Nayax Ltd., a global commerce enablement and payments platform designed to enable retailers to provide consumers with digital, cashless, connected commerce experiences, and enhance consumer loyalty and conversion, announced its financial results for the fourth quarter and full year 2022.
Yair Nechmad, chief executive officer and chairman of the board, stated in the announcement: “2022 was a remarkable year of growth and execution. For Q4 and full year 2022, we grew revenues by 48% and 46%, respectively over the same periods in 2021, which continued to be driven primarily by our organic growth initiatives and our high recurring revenues, which accounted for 60% of total revenue in 2022. I am also pleased to report that this revenue growth exceeded our 35% annual growth target, communicated throughout 2022. We expanded our diverse customer base across our global footprint to end 2022 with a total of 47,000 customers, an increase of 60% over 2021. Most notably, our customers’ satisfaction and loyalty to Nayax’s end-to-end solutions remained high as measured by our net retention rate, which ended the year at 131%.”
Mr. Nechmad continued, “The strength of our results in 2022, combined with our market leading position and the many growth opportunities we continue to execute across the Nayax businesses, reinforce our confidence in our ability to achieve our growth aspirations and our goal toward profitability.”
Fourth-quarter financial highlights
Total revenue of $50.9 million, an increase of 48%.
Recurring revenue from monthly SaaS and payment processing fees grew 42% and represented 58% of total revenue in Q4 2022.
Q4 2022 gross margin of 33% slightly lower compared to 34% in the previous quarter. Gross margin was impacted by higher POS devices revenue, which has lower margins due to higher cost of goods sold as a result of global component shortages, and the increase in processing fees, which have lower margins than SaaS revenue.
Gross profit reached $17 million, an increase of 42%.
Operating loss was $7.4 million, compared to an operating loss of $9.8 million.
Net loss for Q4 2022 was $7.5 million, or ($0.229) per diluted share, compared to a net loss of $9.9 million, or ($0.305) per diluted share.
The company saw an improvement of $1.4 million to adjusted EBITDA for the first time in Q4 2022. Adjusted EBITDA was a negative $2.5 million compared to negative $3.9 million in Q4 2021.
Operational highlights
Expanded diverse customer base, adding 5,000 new customers across its global footprint, bringing its total customer base to 47,000, as of December 31, 2022, an increase of 60%.
Dollar-based net retention rate stayed elevated at 131%.
Added 40,000 managed and connected devices during the quarter, driven by robust customer demand, bringing the total number of managed and connected devices to 725,000. This represents an increase of 40%.
Number of processed transactions grew 53% to 378 million.
Total transaction value increased 59% to $681 million.
Awarded European issuer license from Mastercard, on behalf of CoinBridge. The European issuer license enables CoinBridge to further expand its operations and services into the European Union and United Kingdom.
