Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — Q3 2023 Earnings Presentation
27 slides from Ncr Voyix's earnings presentation, Nov 9, 2023
Slide 1: Legacy NCR Q3 2023 Earnings
1 Legacy NCR Q3 2023 EARNINGS November 9, 2023
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS. NCR Voyix Corporation (“NCR Voyix” or the “Company”), cautions that comments made during this presentation and in these materials contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Sec
Slide 3: Non-GAAP Measures
3 NON-GAAP MEASURES. While NCR 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: selected measures,
Slide 4: Segments Information
4 SEGMENTS INFORMATION. Prior to the October 16, 2023 spin-off, and during the fiscal quarter ended September 30, 2023, the Company managed its reports and its operations in the following segments: Retail, Hospitality, Digital Banking, Payments & Network, and Self-Service Banking. Corporate and Othe
Slide 5: Q3 2023 Financial Results
5 Adjusted EBITDA up 6% y/y as reported and up 5% CC Non-GAAP diluted EPS down 1% y/y as reported and down 4% CC; FX impact $0.03 Total Revenue/Recurring Adjusted EBITDA Non-GAAP Diluted EPS Revenue up 2% y/y CC and as reported; Recurring revenue up 7% y/y as reported and up 7% CC Q3 2023 FINANCIAL
Slide 6: Retail
6 $ in millions RETAIL Revenue Adjusted EBITDA Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $325 $650 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $70 $140$575 $576 $128 $123$568 $132 (1)% CC(2)% CC Legacy NCR
Slide 7: Hospitality
7 $ in millions, except site counts HOSPITALITY(1) Revenue Adjusted EBITDA Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $125 $250 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $25 $50 $238 $235 $51 $60$238 $59 16% CC 0% CC (1) Beginning in Q4 2023, the Company will begin reporting its "Hospitality" segment as "Restaurant."
Slide 8: Digital Banking
8 $ in millions DIGITAL BANKING Revenue Adjusted EBITDA Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $70 $140 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $30 $60 $137 $140 $53 $60$147 $58 (3)% CC7% CC Legacy NCR
Slide 9: Combined Segments: NCR Voyix
9 $ in millions Combined Segments: NCR Voyix(1) Total Revenue/Recurring Adjusted EBITDA Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $400 $800 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $80 $160 $240$950 $951 $236$239$953 $249 Retail, Hospitality, Digital Banking —% CC 2% CC (1) This combined segment information is provi
Slide 10: Payments & Network
10 $ in millions PAYMENTS & NETWORK Revenue Adjusted EBITDA Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $175 $350 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $65 $130$336 $333 $99 $114 $357 $120 5% CC 5% CC Legacy NCR
Slide 11: Self-Service Banking
11 $ in millions, except units and percentages SELF-SERVICE BANKING Revenue Adjusted EBITDA Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $400 $800 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $80 $160 $640 $661 $169 $150 $666 $169 11% CC 4% CC Legacy NCR
Slide 12: Combined Segments: NCR Atleos
12 $ in millions Combined Segments: NCR Atleos(1) Total Revenue/Recurring Adjusted EBITDA Payments & Network, Self-Service Banking, less Eliminations Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $400 $800 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 $0 $80 $160 $240 $964 $981 $1,011 $231 $259 $280 5% CC 10% CC (1) This combin
Slide 13: Supplementary Materials
13 SUPPLEMENTARY MATERIALS Legacy NCR
Slide 14: Non-GAAP measures definitions
14 While NCR 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 information regarding NC
Slide 15: Adjusted EBITDA definition
15 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA). The Company determines Adjusted EBITDA for a given period based on its GAAP net income from continuing operations attributable to NCR plus interest expense, net; plus income tax expense (benefit); plus depr
Slide 16: Constant currency definition
16 Constant currency. NCR presents certain financial measures, such as period-over-period revenue growth, on a constant currency basis, which excludes the effects of foreign currency translation by translating prior period results at current period monthly average exchange rates. Due to the overall
Slide 17: GAAP to Non-GAAP Reconciliation
17 Q3 2023 Q2 2023 Q3 2022 Net (Loss) Income from Continuing Operations Attributable to NCR (GAAP) $ (124) $ 20 $ 69 Pension Mark-to-Market Adjustments 19 — — Transformation & Restructuring Costs 8 (1) 17 Acquisition-Related Amortization of Intangibles 43 43 44 Acquisition-Related Costs — 1 1 Separa
Slide 18: Adjusted EBITDA by Segment
18 Q3 2023 Q2 2023 Q3 2022 Retail $ 132 $ 123 $ 128 Hospitality 59 60 51 Digital Banking 58 53 60 Payments & Network 120 99 114 Self-Service Banking 169 169 150 Eliminations (9) (9) (11) Corporate and Other (125) (106) (112) Adjusted EBITDA $ 404 $ 389 $ 380 ADJUSTED EBITDA BY SEGMENT $ in millions
Slide 19: Q3 2023 GAAP to non-GAAP income statement
19 Q3 2023 GAAP Transformation Costs Stock-based Compensation Acquisition- related amortization of intangibles Separation Costs Gain on terminated interest rate derivatives Cyber ransomware incident recovery costs Pension Mark-to- Market Adjustments Q3 2023 non- GAAP Product revenue $560 $— $— $— $—
Slide 20: Q3 2023 non-GAAP EPS reconciliation
20 Q3 2023 QTD Q3 2023 QTD non- GAAP Income (loss) from continuing operations attributable to NCR common stockholders: Income (loss) from continuing operations (attributable to NCR) $(124) $145 Dividends on convertible preferred shares $(4) $— Income (loss) from continuing operations attributable to
Slide 21: Q3 2022 GAAP to non-GAAP income statement
21 Q3 2022 QTD GAAP Transformation Costs Stock-based Compensation Costs Acquisition- related amortization of intangibles Acquisition- related costs Russia Q3 2022 QTD non-GAAP Product revenue $590 $— $— $— $— $— $590 Service revenue 1,382 — — — — — 1,382 Total revenue 1,972 — — — — — 1,972 Cost of p
Slide 22: Q3 2022 non-GAAP EPS reconciliation
22 Q3 2022 QTD GAAP Q3 2022 QTD non- GAAP Income from continuing operations attributable to NCR common stockholders: Income from continuing operations (attributable to NCR) $69 $144 Dividends on convertible preferred shares $(4) Income from continuing operations attributable to NCR common stockholde
Slide 23: Revenue: Reconciliation of Combined Segments
23 REVENUE Q3 2023 Q2 2023 Q3 2022 Retail $568 $576 $575 Hospitality 238 235 238 Digital Banking 147 140 137 Subtotal $953 $951 $950 Payments & Network $357 $333 $336 Self-Service Banking 666 661 640 Eliminations(1) (12) (13) (12) Subtotal $1,011 $981 $964 Other 53 54 58 Total NCR $2,017 $1,986 $1,9
Slide 24: Recurring Revenue: Reconciliation of Combined Segments
24 RECURRING REVENUE Q3 2023 Q2 2023 Q3 2022 Retail $265 $262 $257 Hospitality 140 138 125 Digital Banking 132 125 121 Subtotal $537 $525 $503 Payments & Network $354 $332 $333 Self-Service Banking 388 381 357 Eliminations(1) (13) (13) (12) Subtotal $729 $700 $678 Other 39 37 41 Total NCR $1,305 $1,
Slide 25: Adjusted EBITDA: Reconciliation of Combined Segments
25 ADJUSTED EBITDA Q3 2023 Q2 2023 Q3 2022 Retail $132 $123 $128 Hospitality 59 60 51 Digital Banking 58 53 60 Subtotal $249 $236 $239 Payments & Network $120 $99 $114 Self-Service Banking 169 169 150 Eliminations(1) (9) (9) (11) Subtotal $280 $259 $253 Corporate & Other(2) (125) (106) (112) Total N
Slide 26: Q3 2023 Revenue: Reconciliation of Constant Currency
26 Q3 2023 - REVENUE Revenue Growth % (GAAP) Favorable (Unfavorable) FX Impact Revenue Growth % Constant Currency (non-GAAP) Retail (1) % 1 % (2) % Hospitality — % — % — % Digital Banking 7 % — % 7 % SUBTOTAL — % — % — % Payments & Network 6 % 1 % 5 % Self-Service Banking 4 % — % 4 % Eliminations —
Slide 27: Q3 2023 Adjusted EBITDA: Reconciliation of Constant Currency
27 Q3 2023 - Adjusted EBITDA Adjusted EBITDA Growth % Favorable (Unfavorable) FX Impact Adjusted EBITDA Growth % Constant Currency (non-GAAP) Retail 3 % 4 % (1) % Hospitality 16 % — % 16 % Digital Banking (3) % — % (3) % SUBTOTAL 4 % 2 % 2 % Payments & Network 5 % — % 5 % Self-Service Banking 13 % 2