Nayax's Q4 2024: Conflicting Signals on Blackwell Production, Margins, and Roadmap Execution

These are the key contradictions discussed in Nayax Ltd.'s latest 2024 Q4 earnings call, specifically including: Blackwell production, gross margin expectations, and product launch timelines:



Revenue Growth and Strategic M&A:
- Nayax reported record revenue of $315.2 million for the full year 2024, an increase of 34% on a constant currency basis.
- This growth was driven by strategic M&A activities, expanding market presence, and increased recurring revenue mix.

Recurring Revenue and Profitability Expansion:
- Recurring revenue grew by 47% for the full year, contributing to 71% of total revenue.
- Nayax achieved positive free cash flow of $18 million, converting more than 50% of adjusted EBITDA into free cash flow, reflecting improved operational efficiency.

Market Expansion and Customer Base Growth:
- The customer base expanded by 32%, reaching over 95,000 customers at the end of 2024, with the install base of managed connected devices growing by 21% to 1,260,000 devices.
- Growth was fueled by strategic partnerships, expanded market presence, and strong demand in markets like EV charging and retail.

Strong Financial Performance:
- Adjusted EBITDA reached $35.5 million, more than four times higher than the prior year, driven by increased margin expansion and improved operational leverage.
- Gross margin improved to 45.1%, with hardware margins exceeding the guidance of 30%, due to supply chain efficiency and component cost reductions.