Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — Q4 2023 Earnings Presentation
22 slides from Ncr Voyix's earnings presentation, Feb 29, 2024
Slide 1: Q4 & FY 2023 Earnings Report
1NYSE :VYX February 29, 2024 Q4 & FY 2023 Earnings Report David Wilkinson, CEO Brian Webb-Walsh, CFO
Slide 2: Notes to Investors: Forward-Looking Statements
2NYSE :VYX 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
Slide 3: Notes to Investors: Spin-Off Information
3NYSE :VYX 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 consol
Slide 4: NCR Voyix At-a-Glance
4NYSE :VYX NCR Voyix At-a-Glance 1 Based on RBR Global POS Software 2023 study 2 Based on RBR Global EPOS and Self Checkout 2023 study 3 Ranking as of Q4 2023 public filings by NCR Voyix, Q2 (QTWO), and Alkami (ALKT) #1 POS Software Provider for Restaurants & Retail1 #1 User footprint among independ
Slide 5: Our Strategic Initiatives Positioned for Growth
5NYSE :VYX Our Strategic Initiatives Positioned for Growth Large and growing customer-base • >300k customer sites across 30+ countries • Embedded technology to address strong secular growth and digital adoption trends • Investments in sales and go-to-market Deep industry expertise across geographies
Slide 6: Restaurants Segment Performance
6NYSE :VYX Restaurants Segment Performance 1 Based on RBR Global POS Software 2023 study. New Customer Multi-year platform contract (POS, payments, consumer marketing) ✓ Phase 1: complete (30+ sites) • Phase 2: in-progress (15+ sites) Renewal + Expansion Multi-year contract (expanded solutions via e
Slide 7: Retail Segment Performance
7NYSE :VYX Retail Segment Performance Renewal – Fuel & Convenience Chain • 1000+ sites • Enabling additional payments capabilities via the platform CUSTOMER UPDATES 1 Based on RBR Global POS Software 2023 study; Grocery+ category of retail includes grocery, convenience and drug stores. New Customer
Slide 8: Commerce Platform Innovation
8NYSE :VYX Commerce Platform Innovation Investing in key solutions to grow with our customers • Retail NCR Voyix Edge addresses needs of large enterprise customers • Restaurants Data & Analytics providing real-time, mobile-ready predictive insights • Enabled new API integrations to deliver enhanced
Slide 9: Digital Banking Segment Performance
9NYSE :VYX Digital Banking Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Account Opening New Customer • Implementing digital account opening technology New Customer Implementing digital banking platform to attract and retain customers Renewal + Expansion • Renewed digital banking platform
Slide 10: Digital Banking Innovation
10NYSE :VYX Digital Banking Innovation 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. BEST-IN-CLASS DIGITAL-FIRST SOLUTIONS FOR FINANCIAL INSTITUTION
Slide 11: Financial Overview
11NYSE :VYX Financial Overview
Slide 12: 4Q 2023 and FY 2023 Results – Total Company
12NYSE :VYX $680 $696 4Q22 4Q23 4Q 2023 and FY 2023 Results – Total Company Revenue Software & Services Revenue Notes: Normalized growth is adjusted for the impact of divestitures completed in 2022 and 2023; general corporate overhead costs which do not meet the requirements to be presented in disco
Slide 13: Q4 and Full Year Segment Results
13NYSE :VYX Q4 FULL YEAR Segment Results 2022 2023 Reported / Normalized1 % Change 2022 2023 Reported / Normalized1 % 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 +23%
Slide 14: Preliminary Cash and Debt Information
14NYSE :VYX Preliminary Cash and Debt Information Capital Structure FY 2023 $ in Millions Total Debt $2,578 Cash Balance $263 Net Debt $2,315 Adj EBITDA (as reported) $618 Net Leverage Ratio1 (as reported Adj EBITDA) 3.7x 1 Net leverage ratio calculated as Net Debt / Adj. EBIDTA 2 $200M Term Loan A
Slide 15: FY 2024 Performance Outlook
15NYSE :VYX 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 (as % of Adj EBITD
Slide 16: Compelling Investment Thesis
16NYSE :VYX 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 an
Slide 17: Appendix
17NYSE :VYX Appendix
Slide 18: Non-GAAP Measures
18NYSE :VYX 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 addition
Slide 19: Non-GAAP Measures: Non-GAAP Reconciliations
19NYSE :VYX 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 me
Slide 20: Reconciliation of GAAP to Non-GAAP Financials
20NYSE :VYX 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 divest
Slide 21: Reconciliation of GAAP to Non-GAAP Financials
21NYSE :VYX Reconciliation of GAAP to Non-GAAP Financials $ in millions Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Net Income (Loss) from Continuing Operations Attributable to NCR Voyix (GAAP) $ (66) $ (41) $ (224) $ (254) $ (585) Transformation and restructuring costs 3 3 9 24 39 Fraudulent ACH disbur
Slide 22: Reconciliation of GAAP to Non-GAAP Financials
22NYSE :VYX Reconciliation of GAAP to Non-GAAP Financials $ 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-related