NCR - Earnings call transcript Q2 2021

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Operator

Good day and welcome to the NCR Corporation Second Quarter Fiscal Year 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I will turn the conference over to Mr. Michael Nelson, Vice President of Investor Relations. Please go ahead sir.

Michael Nelson

you our thank earnings quarter and call. afternoon, for second joining XXXX Good

the Mike today CEO; me call Joining on are COO; Tim Owen and Hayford, Oliver, CFO. Sullivan, and President

will periodic differ that started, that and Xrd, are materials, earnings the me include get could the also replay statements. These page results presentation measures. Mike. to reflect reconciled XXXX, that, but and today's statements current materially Investor ncr.com. this These certain and of risks press call with website. our they're uncertainties counterparts non-GAAP will would release we described Before subject website, financial forward-looking remind the actual you I release to discussions over expectations. our dated our in let On and will expectations risks now described beliefs, the from our including turn cause Relations be available our These on With presentation August SEC, today measures our and to to call are of in discussing and report. non-GAAP on A and our later their filings be like to the those annual we GAAP call, uncertainties

Michael Hayford

take second performance thank Cardtronics Owen, of acquisition then we your an quarter XXXX. views everyone the on the business LibertyX Thanks, XXXX Michael. Tim the will the then and our transaction begin on yesterday. And today half some second us I questions. Tim and and will my of review you outlook into announced financial an And earnings for will for our joining with call. I including update

flow following This the we're growth. increased to NCR performance second quarter in The stand-alone Cryptocurrency total margin for and stand-alone some our team the on solid adjusted customers. of from of free cash fifth to second offer consecutive quarter, recurring XXXX. positive the we to transaction. in includes finally, across included revenue margin In execution Adjusted X% flow, continuing points will drove close NCR generated currency the strong we expansion strong software delivered Slide cash momentum while the to leading over X $XXX accelerated days flow. highlights And revenue closed segments, and XXX is strategy as-a-Service We grew from delivered acquire and of Let's significant solution to second growth, strategy. This basis all Cardtronics Cardtronics, digital an NCR, XX XX% a agreement cash Cardtronics Digital begin XX% the provider. and production. strong NCR and transaction that The the million free growth free with EBITDA accelerate NCR EBITDA quarter. XX% growth of LibertyX, build incremental delivered growth of XX% a we revenue the combination enable LibertyX definitive expanded XX.X%. announced First our our quarter. cash and flow quarter the NCR

update on an Cardtronics Slide Now the provide moving I X. to transaction. to wanted

Although June antitrust expected still It transaction review. the regulatory we is closed XX. as on under U.K.

NCR of until be our We the XX%. as-a-Service our NCR target value our It will the our second customers non-GAAP In results color excited roughly NCR combination XX% XX-days on While his about EBITDA expected transaction by of and to million advancing full-year $XX believe the by following activities Tim contributed approval. of provide close integrating of the execution Cardtronics activities EPS for as years. and during although quarter for and addition generation, remarks. planned performance operate of accelerate shareholders. will accretive under required scale review, for and transaction. drive the CMA while been to not more of will the strategy, remain very the these independently the are adjusted Cardtronics is We we have cash strategic to flow start integration Cardtronics to have and our revenue enhance million first will Cardtronics and XX/XX/XX we will two significant $X received

moving Now to X. Slide

execution both quarter while second progress The executed tactically was our and NCR financial as strategically our as-a-Service. strategic continuing objectives, strong, on towards

signed across second assets. the the quarter, deals in strong enter X.X segments. the with year, credit digital long-term momentum we union banking leader As Financial, the banking, with agreement all a have in second billion in of industry including platform we eight our In TruMark a half new

products also we channels. cross-selling which in digital obtained Terrafina digital digital success quarter. NCR now of acquisition through can account broad multiple first across online and banking We the business With a array new account the onboard opening including had of to clients existing accounts opening.

Award quarter retail best-in-class for the signed continue solution. in we is cloud-based retail opening. second XXXX which the point-of-sale traction gen our next the During won with history, to account Terrafina business NCR largest offering, and deal its gain our Research Emerald In Javelin also

include winning and upgrade module recently commerce NCR with a fuel. largest software, API deal new retail the grocers. We Emerald Emerald for is top our self-checkout, for NCP This API five momentum NCR for in a have imperative pharmacy signed deal platform, to-date module the positive POS U.S. We POS and software.

of and momentum In preferences. Digital-First services, offering by continued consumer During we and we In This single self-checkout, seeing quarter, We're which software, front a itself changing into our also in to geographies of experiencing ability adoption quarter. in continued quarter customers better Aloha the XX demand of first model is Freshop, our second and we're new customers. acquired proving pressures leading contracts customers hospitality, also service signed where app this market payments hardware Essentials Retail bundle solutions. existing the attract across end year. the driven wage our labor shortages, which and the and

quarter. processing from by payment first of the number restaurant XX% During quarter, sites the second the we increased

Subs, five consumer year a and based managed into Our strategy NCRs recently end-to-end contract with to to entering subscription significant software for locations X,XXX across Firehouse run services. marketing Subs win the restaurant put point-of-sale Firehouse saw with software,

executing on our focus more and resources. become our strategy, an we'll transformation, drive business of strive to efficient we as-a-Service steward even As NCR

to product with focus care our taking continue our investments our on advancing capabilities growth strategic platforms. in We and of customers

addition, for we'll over me In LibertyX, it better that, engagement continue tuck-in let experiences our clients. strengthened like digital and with consumer With Tim. pass Freshop to which acquisitions Terrafina creating our

Tim Oliver

of all Mike joining and to us you, Thank thanks today. you

our As followed million Cardtronics quarter our of XXst. is revenue the in included $XX transaction of days results strong reflective by We on the the EBITDA XX $X execution, contributed and of that adjusted closed segment. June accompanied are Cardtronics Mike operational progress. significant strategic million mentioned, Banking second that In

XX% margin XX%. XX have successful context, reported approximately and presents While revenue slide second where days My year-over-year, overview EBITDA our EBITDA Cardtronics first XX% a quarter margins a X, growth top they quarter quarter a their is than XX% basis, of level which of would historical described more standalone only Slide results reported of gross financial performance. second growth and those have with record financial our have will very they on for include would

or left, growth in XX%, revenue more very both $XXX Retail in Hospitality consolidated was up So and our starting $X.XX top banking. strong by in modest million, driven second versus growth quarter segments, the the XXXX billion, and

while that grew grew and software hardware paced businesses $XXX an and sequentially. in than up faster and NCR the was X% quarter. X% high-single-digits by the Our million, increased SCO sequentially. POS standalone year-over-year, basis, for or revenue On services Revenue XX%

the expanded over delivered is drive we Nashville margin compares of including than goal the comprise from linear higher XX% we from an streams improvement, savings is insurance again recurring flow revenue Cardtronics. points, up $XXX XXXX. of guidance was at our than cash margin six quarter tax in EBITDA $XX quarter to This or $XX more on $X.XX strategy full-year million XX first Adjusted with EPS of of increased line recurring from the XX% EPS basis $X.XX, year-over-year the our calculated during right, the to for XX% Consistent maybe is up accelerated, In points non-GAAP NCR basis $XXX prior-year to and executed finally, at and was $XXX rate sequential shift generation standalone quarter. up second cash expanded the in million, Importantly, induced EBITDA the 'XX second first end XX.X%. top revenue actions revenue direct free improvement of the was in depths on EBITDA our freight, flow pandemic XXX and in we're result at the rate XX. another in year cash results. that volume recurring the bottom quarter to and $XXX XXXX left, quarter. to adjusted than adjusted discussion which And XXXX by and revenue, cost of materials, was put global The cash profitability. more to million to million, in a importantly, preservation the all in in to of stand-alone together more the the $X a of significant than of million XX.X% and our $X.XX production, from Reductions Similar productivity flow basis to cost $X.XX. chain. free pandemic, modest from sufficient offset more strained the Direct the XXXX, place beginning the were XXX% or caused year. ago Adjusted allowed reductions inflation adjusted of of the leverage closing indirect cost from with free dramatic and the flow to our costs benefited the linearity us quarter. strong most and process. cost This XX% in the launched improved the labor, Tornado sequentially, million we and effects cash of short-term driving related actions non-GAAP more supply payment in uncertainty million X% with free EBITDA months of up up was offset last

segment or that X decline increased in the $XX of increase. than to ATM million, operations, high-single-digit Slide banking hardware comprising our services Cardtronics basis, On offset a revenue standalone both X% in with percentages revenues and year-over-year, million, more to banking X% software includes the results, XX Cardtronics, which days increased of Moving or revenue. for $XX

prior-year, driven Banking ATM valuable million, hardware by the from of predictable value more $X Adjusted margin XXX declined was duration. On to doubled the EBITDA adjusted with points than continue to points sequential with extremely year-over-year revenue basis, EBITDA signed rate revenue The and up both sequential was against decreased adjusted with contract the durable, the basis this recognized rates X% expanded a a significant QX. successfully value The favorable annual shows while Subscription by chain streams. and total segment. We the by customer, mix in hardware, $XX our EBITDA for decline XX.X%. basis escalating software adding more increases strong XXX bottom as services Banking in adjusted Cardtronics and with replace revenue million. metrics increased that one-time was XX% sale margin less EBITDA slide X%, by traditionally our and of segment the or key costs. well of as supply and geography

growth to the accelerated second On lag revenue and digital XXXX XXXX of year expect caused drove while has rate growth which the quarters, typical roughly the exit in X% banking double-digit half year-over-year the attrition digital customer compared left, wins banking at and and year-over-year prior-period registered of to the revenue quarter. as banking in revenue growth X% QX banking current digital Digital second rates to by most in users losses. we're X% the an several a the XX% of and generate increased growth of at lap The XXXX eventual commensurate generation, recurring we we rate last XX% increased have seeing growth revenue quarter sequentially. wins in in conversion

basis X, million or adjusted Moving year-over-year, million, margin to results. XX% XXX rate segment which to increased by year-over-year, self-checkout Retail $XX by EBITDA our driven EBITDA Slide or point-of-sale adjusted expanded while Retail solutions XX%. increased points strong revenue. $XX XX% shows Retail revenue and

request the quarter second accompanied on depicted double-digit absorption cost by Retail, and growth, a demonstrates The due otherwise for with been $XXX have XX% QX. hardware order Incremental three power revenue conversion was dollar. we control. customer delivered performance increased key would an in revenue year-over-year on every Lower accelerate EBITDA particular in metrics the the to $X.XX self-checkout to of that page, strength to million,

increased rate which second growth SCO participating of second expect we growth almost or and the last quarter, recovery increased compared quarter For Hospitality revenue Hospitality versus the industry, split Slide importantly, the and second with Platform expand. in we this and the fully between And the lanes results, accelerate $XX of recurring full-year, locations shows of prior-year XX% expect evenly low and for to the accompanying reopen, revenue hardware segment continue increased existing as double-digit XX% services. business half. our software the XX year. revenue restaurant restaurants this in rework in million XX% is to

in the second signed subscription year-ago value quarter. business Our total tripled contract from this

we Our sales the pipeline stronger, to on growth. street to getting our hire continue and and is catalyze increase feet

expanded to when include grew sequentially. Essential Second quarter lower million driven improved in to revenue sites operating last XXX while expenses. adjusted revenue. and basis of by prior-year's Aloha second Hospitality's compared adjusted the margin and quarter and key XX% quarter higher bottom Essential increased points this by of EBITDA XX%. slide from recurring XX% rate double $XX second profitability Aloha metrics year, This EBITDA grew was the sites the

We expect accelerate rate half right revenue the of growth bottom to sequentially. X% and year. also of increased recurring last graph second year X% the the In in this at the from

XX, standalone. provide the is this last second quarter time metrics to Note NCR XX/XX/XX strategic we present targets. will Turning results these that at our for we Slide

we quarter, our reflect will combined including Cardtronics. results next As

year's our First, revenue, In of revenue ago in hardware year. software POS we XX% services the SCO revenue revenue induced compared our of be a modest Recurring drive and software XX% flat is that by more spending sales. severe XX% to demand pandemic strive hardware and the revenue. this XX% recovery similarly is for particularly quarter represented our The and quarter, than of more heavy represented XXXX aim year and decrease to more XX% the in second services from recurring, driven revenue and or revenue We the discrete resilient, in total was hardware, quarter. for in XX% to which pause second less hardware. generate pent-up valuable our in from of predictable last same to revenues this of

are Our to quarter of XX.X% compared rate. pandemic, rates recurring XX, leverage facilitate revenue an this On net significant hardware to second XX.X% calculations. margin outpaced progress during now the a free metric and with metrics growth EBITDA present adjusted to we EBITDA adjusted converging growth XX% And margin returns. EBITDA in XXXX. cash of flow, we the debt as We in Slide streams the adjusted made aspire and spending

a This XX metric with days, those ratio receivables on the cash sales the trend days. debt standalone and adjusted X-point cash XX% hand inventory flow. all days days. XX X.Xx. EBITDA pro XX strong XX From of associated With excluding shows in improved of slide XXXX also with were the flow down NCR were to that a total transaction. in continued linear improvement down X%. million, We net generated perspective, forma categories of an free longer QX free We more than of of including working with versus and XX $XXX aggregate Cardtronics days days our closing days of by to down from leverage outstanding items capital full

forma our the debt We and well are leverage report estimated quarter cash pleased $XXX Cardtronics than cash X.Xx. to we second We within remain a generation covenants, million pro that forma the to due companies. is leverage well by ended include X.X. of announced both of pro We our with maximum the which higher when transaction below forecasted ratio

pandemic. our and both liquidity half provides for XX, then credit by standalone and 'XX of $X Remember available from the which We is the separately U.K. facility. Well, slide operating that Authority. Cardtronics an both Markets billion outlook and second And suspended with guidance pending review of combine NCR NCR and merger Cardtronics Cardtronics my last is for have during significant independently over completion currently the and I the NCR under revolving them. Competition Slide the

We have from an provide received information sufficient for Cardtronics. to them outlook

revenue billion, elimination year-over-year impacted representing $X.XX X.X% of the X.X% rate expected to Total expected to negatively billion, about including from sales NCR per be $XXX growth. billion of then generate are year-over-year $X.X a to is for revenue intercompany eliminations. due by This revenue about For Cardtronics. representing expect revenue, standalone million, $X.XX growth approximately we X.X% to to of is to X% billion them. to Cardtronics company growth NCR operations $X

margin, chain For their rate be XX% similar million anticipating expect and then expected high NCR approximately we we we XX%. of very to of QX And Total million. costs. level. the standalone very second $XXX hard adjusted expect below approximately to EBITDA Cardtronics company rate rate EBITDA between $XXX start the supply from adjusted to our historically is half half, higher slightly demonstrated first

For accretion XX% That more than of $X.XX to within $X.XX, from of range XX% first targeted the the to will XX%. Cardtronics accretion combination. increase immediate EPS, a the our expect which we full-year includes to of

We To expect to range million. plan $XXX strong guidance, free performance a allow This us calculate time this than acquisition. the our of cash the at leverage of more the should flow assumed we've quickly reduce generation things. to in $XXX few million

more assumptions want to pressure these both will approximately First, count equity shares of recently and two risk strategic of these account, conversion obvious the and announced XX% by on and count upward transaction uses around of some million, a to I OIE retain Cardtronics $XXX of share a higher align highlight owned put share million acquisition. very a outlook employees. key could shares. is little important LibertyX some XXX The employees The of due rate tax of do factors. share

and continue we labor to chain in customer delivery revenue challenges prioritize growth and cost temporal we've supply increases from over First, that assumed materials, freight. will

we million delivery accelerate on meet of first customer request. commitments to premium costs were $XX half, about even able absorbed While, we or the in

cost $XX second million the half. the of We same in further expect in escalation

to customer and further profit availability meet continue to As flow. help vendor can of relationships, some strong and We're hopeful cash maintain needs. productivity we impact offset price efforts, and that the increases both

not vaccination the lost efficacy any and post recovery. on pace more of Each challenges, pandemic uptake it's Second, regional discussion cycle brings disposition. uncertainty new there regarding you of and the remains that global consumer of

about execution. state We as scheduled. the have and and are integrated it begin and markets quarter, expect to other next of time be integration currently entity you turn assuming that key this is play effort of that U.K. to like I'll as reopen that. By With a the Canada articulate synergy is the U.S. on remains the in we over say to combined and more the progress outlook to more of more the Mike. current

Michael Hayford

Tim. Thanks,

LibertyX to deployment has Cryptocurrency, and and physical and Now with Slide a to definitive across the is I buy of conduct a through NCR supermarkets. XX. currency agreement unique This cross digital to complete operators provide currency like on turning ATM provide locations the to one sell payments software digital wanted solution. solution, including and partnerships including ability acquire pharmacies that which channels. stores, remittance, at an Cardtronics to convenience border will Cryptocurrency based accept a LibertyX, enable digital update largest the footprints is physical opportunity

customers and Our continues with are very consumers key their both engage and additional retailers provide markets acquisition complimentary solutions and for to grow. This to digitally pay, help banks transact companies remit. strategy our and will

XX. Now to turning Slide

priorities forward, our are key Looking clear.

we the eager capitalize First, brings opportunities to are Cardtronics us. that on

broaden retail We our our ATM offerings. to leverage accelerate payment increase Cardtronics as-a-Service, and are business excited to

our portfolio Second, we solution offering. include to Cryptocurrency a expand will complete

positioned and a to digital transaction allow we sell which Cryptocurrency consumers across kiosks financial to financial deliver for will are and are buy and looking set digital retailers of channels. ATMs. capabilities, currency on Increasingly, uniquely broader physical Our platform

for growth on three and continue Third, highest years driving I focus Fourth, return opportunities allocate Since we satisfaction. at returns have satisfaction we and been cash improving on will to shareholders. will of the to with our the initiatives. increasing customer we with customer focused continue free keenly flow arrived ago, goal capital NCR

share strive run the self-directed customers to the wallet that customers the will restaurant, more. garden With help with buy our banking. our and of store, larger belief We the simple to mission run happy run

Day, continue net XXXX. And I'd extend of promoter is our paying lastly, last for to as scores improvement an dividends to our December invitation significant is improvements. strive year, Xth focus in further and scheduled of Investor a for each participate which to like to we Our you

strategic intend the are please our to on that we our strategy for goals. forward We the call remarks and today. concludes into time With to That your take and open line. Thank the you will prepared a operator dive looking event for deep for update open questions. and our

Operator

Instructions]. Thank you. [Operator

comes go Our Stanley. from from Please Huberty first ahead. question Katy Morgan

Kathryn Huberty

question in $X.XX normal guide. business the Thank If the just EPS you in talking just half the business reconciling from you of seasonality in And you. you're around the for core did $X.XX I half, Good standalone put Cardtronics. plus Tim, afternoon, accretion first the EPS, would think first back second half. you about about range for the

So, the help below core business, just some in follow-up. then or less pressures if we can be understand I seasonality, some than about, if us thinking if a there's you the are line there should have that earnings is items normal suggesting that

Tim Oliver

it's Yes, think the last expected much line, quarter will than revenue much higher fourth doing don't fourth very be unnatural tried to more play loaded. last so very stop the six to be that think the we the not out. this in relative fact, the quarters cause prior We've quarters, over And hard it the I to that year. things years I was backend our true to way certainly same it's third, on

maybe that another third three modest I of going into the little is is pattern and the to percent or X% probably And been on this So so then fourth. expect another bit sequential into growth one organic sequential higher, into continue. the improvement growth we've fourth I a think quarter-to-quarter

not anything on of causes quarters loaded. end to or things things price unnaturally in trying pull backend we're modestly do compromise maybe But that to to else. So at

XXXX. probably So compares think and back well planned anyway that with was I reasonably for one year

that to margin in margin entirely the built biggest XX the almost cost first that's to into disconnect XX EBITDA half half be say contraction, going we're pressure I of model. basis the attributable And contraction a think to I'd is that to seeing - the second points I structure.

temporal. it's think I

passes I not got not trying yet but think miss missed And some customer with to thus with with freight, premium we've expedites away, we're parts, this goes associated delivery. costs a one. premium we've and once labor, with far, it

allowed fact, our pull even to customers as delivery been to And able work. our need forward some we've In them. dates supply chain make they we've

in I think some going play be our a rates, half strong, especially disconnect So in fourth XX% similar up to would if to models, you it back the be probably that the don't pulling there's lumpy, due transaction rate that in calendarization, tax and second stuff people's into at the events some in margin when around cash and it's I quarter. fourth does in I XX% the get discrete completed tax we you know closer? flow a first, the that still the third just very to little XX% are think

Kathryn Huberty

helpful. that's Yes,

on over follow-up chain some revenue Does because around supply missing supply open chain? of competitors timeliness talking share are some just your up your revenue a that opportunities Just prioritizing about cost. and opportunities, comment the given and market

Tim Oliver

exactly we a time is do that's not That's should yes miss our orders. on thought, thoughts - we think this exactly Katy, that our

Michael Hayford

supply who is our phenomenal allowing that. operating a along came it any to we're that for the about tell meet basis, Procurement Yes, the will a on is us not tell is Officer would This done Chief months hits the George that keeping needs. all Sloan, chain at day-to-day along I has a is and with quality industries I'll across is customers' I taken us. you opening seeing And opportunity our that XX job say, you And an they've that ago, level Adrian Katy, in that. and

take to So share confidence customer that's Tim's we'll a it grab positions if point, willing and to little trade-off make. But market cost. to we're that us

Tim Oliver

on year. we was direct the you basis if about all started of we when base, think services So the in a generated manufacturing on our place productivity that

significant year productivity weird the price So we you the came inflation hear with still saw can in are into half, feedback. you us? first Katy, getting

Kathryn Huberty

you. hear can I Yes,

Tim Oliver

price It's sorry, on on muted we vendors. relent on to going clear in to in a of job first freight second did both the good relatively half, we're the with bit and a holding Okay, there, inflation need on half part. our was costs to

relative think And you're so terms rate that's seeing first second. the to what from margin in I of half

Kathryn Huberty

that. for of comment Owen you impact you your the there's lastly, that outcomes just the where And And maybe the potential any assumptions? regulatory can on would and timeline then scenario U.K. review. synergy Thank if

Michael Hayford

Yes, aware this you And Katy, posted frequent feedback August Mike. to from is CMA may with have a them. our the team. conversations legal we very some to date they've be expect so we get an XX where

will to on date don't what stage. So, next based so we'll soon. they're get to feedback, we look steps color at this have to that going we But their do that determine we have any relative what to

Tim Oliver

synergies. any don't we anticipate to on assumptions impact And our cost

Kathryn Huberty

Congrats Thank you. quarter. the on

Kathryn Huberty

Thank you.

Michael Hayford

Thanks.

Operator

comes Dan RBC question from ahead. go next Perlin from Our Please Markets. Capital

Dan Perlin

you've as just doubling a is know larger supply is bit. real And what Cardtronics? I Thanks. a you again the within people got conceding to I secondly then I because the on absorbing Hey, chain, to you sorry if that, chain the that will there with in second let of, quick. said or half, function go I footprint earlier could question it's a of wanted supply ahead, that revisit kind you're

Michael Hayford

go ahead no, I'm sorry. No,

Dan Perlin

handicap to up to is price million even for just not just really doesn't that, $XX willing finished absorption or were that get go enough that logistics, that pony say and risk number? any to you inventory just I that completed though just goods would trying there's there's there around like

Michael Hayford

going we're cost freight, half a the best as to first that can what to off Yes, we're the primarily now, guess hold year. of so that is pricing associated we $XX and see with in lot million on our parts, able to of experience

bit don't that our we're them - back help more there hold to back, trying And some to we go of bit we little get get vendors onto the to customers to for we a efforts. very and So can that longer, can to are our try this can that, ask do ways as that, and second we I to hopeful, we little a do right, pass our we're will as the year productivity doing we're and half that try price in into on well. ramp-up of

not that happy million particularly to sit and today, prefer are growth $XX spend we'd earlier, giving million. that the than the here and think up I revenue much $XX our to happier, we made on million. it's customers as not drive with to to thing I'm that point you just $XX spend sure prudent So and us, do make

Dan Perlin

with idea then have? the but associated you up of the willing what kind supply logistics point, demand to to pony you're have was And cost, if and say around not

Michael Hayford

the down. about our I that cash I to saw Yes, our our are I side, significantly really don't the to thus little plays compromise in in metric you is flow down inventory. free levels fact, invest suspect every terrific out. flow on that, anticipate the inventory we're But on good year progress to I year-over-year guidance expect may quarter, best far year not in invest inventory having inventory the a pretty maybe bit in page. as XX% down guess cash on was getting category of in second we do the choose

Owen Sullivan

I to one be. we say, where and you about not long recall, Dan, would rebuilding too lot we've ago chain, as awful an before, that needed supply this And we've wasn't talked done

So great good the business delivering and our that is that simplifying lines other we've quality job say thing would is the and I collaboration outstanding. offerings. really a which really partners have done got at us for they're product the

to lines. a was delivery allowing frames, three more what inventory, us Tim's raw much customization, also to simplified products material in with of time which high inventory is be for, now efficient allowing across all looking It's across really good to our be market business terms us shape. it's our in was much right board more is our responsive we've the So the point

Dan Perlin

you're reason there partners in how wondering couple seeing some in mindful where for that the to the I'm then from off out it a market hear. are really lumpiness the you. you you perspective think And and what there's your the we around, need that banking of I side quarters? they be suggesting dynamics comment good Yes, that's ATM. think in of cadence weakness to called to are next about of quickly ex-Cardtronics, if can of just bank on that expectation some Thank you, we any terms over is just holding

Tim Oliver

in hand is ATM I'll actually very business are revenue performing those means well. on basis, doing it's which things Mike up not hardware but banking aggregate a it the here, are to well,

the XX%, ATM clearly making quarter, that close types revenue. right so of we're the I about And in with hardware guess down up X% to

out see don't major So plays were get if while U.S. year we we North on. We orders to our make back big to customer major need numbers. the wait customers to those ATMs American their as cycle orders, in have replenishment our on

Michael Hayford

there. just got days you Yes, in that, performance color second Cardtronics booked segment the nothing than do XX missed the Cardtronics has quarter Banking to other referenced to with the requested,

banking do delivering and we in go talked built around Cardtronics, desire year, saw a throughout part we as softness really focusing recurring, about only clearly was footprint a on we've our around the business to footprint, the And ATM as-a-Service. last software which deals ATM is focusing service hardware and the So of sales.

you down, EBITDA are flow numbers our quarter, is EBITDA with cash our our up, numbers the even in second at If ATM look considerably, margins our up. hardware up

really our So perform and is built ATMs. of these deliver even at business to levels

would clarity we all the light market and more end that, of if year because 'XX. the going point it half of execution to the if recovery. the little and that still doesn't, solid a of in get the continue the very at free So and having said But at still second have to see capital, said we into pandemic up to expect banks the some a some

Dan Perlin

Yes, Thank very that's great. you much.

Owen Sullivan

has around has that's million. and right And ATM we It now what hardware several kind going built run forward. $XXX quarters our been of

Dan Perlin

super, Okay, thank you.

Operator

from ahead. Our from Kartik Northcoast next question comes Please Mehta Research. go

Unidentified Analyst

afternoon. on is Kartik. good This Hi, Alex for

that speak if ATM the in any landscape be share right wondering you competitive type was could quick now. great. That'd of I about you're and the market business domestic dynamics seeing Just question,

Owen Sullivan

is this Yes, Owen.

point it in So business, $XXX, think anticipated that where I $XXX to the would performing ATM of range. it's we be the

the actually the to put on that in. competitive can allowed really has the look discipline feel about I across say position the good point we we has would ATM As really that in the the place banking deals selective business. us Tim's performance of team landscape, you side. actively engaged stay we to of business to want see be about And that the the EBITDA in

of about capital in here market feel But we're we're good at and look So spend. their pretty where both pretty position, still business, market good about in in we EMEA, Europe is at our the now. U.S., the the as we feeling right terms slow

look our our in the position. and growth - of pretty business overall about at good teams you If the are banking feeling particular,

Unidentified Analyst

out And you believe, still rate? that attach And wondering seeing somewhere Thank the or was also that Are that I trend the Aloha, think XX%. same. for payments great. I'm on the called improvement somewhere any Okay, somewhere call if is maintaining tax rate you last guys I around then just you.

Tim Oliver

accounts growth again, the tremendous restaurants number space. is we we're to hospitality very high convert numbers, the of of team's back sales, rate I the similar tax had going continuing that them the success on new payments starting then of into a amount The see we're Essential I Yes, share and for Aloha in fair payments. over actually - to tax existing mean, processing and for rates quarter-over-quarter

Unidentified Analyst

Thank Great. Okay. you.

Operator

ahead. from comes from D.A. Matt Davidson. question next go Our Summerville Please

Matt Summerville

accurate? productivity put that and answers an That prior to number, $XX to anything you can wise a it. of is want vendors that a Do your have I trying point Tim, to back going million. one do I finer is to just get on back to pricing. prior to Thanks. move to question unmitigated that

Tim Oliver

Yes, gross the say I second relative in of year that the a first the half. would half number to is

of another $XX back. But not million we million the that above sure angles out probably find keep covered And want for the we'll could to our giving first now is not $XX - million that in use half in I million generate we're productivity all and that absorbed And get in first point, we're to $XX here we the it the The I their make an and productivity there's get back. So have incremental that in this get run at there. clear, I'm some second. which we $XX that different first think up. messaging working $XX to I rate I annual And half, called reason partners over or can that go to to lots there's million. of the year, help

Matt Summerville

between be the industry this then cadence and QX, the how Sure. splitting And out? that lines we across and we try to the QX and out should how back groups model half about as across and think

Tim Oliver

it's think to I rate quarters, number, of both margin - north so be XX% around upside fourth to quarter. if the in be XX% Yes, that in there's will going

$XX think fourth. and So cover it then I it we're able would that the in some when be higher be will in QX, million to closer to of

And I tax have QX. think to than rate know rate in growth I question, higher I fourth rate QX, higher the in I to the than revenue think tax will described QX Katie's third. I I quarter going as have be I the earlier stronger a think in sequentially in

fourth cause such fourth better. customers a place as take we've mentality some future always it have us loaded to QX, in renewals we our causes modestly of a seen end spend quarter point the with things enter we quarter that lose the not that some all QX that as back stronger stronger the in and But as perform it if to past. or So and

Matt Summerville

Got much. it. very Thank you

Operator

Paul next from JPMorgan. from question comes go ahead. Please Our Chung

Paul Chung

thanks Hi, my taking for questions.

what on this If a against I XX $XXX which So levels projected see. around the for CADAM, have caught million second from half I you down XX%.

could on synergies you the coming taking accelerate in see to some this quarters? revenue steps are So examples to what expect you're the business? you of expand And if

Michael Hayford

let If Yes, I only much so try. can here. me so it's do

still right? completed two regulatory terms the separate companies, We've running the in transaction we're of U.K. the So not in authorities

able not the result. console as I'm impressive. much it the in that can when So up much, growing the very know incredibly says That in revenue. to margin I get places, rate the much much about is deliver not And they that analysis what to on too just said, getting nearly result, that know they're they're is, place. right a traction That's not right up terribly margin

where - the know, than as followed as in is generated record streams coming their average. profitable that much expectations you And in if In growth going they to must revenue is are be some described the speaks which have that second forward. the That quarter, second quickly them from. you I it's obvious that they margin more those the to me same half the again they speaking rate than others. them, As with about as growing

and on not model their that think they're successful. we're changing much remember being to so mix trying like So much their to focused they're top-line. business and and revenue I'm ours, do the their EBITDA, I very on

Paul Chung

on revenue, Thank can you. margins, LibertyX you And That's helpful. et any provide cetera? metrics purchase very price, on

Michael Hayford

technology a tremendous reported our impact to with bring of doesn't transaction it's it rich financials. So that a amount

or of we valuation exciting - currency. [indiscernible] LibertyX, to this the space a who that see was do us which can what us from from math release move a see terms it's the in used You'll on in that are filing to upward to things rapidly X.XX shares, purchase you us for million relatively it look guys

we paid and deal stuck. entirely So the for

Owen Sullivan

transaction bought into technology, And to we a the where And similar then speed Paul, with we Freshop to do you Terrafina expertise. a I we get think to have while integrated channel. what where like bought product to do product and maybe we that our look to have to market at into get or didn't a to we

and distribution industry. LibertyX do to our combined Cardtronics. then our So if you to digital at the a the to translation, ability these and look footprint you channels We believe have NCR transactions that largest at physical of with footprint take look one in the we'll

through it rapidly. and distribution channel grow push a it will we So

Paul Chung

experience. Very would maybe and cool. generating of example the the kind restaurant long-term be of And kind of role an Aloha, were LibertyX, all example maybe, then revenue recurring revenue kind helpful? in and lastly, strategy JetPay, of can edge play CADAM a give A about us along you and talk monetizing

Tim Oliver

components. few a into out those break me let Yes,

is. it a think store they capability what on a to and maybe center, the cash think may the where Cardtronics lot or Cardtronics, cash do endpoints store, retail presence customers, take for grocery box been banks you not Again, physical if big a traditionally a a as those financial maybe physical where maybe So bank presence have of deposit a delivering or kiosk themselves. financial side, a do a about have pharmacy at out, of of

have doesn't think presence. about So physical that a of Neobank

So they their for transaction create a point customers.

the ability to now So bills, physical to transactions a kiosk. other whether cash out, whether whether digital LibertyX, it's get in, that its pay its cash whether like ability to as ability it's whether it's currency

on fairly that's payment JetPay and POS, process when been So in on has to initiation. the the restaurants it's In the a back retail Aloha really our strategy a completing or that whether doing straightforward. that we're with The talk ability connect behind of start hospitality. in - about it's you payment side, transaction of like all point-of-sale whether going done end That's to and retail Silver, product. with group, we've transaction point-of-sale a a of backend

like end-to-end. Allpoint do and getting And retail, with network. we connect a looking started across the payments how really network at then So we

products those lay we we points look components, whether transaction can or whether presence, really the retail whether fees what the then consumers, it's consumers bank it's ATM, then can we out of a it's to a the an from obtain kiosk, we to self-checkout, as push what products. it's financial POS, whether and at So physical a and

Paul Chung

Thanks. Very helpful.

Operator

Please Our ahead. Benchmark our Dan Kurnos Company. next question The comes from from go

Daniel Kurnos

announced we companies big get had all all deeper had we've this Yes, if I I'm Can too year. payment deal But thanks. for card it. Maybe that making one, a of crypto Mike. of bit. credit just this. We've follow-up little on of the companies the solutions don't into just out a know

Bitcoin operator, the verticals it clearly all largest You within. within ATM the plays that bought Cardtronics fits

for? well and through. does opportunity how it deeper But is integration. the know How translation, you I it, you the as - something payment for just whether [indiscernible] you this some side? sure that thinking asking about dealing even question, you're with think issues are I'm this just help last sort think incremental bought banks of the of just as And So you about about the around on us to How just an maybe stuff. themselves provide think

Michael Hayford

a you macro try Yes, I'll lot. to kind just on of trend. the had focus

presence. the the largest as software And Cardtronics NCR there. Cardtronics LibertyX point had offer a wallet Bitcoin crypto provider load LibertyX, you your on end with out the out a of with ability and Cardtronics already point to Bitcoin coupled at to points to So with partner buy on

a that's clearly piece So of it.

We will continue to expand that.

be you at need the future beyond payments. If we to to look at of and cash NCR, able look move to future currencies continue in the

a currency So really we digital that is crypto Bitcoin part or that. product centric. is of believe today The a

see to Bitcoin have expect move Cryptocurrency stable risk of could for don't You us a the like a fluctuating. payments, to to currency that's we really allow

at ability and transact NCR or transactions of then on financial a currency, kiosk talked presence, wallet, to up the and point at a about. do self-checkout as we digital point-of-sales, your and devices envision could You to NCR load

border. ability person-to-person across or You and to that the to currency make at to do or payments. transfer to transfer to another could point, person or digital to money envision load payments Again,

digital as connect the and very trend, We industry. our to to it. need in go. physical where we just macro that's a So think points think is in ability We be of to going middle the unique

did and the an saw jumped we in So opportunity and deal.

Daniel Kurnos

else the in retail you there do push in sort ones in I your of continue if migrate And your your profile SCO things given Do any direction? proselytized you that - to somebody difference become all or longer-term Or think category? let of margin is kind do mean of really kind presence? you the that

Michael Hayford

it as think don't. today. to wouldn't just very you not as have retail NCR to brand good institutions. then we with financial brand view it amount points. we Right as again the distribution Cardtronics prophesizing today, I have comes restaurants, And comes now that it the be a to tremendous retailers, of comes Yes, do to consumer. the we to That's I have

to we those to stocks. own go look build our Our we and Bitcoin start down take ability maybe opportunities. the to connect it those a as to then from to a might wallet, maybe then road, stable Clearly, at currency

Daniel Kurnos

Thanks. it. Got

Operator

at are the will additional there time. I appears no further remarks. for this It Mr. closing questions Hayford, to turn or over call you

Michael Hayford

thanks. right, All

feel with today the optimistic to in to with our as about where feel the actually excited earnings where look have expected upcoming again be. our thank did recent talked would we want XXXX Just We We're And LibertyX. quarter outlook our Tim we to for very joining mid-year as quarter our for performance. been second week about even the we this based going good about at the year. had starting us year, We We're about update. year-to-date. very good second on very we're feel very We everybody good we integration excited about end very versus we Cardtronics. announcement for the thought very the performance

look first at I we think progress more as half. the importantly, in

talk announced can you a plans Again, thank little at our future. strategy, Day for Xth us, about that in-depth next we and the all of execution, outlined our and you to of We investment retail we'll strategic we're more forward services, Investor the where we see our we're platforms. are continuing seeing solution strengths years with wins to digital in Emerald. see strength in shift that and in our seeing The strategy software the - our the strategy The the the strength Essentials. seeing growth Aloha in shift software, growth, the with hospitality strength in joining quarter. on the cloud-based you We payments look December we're the seeing and that that ago banking, we for number a we're led today to seeing our bit

Operator

today's participation. concludes for you This your call. Thank

You disconnect. now may

NCR Voyix (VYX) 4 Aug 212021 Q2 Earnings call transcript