Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — Q3 2024 Earnings Presentation
37 slides from Ncr Voyix's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Report
Q3 2024 Earnings Report David Wilkinson, CEO Brian Webb-Walsh, CFO November 7, 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 NON-GAAP MEASURES. While the Company reports its results in accordance with generally accepted accounting principles in the United States, or GAAP, comments made during this presentation and in the associated remarks will include or make reference to certain “non-GAAP” measures, i
Slide 4: Notes to Investors
Notes to Investors GUIDANCE AND PRO FORMA INFORMATION. The Company’s full year 2024 outlook reflects the announced strategic actions, including the divestiture of its Digital Banking business (assuming a closing by the end of the fourth quarter, which is subject to customary closing conditions, incl
Slide 5: 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 6: Q3 2024 Overview
Q3 2024 Overview 1 KEY NORMALIZED QUARTERLY HIGHLIGHTS Software 2 3 Revenue $101M 70k Software ARR $245M +2% $0.7B +2% 14.3% +25% 3 Services Total ARR Revenue Adj EBITDA Total $1.6B +2% & Margin Platform Sites $271M (3)% 1 Amounts reflect normalized financial results; growth comparisons are versus Q
Slide 7: Restaurants Segment Performance
Restaurants Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Platform Expanded Relationship - Mid-Market Conversion Multi-year platform contract 3Q24 Y-o-Y % Δ • 150+ sites in the U.S. Platform Sites 29.5K +4% Payment Sites 7.1K +12% Platform Expanded Relationship - QSR Upsell Multi-year Cons
Slide 8: Retail Segment Performance
Retail Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Software & New Customer - Grocery+ Services Multi-year platform + Services contract 3Q24 Y-o-Y % Δ • Australia's largest retail drinks network • 4,000+ lanes across 1,700 sites in Australia Platform Sites 40.1K +47% Platform New Customer
Slide 9: Financial Overview
Financial Overview NYSE:VYX 9
Slide 10: Q3 2024 Results – Total Company
Q3 2024 Results – Total Company $ in Millions Revenue Software & Services Revenue 1 1 Reported Normalized Reported Normalized $809 $794 $540 $517 $528 $516 $711 $708 Flat Y/Y (ex.one-time 2 items) 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 (12)% Y/Y (11)% Y/Y (4)% Y/Y (2)% Y/Y Software Revenue Services
Slide 11: Q3 Segment and Corp. & Other Results
Q3 Segment and Corp. & Other Results 1 As Reported Normalized % Change (excl. one-time $ in millions Q3 2024 Q3 2023 % Change Q3 2024 Q3 2023 % Change items) 2 RESTAURANTS Revenue $211 $229 (8)% $211 $227 (7)% (7)% Software & Services Revenue $162 $163 (1)% $162 $163 (1)% (1)% Adj EBITDA $66 $52 27%
Slide 12: Cash and Debt Information
Cash and Debt Information $ in Millions Use of Digital Banking Proceeds Capital Structure 09/30/2024 Debt Term Structure Weighted Avg Rate: 5.06% Gross proceeds $2,450 Total Debt $1,105 Fixed Rate Debt: 100% Avg Maturity: 4.3 years 1 4 Estimated taxes & fees (437) Available Cash (420) $750 $650 Net
Slide 13: FY2024 Performance Outlook
FY2024 Performance Outlook $ in Millions FY2024 Guidance Software & Services Revenue $2,040 – $2,080 Hardware Revenue $765 – $780 Total Revenue $2,805 – $2,860 Adj. EBITDA (Cont. Ops.) $355 – $375 Adj. EBITDA (%) 12.6% – 13.1% Amounts reflect normalized financial results. NYSE:VYX 13
Slide 14: Appendix
Appendix NYSE:VYX 14
Slide 15: 3Q YTD 2024 Results – Total Company
3Q YTD 2024 Results – Total Company $ in Millions Revenue Software & Services Revenue 1 1 Reported Normalized Reported Normalized $2,382 $2,144 $2,332 $2,140 $1,585 $1,534 $1,545 $1,532 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 YTD YTD YTD YTD YTD YTD YTD YTD (10)% Y/Y (8)% Y/Y (3)% Y/Y (1)% Y/Y Softw
Slide 16: 3Q24 YTD Segment and Corp. & Other Results
3Q24 YTD Segment and Corp. & Other Results 1 $ in Millions Reported Normalized 3Q 2024 YTD 3Q 2023 YTD % Change 3Q 2024 YTD 3Q 2023 YTD % Change RESTAURANTS Revenue $614 $663 (7)% $614 $655 (6)% Software & Services Revenue $473 $471 —% $473 $470 1% Adj EBITDA $183 $147 24% $183 $147 24% Adj EBITDA M
Slide 17: NCR Voyix Financial Profile - Pro Forma 2024 Outlook
1 NCR Voyix Financial Profile - Pro Forma 2024 Outlook $ in Millions $ in Millions Pro Forma 2024 Adj. EBITDA 1 Adj. EBITDA 365 Hardware ODM (10) Run-rate savings: Payroll costs 35 2 A/R Facility 20 Vendor costs 20 Pro Forma Adj. EBITDA $430 1 Assumes the mid-point of guidance range on slide 13 as t
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 inf
Slide 19: Non-GAAP Measures
Non-GAAP Measures Adjusted Free Cash Flow-Unrestricted: NCR Voyix management uses the 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 capit
Slide 20: 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 should
Slide 21: 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 delayed transfers to NCR Atleos $ in millions Q3 2024 Q3 2023 YTD Q3 2024 YTD Q3 2023 Reported Revenue $711 $809 $2,144 $2,382 (1) Less: Divest
Slide 22: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Normalized Software & Services Revenue: Normalized for comparisons for all divestitures and delayed transfers to NCR Atleos $ in millions Q3 2024 Q3 2023 Reported Software & Services Revenue $517 $540 (1) Less: Divestitures — (10) Less: NCR Atleos delaye
Slide 23: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Normalized Revenue by Segment $ in millions Q3 2024 Q3 2023 YTD Q3 2024 YTD Q3 2023 Retail (as reported and normalized) $487 $552 $1,495 $1,633 Restaurants (as reported) $211 $229 $614 $663 (1) Less: Divestitures — (2) — (8) Restaurants (normalized) $211
Slide 24: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Retail Normalized Revenue Excluding One-time Items $ in millions Q3 2024 Q3 2023 Retail (as reported and normalized) $487 $552 (1) One-time items — (10) Retail normalized revenue, excluding one-time items $487 $542 Retail software & services revenue (as
Slide 25: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Segment Adjusted EBITDA Segment Normalized Adjusted EBITDA $ in millions Q3 2024 Q3 2023 YTD Q3 2024 YTD Q3 2023 Retail Adjusted EBITDA (As Reported) $ 108 $ 123 $ 281 $ 321 Restaurants Adjusted EBITDA (As Reported) $ 66 $ 52 $ 183 $ 147 Other Adjusted E
Slide 26: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted Free Cash Flow-Unrestricted $ in millions Q3 2024 YTD Q3 2024 Net cash provided by (used in) operating activities (GAAP) $11 $38 Expenditures for property, plant and equipment (2) (23) Additions to capitalized software (51) (155) Restricted cash
Slide 27: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted EBITDA Normalized Adjusted EBITDA YTD Q3 YTD Q3 $ in millions Q3 2024 Q3 2023 2024 2023 Net Income (Loss) from Continuing Operations Attributable to NCR Voyix (GAAP) $ (31) $ (266) $ (193) $ (457) Depreciation and amortization (excluding acquisi
Slide 28: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted EBITDA Margin $ in millions Q3 2024 Q3 2023 YTD Q3 2024 YTD Q3 2023 Adjusted EBITDA (Non-GAAP) $ 93 $ 103 $ 233 $ 272 Revenue (GAAP) $ 711 $ 809 $ 2,144 $ 2,382 Adjusted EBITDA Margin 13.1 % 12.7 % 10.9 % 11.4 % Normalized Adjusted EBITDA (Non-G
Slide 29: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Q3 2024 Non- YTD Q3 2024 $ in millions (except EPS) Q3 2024 YTD Q3 2024 GAAP Non-GAAP Income (loss) from continuing operations attributable to NCR Voyix common stockholders Income (loss) from continuing operations (attributable to NCR Voyix) $ (31) $ — $
Slide 30: Q3 2024 Supplementary Information
Q3 2024 Supplementary Information NYSE:VYX 30
Slide 31: A Software & Services Company
A Software & Services Company Transactions ATM Spin-off (October 2023) Software & Services Non-Core Payments Business Divestiture (October 2023) Digital Banking Divestiture (September 2024) Hardware Streamlined operations to focus on ODM (Expected January 2025) Software & Services solutions for our
Slide 32: NCR Voyix At-a-Glance
NCR Voyix At-a-Glance 30+ #1 Revenue $2.15B of revenue 3 Generating Countries POS Software from 25k Customers Provider1 8B API Requests Monthly #1 Self-Checkout 20+ Provider2 Partner ~70k Integrations Restaurant & Retail Platform Sites 1 Based on RBR Global POS Software 2024 report. 2 Based on RBR G
Slide 33: Partner of Choice
Partner of Choice Retail Restaurants #1 POS #1 POS 8 of 10 #1 SCO Software Provider2 Software top domestic in retail1 in restaurants1 chains 67% 75% 44% 46% of top global of regional retail of top 100 US- of top 100 US- retailers brands based QSR based TSR brands brands Uniquely Positioned to Provid
Slide 34: “Old VYX” versus “New VYX”
“Old VYX” versus “New VYX” 2024 Comparison1 “Old” VYX “New” VYX (initial 2024 outlook)2 (Pro Forma 2024 Outlook)3 Revenue $3,650M $2,150M Software & Services (%) 74% 95% Hardware (%) 26% 5% Adj. EBITDA ($) $644M ~$430M Adj. EBITDA Margin (%) 17.6% ~20% Free Cash Flow $170M ~$170M4 Free Cash Flow Con
Slide 35: 2023 & 2024 Revenue
2023 & 2024 Revenue Adjusted for the Hardware ODM Impact1 2023 2024 Full Year 2024 $ in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 (LTM)3 Software Revenue $ 235 $ 242 $ 240 $ 255 $ 250 $ 242 $ 245 $ 972 $ 992 Y-o-Y Growth 2.6% 1.7% 1.3% 1.6% 6.4% 0.0% 2.1% 1.8% 2.1% Services Revenue 257 269 278 260 257 257
Slide 36: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Hardware Revenue Adjusted for ODM Impact $ in millions Q1 2023 Q2 2023 Q3 2023 Q4 2023 Hardware revenue, as reported $261 $267 $269 $266 1 Less: Divestitures (2) (3) (2) (1) Less: NCR Atleos delayed country transfers — (2) (1) — Normalized hardware reven
Slide 37: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Software & Services Revenue Adjusted for Non-recurring Items $ in millions Q1 2023 Q2 2023 Q3 2023 Q4 2023 Software & Services revenue, as reported $507 $538 $540 $530 1 Less: Divestitures (13) (11) (10) (2) Less: NCR Atleos delayed country transfers (2)