Exhibit |
Description
|
NAYAX LTD.
|
|||
By:
|
/s/ Gal Omer
|
||
Name: Gal Omer
|
|||
Title: Chief Legal Officer
|
• |
Total revenue of $56.2 million, an increase of 36.4%.
|
• |
Recurring revenue from monthly SaaS and payment processing fees grew 42.9% and represented 65% of total revenue in Q2 2023.
|
Revenue Breakdown
|
Q2 2023 ($M)
|
Q2 2022 ($M)
|
Change (%)
|
SaaS Revenue
|
14.3
|
10.8
|
32.4%
|
Payment Processing Fees
|
22.0
|
14.6
|
50.7%
|
Total Recurring Revenue (*)
|
36.3
|
25.4
|
42.9%
|
POS Devices Revenue (**)
|
19.9
|
15.8
|
25.9%
|
Total Revenue
|
56.2
|
41.2
|
36.4%
|
• |
Q2 2023 gross margin was 37%, higher compared to Q1 2023 of 34% and Q2 2022 of 33%. The improvement was mainly attributed to our hardware component cost management execution and favorable hardware selling prices. During the quarter,
hardware gross margin improved to 19% from 12% in Q1 2023. For 1H 2023, hardware gross margin was 15%, as previously communicated.
|
• |
Overall 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 $20.9 million, an increase of 48%.
|
• |
Operating expenses, including research and development, share-based compensation expenses, and depreciation and amortization amounted to $24.2 million, an increase of 6.5% from Q1 2023. This modest increase reflects select hiring during
the quarter in the R&D and SG&A functions.
|
• |
Q2 2023 Operating loss was $3.7 million, compared to an operating loss of $8.6 million, representing a significant improvement in expense management.
|
• |
Net loss for Q2 2023 was $4.0 million, or ($0.120) per diluted share, compared to a net loss of 10.3 million, or ($0.316) per diluted share.
|
• |
We continued to make significant strides in improving our bottom line. Adjusted EBITDA was a positive $1.3 million for the first time in two years, since Q1 2021, a marked improvement of $4.5 million to Adjusted EBITDA compared to
negative $3.2 million in Q2 2022.
|
• |
Expanded our diverse customer base this quarter, by adding 4,000 new customers across our global footprint, bringing our total customer base to 56,000, as of June 30, 2023, an increase of 47%
|
• |
Dollar-based net retention rate was 139%, reflecting the high satisfaction and loyalty our customers place on our comprehensive solutions to increase their revenue and improve their operations.
|
• |
Added almost 56,000 managed and connected devices during the quarter, driven by robust customer demand, bringing the total number of managed and connected devices to 824,000. This represents an increase of 38%.
|
• |
Number of processed transactions grew by 41% to 446 million.
|
• |
Total transaction value increased by 51% to $885 million.
|
• |
Extended our relationship with Primo Water in the US with additional Nayax devices and plan to expand globally.
|
• |
The leading US unattended retail provider extended its program with Nayax by purchasing devices for a water refilling project at a large car manufacturer.
|
• |
Added Synergy Energy as a new Tier 1 customer. Synergy Energy is Western Australia’s largest energy retailer and generator. Synergy has chosen to rollout their EV DC chargers with Nayax devices embedded. This deployment of EV fast
chargers with cashless payments is the first in Australia.
|
Key Performance Indicators
|
Q2 2023
|
Q2 2022
|
Change (%)
|
Total Transaction Value ($m)
|
885
|
585
|
51%
|
Number of Processed Transactions (millions)
|
446
|
316
|
41%
|
Take Rate % (Payments) (*)
|
2.49%
|
2.50%
|
-0.4%
|
Managed and Connected Devices
|
824,000
|
595,000
|
38%
|
• |
Revenue on a constant currency basis to be in the range of $235 million to $240 million, representing year-over-year growth of at least 35%.
|
• |
Operating expenses to stay flat from Q4 2022 annualized run rate.
|
• |
Adjusted EBITDA to be between $3 to $7 million in 2023.
|
• |
Continued execution of strategic growth plans and benefits of secular trends in digital payments.
|
• |
Customer demand continues to be strong.
|
• |
Assumes no material changes in macroeconomic conditions.
|
• |
We are reaffirming our mid-term revenue outlook of 35% annual growth, driven by organic growth initiatives, with customer growth, market penetration and continued expansion of our integrated payments platform as well as our emerging
growth engines and strategic M&A.
|
• |
We are reaffirming our long-term outlook of 35% annual growth, driven by organic growth initiatives and strategic M&A.
|
• |
Our long-term gross margin target of 50% is driven by leasing options for IoT POS, growing SaaS revenue and payment processing fees along with services offering through our emerging growth initiatives.
|
• |
Our long-term Adjusted EBITDA margin target is 30%.
|
June 30
|
December 31
|
|||||||
2023
|
2022
|
|||||||
U.S. dollars in thousands
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
31,050
|
33,880
|
||||||
Restricted cash transferable to customers for processing activity
|
50,575
|
34,119
|
||||||
Short-term bank deposits
|
1,234
|
83
|
||||||
Receivables in respect of processing activity
|
32,404
|
25,382
|
||||||
Trade receivable, net
|
32,462
|
27,412
|
||||||
Inventory
|
22,924
|
23,807
|
||||||
Other current assets
|
7,215
|
5,777
|
||||||
Total current assets
|
177,864
|
150,460
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Long-term bank deposits
|
1,315
|
1,336
|
||||||
Other long-term assets
|
5,196
|
2,948
|
||||||
Investment in associate
|
5,837
|
6,579
|
||||||
Right-of-use assets, net
|
6,340
|
7,381
|
||||||
Property and equipment, net
|
5,930
|
6,668
|
||||||
Goodwill and intangible assets, net
|
59,344
|
55,116
|
||||||
Total non-current assets
|
83,962
|
80,028
|
||||||
TOTAL ASSETS
|
261,826
|
230,488
|
June 30
|
December 31
|
|||||||
2023
|
2022
|
|||||||
U.S. dollars in thousands
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank credit
|
18,069
|
7,684
|
||||||
Current maturities of long-term bank loans
|
1,033
|
1,052
|
||||||
Current maturities of loans from others and other long-term liabilities
|
4,990
|
4,126
|
||||||
Current maturities of leases liabilities
|
2,216
|
2,206
|
||||||
Payables in respect of processing activity
|
94,846
|
63,336
|
||||||
Trade payables
|
12,135
|
14,574
|
||||||
Other payables
|
17,936
|
17,229
|
||||||
Total current liabilities
|
151,225
|
110,207
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Long-term bank loans
|
861
|
1,444
|
||||||
Long-term loans from others and other long-term liabilities
|
3,606
|
7,062
|
||||||
Post-employment benefit obligations, net
|
429
|
403
|
||||||
Lease liabilities
|
5,058
|
5,944
|
||||||
Deferred income taxes
|
691
|
793
|
||||||
Total non-current liabilities
|
10,645
|
15,646
|
||||||
TOTAL LIABILITIES
|
161,870
|
125,853
|
||||||
EQUITY:
|
||||||||
Share capital
|
8
|
8
|
||||||
Additional paid in capital
|
152,648
|
151,406
|
||||||
Capital reserves
|
9,880
|
9,771
|
||||||
Accumulated deficit
|
(62,580
|
)
|
(56,550
|
)
|
||||
TOTAL EQUITY
|
99,956
|
104,635
|
||||||
TOTAL LIABILITIES AND EQUITY
|
261,826
|
230,488
|
Six months ended
June 30 |
Three months ended
June 30 |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
U.S. dollars in thousands
|
||||||||||||||||
(Excluding loss per share data)
|
||||||||||||||||
Revenues
|
108,569
|
75,343
|
56,159
|
41,211
|
||||||||||||
Cost of revenues
|
(69,838
|
)
|
(48,144
|
)
|
(35,303
|
)
|
(27,105
|
)
|
||||||||
Gross Profit
|
38,731
|
27,199
|
20,856
|
14,106
|
||||||||||||
Research and development expenses
|
(10,106
|
)
|
(10,692
|
)
|
(4,970
|
)
|
(5,098
|
)
|
||||||||
Selling, general and administrative expenses
|
(33,967
|
)
|
(29,946
|
)
|
(17,536
|
)
|
(15,121
|
)
|
||||||||
Depreciation and amortization in respect of technology and capitalized development costs
|
(2,814
|
)
|
(2,111
|
)
|
(1,674
|
)
|
(1,066
|
)
|
||||||||
Other expenses, net
|
-
|
(866
|
)
|
-
|
(866
|
)
|
||||||||||
Share of loss of equity method investee
|
(741
|
)
|
(1,071
|
)
|
(383
|
)
|
(570
|
)
|
||||||||
Operating loss
|
(8,897
|
)
|
(17,487
|
)
|
(3,707
|
)
|
(8,615
|
)
|
||||||||
Finance expenses, net
|
(118
|
)
|
(2,357
|
)
|
(40
|
)
|
(1,499
|
)
|
||||||||
Loss before taxes on income
|
(9,015
|
)
|
(19,844
|
)
|
(3,747
|
)
|
(10,114
|
)
|
||||||||
Income tax expense
|
(485
|
)
|
(285
|
)
|
(226
|
)
|
(235
|
)
|
||||||||
Loss for the period
|
(9,500
|
)
|
(20,129
|
)
|
(3,973
|
)
|
(10,349
|
)
|
||||||||
Attribution of loss for the period:
|
||||||||||||||||
Total
|
(9,500
|
)
|
(20,129
|
)
|
(3,973
|
)
|
(10,349
|
)
|
||||||||
Loss per share attributed to shareholders of the Company:
|
||||||||||||||||
Basic and diluted loss per share
|
(0.288
|
)
|
(0.614
|
)
|
(0.120
|
)
|
(0.316
|
)
|
Six months ended
June 30 |
Three months ended
June 30 |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
U.S. dollars in thousands
|
||||||||||||||||
Loss for the period
|
(9,500
|
)
|
(20,129
|
)
|
(3,973
|
)
|
(10,349
|
)
|
||||||||
Other comprehensive loss for the period:
|
||||||||||||||||
Items that may be reclassified to profit or loss:
|
||||||||||||||||
Exchange differences on translation of foreign operations
|
109
|
(489
|
)
|
70
|
(339
|
)
|
||||||||||
Total comprehensive loss for the period
|
(9,391
|
)
|
(20,618
|
)
|
(3,903
|
)
|
(10,688
|
)
|
||||||||
Attribution of total comprehensive loss for the period:
|
||||||||||||||||
Total comprehensive loss for the period
|
(9,391
|
)
|
(20,618
|
)
|
(3,903
|
)
|
(10,688
|
)
|
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 six months ended June 30, 2023:
|
||||||||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(9,500
|
)
|
(9,500
|
)
|
(9,500
|
)
|
|||||||||||||||||||||
Other comprehensive loss for the period
|
-
|
-
|
-
|
-
|
109
|
-
|
109
|
109
|
||||||||||||||||||||||||
Employee options exercised
|
*
|
1,242
|
-
|
-
|
-
|
-
|
1,242
|
1,242
|
||||||||||||||||||||||||
Share-based payment
|
-
|
-
|
-
|
-
|
-
|
3,470
|
3,470
|
3,470
|
||||||||||||||||||||||||
Balance on June 30, 2023 (unaudited)
|
8
|
152,648
|
248
|
9,503
|
129
|
(62,580
|
)
|
99,956
|
99,956
|
|||||||||||||||||||||||
Balance at January 1, 2022 (audited)
|
8
|
150,366
|
102
|
9,503
|
394
|
(28,697
|
)
|
131,676
|
131,676
|
|||||||||||||||||||||||
Changes in the six months ended June 30, 2022:
|
||||||||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(20,129
|
)
|
(20,129
|
)
|
(20,129
|
)
|
|||||||||||||||||||||
Other comprehensive loss for the period
|
-
|
-
|
-
|
-
|
(489
|
)
|
-
|
(489
|
)
|
(489
|
)
|
|||||||||||||||||||||
Employee options exercised
|
*
|
397
|
-
|
-
|
-
|
-
|
397
|
397
|
||||||||||||||||||||||||
Share-based payment
|
-
|
-
|
-
|
-
|
-
|
5,635
|
5,635
|
5,635
|
||||||||||||||||||||||||
Balance on June 30, 2022 (unaudited)
|
8
|
150,763
|
102
|
9,503
|
(95
|
)
|
(43,191
|
)
|
117,090
|
117,090
|
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 April 1, 2023 (unaudited)
|
8
|
151,710
|
248
|
9,503
|
59
|
(60,286
|
)
|
101,242
|
101,242
|
|||||||||||||||||||||||
Changes in the three months ended June 30, 2023:
|
||||||||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(3,973
|
)
|
(3,973
|
)
|
(3,973
|
)
|
|||||||||||||||||||||
Other comprehensive loss for the period
|
-
|
-
|
-
|
-
|
70
|
-
|
70
|
70
|
||||||||||||||||||||||||
Employee options exercised
|
*
|
938
|
-
|
-
|
-
|
-
|
938
|
938
|
||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
-
|
1,679
|
1,679
|
1,679
|
||||||||||||||||||||||||
Balance on June 30, 2023 (unaudited)
|
8
|
152,648
|
248
|
9,503
|
129
|
(62,580
|
)
|
99,956
|
99,956
|
|||||||||||||||||||||||
Balance at April 1, 2022 (unaudited)
|
8
|
150,460
|
102
|
9,503
|
244
|
(35,217
|
)
|
125,100
|
125,100
|
|||||||||||||||||||||||
Changes in the three months ended June 30, 2022:
|
||||||||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
-
|
(10,349
|
)
|
(10,349
|
)
|
(10,349
|
)
|
|||||||||||||||||||||
Other comprehensive loss for the period
|
-
|
-
|
-
|
-
|
(339
|
)
|
-
|
(339
|
)
|
(339
|
)
|
|||||||||||||||||||||
Employee options exercised
|
*
|
303
|
-
|
-
|
-
|
-
|
303
|
303
|
||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
-
|
2,375
|
2,375
|
2,375
|
||||||||||||||||||||||||
Balance on June 30, 2022 (unaudited)
|
8
|
150,763
|
102
|
9,503
|
(95
|
)
|
(43,191
|
)
|
117,090
|
117,090
|
Six months ended
June 30 |
Three months ended
June 30 |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
U.S. dollars in thousands
|
||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net loss for the period
|
(9,500
|
)
|
(20,129
|
)
|
(3,973
|
)
|
(10,349
|
)
|
||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operations (see Appendix A)
|
8,722
|
1,942
|
2,310
|
(4,892
|
)
|
|||||||||||
Net cash used in operating activities
|
(778
|
)
|
(18,187
|
)
|
(1,663
|
)
|
(15,241
|
)
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Capitalized development costs
|
(7,984
|
)
|
(6,131
|
)
|
(4,449
|
)
|
(3,269
|
)
|
||||||||
Acquisition of property and equipment
|
(274
|
)
|
(599
|
)
|
(178
|
)
|
(410
|
)
|
||||||||
Loans granted to related company
|
(620
|
)
|
-
|
(620
|
)
|
-
|
||||||||||
Increase in bank deposits
|
(1,182
|
)
|
(7,048
|
)
|
(1,123
|
)
|
(370
|
)
|
||||||||
Payments for acquisitions of subsidiaries, net of cash acquired
|
-
|
440
|
-
|
440
|
||||||||||||
Interest received
|
448
|
35
|
424
|
35
|
||||||||||||
Investments in financial assets
|
(97
|
)
|
(6,686
|
)
|
(97
|
)
|
(1,014
|
)
|
||||||||
Proceeds from sub-lessee
|
69
|
-
|
69
|
-
|
||||||||||||
Net cash used in investing activities
|
(9,640
|
)
|
(19,989
|
)
|
(5,974
|
)
|
(4,588
|
)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Interest paid
|
(1,020
|
)
|
(261
|
)
|
(745
|
)
|
(120
|
)
|
||||||||
Changes in short-term bank credit
|
10,874
|
-
|
6,643
|
-
|
||||||||||||
Royalties paid in respect to government assistance plans
|
(67
|
)
|
(36
|
)
|
(67
|
)
|
(36
|
)
|
||||||||
Transactions with non-controlling interests
|
-
|
(186
|
)
|
-
|
-
|
|||||||||||
Repayment of long-term bank loans
|
(502
|
)
|
(1,711
|
)
|
(248
|
)
|
(248
|
)
|
||||||||
Repayment of long-term loans from others
|
(2,261
|
)
|
(1,568
|
)
|
(1,055
|
)
|
(626
|
)
|
||||||||
Repayment of other long-term liabilities
|
(136
|
)
|
(148
|
)
|
(67
|
)
|
(73
|
)
|
||||||||
Employee options exercised
|
1,033
|
501
|
937
|
410
|
||||||||||||
Principal lease payments
|
(1,063
|
)
|
(656
|
)
|
(489
|
)
|
(205
|
)
|
||||||||
Net cash provided by (used in) financing activities
|
6,858
|
(4,065
|
)
|
4,909
|
(898
|
)
|
||||||||||
Decrease in cash and cash equivalents
|
(3,560
|
)
|
(42,241
|
)
|
(2,728
|
)
|
(20,727
|
)
|
||||||||
Balance of cash and cash equivalents at beginning of period
|
33,880
|
87,332
|
33,212
|
64,752
|
||||||||||||
Gains (losses) from exchange differences on cash and cash equivalents
|
537
|
(3,897
|
)
|
424
|
(2,618
|
)
|
||||||||||
Gains (losses) from translation differences on cash and cash equivalents of foreign activity operations
|
193
|
568
|
142
|
355
|
||||||||||||
Balance of cash and cash equivalents at end of period
|
31,050
|
41,762
|
31,050
|
41,762
|
Six months ended
June 30 |
Three months ended
June 30 |
|||||||||||||||
2023
|
2022
|
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
|
5,783
|
3,936
|
3,156
|
1,932
|
||||||||||||
Post-employment benefit obligations, net
|
26
|
(42
|
)
|
22
|
(19
|
)
|
||||||||||
Deferred taxes
|
(72
|
)
|
(107
|
)
|
(36
|
)
|
(53
|
)
|
||||||||
Finance expenses, net
|
(1,018
|
)
|
2,988
|
(807
|
)
|
2,034
|
||||||||||
Expenses in respect of long-term employee benefits
|
98
|
91
|
38
|
41
|
||||||||||||
Share of loss of equity method investee
|
741
|
1,071
|
383
|
570
|
||||||||||||
Long-term deferred income
|
(52
|
)
|
(52
|
)
|
(26
|
)
|
(26
|
)
|
||||||||
Expenses in respect of share-based compensation
|
2,985
|
5,165
|
1,425
|
2,063
|
||||||||||||
Total adjustments
|
8,491
|
13,050
|
4,155
|
6,542
|
||||||||||||
Changes in operating asset and liability items:
|
||||||||||||||||
Decrease (Increase) in restricted cash transferable to customers for processing activity
|
(16,456
|
)
|
(9,021
|
)
|
(6,493
|
)
|
338
|
|||||||||
Increase in receivables from processing activity
|
(7,023
|
)
|
(7,965
|
)
|
(4,662
|
)
|
(2,777
|
)
|
||||||||
Increase in trade receivables
|
(4,949
|
)
|
(5,851
|
)
|
(2,517
|
)
|
(4,784
|
)
|
||||||||
Decrease in other current assets
|
(238
|
)
|
(7,063
|
)
|
(1,237
|
)
|
(7,326
|
)
|
||||||||
Decrease (Increase) in inventory
|
850
|
(10,208
|
)
|
4,432
|
(7,960
|
)
|
||||||||||
Increase in payables in respect of processing activity
|
31,510
|
15,645
|
15,095
|
609
|
||||||||||||
Increase (Decrease) in trade payables
|
(2,032
|
)
|
12,106
|
(4,516
|
)
|
11,160
|
||||||||||
Increase (Decrease) in other payables
|
(1,431
|
)
|
1,249
|
(1,947
|
)
|
(694
|
)
|
|||||||||
Total changes in operating asset and liability items
|
231
|
(11,108
|
)
|
(1,845
|
)
|
(11,434
|
)
|
|||||||||
Total adjustments to reconcile net loss to net cash provided by (used in) operations
|
8,722
|
1,942
|
2,310
|
(4,892
|
)
|
|||||||||||
Appendix B – Information regarding investing and financing activities not involving cash flows:
|
||||||||||||||||
Purchase of property and equipment in credit
|
2
|
70
|
2
|
70
|
||||||||||||
Acquisition of right-of-use assets through lease liabilities
|
338
|
380
|
243
|
0
|
||||||||||||
Share based payments costs attributed to development activities, capitalized as intangible assets
|
485
|
470
|
254
|
312
|
||||||||||||
Recognition of receivable balance in respect of sub-lease against
derecognition of right-of-use asset in respect of lease of buildings |
455
|
-
|
455
|
-
|
|
Quarter ended as of
(U.S. dollars in
thousands)
|
|
|
Q2 2023
|
Q2 2022
|
Loss for the period
|
(3,973)
|
(10,349)
|
Finance expense, net
|
40
|
1,499
|
Tax expense
|
226
|
235
|
Depreciation and amortization
|
3,156
|
1,932
|
EBITDA
|
(551)
|
(6,683)
|
Expenses in respect of share-based compensation
|
1,425
|
2,063
|
Non-Recurring issuance costs
|
-
|
866
|
Share of loss of equity method investee (1)
|
383
|
570
|
ADJUSTED EBITDA (2)
|
1,257
|
(3,184)
|