Nayax Ltd.

Hello, everyone, and welcome to NIACS' fourth quarter and full year 2024 earnings conference call. All participants at present are in listening mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded. I would now like to turn the call over to Mr. Aaron Greenberg. Please go ahead, Aaron.

Thank you, Operator, and everyone for joining us today on this conference call. With me on the call today are Yair Nechmaz, NIAC's co-founder and chief executive officer, and Sageet Lenore, 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 presentations are available on our investor relations website at ir.niac.com. As a reminder, during this call, we will 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 at our regulatory filing. In addition, today's call will include a discussion of non-IFRS measures. Management believes non-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. The 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, I will speak about our recent M&As and their progress. Finally, Sugeet 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. We had an excellent fourth quarter, stepping off an exceptional year in which we either met or exceeded our guidance. We advanced our strategic goals and achieved many significant milestones along the way. 2024 was a turning point for NIAX. as we delivered record revenue, improved our recurring revenue mix, boosted profitability, achieved positive free cash flow, and grew our leadership position globally. I am very pleased with our results and proud of the entire NIACS team whose hard work and dedication has contributed to our success. I would like to start first with our key performance highlights for the year. I will then share a glimpse some of the recent success stories, and then I will discuss how well NICE is positioned for the future and conclude it with our main areas of strategic focus for 2025. In 2024, we managed to increase our adjusted EBITDA to more than four times to $35.5 million, exceeding our guidance. As we consistently showed over the past several quarters, how approximately 30% of our incremental revenue growth is cascading to adjusted EBITDA. Moreover, we achieved positive free cash flow, generating $18 million for the year, converting more than 50% of adjusted EBITDA into free cash flow and giving us more firepower to invest in the growth of our business. Continuing to scale our business with increasing operational leverage is key for us as we work towards our 2028 target. Our 2024 revenue increased by 34% to $315.2 million on a constant currency basis, in line with our guidance. Importantly, recurring revenue grew 47% for the full year and now represents 71% of total revenue. As you know, the shift toward high-margin subscriptions-driven revenue is a key factor to our long-term growth and profitability targets. These numbers tell a bigger story about NIAX, that our strategy and mission of simplifying commerce and payment for our customers is delivering results. We are expanding our market presence, driving profitability, generating cash flow, and building a brand that resonates with both customers and investors. Now, I'd like to walk you through three key performance indicators for the full year that we consider primary measures of our growth. First, total transaction value increased 36% to nearly $5 billion, combined with a higher take rate of 2.73%. This drove strong processing revenue growth for the year. Second, our customer base expanded 32%, reaching more than 95,000 customers at the end of 2024, up from just over 72,000 in 2023. And third, our installed base of managed and connected devices grew 21% to 1,260,000 devices at the end of 2024. The strong growth in our customer base and number of managed and connected devices reflect the success of our go-to-market strategy, which leveraged a combination of direct sales close relationship with distributors and resellers, OEM partnerships, and our eShop. Together, these channels are driving our growth today and will continue to fuel our expansion in the years ahead. We are highly confident about the future. With a relatively low penetration of cashless solution in both the unattended and attended end markets, we see a tremendous market opportunity for NIAPS. Our TEM is large and growing, driven by the shift from cash to digital payments that is occurring globally. Consumers today not only accept but expect seamless automated transactions, creating strong demand for our end-to-end payment solution, a trend that is only gaining momentum. Per independent research analysts, the number of connected devices globally is expected to grow from approximately $45 million in 2024 to $60 million by 2029. I'd like to now share some key development customer success stories from Quartel that highlight our continued expansion in the automated self-service space. In the United States, we extend our partnership with Kendi Machines and OEM in the amusement industry. and were chosen as an exclusive cashless partner for the Pelican Group, a large distributor representing thousands of operators managing more than 65,000 automated machines. In addition, Five Star, the largest of the Canteen franchisees, successfully completed the integration to NIAS. We also strengthened our relationship with Minnesota Vending, moving beyond our flagship VipoStarch to roll out NovaMarkets, in the micro-market operation. In El Salvador, we launched our automated self-service payment solution, accelerating our expansion into Latin America and improving access to secure cashless payment in an underserved market. In the UK, we deployed OTI Petro-Smart fuel management system in Tesco's UK delivery fleet, helping Tesco cut costs, accelerate information, and support sustainable operation across its fleet. In France and in Italy, we secured agreement with large buying group overseeing more than 300,000 machines, a deal that positioned us for long-term growth in the region. In Malta, we successfully installed our micro-market solution for a major international hotel chain, offering its new revenue stream without increasing labor costs and reinforcing the value of our technology. With each of these customer success stories and key developments, we continue to establish NIAFS as the leading provider of cashless payment and management solutions, driving innovation and growth across multiple industries and markets. Looking to the current year, our primary areas of strategic focus for 2025 will remain the automated self-service market, along with continuing pension with the retail and energy vertical. Now, I'd like to take a moment and explain our vision for each of these verticals. First, we plan to drive growth in automated self-service through our robust and diversified go-to-market strategy, which includes a special emphasis on OEM partnerships. We maintain direct relationships with more than 2,400 OEMs worldwide. who embed our payment devices directly into their products, including vending machines, EV chargers, arcade machines, and more. For example, we announced a partnership with SECO to offer IoT integrated payment solutions for OEMs, which combine seamless and secure payments with remote machine management and AI-driven business intelligence. With every new machine deployed through this OEM's partnerships, our ecosystem expands, ensuring we remain deeply integrated into the next generation of automated self-service devices and positioning us for sustainable long-term growth. Operators adopting this machine are seamlessly on board and supported locally and can instantly activate our services, reducing friction and deployment and driving faster adoption. Moving to energy vertical, we have continued our momentum as the premier cashless technology provider in the EV space by expanding our business with recognizable charge point operators, including Electrify America, Electrify Canada, and EVgo. One of our significant innovations this year, the EVKios application, which utilizes the OCPI network, gave us a significant edge in our product portfolio for EV payments. By being a leading payment solution provider for the EV charger industry, a rapidly expanding vertical, we ensure our long-term recurring revenue while strengthening our role in the broader energy and mobility ecosystem. Regulators are increasingly requiring that EV chargers support car present payment to receive public funding, which we expect to boost a demand for our payment device in this space. As the EV market scales globally, we expect Knife to be a key enabler of seamless, secure payments for drivers everywhere. Finally, as announced in September, we intend to launch our e-commerce payment solution for EV charging application in the coming months in partnership with Adyen, which will give us a complete unichannel payment solution to sell to our partners globally. Another continuing area for focus this year is retail and hospitality. We plan to continue expanding our footprint within retail and hospitality, providing customers with seamless solutions that address both their self-service and attended reach needs. With our unified technology stack, we enable a single integrated solution that combines all transactions into one seamless checkout. Our platform replaced the complexity of multiple vendors and different payment systems with a single solution, simplifying payments, providing real-time cash flow visibility, and ensuring a better guest experience. In Q4, we announced the expansion of our NYX retail products in continental Europe, and we started to gain an initial presence in North America at the end of the year. Accessing these markets isn't just about payment. It's about offering seamless, all-in-one solutions. And it provides complete commerce ecosystem for its customers, fueling our growth and differentiating us from other players in the market. As we enter 2025, I'm excited about the near-term opportunity in front of us. While we continue to pursue strategic M&A, organic growth remains our primary building block and will continue to be the main driver of our growth. We are building a scalable, profitable business, and everything we are doing today is about positioning knives for sustained success. We are confident that we can consistently expand our revenue and margin over the coming years to achieve our 2028 annual revenue growth target of 35% with 50% gross margin as we continue to grow our recurring revenue in general, and SaaS revenue in particular, as a percentage of our overall business. We are also reaffirming our guidance for 30% adjusted EBITDA as we continue to drive operating leverage and efficiency. With that, I'll turn over to Aaron Greenberg, our Chief Strategy Officer, who will discuss our recent M&A and future inorganic growth strategies. Everyone, please take it from here.