Nakes Management (Photo by Nir Selkman)
Nakes, which operates a global trading and payments platform that helps retailers grow their businesses, announced its fourth-quarter and 2021 financial results.
Highlights of the financial results for the fourth quarter of 2021:
Total revenue of approximately $ 34.4 million, an increase of approximately 40% compared to the corresponding quarter in 2020. Nakes generates revenue from the sale of connected points of sale (IOT POS), From management software ((SaaS And clearing fees. In the fourth quarter, the company showed a significant growth of 66% in returning income from usage fees (SaaS) Two months and clearing fees, and they reflect a share of about 60% of total revenues in the fourth quarter, compared to a share of 51% in the corresponding quarter in 2020. This increase reflects growth from the existing and new customer base. The number of connected and managed points of sale grew by about 40% compared to the corresponding quarter in 2020 to more than 517,000.
The number of transactions cleared in the fourth quarter of 2021 increased by 84% compared to the corresponding quarter in 2020, to 247 million transactions. The total value of transactions cleared in the quarter increased by 89% from the corresponding quarter last year, to $ 428 million.
Gross profit rate – We expected a further decrease in gross profit in the fourth quarter from sales of point-of-sale devices (POS). Gross profit was 35% and was affected by the persistence of global shortages in components, and the rise in commodity prices, offset by a continued strong profitability from recurring revenues.
Gross profit for the quarter rose to $ 12 million, an increase of over 11% over the same quarter in 2020. Operating expenses – including research and development, share-based compensation expenses, depreciation – totaled $ 21.3 million, an increase of 89% over the same quarter in 2020. This increase reflects an increase in the company’s continuous investment in quality manpower, in expanding its customer base and in product innovation. Additional investments made by the company included increasing the וgo-to-marketImproved infrastructure to support global growth as the company grows.
The operating loss was $ 10 million, compared to an operating loss of $ 0.35 million in the same quarter last year.
God-EBITDA Adjusted for the quarter was negative by about $ 3.9 million, compared EBITDA Positive adjusted $ 2.4 million for the same quarter in 2020. The change is mainly due to an increase in sales costs, as well as an increase in such operating expenses. It should be noted that in neutralizing the bonus plan that was first implemented in the third quarter for non-sales employees, as well as in neutralizing the effect of the increase in the cost of the product – the EBITDA Adjusted for the quarter improved and was negative by about $ 0.9 million.
The net loss in the fourth quarter of 2021 was $ 10 million, or (0.0152) $ per diluted share, compared to a net loss of $ 3.1 million, or (0.0124) $ per diluted share in the corresponding quarter last year.
The main business developments in the fourth quarter:
Expanding the existing customer base – adding 3,000 new customers globally. As of the end of 2021, the company’s customer base stands at 30,000 customers.
Total revenue from customers SMBReflects a share of 74% of total revenue.
God-retention rate Net on a dollar basis is 137% (the 100% reflects the volume of revenue unchanged from existing customers compared to last year), compared to 102% presented in the corresponding quarter in 2020.
The total number of connected and managed points of sale in the quarter reached over 517,000, a 40% increase over the corresponding quarter in 2020, reflecting growing customer demand and the success of the company’s expansion strategy.
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Highlights of the financial and business results for 2021:
The company completed its first public offering on the Tel Aviv Stock Exchange in May 2021 and raised $ 132.5 million net. Total revenue in 2021 of about $ 119.1 million, an increase of about 51% compared to 2020.
Revenue Revenue in 2021 from Usage Fees (SaaS2 months and clearing fees increased by 64% compared to 2020 and reflect a share of about 60% of total revenues in 2021, compared to a share of 55% in 2020.
God-retention rate Net (on a dollar basis) continued to be high at 137%, while the rate of customer abandonment remained low at 2.6%. The total value of transactions cleared in 2021 increased by 85% compared to 2020, to $ 1.4 billion. The number of transactions cleared in 2021 increased by 69% compared to 2020 to 795 million.
The gross profit margin in 2021 was 40%, a figure that represents a continued strong profitability from recurring revenues, offset by lower profitability from the sale of devices due to global shortages of components, and rising commodity prices. Gross profit in 2021 was about $ 48 million, compared to about $ 37 million in 2020.
Operating expenses – including research and development, share-based payment expenses, depreciation, and excluding issues related to the IPO – totaled $ 68.5 million in 2021, an increase of 74% over 2020. This increase reflects an increase in the company’s ongoing investment in quality manpower, expanding Customer base and product innovation. Additional investments made by the company included increasing the go-to-market And improved infrastructure to support global growth as the company grows.
The operating loss was $ 22.5 million in 2021, compared to an operating loss of $ 2.2 million in 2020.
God-EBITDA Adjusted in 2021 was negative at about $ 4.0 million, compared EBITDA Positive adjustment of $ 6.6 million in 2020. The change is due to an increase in sales cost, as well as the increase in operating expenses as part of the company’s growth strategy. It should be noted that in neutralizing the bonus program first implemented in the third quarter of 2021 for non-sales employees, as well as in neutralizing the effect of the increase in product cost – theEBITDA Adjusted in 2021 was positive at $ 1.0 million.
The net loss in 2021 was $ 24.8 million, or $ 0.082 per diluted share, compared to a net loss of $ 6.1 million, or $ 0.0252 per diluted share for 2020. Cash and cash equivalents – As of the end of December 2021, Nakes has approximately $ 87.3 million.
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Nakes is the leading global company in its field. The company has developed an advanced trading and payment platform designed to help businesses increase their profits, and manage them more efficiently. Nakes ‘mission is to improve its customers’ revenue potential and operational efficiency. The company offers a complete solution, which includes receiving cash-free payments, a management system and an app for increasing customer loyalty, which enable businesses to conduct efficient and fast trading anywhere and anytime.
The company started in 2005, as a developer of payment machines for vending machine retailers, providing a complete solution for the management and operation of the business and its growth. Since then, the company has developed many diverse and advanced solutions and interfaces, and has become a provider of comprehensive solutions, focusing on customer growth in all channels around the world.
Nakes has eight global sales offices, more than 550 employees, connections to more than 80 financial institutions, and in addition it sells a licensed payment institution in Europe and Israel. In 2021, the company completed its first share issue on the Tel Aviv Stock Exchange. The company’s CEO is Mr. Yair Nehamad, who is also one of its founders.