Cashless payments provider Nayax Ltd. reported revenue of $34.4 million for its fourth quarter, ended Dec. 31, an increase of 40% over 2020's same quarter. Nayax's total revenue for the year was $119.1 million, an increase of 51%, over 2020.
"2021 was a remarkable year for Nayax, and I am very pleased with our Q4 results, showing broad-based strength across our key metrics," said Nayax chairman and CEO Yair Nechmad.
"We successfully completed our initial public offering and closed two strategic acquisitions that not only enhance the value of our platform but extend our technology leadership and accelerate expansion in under-penetrated markets and verticals," he added. "During the year, we focused on our customer success, resulting in the addition of 11,000 new customers, growing 58% year-over-year, and our dollar-based net retention rate remained industry-leading at 137%."
Fourth-quarter highlights
- Total revenue was $34.4 million, an increase of 40% over Q4 2020.
- Recurring revenue from monthly SaaS and processing fees grew 66%, compared with Q4 2020.
- Recurring revenue represented 60% of total revenue in Q4 2021, compared with 51% of total revenue in Q4 2020.
- Managed and connected devices grew 40% over Q4 2020 to more than 517,000.
- Number of transactions grew 84% over Q4 2020 to 247 million.
- Transaction value increased 89% from the same quarter last year to $428 million.
- Operating expenses, including research and development, share-based compensation expenses, as well as depreciation and amortization amounted to $21.3 million, an increase of 89% over Q4 2020. This reflects an increase of continued investment in talent acquisition, customer base expansion and product innovation.
- Operating loss was $10 million, compared with an operating loss of $0.35 million in Q4 2020.
- Adjusted EBITDA was a negative $3.9 million, compared with positive $2.4 in Q4 2020, largely due to higher cost of goods sold due to the global component shortage and an increase in operating expenses from investments.
- Net loss for the fourth quarter of 2021 was $10 million, or ($0.0152) per diluted share, compared with a net loss of $3.1 million, or ($0.0124) per diluted share for the fourth quarter of 2020.
Full-year 2021 highlights
- Nayax completed its initial public offering on the TASE in May 2021, raising a net amount of $132.5 million.
- Total revenue was $119.1 million, an increase of 51% over 2020.
- Recurring revenue from monthly SaaS and processing fees grew 64% year-over-year, accounting for 60% of total revenue in 2021, compared with 55% in 2020.
- Dollar-based net retention rate remained strong at 137%, while the company's customer churn rate remained as low as 2.6%.
- Transaction value grew 85% from 2020 to $1.4 billion.
- Transaction volume increased 69% year-over-year to 795 million.
- Gross margin was 40%, reflecting continued strong margins from recurring revenue offset by lower margins from POS devices due to higher cost of goods sold as a result of ongoing global component shortages. Gross profit reached $48 million in 2021, compared with $37 million in 2020.
- Operating expenses, including research and development, share-based compensation expenses, depreciation, and amortization, but excluding one-time IPO-related expenses, amounted to $68.5 million, an increase of 74% over 2020.
- Operating loss was $22.5 million, compared with an operating loss of $2.2 million in 2020.
- Adjusted EBITDA was negative $4 million, compared wotj $6.6 in 2020. Excluding a bonus for non-sales employees that was introduced in Q3 2021 and excluding the impact of increased product costs, 2021 Adjusted EBITDA would have been $1 million.
- Net loss was $24.8 million, or $0.082 per diluted share, compared with a net loss of $6.1 million, or $0.0252 per diluted share for 2020.
- As of Dec. 31, Nayax had $87.3 million in cash and cash equivalents.
