Total revenue of $78.1 million, up 39% year-over-year;Improved profitability with gross margins of 44.3%; return to operating profit with adjusted EBITDA of $8.1 million (1);Reiterates full year 2024 guidance: revenue between $325-335 million and adjusted EBITDA between $30-35 million (2) HERZLIYA, Israel, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Nayax Ltd. (NASDAQ:NYAX, TASE: NYAX)), a global commerce payments and loyalty platform designed to help merchants scale their business, today announced its financial results for the second quarter, ended June 30, 2024. "I am very pleased with our second quarter results, showing another quarter of excellent execution with strong demand for our products across all segments of the market. Our second quarter results demonstrate strong top-line growth and margin expansion that we expect to continue to build on throughout the year. Our commitment towards profitable growth has yielded outstanding results, marking significant improvement in our operating profit and adjusted EBITDA. We are especially pleased with the growth in recurring revenue, improvements in gross margins and adjusted EBITDA. Our recent acquisitions in Q2 of VMtecnologia and Roseman are accretive acquisitions that will support our expanded global footprint and pipeline. Growing synergies from all parts of our business, combined with an ongoing focus on improving margins, will continue to drive our strong growth in revenue and profitability for the foreseeable future," commented Yair Nechmad, Chief Executive Officer and Chairman of the Board. Sagit Manor, Chief Financial Officer added, "Nayax reported a solid set of quarterly financial results. We continue to grow at a fast pace, and in line with our strategy, reaching a record revenue of $78.1 million. We presented a solid increase in the number of managed and connected devices. Especially noteworthy is the strong improvement in our hardware gross margins, which were 29% compared to 19% in the second quarter of last year. We have strategically placed increased focus on leasing and rental over device sales, which will ultimately lead to a higher margin profile for our business in the mid and long term, per our guidance. Adjusted EBITDA in the quarter improved to $8.1 million and we returned to an operating profit. Looking ahead, we expect to continue our strong and profitable growth and we reiterate our full-year 2024 guidance on both top and bottom line." Adjusted EBITDA is a non-IFRS financial measure. Please refer to the tables at the end of this news release for a reconciliation of adjusted EBITDA to the most directly comparable IFRS measure. The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income (loss) due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, in particular, because special items such as finance expenses and Issuance and acquisition costs used to calculate projected net income (loss) vary dramatically based on actual events. Therefore, the Company is not able to forecast on an IFRS basis with reasonable certainty all deductions needed in order to provide an IFRS calculation of projected net income (loss) at this time. The amount of these deductions may be material, and therefore could result in projected IFRS net income (loss) being materially less than projected adjusted EBITDA (non-IFRS). Second Quarter 2024 Financial Highlights (All comparisons are relative to the second quarter and three-month period ended June 30, 2023, unless otherwise stated) Revenue Breakdown Summary Q2 2024 ($M) Q2 2023 ($M) Growth (%) SaaS revenue 21.4 14.3 50% Payment processing fees 32.0 22.0 45% Total recurring revenue (*) 53.4 36.3 47% POS devices revenue (**) 24.7 19.9 24% Total revenue (***) 78.1 56.2 39% (*) Recurring revenue comprised of SaaS revenue and payment processing fees.(**) POS devices revenue includes revenues that are derived from the sale of our hardware products.(***) Q2 2024 includes revenues from recent acquisition of VMtechnologia and Roseman consolidated for the first time. Revenue of $78.1 million up 39%. Recurring revenue from SaaS and processing fees comprised 68% of total revenue and grew 47%. Hardware revenues increased by 24% with strong demand for products across all market segments. Gross margin improved strongly to 44.3% from 37.1%. This was primarily due to significantly improved hardware margins rising to 29% from 19%, as a result of various steps taken to increase efficiencies within Nayax's business and supply chain in recent quarters. Nayax reported a return to operating profit of $0.9 million, compared to an operating loss of $3.7 million. Finance expenses, net, were negatively impacted by $1 million, a complete write off, due to a change in the fair value of our minority investment in Nilus, treated as a financial asset, measured at fair value through profit or loss. Net loss for the period was reduced to $3.0 million or ($0.083) per share, compared to a net loss of $4.0 million, or ($0.120) per share. Adjusted EBITDA for the period was $8.1 million, an improvement of $6.8 million, compared to an adjusted EBITDA of $1.3 million. Revenue and adjusted EBITDA were negatively impacted by an approximate $1 million in purchase accounting adjustment, due to a fair-value adjustment to deferred revenue, related to the Retail Pro acquisition completed in Q4 2023. Strong cash flow from operating activities of $9.2 million. As of June 30, 2024, the Company had $86 million in cash and cash equivalents and short-term deposits. This cash position reflects the gross cash consideration of $18.7 million for the two recent acquisitions of VMtechnologia ("VM Tech") and Roseman. As of June 30, 2024, short-term and long-term debt balances stood at $54 million. Second Quarter 2024 Operational Metric Highlights Key Performance Indicators Q2 2024 Q2 2023 Growth (%) Total transaction value ($m) 1,186 885 34% Number of processed transactions (millions) 583 446 31% Take rate % (payments) (*) 2.70% 2.49% 8% Managed and Connected devices (millions) (**) 1,186 824 44% (*) Payment service providers typically take a percentage of every transaction in exchange for facilitating the movement of funds from the buyer to the seller. Take rate % (payments) is calculated by dividing the total dollar transaction value by the Company's processing revenue in the same quarter.(**) Number of Managed and connected devices includes 22,000 generated by VM Tech and 130,000 generated by Retail Pro as of the acquisition date. Total transaction value grew 34% to approximately $1.2 billion.  Number of processed transactions increased 31% to 583 million. Growth in the customer base continued at a healthy pace, adding 9,000 new customers in the quarter including 6,000 from organic growth, bringing the total customer base to over 85,000, an increase of 52% year-over-year. The dollar-based net retention rate remained high at 130%, reflecting strong customer satisfaction, while the customer churn rate remained low at 2.8%. Driven by robust customer demand, Nayax added 78,000 managed and connected devices in the quarter, including 22,000 new devices from the recent acquisition of VMtechnologia. This brought the total number of managed and connected devices to 1,186,000 representing an increase of 44% year-over-year. Recent Business Highlights Nayax launched Nayax EV CloudPay, a cloud-based payments solution to help facilitate payments at electric vehicle (EV) charging stations. Many drivers currently pay for their EV charges by downloading multiple mobile apps. Since the kiosk is cloud-based, a single kiosk can facilitate the payments for multiple chargers, enabling a seamless experience for charging station operators and customers. Nayax' VPOS Touch card reader won the Best Payment System award from The Vendies, an annual UK-based vending industry award. Nayax's VPOS Touch helps operators stay on top of their business via telemetry technology that communicates with a vending management system and app. The Nayax VPOS Touch won the same award for Best Payment System in 2021 and won the Payment System of the Year award from The Vendies in 2016, 2017, and 2018. Nayax successfully closed the acquisition of VMtecnologia, a leading financial technology provider for the automated self-service industry in Brazil. This acquisition provides Nayax with a strong entry point into Latin America and into Brazil in particular and expands Nayax's total addressable markets. Nayax successfully closed the acquisition of Roseman Engineering, a Tel-Aviv based fuel and electric vehicle (EV) management software solution provider that allows managers of gas stations to track fuel station income, reduce expenses, and increase operational efficiencies. This acquisition complements Nayax's existing offerings utilized by EV charging station operators worldwide. Financial Outlook For the full year 2024, management reiterates full year revenue, adjusted EBITDA and cash flow guidance, while increasing guidance on hardware gross margins. Full year 2024 revenue expectations continue to be in the range of $325 million to $335 million, on a constant currency basis, representing year-over-year growth of at least 38%. Nayax management increases its guidance on hardware gross margins and now expects it to be in the range of 27% to 29%, an increase from the former range of 25% to 27%. The increase was due to various improvements implemented in recent quarters including taking advantage of economies of scale, enhanced pricing strategies and continued cost optimization initiatives as well as a positive impact from the recent acquisitions. We expect a slight increase in operating expenses due to the addition of the recent acquisitions. Adjusted EBITDA for 2024 is expected to be in the range of $30 million to $35 million, as Nayax continues to scale its business and benefit from its high operating leverage. Management expects that for the full year 2024, free cash flow, defined as operating cash flow minus capital expenditure, will be positive in aggregate. On a long-term basis, management targets an approximate 35% annual growth on revenue, driven by a combination of organic growth and strategic M&A. The target model for adjusted EBITDA margin is 30%, and for gross margin is 50%. It is noted that the financial outlook provided by Nayax constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks and is current as of today. Unless required by law, Nayax has no obligation to update its guidance. Please see the cautionary note regarding Forward-looking Statements below. Investor Conference Calls Nayax will host two conference calls to discuss the results later today, August 7, 2024. The first will be in English for international investors and the other in Hebrew for Israel-based investors to discuss its second quarter 2024 results. The conference call in English will be held at: 8:30 a.m. Eastern Time / 3:30 p.m. Israel Time / 5:30 a.m. Pacific Time. The conference call in Hebrew will be held at: 9:30 a.m. Eastern Time / 4:30 p.m. Israel time / 6:30 a.m. Pacific Time. Participating on the calls will be Yair Nechmad, Chief Executive Officer and Sagit Manor, Chief Financial Officer. For the conference call in English, Nayax encourages participants to pre-register using the link below. Those who pre-register will be given a unique PIN to gain immediate access to the call, bypassing the live operator. Participants may pre-register any time, including up to and after the call/webcast start time. Participants will immediately receive an online confirmation, an email with the dial in number and a calendar invitation for the event. To pre-register, go to: http://services.incommconferencing.com/DiamondPassRegistration/register?confirmationNumber=13747984&linkSecurityString=1d4e01d130 For those who are unable to pre-register, kindly join the conference call/webcast by using one of the dial-in numbers or clicking the webcast link below. U.S. TOLL-FREE: 1-877-737-7051; ISRAEL TOLL-FREE: 1 809 455 690; INTERNATIONAL: 1-201-689-8878 English webcast Link:  https://viavid.webcasts.com/starthere.jsp?ei=1680817&tp_key=289f88c4f9 Following the conference call, a replay will be available until August 21, 2024. To access the replay, please dial one of the following numbers: Replay TOLL-FREE: 1-844-512-2921 Replay TOLL/INTERNATIONAL: 1-412-317-6671 Replay TOLL/Israel: 1-809-458-327 Replay Pin Number: 137479845550 An archive of the audio webcast will be available on Nayax's Investor Relations website: Nayax - Investor Relations Hebrew webcast link: To access the conference call/webcast in Hebrew, use the link:  https://us02web.zoom.us/j/84395935079 Forward-Looking Statements This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. Forward-looking statements include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to of various factors, including, but not limited to: our expectations regarding general market conditions, including as a result of the COVID-19 pandemic and other global economic trends; changes in consumer tastes and preferences; fluctuations in inflation, interest rate and exchange rates in the global economic environment; the availability of qualified personnel and the ability to retain such personnel; changes in commodity costs, labor, distribution and other operating costs; our ability to implement our growth strategy; changes in government regulation and tax matters; other factors that may affect our financial condition, liquidity and results of operations; general economic, political, demographic and business conditions in Israel, including the ongoing war in Israel that began on October 7, 2023 and global perspectives regarding that conflict; the success of operating initiatives, including advertising and promotional efforts and new product and concept development by us and our competitors; and other risk factors discussed under "Risk Factors" in our annual report on Form 20-F filed with the SEC on February 28, 2024 (our "Annual Report"). The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. The forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These statements are only estimates based upon our current expectations and projections about future events. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements. In particular, you should consider the risks provided under "Risk Factors" in our Annual Report. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, to conform these statements to actual results or to changes in our expectations. Use of Non-IFRS Financial Information In addition to various operational metrics and financial measures in accordance with accounting principles generally accepted under International Financial Reporting Standards, or IFRS, this press release contains Adjusted EBITDA, a non-IFRS financial measure, as a measure to evaluate our past results and future prospects. Adjusted EBITDA Adjusted EBITDA is a non-IFRS financial measure that we define as loss for the period plus finance expenses, tax expense, depreciation and amortization, share-based compensation costs, non-recurring issuance and acquisition related costs and our share in losses of associates accounted for by the equity method. We present Adjusted EBITDA in this press release because it is a measure that our management and board of directors utilize as a measure to evaluate our operating performance and for internal planning and forecasting purposes. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. We believe that Adjusted EBITDA, when taken collectively with financial measures prepared in accordance with IFRS, may be helpful to investors because it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies because it provides consistency and comparability with past financial performance. However, our management does not consider this non-IFRS measure in isolation or as an alternative to financial measures determined in accordance with IFRS. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Adjusted EBITDA may be different from similarly titled measures used by other companies. The principal limitation of Adjusted EBITDA is that it excludes significant expenses that are required by IFRS to be recorded in our financial statements, as further detailed above. In addition, it is subject to inherent limitations as it reflects the exercise of judgment by management about which expenses are excluded or included in determining Adjusted EBITDA. A reconciliation is provided at the end of this press release for Adjusted EBITDA to net loss, the most directly comparable financial measure prepared in accordance with IFRS. Investors are encouraged to review net loss and the reconciliation to Adjusted EBITDA included below and to not rely on any single financial measure to evaluate our business. Constant Currency Nayax presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. Future expected results for transactions in currencies other than United States dollars are converted into United States dollars using the exchange rates in effect in the last month of the reporting period. Nayax provides this financial information to aid investors in better understanding our performance. These constant currency financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with IFRS. The Company cannot provide expected 2024 net income without unreasonable effort because certain items that impact net income are out of the Company's control and/or cannot be reasonably predicted at this time, of which unavailable information could have a significant impact on the Company's IFRS financial results. About Nayax Nayax is a global commerce enablement, payments and loyalty platform designed to help merchants scale their business. Nayax offers a complete solution including localized cashless payment acceptance, management suite, and loyalty tools, enabling merchants to conduct commerce anywhere, at any time. With foundations and global leadership in serving unattended retail, Nayax has transformed into a comprehensive solution focused on our customers' growth across multiple channels. As of June 30, 2024, Nayax has 11 global offices, approximately 1,100 employees, connections to more than 80 merchant acquirers and payment method integrations and globally recognized as a payment facilitator. Nayax's mission is to improve our customers' revenue potential and operational efficiency. For more information, please visit www.nayax.com Public Relations Contact: Scott Gamm Strategy Voice Associates Investor Relations Contact: Aaron Greenberg Chief Strategy Officer NAYAX LTD.CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTSAs of June 30, 2024(Unaudited) NAYAX LTD.CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)     June 30   December 31   2024   2023           U.S. dollars in thousands ASSETS               CURRENT ASSETS:       Cash and cash equivalents 61,912   38,386 Restricted cash transferable to customers for processing activity 54,397   49,858 Short-term bank deposits 24,137   1,269 Receivables in respect of processing activity 72,356   43,261 Trade receivable, net 47,019   41,300 Inventory 20,308   20,563 Other current assets 10,717   8,772 Total current assets 290,846   203,409         NON-CURRENT ASSETS:       Long-term bank deposits 2,119   2,304 Other long-term assets 5,571   5,883 Investment in associate 4,486   5,024 Right-of-use assets, net 6,373   5,341 Property and equipment, net 11,347   5,487 Goodwill and intangible assets, net 113,946   96,411 Total non-current assets 143,842   120,450 TOTAL ASSETS 434,688   323,859         NAYAX LTD.CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)     June 30   December 31   2024   2023   U.S. dollars in thousands LIABILITIES AND EQUITY               CURRENT LIABILITIES:       Short-term bank credit 34,530   47,477 Current maturities of long-term bank loans 2,386   1,101 Current maturities of loans from others and other long-term liabilities 4,451   5,422 Current maturities of leases liabilities 2,637   2,145 Payables in respect of processing activity 139,780   104,523 Trade payables 17,265   17,464 Other payables 31,122   25,650 Total current liabilities 232,171   203,782         NON-CURRENT LIABILITIES:       Long-term bank loans 15,417   327 Long-term loans from others and other long-term liabilities 20,762   14,476 Post-employment benefit obligations, net 715   427 Lease liabilities 4,412   4,149 Deferred income taxes 2,524   3,108 Total non-current liabilities 43,830   22,487 TOTAL LIABILITIES 276,001   226,269         EQUITY:       Share capital 9   8 Additional paid in capital 218,792   153,524 Capital reserves 10,129   9,643 Accumulated deficit (70,243)   (65,585) TOTAL EQUITY 158,687   97,590 TOTAL EQUITY AND LIABILITIES 434,688   323,859 NAYAX LTD.CONDENSED CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)     Six months ended June 30   Three months ended June 30   2024   2023   2024   2023   U.S. dollars in thousands   (Excluding loss per share data)           Revenues 142,049   108,569   78,087   56,159 Cost of revenues (79,474)   (69,838)   (43,499)   (35,303) Gross Profit 62,575   38,731   34,588   20,856           Research and development expenses (12,762)   (10,106)   (6,417)   (4,970) Selling, general and administrative expenses (45,284)   (33,967)   (23,824)   (17,536) Depreciation and amortization in respect of technology and capitalized development costs (5,383)   (2,814)   (2,812)   (1,674) Other expenses, net (506)   -   (378)   - Share of loss of equity method investee (538)   (741)   (248)   (383) Operating profit (loss) (1,898)   (8,897)   909   (3,707) Finance expenses, net (5,989)   (118)   (3,601)   (40) Loss before taxes on income (7,887)   (9,015)   (2,692)   (3,747) Income tax expense (82)   (485)   (321)   (226) Loss for the period (7,969)   (9,500)   (3,013)   (3,973)           Loss per share attributed to shareholders of the Company:         Basic and diluted loss per share (0.227)   (0.288)   (0.083)   (0.120) NAYAX LTD.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)     Six months ended June 30   Three months ended June 30   2024   2023   2024   2023             U.S. dollars in thousands Loss for the ...