Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — Q1 2024 Earnings Presentation
25 slides from Ncr Voyix's earnings presentation, May 9, 2024
Slide 1: Q1 2024 Earnings Report
Q1 2024 Earnings Report David Wilkinson, CEO Brian Webb-Walsh, CFO May 9, 2024 NYSE:VYX 1
Slide 2: 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 3: 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 4: NCR Voyix At-a-Glance
NCR Voyix At-a-Glance 67% #1 #1 of Largest POS Software Retailers as User footprint among Customers Provider for independent digital Restaurants & 3 1 banking providers Retail 80% of top 10 Restaurant 13 of 15 Chains as Top U.S. Retail Banks as Customers >300K Customers Restaurant & #1 Retail Sites
Slide 5: Q1 2024 Overview
Q1 2024 Overview KEY QUARTERLY HIGHLIGHTS 3 $662M $122M 61K Software ARR $1.3B +6% +5% 14.2% +27% 3 Software Total ARR 1,2 & Services Adj EBITDA Total 1 1 $2.1B +5% Revenue & Margin Platform Sites 1 Amounts reflect normalized financial results. For a definition of non-GAAP metrics and a reconciliati
Slide 6: Restaurants Segment Performance
Restaurants Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Platform Connectivity New Customer 1Q24 Y-o-Y % Δ Multi-year platform contract • Unified customer experience (POS, back Platform Sites 30K +6% office, e-commerce, consumer marketing, payments) • Fully integrated branded solutions Pa
Slide 7: Retail Segment Performance
Retail Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Platform Renewal + Expansion Connectivity Multi-year contract (expanded software & 1Q24 Y-o-Y % Δ services solutions via platform connectivity • 22k+ lanes across 1700+ sites in the UK Platform Sites 31K +57% • Customer payback within tw
Slide 8: Digital Banking Segment Performance
Digital Banking Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Digital-First Expansions with over 200 1Q24 Y-o-Y % Δ Platform Financial Institutions Cross-selling and upselling digital-first ARPU $27.63 +4% platform solutions driving future ARPU growth Active Users 19.7M +3% Registered 28.5
Slide 9: Products & Partnerships
Products & Partnerships STRATEGIC OFFERINGS TO DRIVE REVENUE GROWTH Sunday Everseen NCR Voyix NCR Voyix Olo Loyalty Next-Gen MX Tech Self-Checkout Restaurant Platform Partner & Retail Retail Ecosystem NYSE:VYX 9
Slide 10: Financial Overview
Financial Overview NYSE:VYX 10
Slide 11: 1Q 2024 Results – Total Company
1Q 2024 Results – Total Company $ in Millions (except EPS) 2 Revenue Software & Services Revenue Adj. EBITDA 1 1 1 Reported Normalized Reported Normalized Reported Normalized $916 $862 $889 $858 $652 $665.8 $629 $662 $124 $125 $122 $120 13.5% 13.9% 14.1% 14.2% 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24
Slide 12: Segment and Corp. & Other Results - Normalized
1 Segment and Corp. & Other Results - Normalized $ in Millions Q1 2024 Q1 2023 Normalized % Change RESTAURANTS $ in Millions Revenue $202 $208 (3)% Software & Services Revenue $156 $152 3% Adj EBITDA $55 $44 25% Adj EBITDA Margin (%) 27.2% 21.2% 600 bps RETAIL Revenue $491 $528 (7)% Software & Servi
Slide 13: Cash and Debt Information
Cash and Debt Information Capital Structure 03/31/2024 $ in Millions Total Debt $2,673 Cash Balance $246 1 Net Debt $2,427 2 Normalized Adj. EBITDA $627 2,3 Net Leverage Ratio 3.9x Cash Flows Provided By (Used In) Operations $(35)M Adjusted Free Cash Flow - Unrestricted (non-GAAP) $(66)M 1 Includes
Slide 14: Reaffirmed FY 2024 Performance Outlook
Reaffirmed 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 Adj. EBITDA Margin 17.5% – 17.7% Adj. EPS $0.84 - $0.94 Adj. Free Cash Flow - Unrestricted $155M – $185M Adj.
Slide 15: Appendix
Appendix NYSE:VYX 15
Slide 16: 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 17: Non-GAAP Measures
Non-GAAP Measures: Adjusted free cash flow-unrestricted: NCR Voyix management uses a non-GAAP measure called “adjusted free cash flow-unrestricted” to assess the financial performance of the Company. We define adjusted free cash flow as net cash provided by (used in) operating activities less capita
Slide 18: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Normalized Revenue Normalized Software & Services Revenue: Normalized for comparisons for all divestitures and (ii) delayed transfers to NCR Atleos $ in millions Q1 2024 Q1 2023 Reported Revenue $862 $916 1 Less: Divestitures — (15) Less: NCR Atleos dela
Slide 19: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Segment Adjusted EBITDA Segment Normalized Adjusted EBITDA $ in millions Q1 2024 Q1 2023 Retail Adjusted EBITDA (As Reported) $ 86 $ 83 Restaurants Adjusted EBITDA (As Reported) $ 55 $ 44 Digital Banking Adjusted EBITDA (As Reported) $ 54 $ 49 Other Adju
Slide 20: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted Free Cash Flow-Unrestricted $ in millions Q1 2024 Net cash provided by (used in) operating activities (GAAP) ($35) Expenditures for property, plant and equipment (8) Additions to capitalized software (53) Restricted cash settlement activity 1 NC
Slide 21: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted EBITDA Normalized Adjusted EBITDA $ in millions Q1 2024 LTM Q1 2024 Q1 2023 Net Income (Loss) from Continuing Operations Attributable to NCR Voyix (GAAP) $ (40) $ (561) $ (66) Depreciation and amortization (excluding acquisition-related amortiza
Slide 22: Reconciliation of GAAP to Non-GAAP Financials: Q1 2024
Reconciliation of GAAP to Non-GAAP Financials: Q1 2024 Acquisition- Transformation Loss on Stock-based Cyber incident ACH Wire related Separation $ in millions (except EPS) Q1 2024 GAAP and Restructuring disposal of compensation ransomware FX devaluation Q1 2024 Non-GAAP Costs amortization of costs
Slide 23: Reconciliation of GAAP to Non-GAAP Financials: Q1 2024
Reconciliation of GAAP to Non-GAAP Financials: Q1 2024 Q1 2024 Non- $ in millions (except EPS) Q1 2024 GAAP Income (loss) from continuing operations attributable to NCR Voyix common stockholders Income (loss) from continuing operations (attributable to NCR Voyix) $ (40) $ 21 Dividends on convertible
Slide 24: Reconciliation of GAAP to Non-GAAP Financials: Q1 2023
Reconciliation of GAAP to Non-GAAP Financials: Q1 2023 Acquisition- Transformation Loss on Stock-based Cyber incident ACH Wire related Separation $ in millions (except EPS) Q1 2023 GAAP and Restructuring disposal of compensation ransomware FX devaluation Q1 2023 Non-GAAP Costs amortization of costs
Slide 25: Segment and Corp. & Other Results - As Reported
Segment and Corp. & Other Results - As Reported $ in Millions Q1 2024 Q1 2023 % Change RESTAURANTS Revenue $202 $211 (4)% Software & Services Revenue $156 $153 2% Adj EBITDA $55 $44 25% Adj EBITDA Margin (%) 27.2% 20.9% 630 bps RETAIL Revenue $491 $528 (7)% Software & Services Revenue $342 $327 5% A