Appendix A – adjustments required to reflect the cash flows from operating activities: Adjustments in respect of: Depreciation and amortization 12,505 9,028 7,198 Post-employment benefit obligations, net 25 (107) 139 Deferred taxes (294) (181) 25 Finance expenses, net 750 4,544 269 Expenses in respect of long-term employee benefits 237 245 193 Share in losses of associate company 1,555 1,794 538 Long-term deferred income (85) (104) (26) Expenses in respect of share-based payment 6,027 8,747 8,850 Total adjustments 20,720 23,966 17,186 Changes in operating asset and liability items: Increase in restricted cash transferable to customers for processing activity (15,739) (10,424) (5,529) Increase in receivables from processing activity (17,880) (10,986) (5,429) Increase in trade receivables (12,487) (8,272) (5,136) Increase in other current assets (1,073) (936) (1,352) Decrease (increase) in inventory 3,239 (12,592) (2,631) Increase in payables in respect of processing activity 41,187 20,510 13,832 Increase (decrease) in trade payables 1,189 4,519 (3,775) Increase in other payables 5,529 4,177 4,797 Total changes in operating asset and liability items 3,965 (14,004) (5,223) Total adjustments required to reflect the cash flow from operating activities 24,685 9,962 11,963 Appendix B – Information regarding investing and financing activities not involving cash flows: Purchase of property and equipment on credit 97 215 118 Acquisition of right-of-use assets through lease liabilities 338 2,048 1,428 Recognition of Sub lease asset 455 - - Share based payments costs attributed to development activities, capitalized as intangible assets 825 909 649
IFRS to Non-IFRS The following is a reconciliation of loss for the period, the most directly comparable IFRS financial measure, to Adjusted EBITDA for each of the periods indicated. Quarter ended as of (U.S. dollars in thousands) Dec 31, 2023 Dec 31, 2022 Loss for the period (3,292 ) (7,513 ) Finance expense, net 932 132 Tax expense 346 7 Depreciation and amortization 3,503 2,731 EBITDA 1,489 (4,643) Expenses in respect of share-based compensation 1,763 1,747 Issuance and acquisition costs 444 100 Share of loss of equity method investee(1) 311 295 ADJUSTED EBITDA 4,007 (2,501 )
(1) Equity method investee is related to our 2021 investment in Tigapo and IOT Technologies.
IFRS to Non-IFRS The following is a reconciliation of loss for the period, the most directly comparable IFRS financial measure, to Adjusted EBITDA for each of the periods indicated. Year ended as of (U.S. dollars in thousands) Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Loss for the period (15,886) (37,509) (24,769) Finance expense, net 2,287 3,020 1,655 Tax expense 1,215 451 632 Depreciation and amortization 12,505 9,028 7,198 EBITDA 121 (25,010) (15,284) Expenses in respect of share-based compensation 6,033 8,747 8,850 Issuance and acquisition costs 444 1,790 1,879 Share of loss of equity method investee (1) 1,555 1,794 538 ADJUSTED EBITDA (2) 8,153 (12,679) (4,017)
(1) 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. Retail Pro P&L figures are included for the first time in Q4.2023.
What was Nayax Ltd.'s full-year revenue for 2023?
Nayax Ltd. reported full-year revenue of $235.5 million for 2023, representing a 36% year-over-year growth.
What is Nayax Ltd.'s 2024 full-year revenue guidance?
Nayax Ltd. provided a revenue guidance of $325-335 million for the full year 2024, showcasing a 38%+ year-over-year growth.
What is Nayax Ltd.'s 2024 full-year adjusted EBITDA guidance?
Nayax Ltd. expects an adjusted EBITDA of $30-35 million for the full year 2024.
How many managed and connected devices did Nayax Ltd. have as of year-end 2023?
Nayax Ltd. had a total of 1,044,000 managed and connected devices as of year-end 2023, reflecting a year-over-year increase of 44%.
What was the total transaction value growth for Nayax Ltd. in the fourth quarter of 2023?
Nayax Ltd. experienced a 43% growth in total transaction value, reaching $975 million in the fourth quarter of 2023.
