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Nayax : First Quarter Revenue Grew 26% YoY to $22.8M
[May 27, 2021]

Nayax : First Quarter Revenue Grew 26% YoY to $22.8M


HERZLIYA, Israel, May 27, 2021 /PRNewswire/ -- Nayax Ltd. (TASE: NYAX), a global commerce enablement and payments platform designed to help merchants scale their business, today reported financial results for the first quarter of 2021.

"Today marks the first quarter we report as a publicly traded company. Our recent public offering of 44 million ordinary shares successfully generated approximately $130 million. These funds will fuel our growth strategy through sales and marketing initiatives aimed at supporting customers' cashless payment options in the post pandemic environment," commented Yair Nechmad, Chief Executive Officer and Chairman of the Board.

"We look forward to enhancing relationships with each group in our stakeholder community and upholding the highest standard of customer relations. Revenues for the quarter increased substantially year over year despite one of our main markets, Europe, remaining under strict lockdown measures and Q1 2020 being mostly unaffected by Covid-19. This growth demonstrates the resilience of our business and the growing demand for our solutions," concluded Yair Nechmad.

First Quarter Financial Highlights

Total revenue was $22.8 million, an increase of 26% over Q1 2020.

Recurring revenue of monthly software and processing fees increased by more than 30% over Q1 2020, increasing their share of total revenue from 57% in Q1 2020 to 59% in the current quarter. 

Operational expenses (including R&D, share based expenses and depreciation and amortization) amounted to $12.7 million, an increase of 30%. This is due to our growth strategy of expanding our sales, marketing and R&D staff and improving overall infrastructure.

Capital expenditure (in cash) was $2.3 million, an increase of 28% over Q1 2020.

Gross margin for the quarter was 46%, in line with historical results, resulting in a gross profit of $10.5 million, an increase of 21% over Q1 2020.

Operating loss was $2.2 million, compared to a loss of $1.1 million in Q1 2020.

Adjusted EBITDA (excluding one-time costs related to the IPO and share based expenses) was break even. Net loss was $2.2 million, compared to a net loss of $1.3 million in Q1 2020.

As of March 31st, 2021, Nayax had $13.3 million in cash and cash equivalents.

The IPO generated approximately $130 million, net.





GAAP Results ($M)

Revenue
Breakdown
 

Q1 2021

Q1 2020

Change (%)

Software & Payments

13.5

10.3

+30%

Hardware

9.3

7.8

+20%

Total

22.8

18.1

+26%






As part of our strategy to increase the number of points of sale (POS) subscribed to our platform, we launched the first unattended eCommerce channel intended to help us capture a substantial portion of the SMB market and automate the onboarding process and KYC. We are well positioned to capture the global small and midsize business which is a dominant portion of the unattended market.

First Quarter Operational Highlights

Total number of connections for the quarter reached 402,000. We connected 21,000 new devices in Q1, which is equal to 50% of the entire growth of connected and managed devices in 2020.

Operational expenses amounted to $8.1 million, excluding IPO expense and share based expenses. Research & Developments expenses excluding share based expenses were $3.2 million. These expenses increased 31% and 65%, respectively, compared to the same quarter last year. Our points of sale in new machines contribute significantly to R&D expenses as we position ourselves for high growth.

We continue to execute our proven strategy of partnering with our customers to grow within our customer base, while capturing new markets, entering new verticals and launching new marketing initiatives.

During the quarter, we acquired control of Weezmo Technologies Ltd. and expect to complete the acquisition by the end of 2021. Weezmo is an omni-channel marketing solution. We plan to integrate this technology as we enter new markets and strengthen our presence in current and potential operating regions.

First Quarter Key Performance Indicators

Software

Q1 2021

Q1 2020

Change (%)

Average
Transaction
Value

1.7

1.5

 

+13%

Total
Transaction
Volume

246

189.4

+30%

Take Rate %
(Payments)

2.4%

2.3%

7.4%

Outlook

As our key markets accelerate their exit from Covid-19 related restrictions, we expect that unattended retail will enjoy increased adoption, tied with an accelerated shift in consumer behavior towards digital payments. Australia and the U.S. have been strong drivers for growth in terms of new and active POS and transaction volumes.

As Europe follows, we expect stronger results, especially in comparison to Q2 2020. We will continue pursuing marketing and sales initiatives in new markets to support this growth through global diversification. Consumer behavior is expected to change as lockdown measures are reduced, leading to increased cashless payments and subscription to our services by retailers. 

The environment for cashless payment solutions has been directly correlated with companies' digital transformations and is imperative for adopting other technologies still in development. Annual revenue is expected to reach over $200 million in the long term fueled by organic growth and strategic M&A. An accelerated growth rate of 30% in the medium term will also be supported by customer growth, market penetration and continued expansion of our platform. Gross margin in the long run is expected to reach 50% through a combination of providing leasing options for terminals, while increasing the share of software and payments out of total revenue. Furthermore, we expect that the combination of increased operational efficiency with growing total revenue, will result in the long-term EBITDA margin stabilizing around 30%.

An English translation of the full financial statements can be found on our web site: https://ir.nayax.com/

Conference Call & Webcast Information

Nayax will be hosting a conference call to discuss its financial results for the first quarter of 2021, today, Thursday, May 27, 2021, at 8:30 a.m. Eastern Time.

Yair Nechmad, Chief Executive Officer and Liron Grosman, Chief Financial Officer will review the Company's first quarter 2021 financial results. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your call at least five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

U.S. TOLL-FREE: 1-866-777-2509
ISRAEL TOLL-FREE: 1-80-9212373
INTERNATIONAL: 1-412-317-5413
WEBCAST LINK: https://services.choruscall.com/mediaframe/webcast.html?webcastid=epGRwS05

The Company encourages participants to pre-register for the conference call using the following linkhttps://dpregister.com/sreg/10156749/e8b8fa53af. Callers will receive a unique dial-in upon registration, which enables immediate access on the day of the call. Participants may pre-register at any time, including up to and after the call start time. The conference call will also be available via live webcast from a link on Nayax's Investor Relations website.

A replay of the conference call will be available from May 28, 2021, to June 10, 2021. To access the replay, please dial one of the following numbers: 

Replay TOLL-FREE: 1-877-344-7529
Replay TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 10156749

About Nayax

Nayax is a global commerce enablement and payment platform designed to help merchants scale their business. Nayax offers a complete solution including localized cashless payment acceptance, a management suite, and consumer engagement tools, enabling merchants to conduct commerce anywhere, at any time. Founded in the unattended retail industry, Nayax has transformed into a comprehensive solution focused on our customers' growth across all channels globally. Today, Nayax has 10 global offices, over 400 employees, connections to more than 80 merchant and payment method integration and is a recognized payment facilitator worldwide. Nayax's mission is to improve our customers' revenue potential and operational efficiency.
Visit www.nayax.com for more information.

The securities referred to in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or under the securities laws of any state of the United States, and may not be offered, sold, resold or delivered, directly or indirectly, in or into the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In the United States, any offer of the ordinary shares will be made only to "qualified institutional buyers" as defined in and in reliance on Rule 144A under the Securities Act or another available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Outside the United States, any offer will be made in accordance with Regulation S of the Securities Act.

Forward looking statement

The information included in this press release contains, or may be deemed to contain, forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). Said forward-looking statements, relating to the initial public offering, are subject to uncertainties and assumptions and the actual results may materially differ. All forward-looking statements in this press release are based on information available to Nayax on the date hereof.  All written or oral forward-looking statements attributable to Nayax are expressly qualified in their entirety by the factors referred to above. Nayax does not intend to update these forward-looking statements.

Investor Relations Contact:
Miri Segal
MS-IR LLC
msegal@ms-ir.com 
Tel: +1-917-6078654

Tables to follow

NAYAX LTD

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION







March 31

December
31,



2021

2020

2020



(Unaudited)

(Audited)


Note

U.S. dollars in thousands

Assets










CURRENT ASSETS:





Cash and cash equivalents


13,291

7,043

8,195

Restricted cash transferable to customers for clearing 
          activity


15,415

9,685

18,166

Short-term bank deposits


90

26

87

Receivables for clearing activity


8,568

6,612

7,213

Accounts receivable:





          Trade, net


12,793

10,490

13,840

          Others


1,397

1,606

1,976

Inventories


4,600

4,412

5,041

Total current assets


56,154

39,874

54,518






NON-CURRENT ASSETS:





Long-term bank deposits


799

448

798

Long-term receivables

5B

300

74

-

Property, plant and equipment, net


5,160

3,776

5,047

Right-of-use assets, net


4,579

4,134

4,761

Goodwill and intangible assets, net


35,380

24,088

27,388

Deferred income tax


241

135

241

Total non-current assets


46,459

32,655

38,235

TOTAL ASSETS


102,613

72,529

92,753






 

NAYAX LTD

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)







March 31

December 31,



2021

2020

2020



(Unaudited)

(Audited)


Note

U.S. dollars in thousands






Liabilities and equity










CURRENT LIABILITIES:





Short-term bank borrowings


11,490

9,418

11,589

Short-term bank loans and current maturities of long-
          term bank loans


2,150

1,041

1,938

 Loans from shareholders


5,400

-

-

Current maturities of loans from others


2,710

945

3,041

Current maturities of other long-term liabilities


1,241

469

686

Current maturities of leases liabilities


1,235

1,185

1,320

Payables in respect of clearing activity


29,624

17,279

27,181

Deferred consideration and liability for option
          arrangement in business combination

5A

5,829

-

-

Accounts payable:





          Trade


8,488

7,129

10,998

          Other


6,199

3,643

5,498

Total current liabilities


74,366

41,109

62,251






NON-CURRENT LIABILITIES:





Long-term bank loans


4,589

1,866

5,391

Long-term loans from others


2,365

4,837

2,662

Long-term loans from shareholders


-

270

-

Retirement benefit obligation, net


888

619

894

Other long-term liabilities


2,817

3,599

3,374

Lease liabilities


4,686

4,264

5,154

Deferred income tax


980

594

526

Total non-current liabilities


16,325

16,049

18,001

TOTAL LIABILITIES


90,691

57,158

80,252






EQUITY:





Equity attributed to parent company's shareholders:





Share capital


7

7

7

Share premium


16,689

16,689

16,689

Put option to purchase subsidiary's shares


-

(493)

-

Capital reserves


8,918

9,493

9,238

Accumulated deficit


(15,152)

(11,354)

(13,433)

Total equity attributed to shareholders of the parent


10,462

14,342

12,501

Non-controlling interest


1,460

1,029

-

TOTAL EQUITY


11,922

15,371

12,501

TOTAL LIABILITIES AND EQUITY


102,613

72,529

92,753

 

NAYAX LTD

CONDENSED CONSOLIDATED STATEMENT OF INCOME







Three months ended

March 31

Year ended
December 31,



2021

2020

2020



(Unaudited)

(Audited)


Note

U.S. dollars in thousands (excluding loss
per share data)






Revenue

4

22,774

18,102

78,783

Cost of revenue


12,273

9,441

41,603

Gross Profit


10,501

8,661

37,180

Research and development expenses


3,300

2,228

9,300

Selling, general and administrative expenses


8,316

6,621

26,545

Depreciation and amortization in respect of
          capitalized development costs


878

901

3,559

Other expenses, net


161

-

-

Loss from ordinary operations


(2,154)

(1,089)

(2,224)






Finance expenses


924

377

4,277

Finance income


840

148

403

Loss before taxes on income


(2,238)

(1,318)

(6,098)






Tax benefit


56

15

15

Loss for the period


(2,182)

(1,303)

(6,083)






Attribution of loss for the period:





To shareholders of the Company


(2,176)

(1,317)

(6,254)

To non-controlling interests


(6)

14

171

Total


(2,182)

(1,303)

(6,083)

Loss per share attributed to shareholders
          of the Company:





Basic and diluted loss


(0.0088)

(0.0053)

(0.0252)






 

NAYAX LTD

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)





Three months ended

March 31

Year ended
December 31,


2021

2020

2020


(Unaudited)

(Audited)


U.S. dollars in thousands





Loss for the period

(2,182)

(1,303)

(6,083)





Other comprehensive income (loss) for the
          period:








Items that will not be recycled to profit or loss:








Loss from remeasurement of liabilities (net) for
          retirement benefit obligations

-

-

(126)





Items that may be recycled to profit or loss:








Gain (loss) from translation of financial statements of
          foreign activities

(384)

16

243

Total comprehensive loss for the period

(2,566)

(1,287)

(5,966)





Attribution of total comprehensive loss for the
          period:








To shareholders of the Company

(2,496)

(1,301)

(6,137)

To non-controlling interests

(70)

14

171

Total comprehensive loss for the period

(2,566)

(1,287)

(5,966)









 

NAYAX LTD

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS





Three months ended

March 31

Year ended
December 31,


2021

2020

2020


(Unaudited)

(Audited)


U.S. dollars in thousands

CASH FLOWS FROM OPERATING ACTIVITIES:




Net loss for the period

(2,182)

(1,303)

(6,083)

Adjustments required to reflect the cash flow from operating
          activities (see Appendix A)

5,927

1,020

12,571

Net cash provided by (used in) operating activities

3,745

(283)

6,488

CASH FLOWS FROM INVESTING ACTIVITIES:




Capitalized development costs

(1,731)

(1,204)

(5,731)

Acquisition of property, plant and equipment

(523)

(558)

(2,125)

Loans extended to others

-

(26)

(141)

Advance payment on acquisition of shares (see note 5b)

(300)

-

-

Loans (extended to) repaid by shareholders

(118)

848

786

Decrease (increase) in bank deposits

(5)

-

(411)

Purchase of subsidiary net of purchased cash (note 5a)

102

(686)

(686)

Repayment of liability to pay deferred consideration in
          respect to business combinations

-

-

(580)

Interest received

1

5

14

Proceeds from sub-lessee

78

69

302

Net cash used in investing activities

(2,496)

(1,552)

(8,572)

CASH FLOWS FROM FINANCING ACTIVITIES:




Interest paid

(266)

(282)

(1,065)

Short-term bank credit received, net

338

1,794

2,976

Support received (royalties paid) in respect to government
          assistance plans

(55)

-

16

Exercise of stock option of subsidiary and increase in equity
          interest therein

-

-

(1,049)

Long-term bank loans received

-

-

4,734

Repayment of long-term bank loans

(414)

(255)

(1,003)

Long-term loans received from others

-

3,451

3,804

Repayment of long-term loans from others

(446)

-

(920)

Loans received from shareholders

5,400

270

-

Decrease in other long-term liabilities

(72)

(43)

(280)

Repayment of lease liability principal

(317)

(254)

(1,167)

Net cash provided by financing activities

4,168

4,681

6,046





Increase in cash and cash equivalents

5,417

2,846

3,962

Balance of cash and cash equivalents at Beginning
          of period

8,195

4,412

4,412

Gains (losses) from exchange differences On cash
          and cash equivalents

(315)

(222)

(222)

Gains (losses) from translation of cash and cash
          equivalents of foreign activity

(6)

7

43

Balance of cash and cash equivalents at end of
          period

13,291

7,043

8,195





 


Three months ended

March 31

Year
ended
December
31,


2021

2020

2020


(Unaudited)

(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

1,672

1,433

5,908

Retirement benefit obligation, net

(6)

(43)

106

Income tax revenue

(74)

(27)

(230)

Financing expenses (income), net

130

(203)

3,428

Expenses in respect of long-term employee benefits

46

72

5

Expenses in respect of share-based payment

373

765

2,965


2,141

1,997

12,182

Changes in operating asset and liability items:




Decrease (increase) in restricted cash in respect of clearing
          activity

2,751

(3,449)

(11,930)

Decrease (increase) in receivables from clearing activity

(1,357)

5,605

5,003

Increase in trade receivable

1,104

(612)

(3,894)

Decrease (increase) in other receivables

632

726

(389)

Decrease (increase) in inventory

436

107

(511)

Increase (decrease) in payables for clearing activity

2,443

(2,700)

7,203

Increase (decrease) in trade payables     

(2,658)

(581)

3,154

Increase (decrease) in other payables

435

(73)

1,753


3,786

(977)

389


5,927

1,020

12,571





Appendix B – Information regarding investing and
          financing activities not involving cash flows:








Purchase of property, plant and equipment on credit

-

-

575

Acquisition of patents against offset of loan

-

-

806

Recognition of right-of-use asset in respect of lease of buildings
          against a lease liability

74

-

1,235

Amount of expenses attributed to development costs, capitalized
          and included in goodwill and intangible assets

497

224

883






 

Cision View original content:http://www.prnewswire.com/news-releases/nayax--first-quarter-revenue-grew-26-yoy-to-22-8m-301300815.html

SOURCE Nayax


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