Ncr Atleos Corporation · NYSE:NATL
Ncr Atleos — Q4 2024 Earnings Presentation
48 slides from Ncr Atleos's earnings presentation, Mar 4, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Call
Fourth Quarter and Full Year 2024 Earnings Call Tuesday, March 4th, 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
# 1 NCR ATLEOS Industry Leading Self-Service Banking Solutions Platform ATMaaS and Managed ~600K ~80K +140 ~20K Services Provider Largest independent Countries Employees Global installed base network of owned and supported by our globally of serviced ATMs operated ATMs ATMs # Largest Independent ATM
Slide 6: Outstanding First Year in 2024 with Strong Momentum Into 2025
Outstanding First Year in 2024 with Strong Momentum Into 2025 Achieved Full Year 2024 Carrying Momentum Strong Finish in Q4 Objectives into 2025 Continued to drive growth across Exceeded 2024 Adj. EPS and Free Service backlogs and pipelines are key P&L metrics with new highs in Cash Flow targets rob
Slide 7: Self-Service Banking Growth Strategy is Delivering Results
Self-Service Banking Growth Strategy is Delivering Results FY 2024 & Q4 Results Business Developments • ATMaaS Progress in 2024 • 2024 Revenue above and Adj. EBITDA in-line with full year segment guidance − Strong underlying growth: customers +38% in 2024 including 14 new customers in Q4; Year-end u
Slide 8: Network Continues to Efficiently Drive Incremental Transactions
Network Continues to Efficiently Drive Incremental Transactions FY 2024 & Q4 Results Business Developments • 2024 Revenue was in line with segment guidance; Adj. • Strengthened the Allpoint network value proposition: EBITDA exceeded segment guidance added & enhanced relationships with key bank partn
Slide 9: Effectively Executing and Refining Our Strategy
Effectively Executing and Refining Our Strategy 2024 Priorities 2025 Priorities Differentiate & Grow Grow Efficiently ■ Offer best-in-class solutions & service, and expand markets and transaction sets ■ Prioritize growth initiatives with high potential returns and strategic value Optimize Resource A
Slide 10: Financial Review
Financial Review Andy Wamser Chief Financial Officer 10
Slide 11: Full Year 2024 Financial Results
Full Year 2024 Financial Results $ in millions, except per share amounts • Revenue increased 3% y/y, consistent with guidance Revenue - Led by Services and Software businesses $4,500 $4,317 - Recurring Revenue mix increased 200 bps to 73% y/y $4,191 - Core revenue (ex. Other) increased 3% y/y +3% $4
Slide 12: Drove Solid Growth in Right Areas in 2024
Drove Solid Growth in Right Areas in 2024 FY 2024 Core Segment Revenue Lines of Business Revenue Growth Self-Service Banking Segment Up 4% • In 2024 Atleos had great execution in driving incremental service revenue Services & Software Up 8% across our ATM platform Services & Software Recurring Reven
Slide 13: Q4 Revenue and EBITDA Exceeded Expectations
Q4 Revenue and EBITDA Exceeded Expectations $ in millions Consolidated Revenue/Recurring Consolidated Adjusted EBITDA $219 $1,108 $207 19.8% $1,098 $1,081 $1,078 $1,050 $200 $193 19.2% $1,000 $178 17.9% 16.2% $162 $777 $793 $790 $790 $763 15.4% $150 $600 $100 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 2
Slide 14: Strong Earnings and Continued Free Cash Flow Generation in Q4
Strong Earnings and Continued Free Cash Flow Generation in Q4 $ in millions, except per share amounts Non-GAAP Diluted EPS Adjusted Free Cash Flow $1.11 $119 $1.00 $0.89 $100 $0.81 $69 $0.50 $0.41 $50 $38 $16 $0.00 $0 Q1 24 Q2 24 Q3 24 Q4 24 Q1 24 Q2 24 Q3 24 Q4 24 ■ Q4 was above the high-end of our
Slide 15: Self-Service Banking Key Financial Metrics and KPIs
Self-Service Banking Key Financial Metrics and KPIs $ in millions Revenue Adjusted EBITDA $718 $700 $200 +24% y/y $677 +8% y/y $181 $673 +6% seq $167 +8% seq $665 $158 25.2% $146 24.7% $134 23.5% 22.0% $628 21.3% $625 $100 $550 $0 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Key Strat
Slide 16: Bank Outsourcing Solutions (ATMaaS) Financial Metrics and KPIs
Bank Outsourcing Solutions (ATMaaS) Financial Metrics and KPIs $ in millions, except ARPU Revenue Gross Profit(1) $17.4 $52 +24% y/y $16.1 +29% y/y $50 $47 $49 +6% seq $14.4 +8% seq $15 $13.9 $46 $13.5 $42 $35 $10 $20 $5 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Key Strategic Metri
Slide 17: Network Key Financial Metrics and KPIs
Network Key Financial Metrics and KPIs $ in millions, except ARPU Revenue Adjusted EBITDA $120 $114 $350 $101 $103 $323 $326 $332 -2% y/y $100 36.0% +14% y/y $310 $317 $86 +11% seq -5% seq 31.0% 31.0% 31.0% 27.7% $250 $60 $150 $0 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Key Strate
Slide 18: 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 FY 2023 FY 2024 Services & Software $514 $540 $542 $557 $2,013 $2,153 Transactional (Network 303 319 324 309 1,243 1,255 segment) Hardware 172 191 189 215 788 767 Total Core Revenues $
Slide 19: Strong Financial Position and Significant Free Cash Flow
Strong Financial Position and Significant Free Cash Flow $ in millions Free Cash Flow FY 2024 Adjusted EBITDA $781 Capital Expenditures ($126) Inventory Capitalized ($66) Adjusted Capital Expenditures ($192) Maintenance capital expenditures(1) ($76) Growth capital expenditures(1) ($69) ATMaaS capita
Slide 20: FY 2025 Outlook
FY 2025 Outlook $ in millions, except per share amounts FY 2025 Targets 2024 Base 2025 Guidance Core Revenue (excludes Voyix) $4,175 3% to 6% growth constant currency (est. FX impact -2%) 1% to 3% growth constant currency (est. FX impact -2%) Total Revenue $4,317 - Assumes Voyix related revenue down
Slide 21: Takeaways
Takeaways FY 2024 Adj. EPS and Free Cash Flow Exceed Guidance Great Progress on Operational & Strategic Objectives Strong Finish to 2024 & Momentum into 2025 Solid Underlying Growth, Profit, and Cash Flow Expected in 2025 21
Slide 22: Supplementary Materials
SUPPLEMENTARY MATERIALS 22
Slide 23: 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 24: Non-GAAP Measures
NON-GAAP MEASURES While Atleos 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 inform
Slide 25: Non-GAAP Measures
NON-GAAP MEASURES Net Debt. Atleos determines Net Debt based on its 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 Consolidated Balance Sheets. Atleos believes that Net Debt provides us
Slide 26: 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 27: Q4 2024 GAAP Results
Q4 2024 GAAP RESULTS $ in millions, except per share amounts Q4 2024 Q4 2023 % Change FY 2024 FY 2023 % Change Revenue $1,108 $1,098 1% $4,317 $4,191 3% Gross Margin 297 198 50% 1,033 933 11% Gross Margin Rate 26.8% 18.0% 23.9% 22.3% Operating Expenses 146 163 (10)% 584 662 (12)% % of Revenue 13.2%
Slide 28: Q4 2024 Operational Results (Non-GAAP)
Q4 2024 OPERATIONAL RESULTS (Non-GAAP) $ in millions, except per share amounts Q4 2024 Q4 2023 % Change FY 2024 FY 2023 % Change Revenue $1,108 $1,098 1% $4,317 $4,191 3% Adjusted Gross Margin (non-GAAP) 319 272 17% 1,125 1,070 5% Adjusted Gross Margin Rate (non-GAAP) 28.8% 24.8% 26.1% 25.5% Adjuste
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q4 2024 % of Q4 2023 % of Revenue Revenue Net income (loss) Attributable to Atleos (GAAP) $46 4.2% $(165) (15.0)% Interest Expense 72 6.5% 75 6.8% Interest Income (2) (0.2)% (5) (0.5)% Income Taxes 25 2.2% 44 4.0% Depreciation and Amortization expense 44
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions % of % of % of Q3 2024 Revenue Q2 2024 Revenue Q1 2024 Revenue Net income (loss) Attributable to Atleos (GAAP) $24 2.2% $29 2.7% $(8) (0.8)% Interest Expense 79 7.3% 79 7.3% 79 7.5% Interest Income (1) (0.1)% (2) (0.2)% (2) (0.2)% Income Taxes 14 1.3% 4
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions FY 2024 % of FY 2023 % of Revenue Revenue Net income (loss) Attributable to Atleos (GAAP) $91 2.1% $(134) (3.2)% Interest Expense, net (1) 309 7.2% 90 2.2% Interest Income (7) (0.2)% (5) (0.1)% Income Taxes 47 1.1% 239 5.7% Depreciation and Amortization
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q4 2024 Q4 2023 FY 2024 FY 2023 Income from Operations (GAAP) $151 $35 $449 $271 Transformation and restructuring costs 4 3 18 9 Stock-based compensation expense 10 23 38 68 Acquisition-related amortization of intangibles 23 24 95 98 Acquisition-related
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q4 2024 $ in millions Income (loss) Interest & Income Tax Effective Net Income Gross Margin Gross Margin Operating from Other Expense Income Tax (loss) attributable rate Expenses operations Expenses, Net (Benefit) Rate to Atleos GAAP Results $297 26.8% $146 $151 $(77)
Slide 34: GAAP to Non-GAAP Reconciliation FY 2024
GAAP TO NON-GAAP RECONCILIATION FY 2024 $ in millions, except per share amounts Income (loss) Interest & Income Tax Effective Net Income Diluted Gross Margin Gross Operating Other earnings Margin rate Expenses from Expenses, Expense Income Tax attributable (loss) per operations (Benefit) Rate to Atl
Slide 35: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q4 2024(1) Q3 2024(1) Q2 2024(1) Q1 2024(2) GAAP Diluted Earnings per Share $0.61 $0.32 $0.39 $(0.11) Plus: Special Items Transformation and restructuring costs 0.09 0.09 0.07 0.01 Stock-based compensation expense 0.13 0.11 0.11 0.12 Acquisition-related amortization o
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Q4 2023 $ in millions, except per share amounts Gross Operating Income (loss) Interest & Income Tax Effective Net Income Diluted Gross Margin from Other Expense Income Tax attributable Earnings per Margin rate Expenses operations Expenses, Net (Benefit) Rate to Atleos
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION FY 2023 $ in millions Gross Margin Operating Income (loss) Interest & Other Income Tax Effective Net Income Gross Margin from Expense Income Tax attributable to rate Expenses operations Expenses, Net (Benefit) Rate Atleos GAAP Results $933 22.3% $662 $271 $(164) $239
Slide 38: Q4 2024 Segment Results - GAAP
Q4 2024 SEGMENT RESULTS - GAAP* $ in millions Self-Service Network T&T Other(1) Corporate(2) Total Banking Unallocated Product Revenue $242 $15 $3 $13 $— $273 Service Revenue $476 $302 $43 $14 $— $835 Total Revenue $718 $317 $46 $27 $— $1,108 Cost of Products $177 $14 $2 $12 $11 $216 Cost of Service
Slide 39: Q4 2024 Segment Results - Non-GAAP
Q4 2024 SEGMENT RESULTS - NON-GAAP $ in millions Self-Service Network T&T Other(1)(4) Corporate(2)(4) Total(4) Banking Unallocated Product Revenue $242 $15 $3 $13 $— $273 Service Revenue $476 $302 $43 $14 $— $835 Total Revenue $718 $317 $46 $27 $— $1,108 Adjusted Cost of Products (non-GAAP) $177 $14
Slide 40: Q4 2024 GAAP to Non-GAAP Segment Reconciliation
Q4 2024 GAAP TO NON-GAAP Segment Reconciliation $ in millions Stock Based Acquisition Related GAAP* Transformation Costs Amortization of Separation Costs Non-GAAP Compensation Intangibles Self Service Banking $177 $— $— $— $— $177 Network 14 — — — — 14 T&T 2 — — — — 2 Other 12 — — — — 12 Corporate U
Slide 41: 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 42: FY 2024 GAAP to Non-GAAP Product Reconciliation
FY 2024 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 $713 $1 $— $— $714 Transactional 305 — — 80 385 Hardware 140 — — — 140 Corporate unallocate
Slide 43: 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 44: 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 45: 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 Gros
Slide 46: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q4 2024 Q4 2023 FY 2024 FY 2023 Cash provided by operating activities $80 $8 $344 $355 Total capital expenditures $(31) $(47) $(126) $(132) Restricted cash settlement activity $69 $(8) $21 $(27) Initial sale of accounts receivables $— $(166) $— $(166) Pe
Slide 47: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION $ in millions Q3 2024 Q2 2024 Q1 2024 Cash provided by operating activities $107 $9 $148 Total capital expenditures $(33) $(32) $(30) Restricted cash settlement activity $(37) $7 $(18) Pension contributions $1 $— $1 Transfer of temporary funds back to Voyix (1) $— $32
Slide 48: Thank You
THANK YOU 48