Nayax (NYAX) 45th Annual William Blair Growth Stock Conference summary

Business performance and financial highlights

• Achieved 30%-35% annual revenue growth over the past four years, reaching $314 million in 2024.

• Over 70% of revenue is recurring, with high gross margins of 45%-49% and a net retention rate of 129%.

• Q1 2024 revenue was $81 million, with significant margin expansion and 100,000 customers milestone.

• Manages 1.33 million connected devices, with most customers being small businesses (1-15 devices).

• Revenue is geographically diversified: 40% from North America, 40% from Europe, with ongoing expansion in Latin America and Australia.

Business model and go-to-market strategy

• Operates through hardware sales, SaaS subscriptions, and transaction processing fees.

• Hardware sales act as a lock-in for recurring SaaS and processing revenue.

• Recurring revenue streams are highly predictable, with ARPU of $215 and gross margins over 50%.

• Utilizes a multi-channel approach: OEM partners, resellers, distributors, e-shops, and direct sales offices in 11 countries.

• Focuses on small and nano merchants, but also serves enterprise customers across 44 unattended verticals.

Growth strategy and vertical expansion

• Organic growth remains the primary driver, with 25%+ expected in 2024; inorganic growth (M&A) adds 5-10%.

• Acquires 2-3 companies annually for customer, distributor, or technology consolidation.

• Expanding into new verticals like EV charging, parking, micro-markets, and smart stores.

• Flagship devices (VPOS Touch, Onyx) and new embedded solutions (UNO-Mini) target both retrofit and OEM markets.

• Market opportunity: 45 million devices today, growing to 60 million by 2029, with a focus on converting cash to cashless payments.