Nayax Ltd.

Good day and welcome to the NAACP LTD Third Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ms. Mary Sable. CEO of MSIR. Please go ahead.

Thank you, operator, and everyone for joining us today on this call. With me on the line today are Yair Nechmad, NIAC's co-founder and chief executive officer, and Sagit Manor, chief financial officer. Following management prepared commentary, we will open the call for the question and answer session. All forward-looking statements on our call today are based on assumptions and and therefore subject to risks and uncertainties that may cause actual results to differ materially from those projected. We have no obligation to update these statements except as required by law. You can read about these risks and uncertainties in our earnings press release issued earlier today and our regulatory filings. Our commentary today will include an earnings presentation. If you still do not have it, please view it via NIAC's IR website. All key performance indicators are intended to evaluate our business and properly measure factors in the macroeconomic environment to guide and support our decision-making. These key performance indicators may be calculated in a manner different from the industry standards. And finally, please note that all figures in today's call will be reported in U.S. dollars unless stated otherwise. On that note, I'd like to turn the call over to CEO Yair Nechmad. Yair, the floor is yours.

Thank you, Miri, and to everyone for joining us on the ninth third quarter conference call. I'd like to begin by sharing a quick overview of who we are and what we've accomplished year to date. NICE is the leader of a global commerce enablement and payment platform for unattended retail. Unattended retail covers a diverse range of verticals from vending machines, safe checkout counters, digital kiosks, and even charging stations. All devices connected to these verticals provide retailers with a sophisticated platform and payment system that generates valuable insight, allowing them to monitor and optimize their operations. As of September 30, 2021, we have grown our business to 10 offices around the world with 35 distributors. We have over 510 employees, of which more than 25% work in R&D departments to fuel our innovative technology and keep disrupting the market. Over 27,000 customers rely on our platform, clocking in on over 460,000 devices in more than 15 countries. which generates approximately a $1 billion transaction so far this year. Moving to slide six, you can see how NAACS empowers retailers to accelerate their trajectory. Our focus concentrates on growing customers' demand by encouraging their success. The growth in transactions derives from our full-stop solution that rewards customers' loyalty and transforms consumers' data into meaningful and actionable insights. Transaction value in Q3 grew an astonishing 84% compared to the same period last year, totaling $407 million. The number of transactions during the quarter also grew an impressive 73% compared to Q3 of 2020, reaching 280 million transactions. With certain markets recovering from complications due to the Delta variant, we see an increase in transaction volume across the payment industry. Combined with ongoing trends of digitalization and adopting forms of unattended commerce, we will continue to see an increase in the value and volume of transactions through our platform. Moving to slide 7, we can see how uniquely positioned we are to capture market shares. We offer an end-to-end solution, 360-degree platform for all the retailers' needs. Actually, one of the pillars of our success is the ownership of the entire value chain. From front-end to back-end, everything is between, and everything between, we rely on our own technology. This means we are flexible, fast, and efficient. For example, our proprietary connected POSs, Technology allows us to be flexible when we initiate installing our platform in existing as well as new devices. Our customer service relies only on our offering, so we take full oversight and control of our services. If you can see on the slide on the right-hand side, on the top right-hand side, the hardware itself is dealing with the friction and the way that onboarding customers with the hardware. On the bottom line of the yellow triangle, you can see what we're doing in terms of payment and how we're dealing with the payment on a global level and a local level, also integrating two local card schemes, employee cards and alternative payments. On the left hand, you can see how the data is reaching out to the decision maker in the organization, whether it is the route driver, or the technician or the CEO or CFO of the organization, owning the organization or managing the organization. On the top left side, you can see the mobile app. These are four pillars that generate the one-stop solution and enabling us to help the customer to grow the business. Moving to slide eight, our product portfolio and our marketing initiative to strengthen our customer base remain a top priority this past quarter. These continue to be powerful growth drivers and an instrumental factor to establishing a high net retention rate. Turning each customer into a long-term partner allows us to be directly involved with their growth, resulting in larger volume and transaction size. Our recurring revenue consists of SaaS and payment processing continue to be the main revenue growth drivers. The nine months ended September 30, 2021 versus the same period in 2020 show a 56% increase in total revenue to $31 million this quarter. This is a testament to our global leading position in the unattended industry. Despite these challenging times due to the pandemic and its economic effect, our wide global presence and the multiple verticals that we operate in support of strong growth. Moving to slide nine, on the customer engagement, we are pleased to report another quarter of strong growth with over 27,000 connected customers, including 3,000 additional customers this quarter. We value our partnership with our customers and made a strategic decision to keep our product price intact and not tested on the increased costs due to the global supply chain challenges. A strong commitment to our customer growth and more importantly, in this context, maintaining the pricing of our POS devices are the essence of establishing a loyalty and continue to help drive our customer growth. As of Q3 2021, we have over 461,000 connected devices, 29,000 increase over Q2 of 2021. We are expanding our footprint in the market while establishing ourselves in key areas of the world that are still poised for growth as they transition to cashless solutions. Looking at slide 10, we can see that our mission-critical service comes across in our overall results. Our churn rate is very low at only 2.7%, showing a greater dissection from our platforms. Customer concentration and global coverage remain highly diverse, ensuring a platform that is scalable and applicable among all potential markets and merchants. We believe the U.S. is still transitioning into 4G and EMV type payments, which are a strong indicator of further future reliance on our platform. Part of our expansion strategy involves connecting our devices to new verticals, diversifying our customer base, and expanding our regional coverage even further. You can see some of our significant wins this quarter. Just as an example, NYX US awarded a substantial global US military ERP over the incumbent cashless payment provider and shipped the devices for multiple bases installed in five different continents during Q3. Another T1 customer's example is IWG Regus, where we won a global RFP for sole supply payment solution provided for coffee services in Europe. In UK, Nike UK become preferred supplier for Labata coffee and Arma catering. With that, I will now pass the call to our Chief Financial Officer, Sagit Manohar.