HERZLIYA, Israel, August 23, 2021 /PRNewswire/ -- Nayax Ltd. (TASE: NYAX), a global commerce enablement and payments platform designed to help merchants scale their business, today announced its financial results for the second quarter of 2021.
"As governments around the world eased restrictions related to the COVID-19 pandemic, we saw a surge in consumers' preference to pay with cashless payments and continued to scale our marketing and sales efforts to help merchants grow their business with our complete merchant platform. These efforts led to a robust quarter with revenue increasing 121% year over year, reaching $31 million," commented Yair Nechmad, Nayax's CEO and Chairman of the Board.
"Following the successful public offering and debut on the TASE in May 2021, Nayax's second quarter performance reflects our ability to maintain a healthy growth rate as the economy rebounds to the "new normal". We finalized the acquisition of Weezmo, a start-up company in the field of interactive, customizable receipts, which is another step for extending and enhancing our consumer engagement and omni-channel platform" concluded Nechmad.
Second Quarter Financial Highlights
Total revenue was $31 million, an increase of 121% over Q2 2020.
Managed and connected devices grew 40% year over year for the quarter to more than 432,000.
Quarterly gross transaction value grew 160% from the same quarter last year to $344 million
Recurring revenue from monthly SAAS and processing fees grew more than 100% over Q2 2020, reflecting a share of total revenue of 56% in the current quarter.
Gross margin was 43%, representing strong sales this quarter of new POS devices, the enablers of future service and processing revenues. Gross profit reached $13.3 million, an increase of 85% over Q2 2020.
Operational expenses, including research and development, share-based compensation expenses, depreciation, amortization and excluding IPO-related expenses, amounted to $15.8 million, an increase of 95% over Q2 2020. This is the result of our growth strategy to increase sales, marketing, R&D staff and enhance overall global infrastructure.
Operating loss was $4.1 million, compared to an operating loss of $1 million in Q2 2020.
Adjusted EBITDA was $1.4 million, an increase of 75% over Q2 2020.
Net loss for the second quarter of 2021 was $5.9 million, or $0.019 per diluted share, compared to a net loss of $1.5 million, or $0.006 per diluted shares for the second quarter of 2020.
As of June 30th, 2021, Nayax had $113 million in cash and cash equivalents.
GAAP Results ($M)
SAAS & Payment Processing
Nayax generates revenues from the sale of IoT POS devices, SAAS and processing fees. The Company provides processing and business operations solutions and services via a global platform. This quarter the Company saw a strong demand for POS devices in all territories. Sales of POS devices constituted 44.5% of total revenue this quarter, compared to 38.6% in the same quarter last year. This growth relates, to some extent, to the market returning to post pandemic normalcy. The revenue mix, including a higher portion of POS devices this quarter, impacted the Company's overall gross margin.
Second Quarter Business Highlights
Total number of managed and connected devices for the quarter reached 432,000, an increase of 40% over the number of managed and connected devices in Q2 2020 and representing an increase of 30,000 new managed and connected devices compared to the previous quarter.
Operational expenses amounted to $8.7 million, excluding share-based compensation expenses. Research and development expenses were $4.2 million, excluding share-based compensation expenses. These expenses increased 66% and 143%, respectively, compared to the same quarter last year. This represents our continuing investment in innovation and global recruitment expansion.
We continue to expand our worldwide presence through a proven partnership strategy, growing within our customer base, capturing new market share, expanding to new verticals, and launching strategic marketing initiatives.
Second Quarter Key Performance Indicators
Key Performance Indicators
Total Transaction Value ($m)
Number of Transactions (millions)
Take Rate % (Payments) (*)
Managed and Connected devices
(*) Take Rate % - Payment service providers typically take a percentage of every transaction in exchange for facilitating the movement of funds from the buyer to the seller. It is calculated by the total transaction value divided by the Company's processing revenue in the same quarter.
We expect that unattended retail will benefit from increased adoption, tied with an accelerated shift in consumer behavior towards digital payments.
We will continue to pursue marketing and sales initiatives in new markets to support company growth through global diversification. Consumer behavior is expected to change as the world adapts to a new reality and learns how to live with the pandemic or similar threats, leading to increased cashless payments and subscriptions 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 mid – to - 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 IoT POS, while increasing the share of SAAS and processing 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 host a conference call to discuss its financial results for the second quarter of 2021, today, Monday, August 23, 2021, at 8:30 a.m. Eastern Time.
Yair Nechmad, Chief Executive Officer and Sagit Manor, Chief Financial Officer will review the Company's second 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
The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10158266/ea98f08302. 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 August 24, 2021, to September 6, 2021. To access the replay, please dial one of the following numbers:
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.