Nayax (NYAX) CEO on E.V. Exposure

Summary

Nyx, 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

00:00

💼 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.

05:02

🌍 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.

Keywords

💡Nyx

Nyx is the name of the financial tech company featured in the video. It is a key player in the payment systems and vending industry, with a focus on devices that facilitate cashless transactions. The company's success is highlighted by its significant stock increase and its potential to generate substantial revenue. The keyword 'Nyx' is central to understanding the business model and achievements discussed in the video.

💡Unattended Market

The unattended market refers to the business sector involving machines that operate without the need for constant human supervision, such as vending machines and charging stations. In the context of the video, Nyx is addressing challenges in this market by retrofitting devices to accept cashless payments, thereby reducing friction and increasing convenience for consumers and businesses.

💡Retrofitting

Retrofitting is the process of adding new features or technology to existing devices or systems to bring them up to date or to enhance their capabilities. In the video, Nyx specializes in retrofitting unattended market machines to accept various forms of cashless payment, which is a significant task due to the widespread nature of these machines.

💡Open Loop Payment

Open loop payment systems are payment networks that allow transactions without the need for a closed system or a specific application. They are more versatile and can be used across a wide range of merchants and services. In the video, Nyx's device supports open loop payments, which is a key feature that expands its usability and market reach.

💡KYC

Know Your Customer (KYC) is a process used by businesses to verify the identity of their customers to prevent fraud, money laundering, and other illegal activities. In the context of the video, Nyx's system helps to onboard customers to the payment system while also adhering to KYC regulations, simplifying the process for small businesses.

💡Electrical Vehicle Chargers

Electrical vehicle (EV) chargers are the devices used to recharge the batteries of electric vehicles. In the video, it is mentioned that Nyx sees significant growth potential in this segment, as regulations are pushing for the inclusion of open loop payment solutions in slow chargers, leading to a predicted increase in demand for unattended solutions with open loop payment capabilities.

💡Revenue Growth

Revenue growth refers to the increase in a company's income or earnings over a specific period. It is a key indicator of a company's financial health and market performance. In the video, Nyx has shown impressive and consistent annual revenue growth, which is a testament to the company's successful business strategy and market expansion.

💡Profitability

Profitability is the ability of a business to generate profits, indicating its financial success and efficiency. It is a primary goal for any business and is closely monitored by investors. In the video, Nyx prioritizes scaling the business and expanding its reach before focusing on profitability, although the company is expected to become profitable in the near future.

💡Geographic Expansion

Geographic expansion refers to a company's strategy to extend its business operations into new regions or markets. This is often done to increase market share, diversify revenue sources, and tap into new growth opportunities. In the video, Nyx has been expanding beyond its Israel base, with a recent focus on Brazil, indicating a strategic move to tap into the Latin American market.

💡Marketing and Advertising

Marketing and advertising are strategies used by businesses to promote their products or services and increase brand awareness. These activities help attract customers and generate sales. In the video, Nyx has built strong brand recognition over 20 years in the business, reducing the need for significant investment in marketing and advertising, and instead relying on word-of-mouth and industry presence.

💡Acquisition

An acquisition is the process by which one company takes ownership of another, often to expand its market presence, acquire new technologies, or diversify its product offerings. In the video, Nyx has engaged in acquisitions as part of its growth strategy, allowing it to enter new markets and strengthen its position in the industry.

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.