Nayax's Q4 2024: Conflicting Signals on Blackwell Production, Margins, and Roadmap Execution
Tuesday, Mar 4, 2025 1:28 pm ET
1min read 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.
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.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.