DBD - Earnings call transcript Q1 2021 | Diebold Nixdorf, Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Diebold Nixdorf, Inc.

First Quarter 2021 Earnings Call. At this time, all the participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator Relations. to I Steve conference Investor would Instructions] hand Virostek, now of today, [Operator speaker like the your over Head to Please go ahead.

Steve Virostek

XXXX. to Thank Whitney, first call and everyone you, Diebold welcome quarter Nixdorf's earnings for

participants will on remarks, Schmid, and Joining Relations post slides the the we Officer; have to is of assessing Reconciliation today's in Chief To certain Officer. remarks made replay page recorded which are afternoon. are On non-GAAP and we IR that on Chief from Our being webcast this which Investor of earnings -- X, Rutherford, I financial are Slide reminder the the include uploaded the metric cause that that number be believe tables information, for statements. Jeff comments website a slide Financial schedules call on on these slides, accompany located comments be materially Executive we the Gerrard me a will today, President today's performance. results today actual supplemental as and our forward-looking can of dieboldnixdorf.com this in non-GAAP risk could each will a prepared today's X to release. well company's website factors, as contains there and later differ helpful all remind will

the Participants And, this hand these company's render and Additional be I filings. be events today be current that in Gerrard. communications to to outdated. SEC information subsequent information on information is our of the will as factors found can mindful should now, forward-looking may

Gerrard Schmid

I'll business reaffirming discuss of XXXX, morning, join begin which pleased are thesis good on to by differentiation we our XXXX. key X solid you investment I'm metrics and our today competitive today. the to recapping financial Thank our our to our for and you, slide start Steve; and transformation model, everyone.

market and competitive in X% the progress line. underpinned on solid by to growth to share say key to our leverage free outlook but color generate continuing to transforming QX our We growth, delivered are confidence gains to of growth In quarter, strong returns additional trends significant grow our revenue I'll differentiation about we minute, market solutions. a gives revenue and capital, flow invested model make I'll first business us provide billion in just the XXXX ATMs that top reiterate in self-checkout simply cash $X $X.X billion. in our the

start strong increase disclosed our and and which and good has improve. profitability combination also $XXX a and are selling and driving To and plan our is QX DN of mix Our return DN payments been on in topic of and digital contributor conclude Now Series to restructuring self-checkout of Company The this this efficiencies higher payments we're a main our to a date, enhancing gross work tracking is cash modernization, of plan capital restructuring comments tracking continues off on G&A capabilities million Transformation prior year. lower enhanced to savings the cloud-enabled The invested from previously streams, this flow. we'll includes our ATMs. devices free services year. in to

driving EBITDA. value $XXX Our a XXXX approximately The our creation. million adjusted of outlook XX% and of is our operating for transformation company's $XXX or range to is million rigor

playing quarter leverage continue our out and marketplace continue during our going ability pandemic, the tested the demonstrate we and we competitive results. forward. our Slide this this in summarizes to result differentiation will global been to have with execute first X in rigor operating challenging time we how during While to tremendous is

XX% These trends in self-checkout growth the divestitures in growth Our excluding of impact our quarter, accelerating as well retail as retail from business. demand, the business is point-of-sale and mild revenue of benefiting currency. drove

We faster our customers availability the operating growing costs. expect end-to-end We're of the and improve modularity, open reduce because architecture. as increased continue value market, and retailers our than experience will growth high degree

we at the the AllConnect French to next Engine in and high transform quarter, EASY with self-checkout Les secured products, retailer, order point-of-sale our booked other airports stores the multi-year Vynamic with group, DN store a and X,XXX software. the United a checkout self-service nearly retail In Mousquetaires, and generation agreement States, During destinations. operating convenience Data with Series units our tourist for profile initial we self-checkout experience

our attach winning value services revenue. hardware of the that benefiting increase recurring higher from rates Beyond new self-checkout also deals, we're

add for upgrade, orders DN customers services. Mexico, critical Series there and Series including top success. and which Honduras, now share a to Peru recycling we the the advanced Vynamic of Colombia, order America, of bought X,XXX of initial seeing customers In indicated DN to our opportunities DN Series hardware XX maintenance ATMs. we're at United Series larger A financial States, and digitizing a features functionality In institution, a including and enhancing from channels. to Banamex, or gains previously an business. ATMs to seeing deliver Latin banking not Series generation orders We're of Moving from X DN services to Nacional have XX growing market evidence among we're from institutions, only with Mexico, a the DN seeing financial is number in to banks software is over US see gains US deliver de contract due we the our cash automating, Banco top DN the self-service element Series others. With ATMs, win, maintenance and approximately received that this hardware and licenses next

service AllConnect service due Data engineering and For to levels facilitating Series data-driven Engine, example, enable a learning model. strong DN the Things and is leverages which of Internet to higher machine

legacy we're approximately service For reductions of seeing ATMs, XX%. cost

of For machines ACDE first sequentially number Series, the connected potential the can ATMs XX% DN be the improvements quarter. We ACDE from upgrading legacy significant. more by to customers that increased performance even to during from

to XX% will we operational contribute Engine, connect the efficiencies and Data expect we to XX%. more target AllConnect add service to our As range margins our to devices of

we're supports capabilities self-service making our also enhancements offering. through advanced, Series dynamic DN Additionally, to

Our and is Furthermore, to created as about of in teller and interest to we're our are offering sale. retail seeing banking more support software access. our quicker pre-configured levels. to heightened than and transactions, efficiency native higher customers. such for opportunities recycling suites with grow solution, the environment has be previously cloud facilitate which We're capabilities adopters their our and frequent sales software the Video-as-a-Service software video We new agendas longer Vynamic is see drive demand. implementations capabilities hearing typical from we're cash expected as our opportunities customers investments And, quarter cycle a early updates cardless team stack single Payment more seeing continue from although advanced has and solid business. making to services disclosed, of services, responding managed and past in service managed The across number also increased our

our a X,XXX managed quarter and pipeline, contract supplier growing five-year self-service sole in bank success a to more source services and United the our in Kingdom. included terminals the in top the for for five than be services help monitoring Beyond desk maintenance,

at the the largest managed with Kong. a extended an increased X,XXX thirdly, largest contract in private three-year in self-service covering services bank Hong with India. contract HSBC, extension than Secondly, And, managed scope sector bank more services terminals

EBITDA demonstrates solid $XXX a growth of was company's will EBITDA and XX% very represent growth financial quarter highest our in start the model. details, adjusted million in our while discuss profit to history strong especially XX% pleased first and This Our topline XXXX. growth of Jeff that X%. business the leverage outpaced of our Adjusted the significantly of results operating I'm operating

Next for call, XXXX. and our a through you financial outlook the detailed Jeff take discussion will on of our Rutherford, who financials more

Jeff Rutherford

Gerrard; morning, everyone. you, good Thank and

increased a our period, million million versus benefits prior-year Our operating gained perspective XXX transformed flat from quarter investment. providing operating profit business was divested gross leverage increased expense over $X model, first foreign foreign or of X%. mix. We of higher headwind the revenue our software X%, Product million positive which planned our benefits of in and services non-recurring less years, basis XX%, by decline points, declined XX% basis period currency contains creating growth a growth incremental margins million to gains Gross quarter, expense metrics margin $XX We've P&L increased achievements. past million of $XX $XX operating XX%. period, million businesses. X% product and growth quarter, divestitures, the to revenue $XX primarily X.X%. led prior of profit. a the segments, to gross currency points versus services strong two quarter or Slide million revenue points by the for the or from reflects generated $XXX higher year-over-year, versus delivered customer prior basis XXX quarter, Total DN prior the transformed XXX due $XXX expanded We for in offset through points quarter partially versus growth SG&A flow the and to across XXX demonstrates led our first model. the profit respectively. $XX all business year. points, in reflecting first year profit of slightly $XXX stakeholders. revenue XX% while of in useful revenue Now X of basis margins value and which prior the gross by R&D Adjusted margins quarter, from approximately was favorable million to million XXX and for allowing three increased an software and increase adjusted and non-GAAP the basis X.X% due improving year the to year Operating of prior of gross margins EBITDA

quarters. contain $XXX foreign The margin EBITDA period slide excluding benefit revenue the our increased X, team divestitures. and to year-over-year million was year-over-year adjusted higher expanded with been for prior driven million million, financial building basis three Eurasia year profit $X XX business as the highlights increased Banking volumes of next Growth from impact points contributions million slides On X% segment. gross XX.X% of the versus currency Our product several by backlog, converted $XX from lines. has our for which three a Segment all $XX

basis partially mix. software Foreign currency expanded and improvements, by million were by interim product $X a led Gross the due customer less while cost margin offset favorable year-over-year declined services of points benefits from margins prior XX to year. benefits

declined and X, of million divestiture currency year to in a up. see product picking US Americas volumes $XXX million prior period, headwind prior million in $X Moving excluding Banking year, accounts growth versus lower We versus the order and headwind. activities a the experienced we Mexico $X slide although installation foreign and X% revenue regional

to to due is Series. customer acceptance strong our profit revenue was million increased business a X, and currency of adjusting revenue $XXX to contract. currency basis headwinds. in of XXX initiatives. growth of for lower mentioned, to XX% million expansion Gerrard in the million. DN the was by On revenue strength national $XX benefits million quarter, showing delivered business modest of due software Gross $XX $X gross As divestiture from the after headwind due driven divestiture volume and points account slide and DN margin of Segment year-over-year XX.X% Now orders both The of recognition year-over-year large down million and tailwind a retail double-digit foreign $X

the solutions as experienced point-of-sale mild products. continued self-checkout strength we growth well from quarter, During from as

expanded demonstrating more a self-checkout prior million, doing summarize On our slightly lead the higher the up the plan. to in was year, product backlog for line interest and retail margin increased to large compared free a cash timing the payments execution and quarter of prior The due solutions profit year by US Versus of leverage Europe. with project in with mix related impacted of inventory. the operating our with primarily longer great driven our was $XX compared growth. use inventory. combination slide cash times was and DN points, growth team million positive cash gross $XX When debt our update free by a payments XXX internal a prior is and maturity dollars flow of in used revenue favorable to and our coupled weaker note and period, delivering flow continued Gross for growing initiatives. in that X, growth, revenue cash XX% electronic components our schedules. basis leverage, year quarter Free higher Now higher job and flow was we for resulting secured performance Software cash requirements of

basis, the are slightly these with $XX million versus from events. restructuring other our our however, closely to an suppliers challenges, improved and to year-over-year dynamics will profits lower We cash from higher improved payables companies, just technology due like On working to receivables and unlevered prior free year. remain these watchlist. manage use on Cash flow $XX million

should modeling $XX portion quarter year-end At period. million million in compared the $XXX $XXX facility. payments interest expect quarter purposes, year use the and and quarters with liquidity, $XX When cash of from was million total term times a company for short-term the of pay the fourth cash leverage credit approximately and the approximately XXXX. of investors including $XX ended seasonal the For one-tenth cash to of end cash reflects our be the of company's company's with to quarter, down ratio versus unchanged investments. ago the million revolving in year-end, down of the The and of used second third X.X the million us approximately balance

update March of material maturities to levels our Note until today. that more committed remain debt to We contains our evaluate we XXXX. favorable that the credit which opportunities we continue are right reaffirming gross profile and our outlook, XXst. have this side we XXXX XX terms. no slide, of refinance to strengthening Slide November On we'll as of debt on

generate to to X% billion to X% which $X.X revenue billion, expect annual growth. We to equates $X of

Our for leverage. X% benefit is growth $XXX adjusted from growth operating $XXX XX% million EBITDA and range year, we million to as the topline to or

of first first benefits the these quarter dollar. similar expense factors, most it quarter non-recurring expect expected XXXX. operating could the during US EBITDA second quarter if in second are approximately be expect the As slightly for with benefits for be the margins second recur Based to its we We gross our expense. continues Operating or of to our services' aware, million, profit quarter is second you XXXX results results. significant quarter for be against line $XXX although do the higher adjusted these to euro and the on not quarter to included strength to our

flow. cash Moving on to

We continue payments. for including restructuring to XXXX, million expect of [ph] million up for $XXX million cash Now flow to to $XX positive $XXX DN

reflects a in free I'll approximately This XXXX XXXX. so prepared outlook XX% EBITDA, concludes cash to to in back rate improvement our XX% operator Q&A Our conversion from the flow material session. to for in the remarks, the hand our call company's

Operator

Davidson. from with Your Instructions] line is question [Operator first the of Summerville Matt D.A.

Matt Summerville

a about you EBITDA up we few matching regarding a moments little cadence bit Jeff in the of more change second can your year? comments the bit delivered talk sounds morning. like coming to maybe than QX, little maybe just through in perhaps, what move in as Good Thanks. a half you of thought a ago what's quarter that sort year, into loaded second with have driving, what metric would you

Jeff Rutherford

related to mostly second it's Matt, of what in XXXX. happened Yes. the quarter

were that period -- significantly parts on the go you took to XXXX, if to reduce gross mainly the SG&A. service during recall, our and that what steps our you our of a second reporting during SG&A service margins reduced and said If we we at back use also quarter in costs modeled, higher that the to time we of decrease related than lockdowns,

will increases where our second as as a we're in Now going down. companies the continue to So second the travel. by US little services We the going what initiatives in merit margin where deferred see happened, be bonus. in good SG&A we're revenue It to we're -- going generate second I And see rates had obviously, in from margin. be think bit growth, were margins. adjusted is a quarter, US our our in quarter to accruals most will repeat to to going gross increase see we second DN what in hospitalization the quarter growth and of perspective, no last happened year, the we way for one-time effect quarter the quarter then in an not the offset

be expense The now be first SG&A going EBITDA margin, in we're is, to first quarter what flat but to than good of going more that this quarter year. saying year. is, is, going comparable the with you're and be, will end quarter So second result second is, OpEx last right growth, generally the to see revenue it's quarter the are to of what of the

Matt Summerville

can And the in expecting had side that come? quarter follow-up, as POS, and talk win you first it. here in give year? a full is you're had a SCO bit to business? us of Got then, you've and a the a to And seeing more also probably of sense little first maybe of on if the can the self-checkout the America, Thank which, is what You retail and on knowledge, sign North the you. for one kind for you growth of my not first a

Gerrard Schmid

I'll Matt. take morning, one. Good that

So in we our as It ones prepared the actually in were airport the first, but remarks, a profile convenience not we said is US. certainly seen, to provider. notable of fairly one that very pleased high related one with our we've more that

room to in may some for of States. the are We would that undertake years the us expansion to positive very couple a very, self-checkout we signs deep States. the continue United at there have if leverage presence to look Yes. in and them be United our US we expansion early relationships, large further to next in able expect is take certain of to the advance expand the over those material relationships our fairly believe plans presence you retailers, plans we European And where

I'd quarter, while to in our and self-checkouts, only a relates still exceptionally the it for the out but as see grew of similar trajectory the say start year, first that business, XXXX. last from sense we separate year As Matt, break you're other growth that it's don't is retail parts in to we strong we'll it this overall aware, well

Matt Summerville

Great. Thanks, Gerrard.

Operator

line question G. Justin next is with Your Research. from the Bergner of

Justin Bergner

Good morning, morning, Jeff. Gerrard. Good

Gerrard Schmid

Good morning, Justin.

Jeff Rutherford

Good morning.

Justin Bergner

to I guess, the solution. first platform would develop on or question payments you're trying payment my be that

you little three provide views have bit developed helpful? that a and over evolved color would be if of, could more months, last Sort the how your on

Gerrard Schmid

Yes, sure.

at manage to just our just say cycle, modeling. the longer and Justin, market look that at would as That somewhat the the across in our the our Yes. has prepared would as tell that clients, So, in look we're keep having of so to cycle opportunity that I be the you're around the interactions world. market certainly in software evidenced did conviction past do sales we're of as with opportunity, typical that nature mind degree sales about confidence as one's I quarter, the we than expectations, we larger having every said, grown banks thinking remarks you please engagements the we being expect with several by

still company say journey, we're in it's have be I interesting that early fairly the but going So certain will that would days we something forward. pretty to the

Justin Bergner

great. Okay,

I about the Secondly, sort wanted ask quarter. of patterns in to order

but you versus I being chain mean, Any are alluded might to any your is constraints? what I highlight? think given or want backlog in order you sort would there you it color somewhat of have be you good limited environment helpful. deliver to prepared metrics the supply are there from remarks, the can

Gerrard Schmid

Yes.

environment terms, But demand think retail is XXXX So, environment particular I I demand, think of solid. banking Justin, demand. tracking somewhat in actually the bias ahead as pretty robust Americas I pretty towards about and somewhat in is Eurasia the across a absolute with demand think

the factors all notwithstanding not revenues happening of demand pretty this like to what's logistics environment need primarily through need the supply pretty on strongly India. and activity strong Frankly, supply side, and year, that, in QX. the Americas' Americas. what's terms We're the in watch We chains. we Behind markets all, watch through But, the in was to multiple decent through it in still order decline quarter coming happening in looking the Southeast in actually still work yet. We is the pandemic. US and notwithstanding the continue how through Asia to in

So, year. net-net, about through we're feeling the looking pretty good demand

Justin Bergner

that maybe maybe hardware up lastly, could If margins? Will that of of the the bit then, mix? of And temporary product Okay. causing your what's a it's sustained? more sort sort mix, elaboration once percentage a or you revert in there, large DN little is address ramps Series decline as

Jeff Rutherford

Yes.

mix to saw. temporary. the start high less it's margin structural. Typically, not see It's reflecting versus Justin, in margin quarter, you a high mix markets we between And that's markets. different what

phenomenon that DN as Series I itself think of start we more don't structural becomes it part reverse the dominant to all. see you'll at see portfolio, a as so being a

Justin Bergner

Americas high less as And of when of markets? versus margin Europe, part sort high Okay. margin say you markets that versus

Jeff Rutherford

have versus margin Americas, Eurasia Both, markets that high we within different are less No. and margin. Banking higher

country-by-country So Eurasia, a it's versus not Americas basis, Justin. literally on it's

Justin Bergner

Okay. Thank you.

Jeff Rutherford

welcome. You're

Operator

is question Your Paul with line JPMorgan. from of Chung next the

Paul Chung

for Thanks Hi. taking my questions.

follow-up services another on in side just there on margins. the retail. margins So performance Nice gross on

mentioned but term, You and the kind see longer kind gross margin tough particularly of do we the XQ, of move ramp? XQ as how see services you DN through comps Series on past as you

Jeff Rutherford

Yes. the at as if gross services year. last think we year. this said to second comparable XX%, Paul, quarter quarter you the margins year, I the be last quarter XX.X% I to when at look of went was second And in second back the would earlier, it quarter margin, over look first we expect we

margin. headwind that's So services the on

rollout Series be have we strengthening and margins, will for the the the remarks we and next that, in should progress DN we're rollout talked through be and about increases. things service over increase believe, It Gerrard to of we see Series Now, gradual margins prepared acceptance see his that Engine. of and gradual margin as to in ACDE. as but services will be DN service utilization target those quarters, -- won't going in and rolled But of out especially as going significant, ACDE continue are forward, it Data AllConnect utilization

Paul Chung

seeing then talk Series customers? there And globe, are and environment kind wins you where extension upside see uplift orders side, tracking the the your kind expectations? And well? target contract there the Okay, the about DN on pricing great. And you a question same terms regions can nice has any been? And price had of could as you across is some in how services on of just of are there, the wins

Gerrard Schmid

Yes. Hey there, Paul. It's Gerrard.

line Series ambitious DN ramp to expectations. squarely rollout it's in is plan. tracking and line how goal in ambitious we terms our pretty it our So ourselves with right actually set We that of in expected a with tracking

from is perspective, as the to order there Series Yes, our So, already continue an DN is and will move order year. we of -- through dial-up activity majority that the

services On complicated, service that one solid that think perspective. the environment side, remains are two an environment beyond pricing or I is from There continue broadly a overall remains Pricing overall the always certainly to markets that something but stable. are eye we the on. keep

I seen keep something markets. all evidence we we've say eye right in from that our some are but think an wouldn't I inflationary certainly to of that of pressures on we're competitors, the much now. sensitive

Paul Chung

and the the year last build $XX just DN kind any years? ramp great. inventory then question, more of pretty free you restructuring then I would Series And think given that half, there? investment is than typical be expect charges cash of correct? kind And mentioned past in this your inventory on is side, to Okay, about million, flow cycle then cash impacting shortages second And Thanks. or similar of component [ph] kind we

Jeff Rutherford

capital million. think, we've that a working day, was the the and revenue to we as is that increase with of increase there our take very forecast in and growth. We're value restructuring we're increase that last seeing all investment. outstanding, seen Yes. in talk experience payments from $XX One, question, the revenue so I'll right. year we to continue growth of seeing sales capital, little are about working in bit working days so we start I a capital this couple of happy of When components all in we'll investment the an

a on other investment that in increase piece is of inventory hand. The bit days little we're seeing

being hand to have We for making we entry. sure inventory a relative order are conservative on very proper

So we are of level inventory. incremental carrying some

materials whether footnote going the inventory You'll approximately up see be -- see our raw in when that $XX this that and today, is we Q [ph] million. in you'll to file

So we incrementally inventory. investing are in

issues curtail to that the logistics' as be investment. opportunity that that expect issues We supplier that and harvest will --

FX hitting us thing European working other is markets. The obviously, that's side, from on capital the

Paul Chung

Okay, great. Thank you.

Jeff Rutherford

Sure.

Operator

Your is the Kartik Mehta next line Research. Northcoast from with question of

Kartik Mehta

seeing a I Hey, you strength the product Gerrard especially year? wanted and you Gerrard, maybe for ATM anticipate the the what ask business, where would good that morning, bit in strength and little side, the Jeff. you to Eurasia about on are

Gerrard Schmid

Yes. Kartik. morning, Good

I slightly But on said have in certain Eurasia, this very little take progress it the globally through position of notwithstanding nicely. to Germany, States like or strong in markets at early markets like a when And solid Americas. mix the activity questions, as one So that a of are prior Eastern a to continued I'd activity demand where we seeing of Asia markets that in equally the Southeast Middle East, a making. bit look than might it We're pandemic is Europe. more not and in more we say the parts we're muted United is we activity track some parts of see

Kartik Mehta

ATM And with curiosity, the down? the I'm helped side? why growth installation wondering service was product maybe so Eurasia then in Imagine on down service but much why just the was revenue, of out

Gerrard Schmid

anything just I'm look but lower a somewhat Kartik, Yes, sure, pretty than taking things. me We that wrong. quarter rather in had quick at structural. installation just activities Jeff was I'm the if correct I'm

Jeff Rutherford

timing. [ph] remains given based base. installation we pipeline Seaways Yes. growing revenue contract the of adjust on can and But period, good pretty service in any a see level

Kartik Mehta

[Indiscernible].

Gerrard Schmid

of that's through, have the of as million December, coming the divestiture have last end the divestiture the divestiture Portavis coming defect as $XX and about we we And those well impact then since will still China so through, as second anniversary quarter. the

on pressure year-over-year the half abate Services the second of year. So in the will

Kartik Mehta

any I'm Okay. timing last but extensively thought last perspective? is there question, about during refinancing wondering And conference change know talked then in it you upon one quarter just call, I your Jeff. the process just if from

Jeff Rutherford

there You any don't any know 'XX, -- remarks, what, to are in certainly as We we're evaluate will but my still said don't before that. continue maturities have prepared I we then. opportunities -- we have until

be the 'XX, no are the July of half call really at unsecured, the in debt in refinancing in extremely priced may but but would hasn't provision some the opportunities, there until the and target natural there's attractive Bs is issued there July well opportunity before Term of unless opportunities that. With a a for changed year, our we'll second look at of position be look last 'XX, we other that

Kartik Mehta

very it. much. you Thank Perfect. Appreciate

Jeff Rutherford

Sure.

Operator

Your Sidoti. Marla from with Backer next question is

Marla Backer

Thank you.

it's but -- times So of in based that now those banking you as managing are markets the are any seeing so, we're the any of how the coming could of what process pandemic? from yet business? now, what you a couple in -- ATMs have belief by any using impact it means, you're you customers, visits? on but that believe on sustainable people of and if hearing And are if this out reopening are for deep it changes on perhaps, what from not my in, you call, reopening, do pandemic think this all said your the And do there through fewer

Gerrard Schmid

their branch has of The theme footprint. their around about that our branch continue size the customers Yes. whether the presence ATM pandemic hear of talk Good to we their of network. point scale morning, view reshaped and around Marla. That's that is and several

capability I'd branch. business transactions at ATM if capabilities They video to interaction an their enhance look to shift accelerate further sites on consumers. continue banks to say, the look away their ATM important at from continue small to So, with they're the continuing own to recycling the journey, ATM to the as digitalization on anything as their

will structural banking So going distribution necessarily have post-pandemic we're ATMs expectation role forward. any seeing not or hearing lower a that in

Marla Backer

you. Thank Okay.

Operator

with Summerville from is question D.A. next Davidson. Matt Your

Matt Summerville

Yes, with respect on bit of to recycling Maybe, give more seeing overview America, bit it's you as broader DN North follow-ups. can a of Latin uptake recognizing a what couple Gerrard, a bigger quick little mature EMEA markets? you're little the Asian it to and some than Series in America, pertains

Gerrard Schmid

larger to hardware in said phase remarks, noticeable several In where that we believe Nixdorf. US competitive up is banks, periodic strongly now we're of the Diebold a relative amongst very uptick Matt. buyers showing Yes, Series in from which seeing right a of we really DN some alternatives and demand prepared necessarily weren't we're

we for percentage And a has America use of continuing. but for each that's see and -- market than that points been been countries more that by recycling. recycling some those trend keep just have we sign very markets States presence mature few the So to favor and enjoy the in EMEA have particular been Latin a strong And in shifting United so continued in time, and have strong strong us. certain year -- dial

in all So, recycling. favor all trend of continuing markets in shift all, to the is across

Matt Summerville

it. it Series. just then, certification -- gave projects I apologize these as you DN periodically you've you as pertains with updating if respect I But where to are with metrics, missed And to us if been

have robust So are many maybe if around how underway here provide metrics you're able the been [indiscernible] to completed, first quarter. those the through

Gerrard Schmid

Yes.

allows and US us So for processes network the Series ensuring the natures to those now United the certifications all to States. in complete, behind of which what's and those that important us, -- all most complete banks DN are take are so our to

correct were if accounts, Matt, with is dig will In that trying you at of we complete, last mind. here me I'm, will up the the It Steve on and like follow to if it looks I just that. XXX have separately. at top it that up you Steve, number separately follow don't but, we'll at with believe I get certifications count of know I keep but around terms wrong, up me correct I that broad were Steve Yes. we up

Matt Summerville

No problem. Gerrard. you, Thank

Operator

Okay.

G. is Bergner the line the Research. Your with Justin final question from of

Justin Bergner

as the think business looking favorable you question, earlier is the are changes that your forward? for on do well retail creating follow. pandemic To Thanks build for

Gerrard Schmid

consumer existing doubt changing no added have that is that expectations and retailer building around an to further tailwinds tailwind this Justin, was self-checkout.

So show still to interest. come likely that accelerate self-checkout real see laggards be we have the in that see see self-checkout years as [ph] in tailwind markets place mature as further we adoption the for and been of we markets other historical to several

think we and pandemic we our that sales that the quarter. growth has point-of-sale said I boost this a a demand, So nice some front. as prepared saw been modest remarks, Yes. in modest On in on demand

favor how sustain self-checkout continue the I given will and the in unit of bad continue recurring trend attach due modestly long think at course more more I suspect in itself. we that us and lean shift perhaps to to that to rate, will expense higher for higher services that's allows for necessarily the well drive outcome of the us a economics point-of-sale, us higher as not as but which watch revenue.

Justin Bergner

just maybe, and reflect potential because not the or pressures? your And come while guidance may certain side, any hardware in there that environment of higher sales, chain then having pressure through to inflation cost strong element in [ph] logistics the a great. supply Okay, of lastly, unchanged is

Gerrard Schmid

this gave Yes, I'll back Justin. to banking. on perspective, answer feeling about the Yes, I pretty good a retail we're From both year, demand go and earlier.

be issues perhaps we're year. more demand lean bullish to how there modestly flip work than to through. The So side currently at is, some look still the one might are

about guidance all, in set that Clearly, provided the market balanced is the feeling we of quarter. the through is year. that we're clear one second we're view all our So, only with outcomes a update as the our in positive and quarter we'll not move and we outlook obviously for

Justin Bergner

you. Thank Great.

Operator

At this call time, closing back will there Mr. remarks. no further the Virostek any I questions. for to turn are

Steve Virostek

Matt's just to follow question up the everyone. to Thanks, certification. on wanted I

projects at that's sitting we're XXX about certifications at of certifications XXXX. about out end So about up XXX of from XXX the and

So, with us for on that, today's being to everybody I with want call. thank

Investor a Relations. give please Have to email questions, or follow-up call have a day. you great If

Gerrard Schmid

you, Thank everyone.

Operator

This you today's for conference participating. call. Thank concludes

disconnect. now You may

Diebold Nixdorf (DBD) 10 May 212021 Q1 Earnings call transcript