Nayax (NYAX) CEO on E.V. Exposure
Summary
TLDRNyx, a financial tech company, has seen its stock rise by 50% in the past year, largely due to its innovative device that facilitates cashless transactions for commercial businesses. The device has the potential to generate $300 million in revenue, with the company currently trading near a billion dollars. Nyx aims to lead the market, which is valued at over $123 billion, by providing a one-stop solution for businesses to transition from cash-only to cashless systems. The company has projected revenues of $325 to $335 million for the year and is focusing on growth through strategic acquisitions and expanding into new markets, particularly targeting the electric vehicle charging sector.
Takeaways
- 📈 The company's stock has increased by about 50% in the past year, reflecting significant growth.
- 🚀 The main device developed by the company is contributing to its status as a $300 million revenue generator and is valued at nearly a billion dollars.
- 🌐 The device is designed to serve a vast market potential of over 123 billion, positioning the company as a market leader.
- 💰 The projected revenue for the year is between $325 to $335 million, with nearly $67 million in Q4 revenue.
- 🛠️ The device aims to reduce friction in the unattended market by retrofitting existing machines to accept cashless payments and alternative payment methods.
- 📈 The company is experiencing consistent annual revenue growth of over 30% and is expected to continue with growth upwards of 40%.
- 📊 Despite the growth, the company is currently not prioritizing profitability, focusing instead on rapid expansion and market penetration.
- 🌍 Geographic expansion is a key strategy, with a focus on Europe, the US, and now Latin America, particularly Brazil.
- 🔍 The company benefits from strong brand recognition and an ecosystem of partners, reducing the need for significant marketing spend.
- 💼 The company is well-funded after selling 3 million shares at $26 each, with no immediate need for further capital raising.
- 🎯 The company sees itself as operating in a 'blue ocean' market with high barriers to entry,预示着 long-term growth potential.
Q & A
What is the main focus of Nyx's business?
-Nyx focuses on providing a device that can be plugged into commercial businesses to facilitate on-the-spot transactions, enabling both cash and cashless payment methods.
How has Nyx's stock performance been in the past year?
-Nyx's stock has increased by about 50% in the past year, reflecting the company's growth and market performance.
What is the potential revenue that Nyx is targeting with their current device?
-The device is projected to generate a potential revenue of $300 million for Nyx, with the company currently trading at nearly a billion dollars.
What challenges does Nyx face in retrofitting unattended machines with their device?
-The challenges include the friction of retrofitting machines remotely without physical visits, onboarding small customers onto the payment system, and ensuring compliance with KYC and anti-money laundering regulations.
What is the projected revenue for Nyx for the year based on their latest message to investors?
-Nyx projected a revenue of $325 to $335 million for the year.
Which industries or verticals are experiencing the most growth with Nyx's solution?
-A significant growth area is the electric vehicle charging sector, particularly slow chargers in parking lots and business areas that are now required to have open-loop payment solutions.
What is the geographical breakdown of Nyx's revenue?
-Approximately 40% of the revenue comes from the European continent and the U.S., while 20% comes from the rest of the world, mainly in the Far East, Australia, and New Zealand, with a recent focus on Latin America, particularly Brazil.
How does Nyx plan to expand its market reach, especially to small businesses?
-Nyx relies on strong brand recognition, an ecosystem of partners, distributors, and resellers, and strategic acquisitions to expand its reach without heavy spending on marketing and advertising.
Is Nyx considering profitability or growth as their primary focus at the moment?
-Nyx prioritizes growth at the moment, but they expect to become profitable this year, as they have built a scalable platform and are now focusing on expanding their business.
How does Nyx's recent share sale impact their financial position?
-The sale of about 3 million shares at $26 each strengthens Nyx's balance sheet and provides more liquidity in the U.S. market, preparing them for further acquisitions and growth.
What are Nyx's long-term prospects in the fintech and unattended payment market?
-Nyx sees itself in a strong position in a 'blue ocean' market with high barriers to entry, owing to regulations, market structure, and the challenges of retrofitting unattended machines, which allows them to continue growing for many years to come.
Outlines
💼 CEO Interview: Nyx Financial Tech's Growth and Market Leadership
The CEO of Nyx Financial Tech discusses the company's significant growth, with stocks up 50% in the past year. The main focus is on their innovative device that facilitates transactions for commercial businesses, contributing to a potential revenue of $300 million and a market value nearing a billion dollars. The CEO emphasizes the device's role in leading the market and the company's projection of $325 to $335 million in annual revenue. The device's functionality in unattended markets and its ability to streamline cashless payments is highlighted, along with the challenges of retrofitting existing machines and onboarding small customers onto the payment system. The CEO also mentions the company's strategic market expansion, particularly in the electrical vehicle charging segment, and their commitment to profitability and further growth through acquisitions.
🌍 Geographic Expansion and Market Penetration Strategies
This segment delves into Nyx Financial Tech's geographic expansion and market penetration strategies. The company, based in Israel, has been focusing on Europe and the United States, which account for 60% of their volume, with the rest of the world, particularly the far East and the UK, making up the remaining 40%. The recent acquisition in Brazil is discussed as a strategic move to enter the Latin American market. The CEO talks about the company's strong brand recognition and presence in the industry, which minimizes the need for extensive marketing and advertising. They also discuss the importance of trade shows and a robust ecosystem of partners, distributors, and resellers in their market outreach. The CEO shares insights on how small businesses, which are their primary target market, discover and engage with their services. Lastly, the CEO addresses the company's recent share sale, emphasizing that the funds will be used to strengthen the balance sheet and support future acquisitions, without the immediate need for further capital raising.
Mindmap
Keywords
💡Nyx
💡Unattended Market
💡Retrofitting
💡Open Loop Payment
💡KYC
💡Electrical Vehicle Chargers
💡Revenue Growth
💡Profitability
💡Geographic Expansion
💡Marketing and Advertising
💡Acquisition
Highlights
Nyx is a Financial Tech company with innovative connections to vending, credit cards, and payment systems.
The company's stocks have increased by about 50% in the past year.
Nyx's main device can be plugged into commercial businesses, facilitating on-the-spot transactions.
The device has the potential to generate $300 million in revenue and the company is trading nearly a billion dollars.
Nyx is leading the market with a strong position in the unattended market, which is valued at over 123 billion.
The company projected revenue for the year is between $325 to $335 million.
Nyx's device helps to reduce friction in retrofitting unattended machines to accept cashless payments.
The device supports more than 80 countries and various alternative payment methods.
Nyx provides a one-stop solution for businesses, allowing them to transition from cash-only to cash and cashless transactions within 10 minutes.
Electric vehicle chargers are an upcoming segment for Nyx, with a predicted market of over 100 million unattended solutions with open loop payment.
Nyx has seen consistent revenue growth of over 30% annually for the last few years.
The company is expanding geographically, with a recent focus on Brazil due to its strong growth potential.
Nyx has a robust ecosystem of partners, distributors, and resellers, enabling strong market presence without heavy marketing spending.
The company is in a strong position, focusing on acquisitions rather than being a takeover target.
Nyx recently sold about 3 million shares to strengthen its balance sheet and support further acquisitions.
The company's cash position is sufficient for its current plans, with no immediate need for additional fundraising.
Transcripts
Welcome back to
Morning Trade Live. Let's check
back in with the CEO at Nyack of
Financial Tech company with some
interesting connections to
vending, as well as credit cards
and payment systems. Now your
neck man is the co founder and
CEO at Nyx and continue our
conversation from when you guys
first went public a couple of
years ago. Welcome back to the
show here. Hi Thank you. OK
what's the latest? Uh, tell me
about what you guys have been
doing since we last spoke. Your
stocks up about 50% in the past
year. Is this still about that
main device that you can plug in
to different commercial? Uh
businesses where people can
transact right there on the
spot. Yeah. Don't underestimate
this device. This device is
generating the $300 Million
company that we are that we are
in poten potential revenue and
we're trading almost a billion
dollars, so this device is
creating a lot of value and it's
a they will us to really to
serve a market, which is a huge
market that is more than 123
billion, and, uh, this is a
very, very strong position of
Leading the market. Yeah Uh, you
in your latest, uh, message to
investors projected revenue for
the year of 325 to $335 million.
You did just shy of 67 million,
uh, in the fourth quarter. Uh,
tell us again remind us how the
device how the system works. So
there is a lot of friction in
our business in the unattended
market to remind the audience
it's a business of
machines. Kidder rs a lot of
what they call unattended that
already exist in the market, and
we are retrofitting the device
to accept the machine that to
accept also cashless payment
where it is open. Look close
loop alternative payment, all of
the above more than 80 countries
and this friction of
retrofitting A machine remotely
without going out from the
office is quite Big task of the
unattended market. The other
part is, of course, the
customers are very small
customers and to on board the
customers to a payment system
and the CT finding them in the
KYC. You know, you know your
customers and anti money
laundering fraud and all this
activity, creating a lot of
hassle from their perspective,
and I actually solving all of
this in one stop solution, and
that's the beauty about about
what we're doing, enabling
customers in 10 Minutes
installation. Move their
business from cash only to cash
and cashless. OK Uh, are there
particular industries in which,
uh, you're seeing the most
Growth? Where are the verticals
in which this is really making
sense? I think the market is
huge. We are serving today less
than 10% of the market. But the
upcoming segmented coming quite
fast to what we believe is the
electrical vehicle Chargers.
Until now, just the DC. What do
you call the fast Chargers?
We're carrying a car at present.
But today, all the regulations
are asking the slow charges the
ones that are on the parking lot
or in the on the business area
to carry also open loop
solution, and that's against the
trend that was before Of just
application, and now we're
coming with a solution with all
embedded the slow charges with
the with the payment device, and
the market predict that there
will be more than 100 million
unattended solutions during an
open loop solution. Open loop
payment, which is more than
double the unattended market
that we are now seeing. Uh, your
revenue Growth has been an
impressive and consistent uh 30%
plus on an annual basis for the
last. Uh uh, Couple of years.
Uh, analysts expect you to
continue hitting upwards of 40%
Growth. The earnings still have
negatives in front of them on.
Uh uh, the net income side as
well as the EP 's. Is that
because you're not prioritizing
profitability at this point, you
want to get these devices out.
You want to grow as fast as
possible. I saw you've also done
a few acquisitions here and
there, uh, walk me through What
the financial priorities right
now are as a business. So in any
business, the priority is always
profit and we become we will
become profit this year. We
stayed this for the investors as
well. It's been a while since we
went public to build the
platform to scale the business
as everybody knows, payment is
scaling business is a volume
business and in order to build
what they call ability to reach
out to more than 100 countries,
you have to be quite an
infrastructure that served this
market. But the Growth of 40% or
35, and above this is what we
committed will come with a
profit from now on from this
year and onwards, OK when it
comes to geographic expansion
your Israel based but you've
been expanding. Uh, you did a
deal for a financial business in
Brazil. I saw, uh, over the past
month. I believe, uh where, uh,
are you reaching, and, uh, What
is that? Revenue breakdown Look
like right now. Regionally Can
you give us an idea? Kind of
where your big Growth areas are.
So basically from Israel, we
Israel is not a not a not a
relevant. Uh uh uh, What do you
call? Uh, substantial value in
terms of the volume that we're
doing? It's more Europe and U.
It's like 40 40% between the
European continent and the U 's
and 20% is the rest of the world
, mostly in the far East in
Australia, uh and the and the
New Zealand and also we have in
the UK. Uh, now we're getting
into the Latin America, which
is, uh now we central we
centralize. Focus into Brazil.
We live strongly. Brazil is a
strong market that can come with
a very strong Growth into the
next few years, And that was
their acquisition that we did in
order to start as a green field.
We did in order to start kind
the when you expand, and it
seems like a lot of the places
that are gonna need this device,
the most Are small businesses,
they might be kind of mom and
pop owned businesses. How do
they find out about you? Uh, do
you have to spend on marketing
advertising? Is that where the
deals make sense to kind of buy
a local company that's already
got inroads and worked through
them. So a long day we are more
than 20 years In this business,
we built a very strong brain
brain recognition a lot of the
fun that coming into into our
business coming from the 's CO.
We not have. We don't have to
spend too much money in terms of
what they call investing in PPC
and all of the activities like
steady, steady investment, But
there is a lot of investment in
social in in what you call
present in the market in the
trade shows, we have a strong
OEM. There's an ecosystem of
partners of distributors and
resellers. So wherever you put
your request regarding Kesler's
vending on the Web, you'll find
Ms in the first page. OK so I
got good 's EO people search and
they find what they're looking
for. What's the key word that
they search? Is it? Um What?
What? What? How do they find
you? So it's in In any segment.
It's different, but basically
it's like a K. Vending
unattended. Vending Uh uh, yeah,
This is a This is the most
common words Combining with that
have been searched for? I asked
you this before, but I believe,
but as you continue to expand, I
mean it. Wouldn't there be like
AAA block or a, uh, big tech?
Uh, business Fintech. That might
go. Hey how come we're not doing
this? Uh, if you're generating
300 million do you become a take
out? Target. Are you having any
conversations like that? We are
in a position to buy not to be
sold, and actually, in the way
that we're looking at in the
business. We're seeing our
surfing in a place which is a
blue ocean with a lot of high
barriers to entry. We all the
regulation and the market
structure with a small customers
and the friction of the
unattended retrofitting machine.
We're seeing ourselves in a in a
in a very good sport in the
world that enable enable us to
keep growing for the next Many,
many years from now. OK last
point real fast. You just sold
about 3 million shares, uh, to
the market about 26 bucks. Uh,
hopefully I've got that figure.
Right Um, How is your cash? Uh
and your kind of runway D. Are
you gonna need to raise any more
money like that? How long does
that, uh, get you going for? No
this is, uh, this is more than
enough to what? What we're
seeing now. We wanted to
strengthen our balance sheet in
one hand, and we want to create
more liquidity in the U 's
market, and that's why we
decided to really to just to do
this raising of money to the
company and we are ready for
more acquisition and that's part
of the part of the of the of the
setting up the Nis. Thanks I
absolutely sounds like a lot of,
uh, Growth and continued
expansion. A fintech business
growing roughly around 40.
Pretty good stuff right now.
Weitere ähnliche Videos ansehen
Carlos Ghosn : «Ce que Renault sera en 2022»
IT-BPM Industry in the Philippines 101
Tesla’s Terrible Earnings, the FTC’s Noncompete Ban, and 24/7 Trading at the NYSE | Prof G Markets
Abhishek Kapoor, Group CEO, Puravankara Limited on ET NOW Swadesh
Business networking: 200 regional enterprises convene in Kampala
StoneCo Is Still Cheap, Still Growing, and I'm Still Buying! (Q4 & FY 2023 Earnings Review)
5.0 / 5 (0 votes)