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.