Nayax 2021 Q3 revenue increases 40%, device connections grow 38% to 461K

In its 2021 third quarter financial report, Nayax observed that diverse range of verticals and geographies led to a 40% year-over-year increase in revenue, to $31 million. The payment company's managed and connected devices grew 38% year over year for the quarter to more than 461,000.

"As global trends continue to provide a strong tailwind supporting the growth of the unattended market, recurring revenue from SaaS and processing grew an impressive 65% year over year, reaching $19.6 million," reported Nayax chief executive Yair Nechmad

"Despite component pricing increases due to global supply-chain challenges, we have made a strategic decision to keep Nayax's product prices intact," Nechmad added. "We believe that our commitment to our customers' growth, supported by our strong balance sheet, will expedite our long-term expansion plans even if our devices' gross margin is impacted in the short term."

Nayax generates revenues from the sale of IoT POS devices, SaaS and processing fees. The company's products are widely used vending machine operators and other unattended retail merchants. This quarter the company gained significant growth in its recurring revenue from SaaS and payment processing, reflecting a share of 64% of total revenue. This rise in repeat revenue from SaaS and payment processing represents growth from its existing and new customer base generating larger transactions and volume.

Additional Nayax Q3 financial highlights

• Quarterly transaction value grew 84% from the same quarter last year to $407 million.
• Gross margin was 40%.Gross profit reached $12.3 million, an increase of 18% over Q3 2020. 
• Operational expenses, including research and development, share-based compensation expenses, depreciation and amortization, and excluding IPO-related expenses, amounted to $18.6 million, an increase of 81% over Q3 2020. 
• Operating loss was $6.4 million, compared to an operating gain of $0.2 million in Q3 2020. 
• Adjusted EBITDA was $1.6 million, a reduction of 171% over Q3 2020 due to higher cost of goods sold and an increase in headcount, reflecting a continued investment in our customer base and in human capital.
• Net loss for the third quarter of 2021 was $6.7 million, or $0.021 per diluted share, compared with a net loss of $0.2 million, or $0.001 per diluted shares for the third quarter of 2020.
• As of Sep. 30, Nayax had $104 million in cash and cash equivalents.