Ncr Atleos Corporation · NYSE:NATL
Ncr Atleos — Q1 2025 Earnings Presentation
41 slides from Ncr Atleos's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Earnings Call
First Quarter 2025 Earnings Call Thursday, May 8th, 2025 Tim Oliver, President & Chief Executive Officer Andy Wamser, Chief Financial Officer Stuart Mackinnon, Chief Operating Officer 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigat
Slide 3: Notes to Investors
NOTES TO INVESTORS NON-GAAP MEASURES. While Atleos reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, comments made during this conference call and in these materials will include or make reference to certain “non-GAAP” measures, including,
Slide 4: Business Update
Business Update Tim Oliver President and Chief Executive Officer 4
Slide 5: NCR Atleos: Industry Leading Self-Service Banking Solutions Platform
NCR ATLEOS #1 Industry Leading Self-Service Banking Solutions Platform ATMaaS and Managed +600K ~80K +140 ~20K Services Provider Global installed base Largest independent Countries Employees of serviced ATMs network of owned and operated ATMs #1 Independently owned Largest Independent Full Outsourci
Slide 6: A Strong Start to 2025
A Strong Start to 2025 Very Successful Q1 Building Momentum Goals & Priorities for Full Year Grow Efficiently: Prioritize growth First quarter results at or above Backlog growing in both Services initiatives with high potential expectations and Hardware returns and strategic value Recurring revenue
Slide 7: Self-Service Banking Segment Q1 2025 Results
Self-Service Banking Segment Q1 2025 Results Revenue Services Growth Adjusted EBITDA Margin Expansion • Service expansion drove • ATMaaS revenue +24% y/y • Adj. EBITDA grew 14% y/y • Revenue mix, direct cost underlying topline with margin up 320 bps y/y programs, and service growth, offset by • ATMa
Slide 8: Network Segment Q1 2025 Results
Network Segment Q1 2025 Results Revenue Transactions LTM ARPU Adjusted EBITDA • Revenue headwinds in the • Allpoint cash withdrawal • Another new high for ARPU • Adjusted EBITDA margin quarter: transactions +2% y/y of $16,129; up q/q and y/y on expanded 170 bps y/y led fleet optimization by a mix sh
Slide 9: Financial Review
Financial Review Andy Wamser Chief Financial Officer 9
Slide 10: Solid Underlying Topline Trends in our Key Businesses
Solid Underlying Topline Trends in our Key Businesses $ in millions Consolidated Revenue/Recurring Q1 2025 Core Revenue Growth Core Segment Revenue As Reported Constant Currency Lines of Business $1,081 $1,078 $1,108 $1,050 Self-Service Banking Down 1% Up 1% $1,081 $980 Segment $1,050 $1,055 $989 $9
Slide 11: Adjusted EBITDA and Earnings Exceeded Expectations
Adjusted EBITDA and Earnings Exceeded Expectations $ in millions, except per share amounts Consolidated Adj. EBITDA & Margin Non-GAAP Diluted EPS $228 +9% y/y +56% y/y +11% y/y core $210 $793 $1.11 20.6% $763 $790 $196 19.5% 18.1% $175 $160 $0.89 17.9% $0.81 15.2% $0.64 $0.41 Q1 24 Q2 24 Q3 24 Q4 24
Slide 12: Self-Service Banking Key Financial Metrics and KPIs
Self-Service Banking Key Financial Metrics and KPIs $ in millions Revenue Adjusted EBITDA $718 +1% y/y +14% y/y CC $181 $673 $677 $167 $158 25.2% $153 $134 23.5% 24.7% 24.5% $628 $624 21.3% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Key Strategic Metrics Recurring Revenue Mix % ARR
Slide 13: ATMaaS Financial Metrics and KPIs
ATMaaS Financial Metrics and KPIs $ in millions, except ARPU Revenue Gross Profit(1) $57 +24% y/y $21.4 +54% y/y $52 $47 $49 $17.4 $46 $14.4 $16.1 $13.9 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Key Strategic Metrics ARR (in millions) LTM ARPU (in thousands) $260 $12.0 $230 $8.6 $8
Slide 14: Network Key Financial Metrics and KPIs
Network Key Financial Metrics and KPIs $ in millions, except ARPU and Network Managed Units Revenue Adjusted EBITDA $326 $332 -4% y/y $114 +2% y/y $317 $101 $103 $310 36.0% $299 $86 31.0% 31.0% $88 27.7% 29.4% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Key Strategic Metrics LTM ARPU
Slide 15: Services & Software Momentum Drives Topline and Profit Growth
Services & Software Momentum Drives Topline and Profit Growth $ in millions Revenue Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Services & Software $514 $540 $542 $557 $523 Transactional (Network segment) 303 319 324 309 293 Hardware 172 191 189 215 150 Total Core Revenues $989 $1,050 $1,055 $1,081 $966
Slide 16: Strong Financial Position
Strong Financial Position $ in millions Free Cash Flow Q1 2025 Adjusted EBITDA $175 Capital Expenditures ($41) Inventory Capitalized ($10) Adjusted Capital Expenditures ($51) Maintenance capital expenditures(1) ($15) Growth capital expenditures(1) ($20) ATMaaS capital expenditures(1) ($16) Cash paid
Slide 17: FY 2025 Outlook Reaffirmed
FY 2025 Outlook Reaffirmed $ in millions, except percentages and per share amounts FY 2025 Targets 2025 Guidance 2024 Base 3% to 6% growth constant currency Core Revenue (excludes Voyix) $4,175 (est. FX impact -2%) 1% to 3% growth constant currency Total Revenue (est. FX impact -2%) $4,317 - Assumes
Slide 18: Supplementary Materials
SUPPLEMENTARY MATERIALS NCR Atleos Confidential 18
Slide 19: Certain Terms & Key Performance Indicators (KPIs)
Certain Terms & Key Performance Indicators (KPIs) Recurring revenue - all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing r
Slide 20: Non-GAAP Measures
NON-GAAP MEASURES While Atleos reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, comments made during this conference call and in these materials will include non-GAAP measures. Atleos’ definitions and calculations of these non-GAAP measur
Slide 21: Non-GAAP Measures
NON-GAAP MEASURES Net Debt is based on Atleos' total debt less cash and cash equivalents, with total debt being defined as total short-term borrowings plus total long-term debt as presented on the face of the Condensed Consolidated Balance Sheets. Atleos believes that Net Debt provides useful inform
Slide 22: Non-GAAP Measures
NON-GAAP MEASURES With respect to our Adjusted EBITDA, adjusted free cash flow-unrestricted and non-GAAP diluted earnings per share forward-looking guidance, we do not provide a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconcilin
Slide 23: Q1 2025 GAAP Results
Q1 2025 GAAP RESULTS $ in millions, except per share amounts Q1 2025 Q1 2024 % Change Revenue $980 $1,050 (7)% Gross Margin 235 221 6% Gross Margin Rate 24.0% 21.0% Operating Expenses 139 149 (7)% % of Revenue 14.2% 14.2% Operating Income 96 72 33% % of Revenue 9.8% 6.9% Interest and other expense,
Slide 24: Q1 2025 Operational Results (Non-GAAP)
Q1 2025 OPERATIONAL RESULTS (Non-GAAP) $ in millions, except per share amounts Q1 2025 Q1 2024 % Change Revenue $980 $1,050 (7)% Adjusted Gross Margin (non-GAAP) 257 244 5% Adjusted Gross Margin Rate (non-GAAP) 26.2% 23.2% Adjusted Operating Expenses (non-GAAP) 125 128 (2)% % of Revenue 12.8% 12.2%
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q1 2025 % of Q1 2024 % of Revenue Revenue Net Income (loss) Attributable to Atleos (GAAP) $17 1.7% $(8) (0.8)% Interest Expense 67 6.9% 79 7.5% Interest Income (1) (0.1)% (2) (0.2)% Income Taxes 10 1.0% 4 0.4% Depreciation and amortization 42 4.3% 44 4.2
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions % of Q4 2024 % of Revenue Q3 2024 % of Revenue Q2 2024 Revenue Net Income Attributable to Atleos (GAAP) $46 4.2% $24 2.2% $29 2.7% Interest Expense 72 6.5% 79 7.3% 79 7.3% Interest Income (2) (0.2)% (1) (0.1)% (2) (0.2)% Income Taxes 25 2.2% 14 1.3% 4 0.
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q1 2025 Q1 2024 Income from Operations (GAAP) $96 $72 Transformation and restructuring costs 2 1 Stock-based compensation expense 9 10 Acquisition-related amortization of intangibles 23 25 Separation costs 2 8 Depreciation and Amortization 42 44 Non-cont
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q1 2025 $ in millions Interest & Income Tax Effective Net Income Gross Margin Gross Margin Operating Income from Other Expenses, Expense Income Tax attributable rate Expenses operations (Benefit) Rate to Atleos Net GAAP Results $235 24.0% $139 $96 $(70) $10 38.5% $17
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q1 2024 $ in millions Interest & Income Tax Effective Net Income Gross Margin Gross Margin Operating Income from (Loss) rate Expenses operations Other Expense Income Tax attributable to Expenses, Net (Benefit) Rate Atleos GAAP Results $221 21.0% $149 $72 $(76) $4 (100
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q1 2025(1) Q4 2024(1) Q3 2024(1) Q2 2024(1) Q1 2024(2) GAAP Diluted Earnings per Share $0.23 $0.61 $0.32 $0.39 $(0.11) Plus: Special Items Transformation and restructuring costs 0.01 0.09 0.09 0.07 0.01 Stock-based compensation expense 0.12 0.13 0.11 0.11 0.12 Acquisi
Slide 31: Q1 2025 Segment Results - GAAP
Q1 2025 SEGMENT RESULTS - GAAP* $ in millions Self-Service Network T&T Other(1) Corporate(2) Total Banking Unallocated Product Revenue $176 $11 $1 $1 $— $189 Service Revenue $448 $288 $42 $13 $— $791 Total Revenue $624 $299 $43 $14 $— $980 Cost of Products $138 $10 $1 $1 $10 $160 Cost of Services $3
Slide 32: Q1 2025 Segment Results - Non-GAAP
Q1 2025 SEGMENT RESULTS - NON-GAAP $ in millions Self-Service Network T&T Other(1) (4) Corporate(2) (4) Total(4) Banking Unallocated Product Revenue $176 $11 $1 $1 $— $189 Service Revenue $448 $288 $42 $13 $— $791 Total Revenue $624 $299 $43 $14 $— $980 Adjusted Cost of Products (non-GAAP) $137 $10
Slide 33: Q1 2025 GAAP to Non-GAAP Segment Reconciliation
Q1 2025 GAAP TO NON-GAAP Segment Reconciliation $ in millions Stock Based Acquisition Related GAAP* Transformation Costs Compensation Amortization of Separation Costs Non-GAAP Intangibles Self Service Banking $138 $— $— $(1) $— $137 Network 10 — — — — 10 T&T 1 — — — — 1 Other 1 — — — — 1 Corporate U
Slide 34: Q1 2025 GAAP to Non-GAAP Product Reconciliation
Q1 2025 GAAP TO NON-GAAP Product Reconciliation $ in millions Stock Based Acquisition Related GAAP* Transformation Costs Compensation Amortization of Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $175 $1 $— $— $176 Transactional 64 — — 19 83 Hardware 25 — — 1 26 Corporate unallocated (3
Slide 35: Q4 2024 GAAP to Non-GAAP Product Reconciliation
Q4 2024 GAAP TO NON-GAAP Product Reconciliation $ in millions Transformation Stock Based Acquisition Related GAAP* Costs Compensation Amortization of Separation Costs Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $198 $— $— $— $— $198 Transactional 88 — — 19 — 107 Hardware 44 — — — — 44
Slide 36: Q3 2024 GAAP to Non-GAAP Product Reconciliation
Q3 2024 GAAP TO NON-GAAP Product Reconciliation $ in millions Transformation Stock Based Acquisition Related GAAP* Costs Compensation Amortization of Separation Costs Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $183 $1 $— $— $— $184 Transactional 79 — — 20 — 99 Hardware 30 — — — — 30
Slide 37: Q2 2024 GAAP to Non-GAAP Product Reconciliation
Q2 2024 GAAP TO NON-GAAP Product Reconciliation $ in millions Transformation Stock Based Acquisition Related GAAP* Costs Compensation Amortization of Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $170 $— $— $(1) $169 Transactional 76 — — 20 96 Hardware 37 — — — 37 Corporate unallocated
Slide 38: Q1 2024 GAAP to Non-GAAP Product Reconciliation
Q1 2024 GAAP TO NON-GAAP Product Reconciliation $ in millions Stock Based Acquisition Related GAAP* Compensation Amortization of Non-GAAP Intangibles GROSS PROFIT(1) Software and Services $162 $— $1 $163 Transactional 62 — 21 83 Hardware 29 — — 29 Corporate unallocated (38) 1 — (37) Total Core Gross
Slide 39: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Cash provided by operating activities $123 $80 $107 $9 $148 Capital expenditures $(29) $(18) $(22) $(23) $(24) Additions to capitalized software $(12) $(13) $(11) $(9) $(6) Pension contributions $1 $1 $1 $— $1 Rest
Slide 40: Reconciliation of Constant Currency
RECONCILIATION OF CONSTANT CURRENCY $ in millions Favorable % Change % Change as (Unfavorable) Adjusted Q1 2025 Q1 2024 Reported Constant FX Impact Currency Self-Service Banking Revenue $624 $628 (1)% (2)% 1% Services & Software $475 $458 4% (2)% 6% Services & Software Recurring $402 $392 3% (2)% 5%
Slide 41: Thank You
THANK YOU NCR Atleos Confidential 41