Nakes concludes the third quarter

by time news
The number of connected and managed points of sale grew by about 38% compared to the corresponding quarter last year to more than 461,000.

David Ben Avi, Yair Nehamad, Credit: Nir Selkman

Yair Nehamad, Chairman and CEO of Nakes: “We are very proud of another quarter of strong growth in all of our business activity indices, with 65% growth in recurring revenue, a significant increase in the number of customers and the number of connected and managed devices. “, As our product portfolio, which provides end-to-end solutions, continues to be a powerful growth engine and a key factor in a 140% increase in revenue from existing customers relative to the same period.”

Nice added: “Our continued focus on covering a wide range of fields and geographies, led to a 40% increase in revenue in the third quarter of 2021 compared to the same quarter last year to about $ 31 million. Of 65% compared to the same quarter last year in revenue from monthly usage fees (SaaS) and clearing fees amounting to about $ 19.6 million. “We see every customer as a long-term partner and are confident that this commitment, backed by our strong balance sheet, will accelerate the company’s long-term expansion plans, even if the gross profit from the sale of end units is affected in the short term.”

Nakes (TASE: NYAX), which operates a global trading and payments platform that helps retailers grow their businesses, today announced its financial results for the third quarter of 2021.

Highlights of the financial results for the third quarter of 2021:

Total revenue of approximately $ 31 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), management software (SAAS and clearing fees. The company provides business operating solutions through a platform Global In the third quarter, the company showed significant growth in revenue from monthly usage fees (SaaS) and clearing fees, of more than 65% compared to the corresponding quarter last year and they reflect a share of about 64% of total revenue in the third quarter. Our producing volume of transactions is growing.

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The number of connected and managed points of sale grew by about 38% compared to the corresponding quarter last year to more than 461,000.

The total value of transactions cleared in the quarter increased by 84% from the corresponding quarter last year, to $ 407 million.

The gross profit margin was 40%, a figure that represents a continued strong profitability from recurring revenues, offset by lower profitability than the sale of devices due to the global shortage of components.

Gross profit grew to $ 12.3 million, an 18% increase over the same quarter last year.

Operating expenses – including research and development, share-based payment expenses, depreciation, and excluding IPO-related expenses – totaled $ 18.6 million, an increase of 81% over the same quarter last year. This is part of the company’s growth strategy to increase sales, marketing, R&D teams and improve the overall global infrastructure.

The operating loss was $ 6.4 million, compared to an operating profit of $ 0.2 million in the same quarter last year. Adjusted EBITDA for the quarter was negative by approximately $ 1.6 million, compared to positive adjusted EBITDA of $ 2.3 million in the corresponding quarter last year. The change is due to an increase in sales costs, as well as an increase in the number of employees as part of the ongoing investment in our customer base and human capital. However, on a similar comparative basis, not including bonuses first introduced to non-sales employees in the quarter, and neutralizing the increase in product cost – the adjusted EBITDA for the quarter was positive at $ 0.5 million.

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The net loss in the third quarter of 2021 was $ 6.7 million, or $ 0.021 per diluted share, compared to a net loss of $ 0.22 million, or $ 0.001 per share diluted in the corresponding quarter last year.

As of the end of the third quarter of 2021 the company had $ 104 million in cash and cash equivalents.

The main business developments in the third quarter:

The total number of connected and managed points of sale in the quarter reached about 461,000, an increase of 38% compared to the corresponding quarter last year and an increase of about 7% compared to the previous quarter, a figure that reflects growing demand from customers and market expansion.

Operating expenses totaled $ 9.8 million, excluding share-based compensation expenses. Research and development expenses totaled $ 4.9 million, excluding share-based compensation expenses. These expenses increased by approximately 60% and 90%, respectively, compared with the corresponding quarter last year. This figure represents the company’s continued investment in innovation and the continuation of the recruitment trend around the world.

Nakes continues to expand its global presence through its proven collaborative strategy. The company is growing among its existing customer base as well as gaining new market shares, expanding into new verticals and creating strategic marketing and sales initiatives.

forecast

The company’s sales from unmanned retail positions are expected to continue to grow, as we expect increased adoption in this area. Consumers are constantly moving to cashless alternatives, a process that is accelerating the organizational adoption of digital payment platforms.

Our product portfolio will continue to develop and support the company’s marketing and sales strategy. Established key markets, such as Australia, will receive increasing focus on product launches, and the company will continue to track this type of progress and replicate the successful aspects of future launches in emerging and emerging markets.

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The company’s annual revenue is expected to reach more than $ 200 million in the medium term, driven by organic growth and strategic mergers and acquisitions. The target for the accelerated growth rate is 30% in the medium term, with the increase in the number of customers, the deepening of market penetration and the continued expansion of the company’s platform – all of which serve as the main growth engines. The long-term gross profit margin is expected to reach 50% by providing financing options for product sales (IoT POS) and increasing SAAS ‘revenue segment and clearing fees out of total revenue. Our long-term EBITDA margin forecast is around 30%.

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