HERZLIYA, Israel – Nayax Ltd., 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 ended December 31, 2024. “We are pleased to report another year of strong growth and performance for Nayax as we achieved several key milestones including significant revenue growth and margin expansion, robust operating leverage, and cash flow generation.
We are well-positioned for 2025, with revenue growth guidance of 30% to 35%, of which at least 25% is expected to be organic, as we continue to grow our installed base globally and capture market share.
We’ll also continue to focus on scaling our recurring revenue streams, in particular our payment processing capabilities, which benefit from the conversion trend of cash-to-cashless transactions,” commented Yair Nechmad, Chief Executive Officer and Chairman of the Board.
Nayax: Fourth Quarter 2024 Financial Highlights
- Revenue increased 33.6% to $89.0 million, driven by both new and existing customer expansion.
- Recurring revenue from SaaS and payment processing fees grew 48.7%, demonstrating the strength and resilience of the business model. Recurring revenue represented 71% of total revenue.
- Hardware revenue increased by 7.4% with strong demand to end-to-end automated cashless product solutions and technology, supporting both the attended and unattended markets.
- Gross margin improved significantly to 46.1% from 39.9%. This was primarily due to:
- Recurring margin improving to 53.0% from 49.3%, as the company renegotiated key contracts with several bank acquirers and improved smart-routing capabilities
- Hardware margin rose to 29.4% from 23.6%, as Nayax continued to improve supply chain efficiency and negotiated better component costs.
- Operating profit of $3.6 million compared to an operating loss of $2.0 million.
- Net income was $1.6 million compared to a loss of $3.3 million, an improvement of $4.9 million over the period.
- IFRS basic net profit per share was $0.045 and IFRS diluted net profit per share was $0.044 compared to IFRS basic and diluted net loss per share of $(0.10).
- Weighted average number of basic and diluted shares were 36,536,969 and 37,264,185, respectively, for the fourth quarter of 2024 compared the weighted average number of basic shares 33,315,257 for the fourth quarter of 2023.
- Adjusted EBITDA was $12.8 million, representing a margin of 14.4% of total revenue. This was an improvement of $8.8 million compared to prior year period.
- Cash flow from operating activities of $17 million compared to $4.6 million in the prior year period, while free cash flow was $9.3 million compared to $0.6 million in the prior year period.
- As of December 31, 2024, the Company had $92.5 million in cash and cash equivalents and short-term deposits. Short-term and long-term debt balances stood at $47.9 million.
Full Year 2024 Financial Highlights
- Revenue increased 33% to $314.0 million from $235.5 million in the prior year.
- Revenue at constant currency increased 34% to $315.2 million.
- Organic growth for the year was 23%.
- Recurring revenue engine remains the company’s powerful growth driver. Payment processing fees and SaaS subscription revenues increased 47.1%, demonstrating the strength and resilience of the business model. Recurring revenue represented 71% of total revenue.
- Hardware revenue increased by 9% with strong demand to end-to-end automated cashless product solutions and technology, supporting both the attended and unattended markets.
- Gross margin improved significantly to 45.1% from 37.5%. This was primarily due to:
- Recurring margin improving to 51.3% from 47.9%, as the company renegotiated key contracts with several bank acquirers and improved smart-routing capabilities
- Hardware margin rose to 30.1% from 18.9%, as Nayax continued to improve the supply chain efficiency and negotiated better component costs.
- Nayax achieved positive operating profit of $3.1 million for the year, an improvement of $15.5 million from an operating loss of $12.4 million.
- Finance expenses, Net of $7.5 million were mainly impacted by bank net interest, foreign currency volatility and earnout related to acquisitions.
- Net loss of $5.6 million compared to a net loss of $15.9 million.
- IFRS basic and diluted net loss per share was $(0.157) compared to IFRS basic and diluted net loss per share of $(0.479).
- Weighted average number of basic shares was 35,762,292 for the full year 2024 compared to the weighted average number of basic shares of 33,148,714 for the full year 2023.
- Adjusted EBITDA reached $35.5 million higher than the guidance range of $30 to $35 million, representing a margin of 11.3% from total revenue. This represented an improvement of $27.3 million compared to prior year period.
- Both revenue and adjusted EBITDA were impacted by a $3.4 million purchase accounting adjustment, related to a fair-value adjustment of deferred revenue from the Retail Pro acquisition, which was closed in Q4 2023.
- Cash flow from operating activities of $42.9 million compared to $8.8 million
- Free cash flow was $18 million compared to a negative $7.8 million
