Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — Q4 2023 Earnings Presentation
22 slides from Ncr Voyix's earnings presentation, Mar 14, 2024
Slide 1: Q4 & FY 2023 Earnings Report
Q4 & FY 2023 Earnings Report David Wilkinson, CEO Brian Webb-Walsh, CFO Updated as of March 14, 2024 to reflect the financial information set forth in the Company’s report on Form 10-K for the year ended December 31, 2023, which adjusts certain preliminary financial results set forth on the Company’
Slide 2: Notes to Investors
Notes to Investors FORWARD-LOOKING STATEMENTS. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Statements can generally be identified as forward-looking because they include words such as “expect,” “target,
Slide 3: Notes to Investors
Notes to Investors SPIN-OFF INFORMATION. On October 16, 2023, NCR Voyix completed the spin-off of NCR Atleos Corporation (“NCR Atleos”) as an independent, publicly traded company. The historical financial results of NCR Atleos are reflected as discontinued operations in NCR Voyix’s consolidated fina
Slide 4: NCR Voyix At-a-Glance
NCR Voyix At-a-Glance #1 67% POS Software #1 of Largest Global Retailers User footprint among as Customers Provider for independent digital Restaurants & banking providers3 Retail1 80% of top 10 Restaurant 13 of 15 Top Banks are >300K Chains as Customers Customers Restaurant & #1 Retail Sites Self-C
Slide 5: Our Strategic Initiatives
Our Strategic Initiatives Positioned for Growth Platform adoption and attached Large and growing customer-base payments opportunities • >300k customer sites across 30+ countries Payments & Global • Land-and-expand with existing • Embedded technology to address strong ARPU Reach customers secular gro
Slide 6: Restaurants Segment Performance
Restaurants Segment Performance CUSTOMER HIGHLIGHTS SEGMENT HIGHLIGHTS Platform Connectivity New Customer FY23 Y-o-Y % Δ Multi-year platform contract (POS, payments, consumer marketing) ✓ Phase 1: complete (30+ sites) Platform Sites 28.9K +8% • Phase 2: in-progress (15+ sites) Payment Sites 6.5K +34
Slide 7: Retail Segment Performance
Retail Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Domestic Takeaway Renewal – Fuel & Convenience Chain FY23 Y-o-Y % Δ • 1000+ sites • Enabling additional payments capabilities via the platform Platform Sites 29.6K +64% Global Expansion Expanded Relationship – Software & Grocery Chain Se
Slide 8: Commerce Platform Innovation
Commerce Platform Innovation PLATFORM EVOLVING WITH NEEDS OF OUR RETAIL & RESTAURANT CUSTOMERS DATA & INSIGHTS COMMERCE APPLICATIONS Investing in key solutions to Store Operations, Loyalty, Unified Commerce, grow with our customers Data and trained models with AI/ML to provide actionable insights Ba
Slide 9: Digital Banking Segment Performance
Digital Banking Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS DB Platform New Customer FY23 Y-o-Y % Δ Implementing digital banking platform to attract and retain customers ARPU $28.42 +6% Active Users 19.4M +3% DB Platform + Renewal + Expansion Registered Bus. Banking 28.1M +4% Users • Ren
Slide 10: Digital Banking Innovation
Digital Banking Innovation BEST-IN-CLASS DIGITAL-FIRST SOLUTIONS FOR FINANCIAL INSTITUTIONS Investing in Platform Extensibility • Open API Infrastructure + partner marketplace • Launched tap-to-pay payment acceptance for small business banking customers in partnership with Autobooks, Inc. NYSE:VYX 1
Slide 11: Financial Overview
Financial Overview NYSE:VYX 11
Slide 12: 4Q 2023 and FY 2023 Results – Total Company
4Q 2023 and FY 2023 Results – Total Company $ in Millions Revenue Software & Services Revenue Adj EBITDA & Margin (%)22.0% 16.0% $3,793 $3,830 $616 $2,649 $2,753 $596 20.0% 15.0% 18.0 % 14.0% 16.0% 13.0 % $966 $963 $680 $696 $166 15.7% 16.1% $132 14.0% 12.0% 17.2% 13.7% 12.0% 11.0% 10.0% 10.0% 4Q22
Slide 13: Segment Results
Segment Results Q4 FULL YEAR Reported / Reported / $ in Millions 2022 2023 Normalized1 2022 2023 Normalized1 % Change % Change RESTAURANTS Revenue $218 $223 +2% / +2% $857 $886 +3% / +4% Software & Services Revenue $148 $159 +7% / +7% $574 $630 +10% / +10% Adj EBITDA $41 $50 +22% / +22% $160 $197 +2
Slide 14: Preliminary Cash and Debt Information
Preliminary Cash and Debt Information Term Structure of Debt ($M) FY 2023 Weighted Avg Rate: 5.52% Capital Structure $ in Millions Fixed Rate Debt (% of Total): 89% Avg Maturity: 5.4 years Total Debt $2,578 $1,200 Cash Balance $262 $786 $450 Net Debt $2,316 $15 2 $15 2 $15 2 $34 Adj EBITDA (as repor
Slide 15: FY 2024 Performance Outlook
FY 2024 Performance Outlook METRIC FY 2024E Total Revenue $3,600M – $3,700M Software & Services Revenue $2,700M – $2,750M Hardware Revenue $900M – $950M Adj EBITDA $632M – $657M Adjusted EBITDA Margin 17.5% – 17.7% Free Cash Flow $155M – $185M Free Cash Flow Conversion 25% – 28% (as % of Adj EBITDA)
Slide 16: Compelling Investment Thesis
Compelling Investment Thesis Leading global provider of digital commerce solutions for Retail, Restaurant, and Digital Banking industries with unmatched enterprise install base and strong go-to-market reach Shifting the economics of our business by converting customers to our platform and expanding
Slide 17: Appendix
NCR V:2:YIX _-~ @© 2 A A A ©@@006@ dnd dind e@e Appendix
Slide 18: Non-GAAP Measures:
Non-GAAP Measures: While NCR Voyix reports its results in accordance with generally accepted accounting principles (GAAP) in the United States, comments made during this conference call and in these materials will include non-GAAP measures. These measures are included to provide additional useful in
Slide 19: Non-GAAP Measures:
Non-GAAP Measures: Non-GAAP Reconciliations: The Company’s definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures shoul
Slide 20: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials FY2023 Normalized Revenue: Normalized for FY2023 to FY2024 comparisons for (i) all divestitures and (ii) delayed transfers to NCR Atleos FY2023 Normalized Software & Services Revenue: Normalized for FY2023 to FY2024 comparisons for all divestitures and (
Slide 21: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted EBITDA Normalized Adjusted EBITDA: Normalized for FY2023 to FY2024 comparisons for all divestitures, delayed transfers and estimated costs historically allocated to NCR Atleos $ in millions Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Net Income (Los
Slide 22: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted EBITDA $ in millions Q4 2022 FY 2022 Net Income (Loss) from Continuing Operations Attributable to NCR Voyix (GAAP) $ (12) $ (203) Transformation and restructuring costs 22 96 Acquisition-related amortization of intangibles 17 71 Acquisition-rela