Nayax Ltd. Q2 FY2025 earnings call

Yair Nechmad highlighted strong financial and operational performance, successful execution of strategic initiatives including partnerships (Autel, Lynkwell), acquisitions (Inepro Pay, Nayax Capital), and integrations. Key points: profitable revenue growth, low customer churn rate under 3%, expansion into new verticals, and innovation with UNO Mini embedded reader. Sagit Manor discussed KPIs, financial results, and outlook, noting organic revenue growth expected to accelerate, improved gross margin, and disciplined cost management.

Revenue for the second quarter increased 22% over Q2 '24 to $96 million. Recurring revenue grew 32% to $71 million, representing 74% of total revenue. Processing revenue grew 35% to $43 million, driven by a 16% increase in installed base of managed and connected devices and a 34% increase in dollar transaction value. Hardware revenue was $25 million. Installed base grew 16% to nearly 1.38 million devices. Gross margin improved to 48.3% from 44.3% y-o-y, with recurring margin at 52.8% and hardware margin at 35.4%.

Reaffirmed full-year 2025 guidance: revenue growth of 30%-35% (constant currency, $410M-$425M), organic revenue growth at least 25%. Adjusted EBITDA guidance unchanged at $65M-$70M. Stronger second half expected due to enterprise sales, EV ramp, and smart cooler opportunities.

Macroeconomic uncertainties, market competition, challenges in integrating acquisitions, scaling new verticals, and regulatory changes related to payment processing and embedded finance could impact operations.

Q: How to think about EV opportunity scaling?

A: Partnerships like Autel open doors to customers through OEMs, with low acquisition costs and potential for high market share via embedded solutions.

Q: NRR trend and business mix change?

A: NRR remains strong (123%), driven by higher ticket verticals like EV, parking, etc., with healthy ARPU and ATV growth.

Q: M&A revenue contribution and VMtecnologia rental model?

A: Inorganic growth expected, with focus on rolling out rental/subscription models, especially in Brazil and Australia, showing strong demand.

Q: Competitive edge in EV charging partnerships?

A: Nayax's 20-year experience, differentiated UNO Mini product, and global footprint provide a first-mover advantage in EV charging integration.