Nayax Ltd.

Hello, everyone, and welcome to NIACS' first quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. I would now like to turn the call over to Mr. Aaron Greenberg. Please go ahead.

Thank you, operator, and everyone for joining us today on this conference call. With me on the call today are Yair Nekhmad, NIACS co-founder and chief executive officer of and Sigeet Manoor, Chief Financial Officer. Following management's prepared remarks, we will open the call for the question and answer session. Our press release and supplementary investor presentation are available on our investor relations website at ir.niacs.com. As a reminder, during this call, we'll be making forward-looking statements. All forward-looking statements on our call today are based on assumptions, and therefore, subject to risks and uncertainties that may cause 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 supplementary investor presentation released earlier today in our regulatory filings. In addition, today's call will include a discussion of non-IFRS measures. Management believes known IFRS results are useful in order to enhance our understanding and our ongoing performance. However, these measures should be considered as a supplement to and not as a substitute for IFRS financial measures. Reconciliation between NIACS's non-IFRS to IFRS measures can be found in our earnings press release issued earlier today. All key performance indicators are intended to evaluate our business and properly measure factors in a macroeconomic environment to guide and support our decision making. These key performance indicators may be calculated in a matter 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. Yair will start the call with key financial and operational highlights. Following that, Tageet will go through the details of financial results and discuss the outlook. And with that, I would like to turn the call over to NIAX's CEO, Yair Nechmad. Yair?

Thank you, Aaron, and thank you to everyone joining us today to discuss our earnings for the first quarter of 2024. We are off to a great start to the year at NIAX, continuing the strong performance we saw last year. We've made impressive progress in managing our daily operation to achieve profitable growth. This quarter highlights our ability to keep growing and improving our profits, giving us a solid base for the year ahead. Specifically, our gross margin reached a better than expected 43.8% with hardware margin at 27%. These margins are reflective of the success we've achieved through enhancement in automation and operational efficiency across our supply chain. Furthermore, given our operation leverage, approximately 37% of every new dollar of revenue that came in the first quarter cascaded to the bottom line in the adjusted EBITDA. In the first quarter of 2024, NIACS reached $64 million in revenue, with $46.2 million coming from steady ongoing recurring businesses. Our revenue growth reached 22% with our recurring revenue streams growing by 43%. With respect to recurring revenues, this growth is crucial as it highlights the shifting dynamic of our revenue stream. with recurring revenue becoming increasingly significant relative to hardware sales. As our revenue mix continues to see an increased number of transactions for micro-markets, energy, and retail, we expect increases in our average transaction value to help drive our strong processing growth. Additionally, we achieved a record 62,000 new managed and connected devices, an all-time high for newly activated devices in a quarter. This quarter, we've seen an increase in revenue from SMBs compared to enterprise customers. We anticipate a significant uptick in enterprise sales as the yield continues, positioning us well to drive substantial top-line revenue growth. Our performance was also supported by strong demand in our OEM hardware businesses, which made up a large part of our Q1 hardware sales. This aligns with our strategy to integrate our payment solution early in the supply chain, enhancing the durability and depth of our customer relationship. As a leading IoT technology company, we are gearing up for a transformative year ahead, committed to increasing the portion of steady recurring revenue in our businesses. We look forward to an exciting year ahead, focused on innovation, and are committed to continuous growth. Furthermore, our total transaction value saw a significant increase of 34% year-over-year, crossing the $1 billion mark for the first time. This milestone is a clear indicator of our growing influence and success in the market. This growth in transaction value is accompanied by an increase in our take rate, which has improved our processing cost efficiency as we continue to scale. In recent weeks, We closed two strategic acquisitions that have significantly enhanced our product offering and geographic market reach. We completed the acquisition of Rosman Engineering, a provider of sophisticated software solution for fuel and electric vehicle management. This acquisition is particularly strategic as it strengthened our position in the fuel and EV sector. areas we anticipate substantial growth due to the global shift towards sustainable energy solutions. We are focused on having a complete one-stop solution in the payment and POS space for the energy segment, where we see significant macroeconomic tailings due to the ongoing energy transition. Additionally, we closed the acquisition of BM Technologies at the end of April, a pivotal move that establish our presence in the Latin American market, particularly in Brazil. Veeam Technology is a leader in Brazil in the automated service industry. And this acquisition not only expand our geographic footprint, but also extend our product offering across diverse market segments in one of the most dynamic region in the world. For example, they have some unique technological feature with the micro market space. such as AI-enhanced security surveillance, that we will work to integrate into our global offering. Their sales in the micro-market have been a large portion of their revenue mix over the past couple of years. We believe micro-market solutions are still underpenetrated in Brazil. The Brazilian market presents significant growth opportunities, and with VM technology, we have a strong and immediate foothold in this region. As we look ahead, we are excited about the prospects for 2024 and beyond. Our M&A strategy continues to strategically complement and add to our mostly organic growth. We expect to remain active in buying synergetic companies over the coming years. This proactive approach is central to our strategy for sustained growth and market leadership. Lastly, I want to highlight our successful capital raise in March led by several leading investing banks, which brought us roughly $63 million net of fee and expenses and gave us a war chest for continuous strategic M&A. Notably, we have been actively focused on increasing the liquidity of our share on NASDAQ, and we believe the raise in March is a significant step forward in increasing the daily trading volume. To summarize, the first quarter of 2024 has set a strong and optimistic tone for the rest of the year. We are thrilled with our financial performance and the strategic progress we've made. Our platform not only facilitates expansion within existing markets, but also enables us to seamlessly enter new markets and enhance our global footprint. We remain committed to leveraging our unique platform to deliver comprehensive payment and loyalty solution across broad spectrum of market segments, thereby continue to drive growth and enhance shareholder value. I would now like to turn the call over to our CFO, Sagit Manon, who will go into more detail about our business performance for the first quarter and our outlook for 2024. Sagit, please go ahead.