Nayax (NYAX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $78.1 million, up 39% year-over-year, with strong recurring revenue growth, improved profitability, and customer expansion to 85,000.

• Adjusted EBITDA rose to $8.1 million, a 623% increase from $1.3 million in Q2 2023, marking a return to operating profit.

• Gross margin improved to 44.3% from 37.1% in Q2 2023, driven by higher hardware margins and recurring revenue mix.

• Managed and connected devices grew 44% year-over-year to 1.19 million.

• Completed acquisitions of Roseman Engineering and VMtecnologia, expanding product offering and geographic reach.

Financial highlights

• Recurring revenue reached $53.4 million, up 47% year-over-year, representing 68% of total revenue.

• SaaS revenue grew 50% to $21.4 million; payment processing fees up 45% to $32.0 million.

• Hardware revenue reached $24.7 million, up 24% year-over-year.

• Transaction value processed reached $1.2 billion, up 34% year-over-year; number of transactions grew 31%.

• Cash and equivalents stood at $86 million, with $9.2 million in operating cash flow.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at $325–$335 million, representing at least 38% year-over-year growth.

• Adjusted EBITDA for 2024 expected between $30–$35 million; positive free cash flow anticipated.

• Hardware margin guidance raised to 27–29% for 2024.

• Long-term targets: 35% annual revenue growth, 50% gross margin, and 30% adjusted EBITDA margin.

• Expect positive free cash flow for the full year.