Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — Q2 2024 Earnings Presentation
32 slides from Ncr Voyix's earnings presentation, Aug 6, 2024
Slide 1: Q2 2024 Earnings Report
Q2 2024 Earnings Report David Wilkinson, CEO Brian Webb-Walsh, CFO August 6, 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: Strategic Actions
Strategic Actions Digital Banking Hardware Cost Alignment $220B • Sale: Veritas Capital to acquire for $2.45 billion purchase price • ODM agreement with Ennoconn Corp. for POS and SCO $220B • Initiated a multi-phase cost reductions program 2 + up to $100 million contingent hardware • Eliminated appr
Slide 7: Capitalize on Market Opportunity
Capitalize on Market Opportunity Platform Conversions and New Customers to Drive Growth New Customers Go-Forward Strategy Accelerate platform conversion Platform Conversions Optimize resources & incentive programs Invest in our Voyix Commerce Platform NYSE:VYX 7
Slide 8: Q2 2024 Overview
Q2 2024 Overview 1 KEY NORMALIZED QUARTERLY HIGHLIGHTS Software 2 5 Revenue $145M 67K Software ARR $397M +5% $1.3B +6% 16.6% +34% 5 Services Total ARR 2 Revenue Adj EBITDA Total 3,4 $2.2B +5% & Margin Platform Sites $259M (2)% 1 Comparisons are to Q2 2023. 2 Amounts reflect normalized financial resu
Slide 9: Restaurants Segment Performance
Restaurants Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Platform Connectivity New Customer 2Q24 Y-o-Y % Δ Multi-year platform contract (ordering, insights, menu management, etc.) Platform Sites 30K +7% • 90+ sites across Canada • Opportunity to win franchisee sites Payment Sites 7K +21%
Slide 10: Retail Segment Performance
Retail Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Platform Connectivity New Customer 2Q24 Y-o-Y % Δ Multi-year platform contract (Voyix POS, NextGen self-checkout, Edge, etc.) • 10k+ lanes across ~600+ sites in the U.S. Platform Sites 37K +70% • Competitive takeaway Total Segment Platfo
Slide 11: Digital Banking Segment Performance
Digital Banking Segment Performance CUSTOMER UPDATES SEGMENT HIGHLIGHTS Digital-First Platform New Tier-1 Customer 2Q24 Y-o-Y % Δ Implementing digital-first platform (D3) to deliver robust, personalized ARPU $28.73 +6% experiences for customers Active Users 19.8M +3% Registered 28.9M +4% Cross-sell
Slide 12: Financial Overview
Financial Overview NYSE:VYX 12
Slide 13: Transactions Strengthen Financial Profile
Transactions Strengthen Financial Profile Target leverage expected to be achieved upon closing of digital banking divestiture 1 Net Leverage Ratio 4.1 x Digital Banking Divestiture • Purchase price of $2.45 billion plus up to ~2 x $100 million of contingent consideration; net proceeds of ~$2 billion
Slide 14: Q2 2024 Results – Total Company
Q2 2024 Results – Total Company $ in Millions Revenue Software & Services Revenue 1 1 Reported Normalized Reported Normalized $946 $876 $928 $876 $679 $656 $665 $656 +2% Y/Y (ex.one-time 3 items) 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 (7)% Y/Y (6)% Y/Y (3)% Y/Y (1)% Y/Y 2 Software Revenue Services
Slide 15: Q2 Segment and Corp. & Other Results
Q2 Segment and Corp. & Other Results 1 As Reported Normalized $ in Millions Q2 2024 Q2 2023 % Change Q2 2024 Q2 2023 % Change RESTAURANTS $ in Millions Revenue $201 $223 (10)% $201 $220 (9)% Software & Services Revenue $155 $155 —% $155 $155 —% Adj EBITDA $62 $51 22% $62 $51 22% Adj EBITDA Margin (%
Slide 16: Cash and Debt Information
Cash and Debt Information Capital Structure 06/30/2024 $ in Millions Total Debt $2,610 Cash Balance $204 1 Net Debt $2,406 2 Normalized LTM Adj. EBITDA $589 2,3 Normalized Net Leverage Ratio 4.1x 2Q24 Cash Flows Provided By (Used In) Operations $62 2Q24 Adjusted Free Cash Flow - Unrestricted (non-GA
Slide 17: Updated FY2024 Performance Outlook
Updated FY2024 Performance Outlook FY2024 Guidance 1 $ in Millions (except Adj. EPS) Initial Transactions/Other Updated Software Revenue $(630) – $(635) $1,000 – $1,020 $2,700 – $2,750 Services Revenue $(30) – $(35) $1,040 – $1,060 Hardware Revenue $900 – $950 $(135) – $(170) $765 – $780 Total Reven
Slide 18: NCR Voyix Financial Profile - Pro Forma 2024 Outlook
1 NCR Voyix Financial Profile - Pro Forma 2024 Outlook $ in Millions Pro Forma Impact on FY2024 Guidance (mid-point) $ in Millions Reconciliation of Pro Forma Impacts Pro Forma 2024 Revenue & Adj. EBITDA Pro Forma 2024 Revenue Adjustments Software $1,010 Revenue Outlook $2,833 2 Services 1,040 Hardw
Slide 19: Appendix
Appendix NYSE:VYX 19
Slide 20: 1H 2024 Results – Total Company
1H 2024 Results – Total Company $ in Millions Revenue Software & Services Revenue 1 1 Reported Normalized Reported Normalized $1,852 $1,734 $1,817 $1,734 $1,323 $1,318 $1,294 $1,318 1H23 1H24 1H23 1H24 1H23 1H24 1H23 1H24 (6)% Y/Y (5)% Y/Y —% Y/Y 2% Y/Y 2 Software Revenue Services Revenue Adj. EBITD
Slide 21: 1H24 Segment and Corp. & Other Results
1H24 Segment and Corp. & Other Results 1 Reported Normalized $ in Millions 1H 2024 1H 2023 % Change 1H 2024 1H 2023 % Change RESTAURANTS $ in Millions Revenue $403 $434 (7)% $403 $428 (6)% Software & Services Revenue $311 $308 1% $311 $307 1% Adj EBITDA $117 $95 23% $117 $95 23% Adj EBITDA Margin (%
Slide 22: 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 23: Non-GAAP Measures
Non-GAAP Measures Adjusted Free Cash Flow-Unrestricted and Conversion Rate: NCR Voyix management uses the non-GAAP measures called “adjusted free cash flow- unrestricted” and "conversion rate" to assess the financial performance of the Company. We define adjusted free cash flow as net cash provided
Slide 24: 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 25: 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 Q2 2024 Q2 2023 YTD Q2 2024 YTD Q2 2023 Reported Revenue $876 $946 $1,734 $1,852 1 Less: Div
Slide 26: 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 (ii) delayed transfers to NCR Atleos $ in millions Q2 2024 Q2 2023 Reported Software & Services Revenue $656 $679 1 Less: Divestitures — (11) Less: NCR Atleos del
Slide 27: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Segment Adjusted EBITDA Segment Normalized Adjusted EBITDA $ in millions Q2 2024 Q2 2023 YTD Q2 2024 YTD Q2 2023 Retail Adjusted EBITDA (As Reported) $ 87 $ 115 $ 173 $ 198 Restaurants Adjusted EBITDA (As Reported) $ 62 $ 51 $ 117 $ 95 Digital Banking Ad
Slide 28: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Net Debt Net Leverage Ratio Total Debt $ 2,610 Cash Balance 204 Net Debt $ 2,406 LTM Normalized Adjusted EBITDA $ 589 Normalized Net Leverage Ratio 4.1x NYSE:VYX 28
Slide 29: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted Free Cash Flow-Unrestricted $ in millions Q2 2024 YTD Q2 2024 Net cash provided by (used in) operating activities (GAAP) $62 $27 Expenditures for property, plant and equipment (13) (21) Additions to capitalized software (51) (104) Restricted cas
Slide 30: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials Adjusted EBITDA Normalized Adjusted EBITDA LTM Q2 YTD Q2 YTD Q2 $ in millions Q2 2024 Q2 2023 2 FY2023 2024 2024 2023 Net Income (Loss) from Continuing Operations Attributable to NCR Voyix (GAAP) $ (74) $ (51) $ (593) $ (113) $ (123) $ (603) Depreciation
Slide 31: Reconciliation of GAAP to Non-GAAP Financials: Q2 2024
Reconciliation of GAAP to Non-GAAP Financials: Q2 2024 Adjusted EBITDA Margin $ in millions Q2 2024 Q2 2023 YTD Q2 2024 YTD Q2 2023 Adjusted EBITDA (Non-GAAP) $ 144 $ 168 $ 265 $ 286 Revenue (GAAP) $ 876 $ 946 $ 1,734 $ 1,852 Adjusted EBITDA Margin 16.4 % 17.8 % 15.3 % 15.4 % Normalized Adjusted EBI
Slide 32: Reconciliation of GAAP to Non-GAAP Financials: Q2 2024
Reconciliation of GAAP to Non-GAAP Financials: Q2 2024 Q2 2024 Non- YTD Q2 2024 $ in millions (except EPS) Q2 2024 YTD Q2 2024 GAAP Non-GAAP Income (loss) from continuing operations attributable to NCR Voyix common stockholders Income (loss) from continuing operations (attributable to NCR Voyix) $ (