NATL - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the NCR Atleos Second Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Brendan Metrano. Please go ahead.

Timothy Oliver

you the thank quarter Atleos and call. earnings morning, for NCR joining second Good

the are Officer. call Paul on update overview me Joining today performance quarter and this with and MacKinnon, of start second Campbell, XXXX Tim Stuart Chief we'll Operating objectives. And on morning an CFO; CEO; Oliver,

Q&A. our review will the Paul results and outlook. Then Next, financial we'll move to

review our refer which such will materials the often in me and measures results Also, SEC, today, our and the I These performance. counterparts and uses to call financial to are reflect measures, will expectations today presentation Before results be our our you with that and are meaning. Tim. words our non-GAAP discussions These started, expressed later and non-GAAP subject actual described will uncertainties reconciled annual including the measure its certain are which to of we to from company report. and With Investor let materially similar remind Relations to on may, expect uncertainties include in the those expectations. get include, website. statements, this periodic filings current risks we A available GAAP their and on beliefs investor.ncratleos.com. website, call differ will presentation risks the forward-looking of will, turn cause replay today's that, that of materials over to and as by our in words statements could and are described These

Timothy Oliver

to the Brendan, us today. thank on you you, joining for and Thank everyone call

on website, Investor we the in along Slide presentation those For the from Relations will today X. start following

to that approximately to many ecosystem. over as world-class. strategies growth ATM the will demonstrate successful a for cash-based come installed we a our into it accompanying in now from is I'm steady customers generating fleet blue our and from improve of global network these ATMs, of while makes Atleos own we an reiterate I think newer consumer unmatched Atleos in own locations. their an to Atleos from their of a the a growth by Before significant more sense more independent XXX,XXX that's and our services are Atleos more network. service strategy chip to that to retail support. because infrastructure service XX,XXX you more operate volume and opportunity higher transaction I has very Whether vectors installed of clients, Both continues that and hardware, driving our efficient are has In second stable institution a including of quarter ATM financial story, every by machine located launch customers' transactions quality, desire leverageable and discussion hopeful of financial common company. pure-play revenue and comprehensive scale access our that of base we outsourcing for cash fueled providing And as more both and is or machines environment across

the in most way, self-service is banks global devices cost-effective increasing. improve experience importance seek customers' to the As their of

our result, their and into utilities. are customers a As shared embracing reinvesting retail financial banking footprint back

foot in experience, cost, better and higher this reach broader lower result strategy them, quality, higher For will consumer traffic.

with in results, costs. results indirect and led eliminate margin our by predictable the and For profit second those above second a expectations were The free guidance added strong direct the in to key and And minutes. to discussion solid strong that as growth, provide with more metrics grew we cost first X% of NCR incremental margins year by productivity our performance climbing and are revenue beneficial Overall, quarter, resulted XX%. revenue key flows. ATM service costs as both grew half revenue renewals more pipelines, both will by robust revenue from on Atleos, from as richer it expansion vein, we in with scale service this revenue revenue both geographies network coupled higher anticipated XXXX. allow Paul and with combined drove new the few networks, businesses. We will a transaction. new a new and transaction in financial types. expectations, a clients the added and upper out profit again sequential us toward We our than full reaffirm rolled improved end mix, profitability quarter, detailed In strong higher transaction-based for drive from sales growth our our services spin cash and mix financial guidance

to move Slide key X X, segments. Let's for highlights operating

On the top for banking line left, and performance the X%. second solid with services growing software quarter, self-service was revenue

grew and second PNC for year on accelerating. by with volume emphasis in increased in opportunity quarter, hardware outsource Banca revenue The well their desire for service a across renewed Latin America, and bodes and in and in bond Our America, half. Avicenna North model had wins efforts and our ATM Asia for active services, SBI ATM EMEA our resulted recognized to We've been large, has units traditional the a very product Service with customers' with as software and and as the hardware our including Tech Pacific. several strong XX% ATM order in quality service modestly. remains which revenue and second this has with go-to-market is key for in customers renewals geographies,

As this become play strategy out, begun has to have X things clear.

migrate full seen singular for but see the Service our increase of customers of product a can many as Atleos, we've opportunity continuum a ATM preference C.A.R.T.E. a as over that services sheer they of La definition the represents for wallet our In EMEA, A opportunity of First, time. as greater

adding and network outsourcing model services, full Solutions new incorporates adding tactical North fleets, select hardware, outsourced than hardware America, larger often fully off-premise prefer generally upfront institutions more a a rather access. institutions outsourcing. take whereas purchasing smaller that approach, even

allowing to our Increasingly, seeing wins intensive. significantly does the us outright to ATMs in strategy asset-light are returns. place we capital either are purchased the where improve customer, or are be already not by Second, need

large unit like demonstrating consistent strategy. countries returns bidder require our own to not a the the with opportunities the lower-cost Service Some India assets as in are that

provide a threshold. not we As on that Service chosen such, this an several offering to meet as have thousand units didn't

of On ARPU segment the growing execution our banking the Transaction growth, In experienced effective strategy Grocer another profitability network cylinders our digits year-over-year. And from the and withdrawals were all drove robust the double right-hand hit from side, U.K. strong, utility addition quarter. The benefiting with fleet another cash Asta on America, transactions. all generated the largest volumes higher of high contributor for point ATMs. to late international XXXX. all-time and of was North our in higher

of enhancements XX% higher with usage our withdrawals. Continued contributed in growth coupled consumer network, surcharge-free

transactions also for Capital We Federal. Payfare Door for One with made Deposit deposit quarter. the progress acceptance expanding ramped good on expansion across XXX% and initiatives, and cash with our Navy transaction Dash partnership year-over-year drivers grew adding payout cardless on

to our We to Clip to the the commercial they the gig to expansion the partnership, stores one are an brands strategic And second XXXX, and the out country, and the daily half has of efficiently Lyft in Chime in more and of in across enabled our key the our partners. with expect to more week. today, customer to newly add point that deposit add finally, host than us will we pay. addition relationship want of call workers on last since solutions access Allpoint and quick Chime X,XXX year, Atleos today. business I investment easy Chime do Money network. X,XXX been with providing all we branded NCR with announced Under extended ATMs currently Chime Walgreens

describe path success our to in X both These objectives. objectives Slide XXXX a XXXX. strategic operational Turning key to that reiterates and

I've Starting self-service our strategies want segments half described their our of first While our the into banking their customers X converging with The footprint. reported growth. insight effort focus some and successes, consumer second of reconsider provide already differentiating banking areas. are as entirety half our to I

to solution. needs effort selling more fully integrated our leverage Our and valuable be

to or services all modernizing are service themselves. of the experience successful eventual revenue certain instances, people, product are some device to hardware. resources, including the organization of AI first optimizes and separation. components future our addressed prioritization new offerings the in period exciting we and end and is that our things Diligent catalyzes add new our that and generate time the application we issues can extend doing increase tempo ATM changing services lingering productivity related initiatives will volume user bank While the product half, and expense, second in half and our And growth. the having either pilot, taking In more functionality to returns by of capital, full transaction driving by goal, customers outsourcing per the by more currently capturing Atleos more on ATM

will Our of organizational manufacturing processes. redesign drive efforts our modification as the efficiencies well

cash dividend. Before discussion shareholders of generate Atleos moving Last regularly once dividend a that time, the Atleos should suggested quarter, a generation. share consider payment. at year full deliver preferred we proportion the company, to said a predictable better of that flows when that would free I able that had in on repurchase I when asked the have line cash would I shareholders of to about the Board back And sight launched would cash a be returning as a to to a dividend, separation, over of and cash to separate form

free best As careful from and debt better have that of of feedback flow guidance, the now reduce we've sight. interest continuing several line both our determined to consideration After is currently holders. our in our and equity evident cash is debt constituencies, we a from

be about While flow meaningful free at shareholders ability to basis, with some return we on our consistent we to guidance. still and Atleos feel regular a cash will that generate good to point, cash believe our able

we now, debt. cash And refinance all to debt. to to For some that have of will opportunity continue fall to expect this we deploy reduce excess the

on Lastly, the on separation is from of budget. the and to NCR Voyix or complete process ahead schedule

that the several X in a already Voyix early by stranded nor post-split larger remaining. should the This more for TSA key legal of During countries has closure remained the TSAs the previously we third completed with TSAs only few and quarter. We with minimis company. covered transition for Only X de and transferred opportunities entity second a to or us due between critical to quarter, agreements functions revenue have been sized productivity to us transfer have Atleos companies X the begin evaluating status. allowed service to

of I'm over effort global what and X short in accomplished diligent has more to the positive team With disposition. consistently you, extremely Paul. want Atleos whole to and As is commitment and values, I for quarter, enthusiastic by team achieving mission to impressive gratitude fueled always company's to the our case, new express the my that, Atleos another months, awaits. proud NCR opportunity NCR

Paul Campbell

you, with and with first Thank out were for We end the us and of that quarter closed on objectives. higher you expectations. our business progress accelerated half all the Tim, We today. particularly second the pleased thank of joining our the of of was momentum our key strong results, financial year a

earnings our the generate per of the strategy unit our streams. and Importantly, incremental global power and revenue installed ATMs profit of adding further to by across revenue results XXX,XXX validated higher transaction service base

Slide EBITDA growth revenue continued to generating of for X% and that sequentially. of EBITDA in productivity consistent of on and software from revenue $XXX XX% start points accomplished. in in revenues, ATMs. consolidated strong software by revenue demonstrated partially X% X% the projections $X.XX the business. margin EBITDA We savings of dis-synergies base was basis margin adjusted billion, self-service upside was installed Macro XXX from will consistent revenue in have $XXX growth upside offsetting up quarter with of We Total headwinds rate of with in consistent remained for our sources and a in for the known second margin expanded comprised recurring decrease that and we the revenue growth review The contributed results. service labor from and a incorporated higher costs. The million, in in and which XX.X%, XX% total higher year-over-year led stable prior quarter, margin services company last year. banking second revenues margins million to and benefiting success X revenue quarter delivered network growth

that expense down $X.X was rate on The balance debt. P&L. debt billion billion to X.X%. on variable $X.X million Moving interest rate approximately the average Interest of weighted $XX total average of an debt approximately includes was

approximately the of and generated rate flow quarter. diluted quarter due lower Putting per in discrete drove of tax share effective second quarter count million $XX points we cash was XX.X adjusted approximately million second basis together, share The shares. benefits free was known adjusted tax projected third we it the $X.XX Fully earnings XXX of to diluted accelerated XX% quarter. average than from

our XXX,XXX Slide XXX,XXX generate is and software. Self-service Banking a revenue XX. These is and global to comprised Moving stable of units approximately base primarily business our from units. services largest XXX,XXX of recurring installed of ATM

a led in solution ATMs capabilities shifting in Banking growth Starting to in of our We X% range. as the recognized $XXX our a with a decrease XX% our are more segment reflects model. a to continued recurring quarter contract being results as upper above giving in robust Service revenue and growth services had our said, XX% to increased resulted by a network from strategy transforming growth expectations The ATM comprehensive hardware us to range of that including revenue base the outsourced leveraging left, had the deliver revenue recurring we line revenue revenue due The success quarter, of recycling new a X% year-over-year segment million, revenues. the ratably hardware of for a our revenue in global services. bucket orders grew growth the to of a infrastructure our and second revenue a half. continued high a in XX% in Call to upfront Service growth Service business drive to by financial over for software of ATM product, more services period. particularly higher-than-expected That guided our installed broader second solid customer backlog the

dissynergies, initiatives, cost EBITDA $XXX adjusted of macro high-margin XX% from the primarily million Adjusted and in was the labor years. offset and benefited previous growth million, future XX% mentioned prior amortized down ATM the $XX compared EBITDA basis, impact a productivity in margin approximately software strong revenue year. anticipated Service On sales being to as higher to due which onetime of quarter a costs the hardware Second over EBITDA to shifting headwinds. year-over-year was

revenue our bottom and another the The a Slide year-over-year base points addition positive continued recurring to more XX% business of basis up quarter, quarter. our proof and basis growth approximately XX, the help XXX we that KPIs year-over-year and second segment. of introduced of existing X% the to points this ATM banking strategy is software for XXX sequentially a disclosures XX% a and installed in important growth ARR in On new broader self-service climbed is have the Annual Service on recurring Service up to or in of slide, Moving opportunity incremental point sequentially, the services second driving impact recurring trajectory in as assess revenue revenue for model progressing. the up mix from recurring revenue information as ATM to the revenue.

an $XX of the Service units. addition or the a On ATM year-over-year million XX% left of top X,XXX second quarter active incremental the slide, as to grew approximately for

consistent the ATM a the to gross with profit XX% ramp On $XX.X revenues. as Service million, year-over-year right, the increased in

regions year last the this year. also sales units there interest second backlog continued are of of The XX,XXX service-orientated a the in Adding have high few and and of customers ROI On the $X,XXX revenue is on XX,XXX a that to projected. close With that line confidence units. unit year. this deals from slide, backlog, comments, close pace and customers finishing per units our with side. positive ARPU $X,XXX there prior we X,XXX in activate we is also is ATM with as is keep increased slower top higher unit, between of deals dispensers discipline that to sight second to result is product yield with in yield year set Service reaching meet during still targeted activations largely cash Tim's base we the will institution mix The Service in lower. hurdle X,XXX that average That been the units. than ARPU year over the quarter the type, to to a increase Moving quarter, return investment per up as a build a lot quarter. ATM the sequentially important said, large the acknowledge unit large of months It because degree early the in primarily ATM for bottom expected active XX our of strong existing units. mind services active a second the not we of of continued year-over-year rate. over to has a KPIs and having in did remains to large India where the of the to a to this and maintained the that earlier a we Customer variability increased ARPU in some the geography, included trajectory originally on have of

advanced particularly base. in across the a to higher institutions year-over-year profit North growing Demand margin and expect For with weighted and a America, $XXX a The are regions our healthy mix in ARR revenue ATMs example, which service second backlog of India heavily and less to America stronger ATMs increasing become continued are multifunction is units yield. has to outsourced that unit XX% lower America, fully North almost Service consistent generally a $XX,XXX we an broad-based profile. model above a quarter, unit and higher installed upward units million. for a as all favors trend prefer mentioned previous specification with generating X,XXX Europe ARPU than much backlog North more of where

Network the XX. Moving on to segment Page

which from quarter. our of owned lower network Our Starting transactions, access international revenue strategy units nationwide for increased Network XX,XXX adding by financial and industry-leading QX, increased withdrawal X% $XXX strong ATMs. and which for accelerate, offering we deposit approximately operated Also left, institutions LibertyX XXX% had North focused is strategy utility and America XX% on execute of lower base. to bank increased continue a second deposit of higher banking million, network, ATM transactions year-over-year with X% year-over-year top-tier the note, segment partially by volumes small utilization scale to enables in based top network our driving our are on of XX% growth continued transactions. for U.S. growing partners offset across to another but volumes, XX% The Withdrawal volumes approximately over ARPU margin. retail and to Deposit to network. a

adjusted a above right, $XXX end XX%, range the on million The margin due highlight primarily at growth at basis On and this key validity transactions. bottom of EBITDA mix LibertyX expanded to the our by EBITDA revenue [indiscernible] margin, XXX guidance high was expansion. year-over-year margin also higher-margin slide the our the in points increased offset execution to of lower of and Allpoint and XX% revenue year-over-year Adjusted of growth lower metrics strategy. of

On units retail remove has was finishing our The XX% second lower the see the to in over per right small reduction portfolio year-over-year quarter. up the shows XX,XXX The at been unit the the revenue XX chart ATM left, on the with months optimization profitability. ARPU planned count units. you footprint of result can unit average stable year, quarter last the in is past approximately

growth. made Tim strategic foundation the noted, second the on quarter in that multiple significant we for laid future As initiatives progress

Technology Telecom segment services. due and summary Slide with revenue new on a up and the customers total the segment year-over-year company. XX. adjusted revenue of to EBITDA expanding and were left to results EBITDA and Moving our for slightly Starting

geographies commercial and NCR Atleos the and represents other NCR Voyixs. As a between legacy reminder, NCR agreements Voyix exited segment

manufacturing expectations to TSA segment from at results from Voyix. other and The due lower accelerated NCR demand exits below our were

investors, of XX with and cost segment, for show being up assess view $XX X.Xx. the breakdown continue. the of the methodologies of segment optimization unit for software review each but our and a progress Unallocated cost historical by revenue. which help drives corporate free under We and the KPIs of is are a Slide not of contributors of flow transactions, to been more self-service X% financial key snapshot services lower a and slide position departments at the cash attaching regardless expect between expense unit we'll to our weakness maximizing have the to cash our we X-quarter pace quarter. build to the of new business free key of by we a of for XXX,XXX XX, movement cost a currently asked is decreased takeaway a fleet the this monetization the that quarter million internally, flow, information this rolling On the this leverage model end and of accounting. this additional present providing These unchanged The net cash [indiscernible] primary generated million year X.Xx. second into us approximately and information we of some quarter generated On million $XX banking second investors that over Slide essentially difference at this that The leverage use to was slide company. we to of of on is time. flow meet full number takeaway we putting are from allocation $XX target free Year-to-date, on

to of and is On the debt from down $XX approximately million X.Xx by the ratio net leverage year-to-date, X.Xx. bottom our net dropped slide,

shareholder value. debt have more of feedback Board Therefore, we flow of our XXX% at trading decided end The company's which power with Expanding cash level optimal value. free almost at our market support said, the internal Tim's on confirm leverage strong comments that We and the quarter. a ample to XXXX reduction generation can flow the our million $XXX comfortably analysis notes debt, is fundamentals current and liquidity than increase clearly the investors best our second of That capital of is shown the more use allocation. and have from cash that for priority. has

evaluate and appropriately. this developments position adjust will We for to continue

full total to year Slide year. QX outlook company full for our XX and and XXXX. Starting financial the Turning with

robust $X.XX plus billion half. above the half the backlog billion solid second million range the softening adjusted first for This million. trends and risk. economic of reflects outlook midpoint EBITDA unchanged uncertainty that for EBITDA $X.X billion. the $XXX and range of $X.XX was the geopolitical macroeconomic risk the globally order midpoint to pipeline guidance based quarterly by to a We $XXX for We ranges, the offset revenues revenues, to tightened reaffirmed to is adjusted sales For on due the at first half with

Moving first half P&L. at are line, no down second the free Based outlook below to outlook half million. and the leaves strong which There management, adjusted to we to unchanged $XXX to free changes on flow, the diluted EBITDA cash EPS effective the midpoint CapEx $X.XX material by million and working outlook million, narrowed the flow $XXX to meeting capital $X cash $X.XX.

the third quarter, in we adjusted to $X.XX EPS $X.XXX of $XXX EBITDA and billion, to range $X.XXX For revenue of $X.XX. total $XXX expect billion to million of adjusted the million company

semiannual the cash EBITDA free We to payments. no sequentially in $XX interest million improve and be and higher earnings and rate cash interest cash between expect million. having expense, We for highlighted flow expense and free the presentation, assumptions year including consolidated $XX other conversion tax outlook Note should on effective count. QX that relevant flow share full

We to impact We for full in We self-service mix of $X.XX to to the segments service to learnings continued dampen will on the the product narrowed [indiscernible], Liberty in hardware to that backlog margin XX%, from $XXX as including previously revenue Moving plans first are we profiles. expected range initiatives. is range We're improved implementing lower outlook. business. current margin and margin XX the for with the the with XX%. the across lines, outlook. between to year softness reflecting strong revenue range Liberty the range revenue costs half be and level of recalibrate the than and banking and to billion, higher the movements QX. EBITDA modestly million to based the the for decreased than now outlook There $X.XX approximately adjusted overall reflecting to Starting network narrowed modestly C&T increased outlook Liberty improvement the to We better XX% revenue to due exiting and segment. revenue EBITDA primarily shipping continuous XX% to remedy to billion outlook XX% adjusted cost $X.XXX a lowered Slide billion, adjusted increased $XXX outlook due costs growth process challenges. and our segment of backlog to expected margin of lower EBITDA million the at billion $X.XXX

other Last the reorganization. announced segment. divestiture to Voyix Moving asset week, an corporate and

to XX%. at midpoint. be million the $XXX corporate approximately margin to Other now revenues. EBITDA be Unallocated of expect expected are Based relating with the [indiscernible] adjusted to projected into this to half the $XX financial We clear. costs revenue of expectations of is reduced year most segment million revenue second for we've retain on $XXX Voyix, the from yet X% an should company EBITDA approximately Voyix, volume not implications where by million total

expect For self-service be margin rate million, to to XX%. we XX% $XXX EBITDA $XXX with revenue million quarter, third adjusted banking to the of

with to to $XX EBITDA an XX%. network approximately We an million expected rate margin to adjusted $XXX XX%. revenue expect to is of to million adjusted be $XX EBITDA $XXX margin with XX% revenue million million be of TNT

up of board. the of million guidance margin above high first at an second strong guidance revenue sequentially please digits. expect with questions. grew Atleos's single $XX comments and cash to reiterating a guidance sequentially open expanded the for QX margins, issued free positive and tightened midpoint We line our improving generated businesses increasing with We adjusted other with results and EBITDA We revenue. $XX We We across revenue that, all on or half focus Concluding million delivered Slide transactional we flow. in my year core services operator, full quarter XX. software on ranges. a With

Operator

Matt [Operator Summerville D.A. with Davidson. Instructions]. to We'll go first

Matt Summerville

A questions. couple of

to just sheet. First, balance with the respect

an would to to your and embark with fall. what refinancing start need and on is you You leverage think think on could I weighted debt of interest you Can where comments annual upon look a mentioned us to ideas of basis that buyback follow-up. some similarly, level your you debt, your I the ultimately may XX%. cash you remind what dividends, then And sort again? have cost And this like new those respect expense entertaining see then relative to what average

Timothy Oliver

first on potential Paul, the one you I'll first and second I'll let the you I'll second and and take relief from refinancing. the cost take the take the one the one. one debt take

dividend we So where next year. talked half return don't want about or we of don't in an to. And to a Xx would second dividend can repurchase. that repurchase I think past. in leverage of shareholders either if probably the the by cash getting question, A a Xx a we've we one our on more We've get is to Board. as We or take authorization the pay to had think get quickly we action midpoint share share there

it very not undervalued. when was still as a was but our stock choice range. in think the last $XX quarter compelling I believe I undervalued, we're

I take sometime -- discussion. half I that would the could be would in one. get Paul, the this of once first initiate you think should So to we which down Xx, we first XXXX

Paul Campbell

Matt. Tim, between you, and interest XXXX. annual Thank is $XXX thank in $XXX and million you, Matt, The Yes. cost, million

QX. QX, call as which that billion the through Term We of million at then Loan the B, a of debt, of and is it's of around end callable end have $X no roughly $XXX

So that's [indiscernible]. our highest cost at debt

what different there's more that know and options would So we refinance, with replacing number that's there's a options be. are to of the million refinancing looking when probably we're the the of [indiscernible], repricing just debt $X billion. can the we yet converts interest $XXX take There's just debt. We the around we're don't Matt,

can time is up the rates are we're working refinance. us our optionality with interest come with bank partners available best at for So for we to that the

Matt Summerville

it. you actually with a sounds Got 'XX for the thinking of this to early portion based self-service to particularly you of proliferation with an would on in business? chance there's of Does about in like that respect 'XX what North say read in you the how big in inning you're world, then part some America. some western hardware the the recycling the And picture of had. growth we're this pretty banking, And side respect give you good it 'XX see comments unit on order over

Timothy Oliver

take this demand I I'll this for Yes, hardware year. good one. feel about

going year. strong, in at is second book half of the better very is of year. we be anticipated the to the beginning demand order the The Our than particularly

recycler hardware feels both feels just that a Our ATM. And good, exceptionally because recycling, for will pretty but think well compete into demand going things it not I from good, year. perspective, all product next for

refresh I at think we're this sweet in a that cycle the at somewhat of point. spot

a I very, slowly play good I third out year. think to in inning, going the hardware the XXXX us fourth I would think more But think very we're for bubble. XXXX inning, be than it's the

Matt Summerville

you -- just in about If sneak think more. one I'll

back network maybe side of and like the business you of growth longer the looks there, X, a If of envelope, growth drag the point think LibertyX X for organic lower if of is percentage sort to about and this it kind the algorithm me, network that year.

withdrawal incremental the can I get is you transaction first which how to confirm bigger here the that. network. about I the guess So to think could I'm add side? growth continuing one, long-term versus trying to to understand But make growth of algorithm from of in I gains underlying from much transactional if incremental driver you sure growth outside volume Liberty, want

Timothy Oliver

Yes. The be shorter run. describing transactions types compared It's the the withdrawal going are to we're new small in the relatively whole. to transaction

moving business our the of couple rapidly and our growing a I fact so very that whole be PINless forward business. rapidly, -- cardless they're very and much. still transactions And rate despite overall might the still the the years, transactions deposit Fast -- be of growing think and some they're of significantly contributing growth not

So transactions. withdrawal for next really going to quarters, our to several but think the be in I robust it's continue growth --

Operator

go Goldman Instructions] Sachs. next with to Tong George We'll [Operator

George Tong

of year to contracts large a Can confidence implementation? You're Service the will likely ATM target contracts you your of units second XQ this by to these as continuing second $XX,XXX and in compared around quarter in into visibility large and from close cited describe are the timing strong XX,XXX where half. about the that coming

Timothy Oliver

don't that? you take Paul, why

Paul Campbell

you the certainly. Thank Yes, George. for question,

We somewhat looking Service These some continuum. today, us quarter outsourced ATM convert have to third customers as along an of services They've are fourth to early have moved line structure we that a either or quarter. late today. jars them sight. to the have a We're

into closing good we line the specific are customers, that sight, cycle. have So negotiations deep it's of

Timothy Oliver

and add We're profitable to chase I us the chase competitive targeting. want to what love now units unlikely to units. in going not we're have we've could continue -- We not are as going I'd to less right allow seeing transactions it's will there to be there. we're be been returns and trend that that in participate to markets, lower-cost but

accumulate. do XX,XXX we're we -- and deals Western metric chase to more U.S. the Europe, it that because longer profitably to it. to won't We'll going to takes smaller metric. going and for of see hit we're going want you're in to But do we a or little that not those it simply So

Paul in As number we've think Other there's units. to get a we're got before not unit about there line -- that sight that of them. up. closed. There's mad get we X large I trying will tear we've XX,XXX But transactions to said, spoken guess customers you'd get know a to relatively in

George Tong

helpful That's it. more down And strategy a implementations ATM strategy. were ATM Related in the your of a many about you Got alters how as this implementations? context. and target, preferring light you as talk that, Service strategy, leaning that quarter? into if path light Service more your the continue there you're assuming medium-term Can to more light

Timothy Oliver

is inclined want are units of That the we're expectation not why unless particularly The is India, significant. we've disappointing. in enough. is deals, some reined certainly who in because the And our are own one they not returns return reasons device the to significant in

customers' intensive. thus rather It's the has less capital own not been device. really be our strategy far we'd caused the preference And to so that

the We would are cash admittedly for not prioritizing much our we've drive year we're as light. able nearly take And as to that guidance to we because bit, flow spending number thought strategies. as are been asset described, a we Paul these free transactions for up the

part of is we're which I we customers it serve just is our us lower making think and they and well, do that of devices of choice it capital those own than themselves ours. And let part is is the machines. significantly a So understand do cost soon that what their

Operator

this And questions. time, further there at are no

Timothy Oliver

you. thank Operator,

have appreciate that to you team well. tonight. I take Paul I any and And as I concludes his by everyone joining today know Bye. call. questions standing Hopeful that our tomorrow. or think will that be

Paul Campbell

Thanks, everyone.

Operator

This does conclude your today's conference. We for thank you participation.

NCR Atleos (NATL) 14 Aug 242024 Q2 Earnings call transcript