Nayax Ltd. (Nasdaq, TASE: NYAX), a global commerce
enablement, payments and loyalty platform designed to enable
retailers to provide consumers with digital, cashless, connected
commerce experiences, and enhance consumer loyalty and conversion,
today announced its financial results for the third quarter 2023.
“Our strong third quarter performance was
highlighted by a 48% increase in recurring revenue and overall
gross margin, which continued trending higher to 38%, mostly driven
by ongoing hardware gross margin improvement. Based on the strength
of our operating leverage from high recurring revenue growth
coupled with ongoing cost discipline, we saw marked improvement in
our net income (loss) and Adjusted EBITDA. In Q3, Adjusted EBITDA
surpassed the lower end of our full year 2023 guidance range,
further accelerating our profitability,” said Yair Nechmad, Chief
Executive Officer and Chairman of the Board. “Based on our strong
performance to date and confidence in our growth aspirations, we
are raising the lower end of our Adjusted EBITDA guidance
range.”
Mr. Nechmad added, “We continue to support our
employees in Israel during this difficult time, with the ongoing
war in Israel. Our global business continues to operate without any
material disruption due to the unyielding commitment of our
employees in executing our mission, with a diverse supply chain,
local offices that support sales and operations in their market and
business continuity planning. We are thankful for the support and
thoughtfulness that we have received from our customers, partners,
and the financial community.”
Third Quarter Financial
Highlights
(All comparisons are relative to the three-month
period ended September 30, 2022, unless otherwise stated):
- Total revenue of $60.3 million, grew 27.8%.
- Recurring revenue from monthly SaaS and payment processing fees
grew 47.8% and represented 67% of total revenue in Q3 2023.
Revenue Breakdown |
Q3 2023 ($M) |
Q3 2022 ($M) |
Change (%) |
SaaS Revenue |
15.2 |
11.3 |
34.5% |
Payment Processing Fees |
25.0 |
15.9 |
57.2% |
|
|
|
|
Total Recurring Revenue (*) |
40.2 |
27.2 |
47.8% |
POS Devices Revenue (**) |
20.1 |
20.0 |
0.5% |
Total Revenue |
60.3 |
47.2 |
27.8% |
(*) Recurring Revenue comprised of SaaS revenue
and payment processing fees.
(**) POS Devices Revenue includes revenues that
are derived from the sale of our hardware products.
- Overall gross margin continued to trend higher. Q3 2023 gross
margin of 38% was higher compared to Q2 2023 of 37% and Q3 2022 of
34%. The increase was mainly attributed to our hardware gross
margin improvement. In Q3, hardware gross margin improved to 21%
from 19% in Q2 2023 and 12% in Q1 2023. Year-to-date September 30,
2023, hardware gross margin was 17%, within the annual target
range, previously communicated.
- Gross profit reached $23.0 million, an increase of 46%.
- Operating expenses, including research and development,
share-based compensation expenses, and depreciation and
amortization amounted to $23.9 million, a decrease of 1% from Q2
2023, reflecting lower SG&A costs. Q3 did not have any material
impact from foreign currency exchange rate fluctuations compared to
Q2 2023.
- Operating expenses as a percent of total revenue improved to
40% of Q3 2023 total revenue, compared to 50% of Q3 2022 total
revenue.
- Q3 2023 operating loss was $1.5 million, compared to an
operating loss of $9.2 million in Q3 2022, representing a
significant improvement, driven mostly by revenue growth outpacing
expense growth.
- Net loss for Q3 2023 improved significantly from a net loss of
$9.9 million or ($0.300) per diluted share to a net loss of $3.1
million, or ($0.093) per diluted share, an improvement of almost $7
million.
- We continued to make significant strides in improving our
profitability. Adjusted EBITDA was a positive $3.5 million, a
marked improvement of $7.2 million to Adjusted EBITDA compared to
negative $3.7 million in Q3 2022. Q3 Adjusted EBITDA more than
doubled compared to Q2 2023 Adjusted EBITDA of $1.3 million.
- Cash and cash equivalents reached $39.8 million. The $8.8
million increase in the quarter is due to the additional credit
facility to fund the proposed Retail Pro International acquisition
announced on October 30, 2023.
Explanation of Company
Revenues
The Company provides payment processing and
business operations software solutions and services through its
global cashless payment platform. Nayax generates revenue from the
sale of its POS devices, a monthly subscription fee for access to
its SaaS solutions, and payment processing fees for transactions
made at the point-of-sale and through its global platform, as
provided in the chart above.
In Q3 2023, the Company recorded strong growth
in its recurring revenue from SaaS and payment processing,
reflecting 67% of total revenue. This increase in recurring revenue
represents growth in both the number of transactions processed
through our devices as well as an increase in total transaction
value, in addition to an increase in SaaS revenue. This growth is a
result of our growing install base of managed and connected devices
as well as the continued rapid adoption of cashless payments by
consumers.
Third Quarter Business and Operational
Highlights
(All comparisons are relative to the three-month
period ended September 30, 2022, unless otherwise stated):
- Customer expansion continued this quarter, with an additional
4,000 new customers across our global, diverse footprint. This
brings our total customer base to 60,000, as of September 30, 2023,
an increase of 43%.
- Dollar-based net retention rate increased to 145%, reflecting
the high satisfaction and loyalty our customers place on our
comprehensive solutions to increase their revenue and improve their
operations.
- Added 50,000 managed and connected devices during the quarter,
driven by robust customer demand, bringing the total number of
managed and connected devices to 874,000 for Q3 2023. This
represents an increase of 27.6%.
- Number of processed transactions grew by 39% to 473
million.
- Total transaction value increased by 61% to $989 million.
- Signed a strategic partnership with Turkey’s Duzey, the largest
Koç Holding company in the fast-moving consumer goods sector. The
partnership was initiated with the installation of Nayax devices on
vending machines in public locations and factory locations
throughout Turkey and will eventually expand to other locations in
Europe.
- Nayax Coinbridge entered into a strategic partnership with
Giift, a global leader in loyalty technology solutions. The
collaboration marks a significant milestone for the loyalty
industry by introducing the world’s first open-loop Loyalty to
Payments™ solution, powered via CoinBridge by Nayax’s patented
technology.
- Signed partnership agreement with a leading US car manufacturer
for EV chargers in each dealership for public use.
Operational Metrics
We regularly monitor various operational metrics
to help us evaluate our business, identify trends affecting our
business, formulate business plans and make strategic decisions. We
believe these financial and operating metrics are useful in
evaluating our business. Although these operating and financial
metrics are frequently used by investors and security analysts in
their evaluation of companies, such metrics have limitations as
analytical tools, and should not be considered in isolation or as
substitutes for analysis of our results of operations as reported
under IFRS. In addition, our operating and financial metrics may be
calculated in a different manner than similarly titled metrics used
by other companies.
Key Performance Indicators |
Q3 2023 |
Q3 2022 |
Change (%) |
Total Transaction Value ($m) |
989 |
616 |
60.6% |
Number of Processed Transactions (millions) |
473 |
341 |
38.7% |
Take Rate % (Payments) (*) |
2.53% |
2.59% |
-2.3% |
Managed and Connected Devices |
874,000 |
685,000 |
27.6% |
(*) Payment service providers typically take a
percentage of every transaction in exchange for facilitating the
movement of funds from the buyer to the seller. Take rate %
(payments) is calculated by dividing the total dollar transaction
value by the Company’s processing revenue in the same quarter.
Recent Development
- On October 30, 2023, we announced a definitive agreement to
acquire Retail Pro International. The proposed transaction is
expected to close in Q4 2023, subject to the satisfaction of
customary closing conditions.
Outlook:
Full-Year 2023 Outlook:
- Reaffirming 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%.
- Reaffirming operating expenses to stay flat from Q4 2022
annualized run rate.
- Revising Adjusted EBITDA to a range between $4 to $7 million in
FY 2023 from $3 to $7 million.
Full-Year 2023 Assumptions:
- 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.
The outlook provided above constitutes
forward-looking information within the meaning of applicable
securities laws and is based on a number of assumptions and subject
to a number of risks. See cautionary note regarding
“Forward-looking Statements” below.
We cannot reconcile expected 2023 Adjusted
EBITDA to expected net income without unreasonable effort because
certain items that impact net income and other reconciling metrics
are out of our control and/or cannot be reasonably predicted at
this time, which unavailable information could have a significant
impact on our IFRS financial results.
Mid-Term Outlook:
- 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.
Long-Term Outlook:
- 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%.
Conference Calls:
Nayax will host two conference calls and
webcasts on November 7, 2023. The first in English and the other in
Hebrew to discuss second quarter 2023 results. The call in English
will be held at 8:30 a.m. Eastern Time, 3:30 p.m. Israel Time and
5:30 a.m. Pacific Time, followed by the conference call in Hebrew
at 9:30 a.m. Eastern Time, 4:30 p.m. Israel time and 6:30 a.m.
Pacific Time. Participating on the call will be Yair Nechmad, Chief
Executive Officer and Sagit Manor, Chief Financial Officer.
For the conference call in English, we encourage
participants to pre-register using the link below. Those who
pre-register will be given a unique PIN to gain immediate access to
the call, bypassing the live operator. Participants may
pre-register any time, including up to and after the call/webcast
start time. You will immediately receive an online confirmation, an
email with the dial in number and a calendar invitation for the
event.
To pre-register, go to:
https://services.choruscall.ca/DiamondPassRegistration/register?confirmationNumber=10021594&linkSecurityString=19435491de
For those who are unable to pre-register, kindly
join the conference call/webcast by using one of the dial-in
numbers or clicking the webcast link below.
U.S. TOLL-FREE: 1-855-327-6837
ISRAEL TOLL-FREE: 1-809-458-327
INTERNATIONAL TOLL-FREE: 1-631-891-4304
WEBCAST
LINK:https://viavid.webcasts.com/starthere.jsp?ei=1606993&tp_key=3488b5dcfc
Participants may also register and join the
conference call/webcast by visiting the Events section of the Nayax
website, found here: Events
Following the conference call, a replay will be
available until November 21, 2023. To access the replay, please
dial one of the following numbers:
Replay TOLL-FREE: 1-844-512-2921 Replay
TOLL/INTERNATIONAL: 1-412-317-6671 Replay Pin
Number: 10021594
An archive of the audio webcast will be
available on Nayax's Investor Relations website.Nayax - Investor
Relations
To access the conference call/webcast in Hebrew,
use the link with below:https://us02web.zoom.us/j/84359216106
Forward-Looking Statements
This press release contains statements that
constitute forward-looking statements. Many of the forward-looking
statements contained in this press release can be identified by the
use of forward-looking words such as “anticipate,” “believe,”
“could,” “expect,” “should,” “plan,” “intend,” “estimate” and
“potential,” among others. Forward-looking statements include, but
are not limited to, statements regarding our intent, belief, or
current expectations. Forward-looking statements are based on our
management’s beliefs and assumptions and on information currently
available to our management. Such statements are subject to risks
and uncertainties, and actual results may differ materially from
those expressed or implied in the forward-looking statements due to
of various factors, including, but not limited to: our expectations
regarding general market conditions, including as a result of the
COVID-19 pandemic and other global economic trends; changes in
consumer tastes and preferences; fluctuations in inflation,
interest rate and exchange rates in the global economic environment
over the world; the availability of qualified personnel and the
ability to retain such personnel; changes in commodity costs,
labor, distribution and other operating costs; our ability to
implement our growth strategy; changes in government regulation and
tax matters; other factors that may affect our financial condition,
liquidity and results of operations; general economic, political,
demographic and business conditions in Israel, including ongoing
military conflicts in the region; the success of operating
initiatives, including advertising and promotional efforts and new
product and concept development by us and our competitors; factors
relating to the acquisition of Retail Pro International, including
but not limited to the financing for and payment of the acquisition
and our ability to effectively and efficiently integrate the
acquired business into our existing business; and other risk
factors discussed under “Risk Factors” in our annual report on Form
20-F filed with the SEC on March 1, 2023 (our "Annual Report"). The
preceding list is not intended to be an exhaustive list of all of
our forward-looking statements. The forward- looking statements are
based on our beliefs, assumptions, and expectations of future
performance, taking into account the information currently
available to us. These statements are only estimates based upon our
current expectations and projections about future events. There are
important factors that could cause our actual results, levels of
activity, performance, or achievements to differ materially from
the results, levels of activity, performance or achievements
expressed or implied by the forward-looking statements. In
particular, you should consider the risks provided under “Risk
Factors” in our Annual Report. You should not rely upon
forward-looking statements as predictions of future events.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee that
future results, levels of activity, performance and events and
circumstances reflected in the forward-looking statements will be
achieved or will occur. Each forward-looking statement speaks only
as of the date of the particular statement. Except as required by
law, we undertake no obligation to update publicly any
forward-looking statements for any reason, to conform these
statements to actual results or to changes in our expectations.
Use of Non-IFRS Financial
Information
In addition to various operational metrics and
financial measures in accordance with accounting principles
generally accepted under International Financial Reporting
Standards, or IFRS, this press release contains Adjusted EBITDA, a
non-IFRS financial measure, as a measure to evaluate our past
results and future prospects.
Adjusted EBITDA
Adjusted EBITDA is a non-IFRS financial measure
that we define as loss for the period plus finance expenses, tax
expense, depreciation and amortization, share-based compensation
costs, non-recurring issuance costs and our share in losses of
associates accounted for by the equity method.
We present Adjusted EBITDA in this press release
because it is a measure that our management and board of directors
utilize as a measure to evaluate our operating performance and for
internal planning and forecasting purposes. Accordingly, we believe
that Adjusted EBITDA provides useful information to investors and
others in understanding and evaluating our operating results in the
same manner as our management and board of directors.
We believe that Adjusted EBITDA, when taken
collectively with financial measures prepared in accordance with
IFRS, may be helpful to investors because it provides an additional
tool for investors to use in evaluating our ongoing operating
results and trends and in comparing our financial results with
other companies because it provides consistency and comparability
with past financial performance. However, our management does not
consider this non-IFRS measure in isolation or as an alternative to
financial measures determined in accordance with IFRS.
Adjusted EBITDA is presented for supplemental
informational purposes only, has limitations as an analytical tool
and should not be considered in isolation or as a substitute for
financial information presented in accordance with IFRS. Adjusted
EBITDA may be different from similarly titled measures used by
other companies. The principal limitation of Adjusted EBITDA is
that it excludes significant expenses that are required by IFRS to
be recorded in our financial statements, as further detailed above.
In addition, it is subject to inherent limitations as it reflects
the exercise of judgment by management about which expenses are
excluded or included in determining Adjusted EBITDA.
A reconciliation is provided at the end of this
press release for Adjusted EBITDA to net loss, the most directly
comparable financial measure prepared in accordance with IFRS.
Investors are encouraged to review net loss and the reconciliation
to Adjusted EBITDA included below and to not rely on any single
financial measure to evaluate our business.
Constant Currency
Nayax presents constant currency information to
provide a framework for assessing how our underlying businesses
performed excluding the effect of foreign currency rate
fluctuations. Future expected results for transactions in
currencies other than United States dollars are converted into
United States dollars using the exchange rates in effect in the
last month of the reporting period. Nayax provides this financial
information to aid investors in better understanding our
performance. These constant currency financial measures presented
in this release should not be considered as a substitute for, or
superior to, the measures of financial performance prepared in
accordance with IFRS.
The Company cannot provide expected 2023 net
income without unreasonable effort because certain items that
impact net income are out of the Company's control and/or cannot be
reasonably predicted at this time, which unavailable information
could have a significant impact on the Company’s IFRS financial
results.
About Nayax
Nayax is a global commerce enablement, payments
and loyalty platform designed to help merchants increase their
revenue while decreasing their operational cost. Nayax offers a
complete solution including localized cashless payment acceptance,
management suite, and consumer engagement tools, enabling merchants
to conduct commerce anywhere, at any time. With foundations and
global leadership in serving unattended retail, Nayax has
transformed into a comprehensive solution focused on our customers'
growth across multiple channels. Today, Nayax has 9 global offices,
approximately 800 employees, connections to more than 80 merchant
acquirers and payment method integrations and is a recognized
payment facilitator worldwide. Nayax's mission is to improve our
customers' revenue potential and operational efficiency. For more
information, please visit www.nayax.com
Investor Relations Contact: Virginea Stuart
GibsonVice President, Investor Relationsvirgineas@nayax.com
Public Relations Contact:Courtney Tolbert5W
PRctolbert@5wpr.co
NAYAX LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
As of September 30, 2023(Unaudited)
NAYAX LTD. |
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(UNAUDITED) |
|
|
September 30 |
|
December 31 |
|
2023 |
|
2022 |
|
U.S. dollars in thousands |
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
39,803 |
|
33,880 |
Restricted cash transferable to customers for processing
activity |
50,957 |
|
34,119 |
Short-term bank deposits |
1,250 |
|
83 |
Receivables in respect of processing activity |
40,384 |
|
25,382 |
Trade receivable, net |
29,986 |
|
27,412 |
Inventory |
19,788 |
|
23,807 |
Other current assets |
5,765 |
|
5,777 |
Total current assets |
187,933 |
|
150,460 |
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
Long-term bank deposits |
1,284 |
|
1,336 |
Other long-term assets |
5,354 |
|
2,948 |
Investment in associates |
5,335 |
|
6,579 |
Right-of-use assets, net |
5,853 |
|
7,381 |
Property and equipment, net |
5,609 |
|
6,668 |
Goodwill and intangible assets, net |
61,235 |
|
55,116 |
Total non-current assets |
84,670 |
|
80,028 |
TOTAL ASSETS |
272,603 |
|
230,488 |
|
|
|
|
NAYAX LTD. |
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(continued) |
|
|
September 30 |
|
December 31 |
|
2023 |
|
2022 |
|
U.S. dollars in thousands |
LIABILITIES AND EQUITY |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
Short-term bank credit |
26,810 |
|
7,684 |
Current maturities of long-term bank loans |
1,022 |
|
1,052 |
Current maturities of loans from others and other long-term
liabilities |
5,137 |
|
4,126 |
Current maturities of leases liabilities |
2,159 |
|
2,206 |
Payables in respect of processing activity |
100,903 |
|
63,336 |
Trade payables |
10,730 |
|
14,574 |
Other payables |
17,773 |
|
17,229 |
Total current liabilities |
164,534 |
|
110,207 |
|
|
|
NON-CURRENT LIABILITIES: |
|
|
Long-term bank loans |
573 |
|
1,444 |
Long-term loans from others and other long-term liabilities |
2,715 |
|
7,062 |
Post-employment benefit obligations, net |
446 |
|
403 |
Lease liabilities |
4,392 |
|
5,944 |
Deferred income taxes |
640 |
|
793 |
Total non-current liabilities |
8,766 |
|
15,646 |
TOTAL LIABILITIES |
173,300 |
|
125,853 |
|
|
|
EQUITY: |
|
|
Share capital |
8 |
|
8 |
Additional paid in capital |
153,524 |
|
151,406 |
Capital reserves |
9,954 |
|
9,771 |
Accumulated deficit |
(64,183) |
|
(56,550) |
TOTAL EQUITY |
99,303 |
|
104,635 |
TOTAL LIABILITIES AND EQUITY |
272,603 |
|
230,488 |
NAYAX LTD. |
CONDENSED CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED) |
|
|
Nine months ended September 30 |
|
Three months ended September 30 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
U.S. dollars in thousands |
|
(Excluding loss per share data) |
|
|
|
|
|
Revenues |
168,896 |
|
122,592 |
|
60,327 |
|
47,249 |
Cost of revenues |
(107,189) |
|
(79,584) |
|
(37,351) |
|
(31,440) |
Gross Profit |
61,707 |
|
43,008 |
|
22,976 |
|
15,809 |
|
|
|
|
|
Research and development expenses |
(15,420) |
|
(16,691) |
|
(5,314) |
|
(5,999) |
Selling, general and administrative expenses |
(50,804) |
|
(46,664) |
|
(16,837) |
|
(16,718) |
Depreciation and amortization in respect of technology and
capitalized development costs |
(4,609) |
|
(3,128) |
|
(1,795) |
|
(1,017) |
Other expenses, net |
- |
|
(1,690) |
|
- |
|
(824) |
Share of loss of equity method investee |
(1,244) |
|
(1,499) |
|
(503) |
|
(428) |
Operating loss |
(10,370) |
|
(26,664) |
|
(1,473) |
|
(9,177) |
Finance expenses, net |
(1,355) |
|
(2,888) |
|
(1,237) |
|
(531) |
Loss before taxes on income |
(11,725) |
|
(29,552) |
|
(2,710) |
|
(9,708) |
Income tax expense |
(869) |
|
(444) |
|
(384) |
|
(159) |
Loss for the period |
(12,594) |
|
(29,996) |
|
(3,094) |
|
(9,867) |
Loss per share attributed to shareholders of the
Company: |
|
|
|
|
Basic and diluted loss per share |
(0.381) |
|
(0.914) |
|
(0.093) |
|
(0.300) |
NAYAX LTD. |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED) |
|
|
Nine months ended September
30 |
|
Three months ended September
30 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
U.S. dollars in thousands |
Loss for the period |
(12,594) |
|
(29,996) |
|
(3,094) |
|
(9,867) |
|
|
|
|
|
Other comprehensive loss for the period: |
|
|
|
|
Items that may be reclassified to profit or
loss: |
|
|
|
|
Exchange differences on translation of foreign operations |
183 |
|
(455) |
|
74 |
|
34 |
Total comprehensive loss for the period |
(12,411) |
|
(30,451) |
|
(3,020) |
|
(9,833) |
|
|
|
|
|
|
|
|
|
|
NAYAX LTD. |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED) |
|
|
Share capital |
|
Additional paid in capital |
|
Remeasurement of post-employment benefit
obligations |
|
Other capital reserves |
|
Foreign currency translation reserve |
|
Accumulated deficit |
|
Total equity |
|
U.S. dollars in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2023: |
8 |
|
151,406 |
|
248 |
|
9,503 |
|
20 |
|
|
(56,550 |
) |
|
104,635 |
|
Changes in the nine months ended September 30,
2023: |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
|
- |
|
- |
|
- |
|
- |
|
|
(12,594 |
) |
|
(12,594 |
) |
Other comprehensive income for the period |
- |
|
- |
|
- |
|
- |
|
183 |
|
|
- |
|
|
183 |
|
Employee options exercised |
* |
|
2,118 |
|
- |
|
- |
|
- |
|
|
- |
|
|
2,118 |
|
Share-based compensation |
- |
|
- |
|
- |
|
- |
|
- |
|
|
4,961 |
|
|
4,961 |
|
Balance on September 30, 2023: |
8 |
|
153,524 |
|
248 |
|
9,503 |
|
203 |
|
|
(64,183 |
) |
|
99,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2022: |
8 |
|
150,366 |
|
102 |
|
9,503 |
|
394 |
|
|
(28,697 |
) |
|
131,676 |
|
Changes in the nine months ended September 30,
2022: |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
|
- |
|
- |
|
- |
|
- |
|
|
(29,996 |
) |
|
(29,996 |
) |
Other comprehensive loss for the period |
- |
|
- |
|
- |
|
- |
|
(455 |
) |
|
- |
|
|
(455 |
) |
Employee options exercised |
* |
|
700 |
|
- |
|
- |
|
- |
|
|
- |
|
|
700 |
|
Share-based compensation |
- |
|
- |
|
- |
|
- |
|
- |
|
|
7,665 |
|
|
7,665 |
|
Balance on September 30, 2022: |
8 |
|
151,066 |
|
102 |
|
9,503 |
|
(61 |
) |
|
(51,028 |
) |
|
109,590 |
|
(*) Represents an amount lower than $1 thousand.
NAYAX LTD. |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED) |
|
|
Share capital |
|
Additional paid in capital |
|
Remeasurement of post-employment benefit
obligations |
|
Other capital reserves |
|
Foreign currency translation reserve |
|
Accumulated deficit |
|
Total equity |
|
U.S. dollars in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at July 1, 2023: |
8 |
|
152,648 |
|
248 |
|
9,503 |
|
129 |
|
|
(62,580 |
) |
|
99,956 |
|
Changes in the three months ended September 30,
2023: |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
|
- |
|
- |
|
- |
|
- |
|
|
(3,094 |
) |
|
(3,094 |
) |
Other comprehensive income for the period |
- |
|
- |
|
- |
|
- |
|
74 |
|
|
- |
|
|
74 |
|
Employee options exercised |
* |
|
876 |
|
- |
|
- |
|
- |
|
|
- |
|
|
876 |
|
Share-based compensation |
- |
|
- |
|
- |
|
- |
|
- |
|
|
1,491 |
|
|
1,491 |
|
Balance on September 30, 2023: |
8 |
|
153,524 |
|
248 |
|
9,503 |
|
203 |
|
|
(64,183 |
) |
|
99,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at July 1, 2022: |
8 |
|
150,763 |
|
102 |
|
9,503 |
|
(95 |
) |
|
(43,191 |
) |
|
117,090 |
|
Changes in the three months ended September 30,
2022: |
|
|
|
|
|
|
|
|
|
|
- |
|
Loss for the period |
- |
|
- |
|
- |
|
- |
|
- |
|
|
(9,867 |
) |
|
(9,867 |
) |
Other comprehensive loss for the period |
- |
|
- |
|
- |
|
- |
|
34 |
|
|
- |
|
|
34 |
|
Employee options exercised |
* |
|
303 |
|
- |
|
- |
|
- |
|
|
- |
|
|
303 |
|
Share-based compensation |
- |
|
- |
|
- |
|
- |
|
- |
|
|
2,030 |
|
|
2,030 |
|
Balance on September 30, 2022: |
8 |
|
151,066 |
|
102 |
|
9,503 |
|
(61 |
) |
|
(51,028 |
) |
|
109,590 |
|
(*) Represents an amount lower than $1 thousand.
NAYAX LTD. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|
|
Nine months ended September 30 |
|
Three months ended September 30 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
U.S. dollars in thousands |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net loss for the period |
(12,594) |
|
(29,996) |
|
(3,094) |
|
(9,867) |
Adjustments to reconcile net
loss to net cash provided by operations (see Appendix A) |
16,810 |
|
5,623 |
|
8,088 |
|
3,681 |
Net cash provided by
(used in) operating activities |
4,216 |
|
(24,373) |
|
4,994 |
|
(6,186) |
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
Capitalized development
costs |
(12,250) |
|
(9,663) |
|
(4,266) |
|
(3,532) |
Acquisition of property and
equipment |
(341) |
|
(828) |
|
(67) |
|
(229) |
Loans granted to an equity
method investee |
(620) |
|
- |
|
- |
|
- |
Decrease (Increase) in bank
deposits |
(1,200) |
|
(981) |
|
(18) |
|
6,067 |
Payments for acquisitions of
subsidiaries, net of cash acquired |
- |
|
440 |
|
- |
|
- |
Payment of deferred
consideration with respect to business combinations |
- |
|
(4,500) |
|
- |
|
(4,500) |
Interest received |
1,021 |
|
43 |
|
573 |
|
8 |
Investments in financial
assets |
(195) |
|
(6,686) |
|
(98) |
|
- |
Proceeds from sub-lessee |
110 |
|
- |
|
41 |
|
- |
Net cash used in investing activities |
(13,475) |
|
(22,175) |
|
(3,835) |
|
(2,186) |
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Interest paid |
(1,757) |
|
(384) |
|
(737) |
|
(123) |
Changes in short-term bank credit |
20,103 |
|
- |
|
9,229 |
|
- |
Royalties paid in respect to government assistance plans |
- |
|
(40) |
|
- |
|
(4) |
Transactions with non-controlling interests |
- |
|
(186) |
|
- |
|
- |
Repayment of long-term bank loans |
(749) |
|
(2,025) |
|
(247) |
|
(314) |
Repayment of long-term loans from others |
(3,074) |
|
(2,167) |
|
(813) |
|
(599) |
Repayment of other long-term liabilities |
(226) |
|
(218) |
|
(23) |
|
(70) |
Employee options exercised |
1,940 |
|
775 |
|
907 |
|
274 |
Principal lease payments |
(1,575) |
|
(1,168) |
|
(512) |
|
(512) |
Net cash provided by (used in) financing
activities |
14,662 |
|
(5,413) |
|
7,804 |
|
(1,348) |
|
|
|
|
|
Increase
(decrease) in cash and cash
equivalents |
5,403 |
|
(51,961) |
|
8,963 |
|
(9,720) |
Balance of cash and
cash equivalents at beginning of period |
33,880 |
|
87,332 |
|
31,050 |
|
41,762 |
Gains (losses) from
exchange differences on cash and cash equivalents |
211 |
|
(4,581) |
|
(326) |
|
(684) |
Gains from translation
differences on cash and cash equivalents of foreign activity
operations |
309 |
|
753 |
|
116 |
|
185 |
Balance of cash and
cash equivalents at end of period |
39,803 |
|
31,543 |
|
39,803 |
|
31,543 |
NAYAX LTD. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Continued) |
|
|
Nine months ended September 30 |
|
Three months ended September 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 |
9,002 |
|
6,293 |
|
3,219 |
|
2,357 |
Post-employment benefit obligations, net |
44 |
|
(30) |
|
18 |
|
12 |
Deferred taxes |
(107) |
|
(145) |
|
(35) |
|
(38) |
Finance expenses (income), net |
(1,233) |
|
3,381 |
|
(215) |
|
393 |
Expenses in respect of long-term employee benefits |
232 |
|
173 |
|
134 |
|
82 |
Share of loss of equity method investees |
1,244 |
|
1,499 |
|
503 |
|
428 |
Long-term deferred income |
(88) |
|
(78) |
|
(36) |
|
(26) |
Expenses in respect of share-based compensation |
4,264 |
|
7,000 |
|
1,279 |
|
1,835 |
Total adjustments |
13,358 |
|
18,093 |
|
4,867 |
|
5,043 |
|
|
|
|
|
|
|
|
Changes in operating asset and liability items: |
|
|
|
|
|
|
|
Increase in restricted cash
transferable to customers for processing activity |
(16,838) |
|
(11,229) |
|
(382) |
|
(2,208) |
Decrease (increase) in receivables from processing
activity |
(15,003) |
|
(6,375) |
|
(7,980) |
|
1,590 |
Decrease (increase) in trade receivables |
(2,779) |
|
(4,438) |
|
2,170 |
|
1,413 |
Decrease (increase) in other current assets |
1,106 |
|
(3,156) |
|
1,344 |
|
3,907 |
Decrease (Increase) in
inventory |
3,958 |
|
(14,006) |
|
3,108 |
|
(3,798) |
Increase in payables in respect of processing activity |
37,567 |
|
18,115 |
|
6,057 |
|
2,470 |
Increase (Decrease) in trade
payables |
(2,825) |
|
7,233 |
|
(793) |
|
(4,873) |
Increase (Decrease) in other
payables |
(1,734) |
|
1,386 |
|
(303) |
|
137 |
Total changes in operating asset and liability items |
3,452 |
|
(12,470) |
|
3,221 |
|
(1,362) |
Total adjustments to reconcile net loss to net cash provided by
operations |
16,810 |
|
5,623 |
|
8,088 |
|
3,681 |
|
|
|
|
|
|
|
|
Appendix B – Information regarding investing and
financing activities not involving cash flows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment in credit |
142 |
|
713 |
|
142 |
|
713 |
Acquisition of right-of-use assets through lease
liabilities |
338 |
|
1,200 |
|
- |
|
820 |
Share based payments costs attributed to development
activities, capitalized as intangible assets |
697 |
|
665 |
|
212 |
|
195 |
Recognition of receivable balance in respect of sub-lease
against derecognition of right-of-use asset in respect of lease of
buildings |
455 |
|
- |
|
- |
|
- |
IFRS to Non-IFRS |
The following is a
reconciliation of loss for the period, the most directly comparable
IFRS financial measure, to Adjusted EBITDA for each of the periods
indicated. |
|
|
Quarter ended as of(U.S. dollars in
thousands) |
|
Sep 30, 2023 |
Sep 30, 2022 |
Loss for the period |
(3,094) |
(9,867) |
Finance expense, net |
1,237 |
531 |
Tax expense |
384 |
159 |
Depreciation and
amortization |
3,219 |
2,357 |
EBITDA |
1,746 |
(6,820) |
Expenses in respect of
share-based compensation |
1,279 |
1,835 |
Non-Recurring issuance costs |
- |
824 |
Share of loss of equity method
investee (1) |
503 |
428 |
ADJUSTED EBITDA
(2) |
3,528 |
(3,733) |
(1) Equity method investee is related to our 2021 investment in
Tigapo and IOT Technologies.(2) For historical years comparison
(2020-2022), when excluding (i) product costs increase due to
global components shortage (ii) bonus plan for non-sales employees
that was introduced in Q3 2021, Adjusted EBITDA for Q3
2022 and Q3 2023 improved to $0.5M and $6.1M respectively.
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