Exhibit |
Description
|
NAYAX LTD. | |||
By:
|
/s/ Michael Galai | ||
Name: Michael Galai | |||
Title: Chief Legal Officer | |||
• |
Total revenue of $52.4 million, an increase of 54%.
|
• |
Recurring revenue from monthly SaaS and payment processing fees grew 44% and represented 62% of total revenue in Q1 2023.
|
• |
Q1 had positive impact on revenues from foreign currency exchange rate fluctuations of $1M compared to Q4 2022.
|
Revenue Breakdown
|
Q1 2023 ($M)
|
Q1 2022 ($M)
|
Change (%)
|
SaaS Revenue
|
13.2
|
10.3
|
28.1%
|
Payment Processing Fees
|
19.1
|
12.2
|
56.6%
|
Total Recurring Revenue (*)
|
32.3
|
22.5
|
43.6%
|
POS Devices Revenue (**)
|
20.1
|
11.6
|
73.3%
|
Total Revenue
|
52.4
|
34.1
|
53.7%
|
• |
Q1 2023 gross margin of 34% was slightly higher compared to 33% in Q4 2022. Similar to Q4 2022, gross margin continues to be impacted by the higher mix of POS devices revenue, and increase in processing fees, which have lower margins
than SaaS revenue.
|
• |
Gross profit reached $17.9 million, an increase of 37%.
|
• |
Operating expenses, including research and development, share-based compensation expenses, and depreciation and amortization amounted to $22.7 million, a reduction of 5% from Q4 2022. This decline reflects our efforts during the quarter
to adapt our cost structure and to continue managing the business with greater cost discipline in 2023, while benefitting from the efficiencies driven by our investment in automation and enhanced infrastructure. The strong progress in
moderating expenses positions us well to reach our stated goal towards profitability.
|
• |
Q1 2023 Operating loss was $5.2 million, compared to an operating loss of $8.9 million.
|
• |
Net loss for Q1 2023 was $5.5 million, or ($0.1685) per diluted share, compared to a net loss of $9.8 million, or ($0.299) per diluted share.
|
• |
We continued to make significant strides in improving our bottom line, with an improvement of $2.7 million to Adjusted EBITDA. Adjusted EBITDA was a negative $0.6 million compared to negative $3.3 million in Q1 2022.
|
• |
Expanded our diverse customer base this quarter, by adding 5,000 new customers across our global footprint, bringing our total customer base to 52,000, as of March 31, 2023, an increase of 54%.
|
• |
Dollar-based net retention rate increased to 141%, reflecting the high satisfaction and loyalty our customers place on our comprehensive solutions to increase their revenue and improve their operations.
|
• |
Added almost 44,000 managed and connected devices during the quarter, driven by robust customer demand, bringing the total number of managed and connected devices to 769,000. This represents an increase of 39%.
|
• |
Number of processed transactions grew by 52% to 410 million.
|
• |
Total transaction value increased by 63% to $796 million.
|
Key Performance Indicators
|
Q1 2023
|
Q1 2022
|
Change (%)
|
Total Transaction Value ($m)
|
796
|
489
|
63%
|
Number of Processed Transactions (millions)
|
410
|
269
|
52%
|
Take Rate % (Payments) (*)
|
2.40%
|
2.49%
|
-3%
|
Managed and Connected devices
|
769,000
|
553,000
|
39%
|
U.S.
|
TOLL-FREE:
|
1-855-327-6837
|
ISRAEL
|
TOLL-FREE:
|
1-809-458-327
|
INTERNATIONAL
|
TOLL-FREE:
|
1-631-891-4304
|
Replay
|
TOLL-FREE:
|
1-844-512-2921
|
Replay
|
TOLL/INTERNATIONAL:
|
1-412-317-6671
|
As of March 31,
|
As of December 31,
|
|||||||
2023
|
2022
|
|||||||
U.S. dollars in thousands
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
33,212
|
33,880
|
||||||
Short-term bank deposits
|
77
|
83
|
||||||
Restricted cash transferable to customers for processing activity
|
44,082
|
34,119
|
||||||
Receivables in respect of processing activity
|
27,742
|
25,382
|
||||||
Trade receivable, net
|
29,859
|
27,412
|
||||||
Inventory
|
27,378
|
23,807
|
||||||
Other current assets
|
4,990
|
5,777
|
||||||
Total current assets
|
167,340
|
150,460
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Long-term bank deposits
|
1,318
|
1,336
|
||||||
Other long-term assets
|
3,061
|
2,948
|
||||||
Investment in associate
|
6,221
|
6,579
|
||||||
Right-of-use assets, net
|
6,985
|
7,381
|
||||||
Property and equipment, net
|
6,271
|
6,668
|
||||||
Goodwill and intangible assets, net
|
57,080
|
55,116
|
||||||
Total non-current assets
|
80,936
|
80,028
|
||||||
TOTAL ASSETS
|
248,276
|
230,488
|
As of March 31,
|
As of December 31,
|
|||||||
2023
|
2022
|
|||||||
U.S. dollars in thousands
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank credit
|
11,755
|
7,684
|
||||||
Current maturities of long-term bank loans
|
1,046
|
1,052
|
||||||
Current maturities of loans from others and other long-term liabilities
|
4,935
|
4,126
|
||||||
Current maturities of leases liabilities
|
2,326
|
2,206
|
||||||
Payables in respect of processing activity
|
79,751
|
63,336
|
||||||
Trade payables
|
16,930
|
14,574
|
||||||
Other payables
|
17,829
|
17,229
|
||||||
Total current liabilities
|
134,572
|
110,207
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Long-term bank loans
|
1,155
|
1,444
|
||||||
Long-term loans from others and other long-term liabilities
|
4,918
|
7,062
|
||||||
Post-employment benefit obligations, net
|
407
|
403
|
||||||
Lease liabilities
|
5,238
|
5,944
|
||||||
Deferred income taxes
|
744
|
793
|
||||||
Total non-current liabilities
|
12,462
|
15,646
|
||||||
TOTAL LIABILITIES
|
147,034
|
125,853
|
||||||
EQUITY:
|
||||||||
Share capital
|
8
|
8
|
||||||
Additional paid in capital
|
151,710
|
151,406
|
||||||
Capital reserves
|
9,810
|
9,771
|
||||||
Accumulated deficit
|
(60,286
|
)
|
(56,550
|
)
|
||||
TOTAL EQUITY
|
101,242
|
104,635
|
||||||
TOTAL LIABILITIES AND EQUITY
|
248,276
|
230,488
|
Three months ended
March 31, |
||||||||
2023
|
2022
|
|||||||
U.S. dollars in thousands
|
||||||||
(Excluding loss per share data)
|
||||||||
Revenues
|
52,410
|
34,132
|
||||||
Cost of revenues
|
(34,535
|
)
|
(21,039
|
)
|
||||
Gross Profit
|
17,875
|
13,093
|
||||||
Research and development expenses
|
(5,136
|
)
|
(5,594
|
)
|
||||
Selling, general and administrative expenses
|
(16,431
|
)
|
(14,825
|
)
|
||||
Depreciation and amortization in respect of technology and capitalized development costs
|
(1,140
|
)
|
(1,045
|
)
|
||||
Share of loss of equity method investee
|
(358
|
)
|
(501
|
)
|
||||
Operating loss
|
(5,190
|
)
|
(8,872
|
)
|
||||
Finance expenses, net
|
(78
|
)
|
(858
|
)
|
||||
Loss before taxes on income
|
(5,268
|
)
|
(9,730
|
)
|
||||
Income tax expense
|
(259
|
)
|
(50
|
)
|
||||
Loss for the period
|
(5,527
|
)
|
(9,780
|
)
|
||||
Attribution of loss for the period:
|
||||||||
To shareholders of the Company
|
(5,527
|
)
|
(9,780
|
)
|
||||
Total
|
(5,527
|
)
|
(9,780
|
)
|
||||
Loss per share attributed to shareholders of the Company:
|
||||||||
Basic and diluted loss per share
|
(0.1682
|
)
|
(0.2986
|
)
|
Three months ended
March 31, |
||||||||
2023
|
2022
|
|||||||
U.S. dollars in thousands
|
||||||||
Loss for the period
|
(5,527
|
)
|
(9,780
|
)
|
||||
Other comprehensive loss for the period:
|
||||||||
Items that may be reclassified to profit or loss:
|
||||||||
Exchange differences on translation of foreign operations
|
39
|
(150
|
)
|
|||||
Total comprehensive loss for the period
|
(5,488
|
)
|
(9,930
|
)
|
||||
Attribution of total comprehensive loss for the period:
|
||||||||
To shareholders of the Company
|
(5,488
|
)
|
(9,930
|
)
|
||||
Total comprehensive loss for the period
|
(5,488
|
)
|
(9,930
|
)
|
Equity attributed to shareholders of the Company
|
||||||||||||||||||||||||||||||||
Share
capital |
Additional paid in capital
|
Remeasurement of post-employment benefit obligations
|
Other capital reserves
|
Foreign currency translation reserve
|
Accumulated
deficit |
Total equity attributed to shareholders of the Company
|
Total
equity |
|||||||||||||||||||||||||
U.S. dollars in thousands
|
||||||||||||||||||||||||||||||||
Balance at January 1, 2023 (audited)
|
8
|
151,406
|
248
|
9,503
|
20
|
(56,550
|
)
|
104,635
|
104,635
|
|||||||||||||||||||||||
Changes in the three months ended March 31, 2023 (unaudited):
|
||||||||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(5,527
|
)
|
(5,527
|
)
|
(5,527
|
)
|
|||||||||||||||||||||
Other comprehensive income for the period
|
-
|
-
|
-
|
-
|
39
|
-
|
39
|
39
|
||||||||||||||||||||||||
Employee options exercised
|
*
|
304
|
-
|
-
|
-
|
-
|
304
|
304
|
||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
-
|
1,791
|
1,791
|
1,791
|
||||||||||||||||||||||||
Balance at March 31, 2023 (unaudited):
|
8
|
151,710
|
248
|
9,503
|
59
|
(60,286
|
)
|
101,242
|
101,242
|
|||||||||||||||||||||||
Balance at January 1, 2022 (audited)
|
8
|
150,366
|
102
|
9,503
|
394
|
(28,697
|
)
|
131,676
|
131,676
|
|||||||||||||||||||||||
Changes in the three months ended March 31, 2022 (unaudited):
|
||||||||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(9,780
|
)
|
(9,780
|
)
|
(9,780
|
)
|
|||||||||||||||||||||
Other comprehensive loss for the period
|
-
|
-
|
-
|
-
|
(150
|
)
|
-
|
(150
|
)
|
(150
|
)
|
|||||||||||||||||||||
Employee options exercised
|
*
|
94
|
-
|
-
|
-
|
-
|
94
|
94
|
||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
-
|
3,260
|
3,260
|
3,260
|
||||||||||||||||||||||||
Balance at March 31, 2022 (unaudited)
|
8
|
150,460
|
102
|
9,503
|
244
|
(35,217
|
)
|
125,100
|
125,100
|
Three months ended
March 31, |
||||||||
2023
|
2022
|
|||||||
U.S. dollars in thousands
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net loss for the period
|
(5,527
|
)
|
(9,780
|
)
|
||||
Adjustments to reconcile net loss to net cash provided by operations (see Appendix A)
|
6,412
|
6,834
|
||||||
Net cash provided by (used in) operating activities
|
885
|
(2,946
|
)
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capitalized development costs
|
(3,535
|
)
|
(2,862
|
)
|
||||
Acquisition of property and equipment
|
(96
|
)
|
(189
|
)
|
||||
Increase in bank deposits
|
(59
|
)
|
(6,678
|
)
|
||||
Interest received
|
24
|
-
|
||||||
Investments in financial assets
|
-
|
(5,672
|
)
|
|||||
Net cash used in investing activities
|
(3,666
|
)
|
(15,401
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Interest paid
|
(275
|
)
|
(141
|
)
|
||||
Changes in short-term bank credit
|
4,231
|
-
|
||||||
Transactions with non-controlling interests
|
-
|
(186
|
)
|
|||||
Repayment of long-term bank loans
|
(254
|
)
|
(1,463
|
)
|
||||
Repayment of long-term loans from others
|
(1,206
|
)
|
(942
|
)
|
||||
Repayment of other long-term liabilities
|
(69
|
)
|
(75
|
)
|
||||
Employee options exercised
|
96
|
91
|
||||||
Principal lease payments
|
(574
|
)
|
(451
|
)
|
||||
Net cash provided by (used in) financing activities
|
1,949
|
(3,167
|
)
|
|||||
Decrease in cash and cash equivalents
|
(832
|
)
|
(21,514
|
)
|
||||
Balance of cash and cash equivalents at beginning of period
|
33,880
|
87,332
|
||||||
Gain (losses) from exchange differences on cash and cash equivalents
|
113
|
(1,279
|
)
|
|||||
Gains from translation differences on cash and cash equivalents of foreign activity operations
|
51
|
213
|
||||||
Balance of cash and cash equivalents at end of period
|
33,212
|
64,752
|
Three months ended
March 31, |
||||||||
2023
|
2022
|
|||||||
U.S. dollars in thousands
|
||||||||
Appendix A – adjustments to reconcile net loss to net cash provided by operations:
|
||||||||
Adjustments in respect of:
|
||||||||
Depreciation and amortization
|
2,627
|
2,004
|
||||||
Post-employment benefit obligations, net
|
4
|
(23
|
)
|
|||||
Deferred taxes
|
(36
|
)
|
(54
|
)
|
||||
Finance expenses (income), net
|
(211
|
)
|
954
|
|||||
Expenses in respect of long-term employee benefits
|
60
|
50
|
||||||
Share of loss of equity method investee
|
358
|
501
|
||||||
Long-term deferred income
|
(26
|
)
|
(26
|
)
|
||||
Expenses in respect of share-based compensation
|
1,560
|
3,102
|
||||||
Total adjustments
|
4,336
|
6,508
|
||||||
Changes in operating asset and liability items:
|
||||||||
Increase in restricted cash transferable to customers for processing activity
|
(9,963
|
)
|
(9,359
|
)
|
||||
Increase in receivables from processing activity
|
(2,361
|
)
|
(5,188
|
)
|
||||
Increase in trade receivables
|
(2,432
|
)
|
(1,067
|
)
|
||||
Decrease in other current assets
|
999
|
263
|
||||||
Increase in inventory
|
(3,582
|
)
|
(2,248
|
)
|
||||
Increase in payables in respect of processing activity
|
16,415
|
15,036
|
||||||
Increase in trade payables
|
2,484
|
946
|
||||||
Increase in other payables
|
516
|
1,943
|
||||||
Total changes in operating asset and liability items
|
2,076
|
326
|
||||||
Total adjustments to reconcile net loss to net cash provided by (used in) operations
|
6,412
|
6,834
|
||||||
Appendix B – Information regarding investing and financing activities not involving cash flows:
|
||||||||
Purchase of property and equipment in credit
|
35
|
178
|
||||||
Acquisition of right-of-use assets through lease liabilities
|
96
|
380
|
||||||
Share based payments costs attributed to development activities, capitalized as intangible assets
|
231
|
158
|
|
Quarter ended as of
(U.S. dollars in thousands)
|
|
|
Q1 2023
|
Q1 2022
|
Loss for the period
|
(5,527)
|
(9,780)
|
Finance expense, net
|
78
|
858
|
Tax expense
|
259
|
50
|
Depreciation and amortization
|
2,627
|
2,004
|
EBITDA
|
(2,563)
|
(6,868)
|
Expenses in respect of share-based compensation
|
1,560
|
3,102
|
Share of loss of equity method investee (1)
|
358
|
501
|
ADJUSTED EBITDA (2)
|
(645)
|
(3,265)
|