NCR - Earnings call transcript Q3 2021

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Operator

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

Michael Nelson

afternoon. Good for quarter you earnings our joining thank XXXX third call. And

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

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

Mike Hayford

an remainder an intro and review Tim And us our some I you streams, your of a company Tim job Michael. then I profit a to performance on will with begin improving a third views move Owen, call. And to and update will for great our Thanks, quarter focus call. my margin. our a the NCR our shift to everyone with and becoming always and quarter then today outlook the recurring third of revenue platform joining questions. with including and business, as thank for XXXX software the on payments earnings will take XXXX, into financial on

investing expansion highlights accelerated X flow and with revenue Strategically growth, begin Slide quarter. very at team margin needs improving software in included our while chain in and executed both products that some tactically. significant the recurring delivered services, focus mix meeting production. we environment customer well, our strong challenging same and continuing The of and build that in supply from performance third the third time, Let's solid platform momentum NCR-as-a-Service on strategy, in the continuing on to our to strategically NCR cash the quarter. experienced

increase year delivered in total Recurring XX% quarter. we of XX% ago. revenue revenue XX% revenue which in First, total the and the revenues growth one recurring from represented XX% the significant quarter, growth is third

revenue, We progress make with our continue XX, steady increasing XX recurring to our which XX, is goals. consistent

approval As from regulatory of the incorporating third August our final closed quarter June on financial the and was the late the as received quarter full the the first in CMA results we you in in Cardtronics transaction XX UK. know, on

adjusted Second, EBITDA increased XX%.

track. and integration to of to free execution integrating Third, marks market the teams EBITDA the helping free expanded remains adjusted an four the than finally, solid free third quarter. flow We unified we is the NCR-as-a-Service We and we increase of This $XXX cash sixth generated company, of quarter highest is to XXXX the Fourth, of which And years. in progress our more the quarter recurring XX.X%, production. delivered revenues, flow. The drive higher level cash of in points basis going ever. made flow expansion are of flow. strategy and more cash margin cash of positive EBITDA enthusiastic million Cardtronics successful on as linear from free represents margin consecutive XXX the

strategy NCR’s payment, recurring including NCR-as-a-Service mix to software well and revenue positioned services accelerate are further shift We revenues. to the

the Slide third executed towards we X, to in well extremely driving moving Now NCR-as-a-Service. quarter progress

our channels. Demand has our digital acquisition this through well banking returning shift positive the continue support which platform. which business digital eight platform, in pleased existing engine online for progress platforms, banking, broad our NCR of platform the a growth momentum onboard have been as made logo payments a digital to strategic software to year, we I strong array Terafina drivers digital a opening, clients, three we renewals, now new With had digital to with positive obtained product banking across our across earlier and can transition new banking deals and In as account of opening. accounts sales NCR NCR. a have momentum for the to growth growth. we In the for strong account multiple am of to have XX company. banking quarter, We third all

third During banking same over period year. X% digital last the the quarter, grew

selected receiving States between platform. of competitive upgrading differentiation. point are ATM-as-a-Service legacy our end-to-end for In increased go-to-market including ATM-as-a-Service software We traction the teams which solution to its entire fleet. NCR network, ATM mutual to and interest ATM we provide retail, one continue our is largest its the banks integrated in of the Cardtronics Emerald and NCR NCR provide United a gain key model Bank, Liberty in with

large start software positive next-gen upgrade our during operates in in solution countries. a approach Circle than Commerce with component next-gen that Pilot quarter, defined rollout our winning their Emerald during upgrading provides incremental third the to store, defined North XX states us NCR Flying more In momentum which the retail full to two convenience NCR platform had XX in in of a third third platform, imperative operator client centers have signings K, It in our we installed solution. by NCR’s XXX stores the microservices XXXX, the cloud-based America path largest commerce agreement a select J, had to risk success for from year retail in store capability travel from our validated to transitioning subscription We software. significant clients These We advancing of of which the an the platform POS both seamless quarter. XX,XXX two retail the approach technology five commerce with locations down next-gen quarter and signing solution. our over is accepting confirming have during in a the major software low success

In relationship the addition expanded to the its stores with to NCR states. also platform, Allpoint K Circle eight enable Commerce NCR network across in

SMB increase quarter. upgrade over of entering brand's with third-party proving ability relationship software a Buffalo single X,XXX we and into and quarter, contracts Wild the Buffalo Wings, Aloha is customers platform for to various market, in e-commerce their share In the bundles our our also XX realized services subscription four-year services This provides digital XXX% payments, connects third services. Essentials providers. point-of-sale momentum through last significant a service in and NCR existing opportunities track implement and locations with Freshop. Aloha in customers. the retail hospitality, new In customers. success with Essentials, offering without applications app, a gain NCR Freshop family During contract on signed focus support SaaS itself better helps additional to to own Wings of the our new front-end based year's sites Wild and end-to-end which our quarter managed the grocers is a and in solution same which for the Inspire part customer clients delivery value-add continued across expensive hardware our cloud-based and upsell into software, NCR wallet our

to Our customers payments quarter, We restaurant our as the of existing processing continued well upselling payments XX% success from increased the second its quarter. sites business during as number platform. third by payment the

is During addition have quarter, this payment summary, client momentum, enterprise in signed This strategy Sbarro we hospitality to hospitality platform. each we two our other the increased NCR-as-a-Service clients, accelerating and third that Shipley signed our a year. across business we of payments segments. Payway our deal earlier In enterprise processing to

capability We advancing of continue productivity. let investments to platforms our taking customers, Tim. me growth it our focus strategic product and care our improving that, in over with With to on pass our

Tim Oliver

all quarter execution business Mike's pleased are Thank terrific uncertain more in us echo and comments, joining We our strategic To demonstrated tactical of today. you, in to thanks our environment areas. acceleration Mike, an results. third growth we you significant very with and

the in our we reminder, for QX talked earnings August the legacy mid and consolidated CMA call. As the quarter our on financial results acquisition report Today's companies you XX, the UK approval last to final June with of a was received close in we for since included the from full now banking Cardtronics includes segment. Cardtronics

revenue Starting XX% in versus Let's begin top $XXX revenue the double-digit was which is sufficient X, revenue banking strong quarter and growth our billion, Cardtronics, year-over-year. business, hospitality the lower In software overview by driven aggregate, a Normalizing of our offset performance. forma in XXXX financial our left, top was of had inclusion third up or Slide quarter, more for growth hardware we high both million the up X% revenue. in with than $X.X third level to which segments. presents pro

While shown mix Also darker recurring constrained for component here all is three in profitability and freight point-of-sale. revenue segments across of demand challenges, availability both increasing and self is in hardware checkout green our and revenue.

comprised high XXX result inclusion, million. preponderance up adjusted of and With full XX% or revenue, pro year-over-year. quarter $XXX to of in the increased $XXX forma revenue, On X% to right, top recurring representing a a rate margin previous our a XX% In points to years. basis, recurring watermark revenue for was quarter. basis four the expanded the million XX.X% was the of aggregate revenue Cardtronics EBITDA year-over-year up the has XX% EBITDA Adjusted which

the actions and or mix, and detail together now accretive associated bottom to XX% on price XX%. free in retail to delivered of of an the full sufficient The And most to track supply While Cardtronics to more quarter rate third we tax and provide from tax million up revenue another $X.XX than a XX% the I a generation the be benefited insurance brutally full initiatives XX% within transaction for prior XX.X%. our was segments, value shift a quarter year. to of EPS remains recurring will cash the settlement. expect to of the third costs flow non-GAAP productivity year difficult maybe importantly, premium finally, strong year business. timing which overcome huge in we preservation chain left, discussion be cost $XXX little with quarter EPS This quarter. pandemic-related compares were rate the with and And was first of general, $X.XX, higher The from In more in $XXX a the million. cash temporal to XXXX,

and operations. Moving the hardware XX% increases to includes in that in year-over-year revenue. by Cardtronics revenue Banking $XXX driven offset banking revenues ATM results, Slide software X decline increased segment the for more which our services million now or than

of The segment. our as result expanded inclusion from points The more EBITDA durable, successfully and recognized We more and with both rate year increase increases. XXX businesses, EBITDA segment the basis the replace our and to value continue the NCR TCV sale to in key bottom software and valuable with a ATM significant that of with software significant predictable Subscription revenue well productivity margin duration. Cardtronics in traditionally increased for streams. increases a signed accretion Banking XX% slide was by Banking prior our adjusted revenue year-over-year. profitable as or valuable the the was hardware revenue and Adjusted in cost million metrics the from margin XX%. $XX of shows services price this of annual doubled legacy of mix businesses, one-time the

a revenue Digital Banking drove several of the left, last The year-over-year period the while in lag eventual Banking the at rate growth in accelerated Digital wins quarters. to in X% On grade growth have wins quarter. prior a quarter conversion has current generation third typical and

registered and increased expect Banking XXXX gain continues the to of most year Digital a X% continue X%, to forma shift to Banking as with recurring we year-over-year losses. double-digit growth pro revenue caused also basis. exit We customer by QX compared Digital XX% on to lap traction XXXX. at The attrition a up rate revenue the of recurring the users revenue

We at pleased are quarter first the with Cardtronics. performance full extremely

with expand the in States. network are This financial strong value transactions XX% the ATMs compared leading to consumers, we the our retail ATM strong driving partners, demonstrates up retailers financial were continue we U.S. over our the to in U.S. our As transactions and on performance. and and to network the our institutions quarter of XXXX. in add to more our Cash and drove to growth transaction of United third

We of growth types expect expanding traditional transactions we invest and transaction of drive both as this the to new and network. capabilities

to Slide shows Moving segment Retail which results. X, our

is really for charts in in retail, the on of these by the While I page. typically half described start top the this left the story quarter bottom

called a half already XX% revenue, into million we to on the exacerbated SCO strong due that the QX at approximately we customer accelerate a of growth Looking which to from QX, rate order self a as request $XX QX very posted sawtooth out pattern. checkout is year, hardware second

growth We our the strong for customers self of strategy expect subscription XXXX checkout a than platform center bottom the illustrates of QX our to based in year our converting that more retail a model. in XX%. full And of success our lanes, platform result KPI

As to of $XX convert that from subscription stream. in now two declined growth would a recurs based Banking Mike, nature revenue the and store declined or Circle high and the several lower these to $XX is license revenue profit shifts year-over-year. and key and due software quarter. adjusted those the much hardware previously offset retiming two million to These Pilot of roughly have revenue shift J year-over-year you one-time multi-year And on segment revenue occurred The next converting retail that X% heard or standardized platform into would’ve be we sales revenue the Considering very perpetual million recurring impacts, similarly had at contracts $X to during deals EBITDA services. by like retail we defined revenue, million software over contracts years. the XX% partially upfront our those K software Flying

business shift participating our versus While revenue rate increased the is basis are results, by what points the this of of contracted revenue. primarily to X% segment declines driven which year. shows in recurring third Recurring XX.X%. Hospitality adjusted X restaurant EBITDA XXX in last quarter industry. margin that to Slide recovery The fully the

momentum business. strong across the We’re seeing

rebound rework XX% As expand. reopen, we in or million and increased and existing the restaurants enterprise Hospitality uptick revenue market technology in openings for new a refreshes. see the $XX as locations restaurant

contract increased total in from this value subscription signed the year business Our quarter. third XX% ago

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

quarter expenses. XX% Second profitability up the third quarter adjusted and Hospitality’s by adjusted basis increased higher $XX of million points to expanded This XX.X%. lower XXXX, year the to And rate this slide the Essentials XX% quarter on increase of key bottom improved year bottom include and margin while than when from and recurring X% third sequentially. sites doubled the revenue recurring Aloha revenue. the in was operating revenue Aloha more EBITDA from driven XXX and Essentials in sites to grew last XX% prior EBITDA compared metrics sequentially. graph right,

we XX/XX/XX provide Turning second quarter XX, for to results Slide targets. our strategic our

of With In strive to ago to up have representing First, with a be third services free third of and EBITDA from facilitate our last our this goal or valuable aspire of with and XX, quarter. is recurring XX% in revenue XX% XX% adjusted we present our of XX.X%, EBITDA significant the We less hardware to aim adjusted And made EBITDA quarter Slide to and from year XXXX. adjusted to page sales. leverage we Stepping quarter debt up year’s revenue, now addition margin of the more metrics rate. resilient, software which the in and total, revenue from margin exceeded in third our revenue. net services an predictable, XX% and XX% revenue down Cardtronics, more XX.X% progress flow, compared revenue of drive XX% XX% cash calculations. recurring quarter. we than to the we is we On for more generate our of the software represented discrete from of quarter, XX%

total trend flow million. free $XXX We cash strong, cash flow. of linear free We of continued generated more the

although to borrowing reduced million redeem our shows support ample one-time debt debt our This strong X% effective $XXX of strong of growth these Taking times. $XXX end of slide use a our with strategy. leverage our with operating bonds. together, and all revolver availability rate we also X.X with with transaction, We estimated the of provided refinancing average the that to QX We about higher to coupon receivables based ratio have The our have flows. pro commitment cash leverage the we to primarily a along asset XXXX. financing to forma increase adjusted X.X When the pro the to non-recourse. would our the activities make flow to financial forma operating X.XX%. cash net provide delever announced free be to balance sheet, liquidity a of million cash cash strength to our times by all EBITDA a management benefit our highest This Cardtronics in efforts that capital, by X.X including working provided of metric by driven and

ahead cash including companies. third of to We are within $XXX higher quarter X.X generation cash by pro and of times. forecast maximum which both our than well a of significantly We forma the ended with schedule the leverage covenants, debt a ratio of million remain

billion significant about credit available We liquidity also $X our revolving under have with facility.

and provided ranges. ago, the the help to XX the Cardtronics be time about lower pandemic your you bridge Finally, of we Considering days supply global acquisition. since the of end for expect was an we that inclusive beginning at persistently NCR results the chain, the the modeling challenging of QX guided to efforts those guidance first to

some While will hardware, XX% both continued backlog anticipate in for us into supply recovery some of in price carry on XXXX. we from likely expect point demand a and checkout and increase constraints chain hardware excess sequential self increases and to revenue cause QX sale

revenue, flow, cash key slightly customer EBITDA early stocks little profit. Michael, premium will you. need in safety needs lower to to XXXX in for revenue will supply revenue, all cost EPS, generation. the potential a that, With less impact chain and it of free cash linear to meet less For turn and components invest And constraint and modestly back

Mike Hayford

XX. Slide to turning Now

Looking forward, key priorities our are clear.

First.

execute a environment. chain supply well We expect difficult very continue to to in

continue while customers our supply challenges. We we to chain deliver put will our commitments on manage through first and the

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

Cardtronics ATM We as our accelerate and to are to excited leverage a service business. broaden retail

are will simple free opportunities will allocate as robust belief Third, run satisfaction and Fourth, our from Fifth, growth accelerate customers highest the the customers experiencing opportunities happy self-directed solutions to to the of market for flow NCR to we that customer goal buy the strive returns and run of store, with the initiatives the processing the to to shareholders. We driving our transaction continue larger offering. we run focus garner capital we continue with go with NCR. share more help on with cash payments wallet and increased return banking. and solutions our we mission to will restaurant more a increasing to

and strategy our with the for onto this is with traction Our increasing our NCR. invitation Investor virtual of transitioning of to in you X and platforms which year. December platforms customers I’d And Day, of software is like to extend their each payments lastly, customers gaining an scheduled participate spend to

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

Operator

D.A. first [Operator Summerville Matt We’ll Please question our Davidson. from take you. ahead. go Thank with Instructions]

Matt Summerville

heading how get being to impact components. revenue call profit operating quantify about I the impact And not QX? it’s saw guess, What just stuff, Thanks. chain did whether to generally, associated access I able were it’s was in going whether the into freight, could to you you supply thinking related you if maybe was quarter. and with. it it, how compare first that the I’m wondering

Tim Oliver

Yes, question. thanks for that

pressure me cost saw the answer We this $XX quarter last talked Let about in latter of it the first. way. half we million year than more the in

year. the $XX first and we million that half So, of of the said in we saw

when to the that up year, So to million talked I we adds ago. think days pressure of cost $XX XX across

about a most freight little higher fourth then and year, the the cost last and than the that so is was that XX-XX $XXX will In we third And latter from I now. half time really different we as million is the thought, place described in last was number quarter, that the of talked. it’s of think of In a premium split $XX quarter quarter, the closer between but that pressure components. to million the take lot.

rapid much we move is of pressure the of seems quarter, in into in cost that two-thirds the XX% to As quarter. fourth to or is stabilized increasing rate, likely fourth less freight represent but higher, much even a components

causes decisions profitable us is some to to then it. to enough it revenue us on whether of So last get go dollar make have the for hardware

I there’s – revenue a So and my make our is once for fine to think, will our the hardware walked million ship we’re we with with we million demand of having to customers them. is we bit, down retiming that concern and the $XX have sure reason that $XX guidance little it’s unlikely talk

will abate. We’re shift, the we pressure of unlikely cost because hope to that extreme

Matt Summerville

in Got your also we it. you some it. talk that can and about QX probably the the revenue know QX adjusted can contribution in was calculate what be EBITDA and follow-up numbers and you. should my about, of to context we just And thinking then as guidance. But gave NCR how Cardtronics you I Thank

Tim Oliver

Yes. That’s great.

from out about banking remarks, X%. Cardtronics in basis, breaking we company I said pro grew I banking think – the grew But not as segment a the my on a forma We’re segment. X about

dig ago, results a year-over-year. year-over-year margin third quarter about modestly a we you And deeper, the bit both both year while businesses they report businesses didn’t grew and If did. little same expanded their

I you dig back but So can talk them those up. by not think could you, I I’m think you able to about – rule,

Matt Summerville

Tim. Got Thanks, it.

Tim Oliver

My pleasure.

Operator

take We’ll Morgan Katy Stanley. Huberty question with our next from you. Thank

Katy Huberty

is the you revenue if conversation, that Tim, that up XQ? following prior to all goes to you about how $XX you can of Thank talk be backlog up could million Yes. much just growth backlog assuming lost lost you. that into you some just Is competitors? Good million that on quarter in third and at saw afternoon. to revenue give $XX in or that – are choose of the hardware

Tim Oliver

all to had couldn’t I week, orders of you said, delivered revenue. pushed think better you hey, when firm QX, much you’re for to anticipating we growth, think, we we’re – orders that last growth driven now. quarter. than third – I sequential I third and usually QX have actually in see No, actually by higher primarily fourth It fourth the quarters, talked sequential now going to be now hardware. nice

that will of sense produce our to earlier, last or hardware it revenue think last necessary both be it procure I revenue upon million about somewhat The components can value big up. we let’s customers. will it, be depend XX% us up, said step – our and as I call the a $XX so to at QX QX, whether a to not the makes

customer’s So that hopeful that the next if of get out, but into agreement. all revenue it be we’re that will will carry first doesn’t, quarter year, it’ll the

Owen Sullivan

the challenges believe your going specific constraints don’t customers things either point, with chips. around logistics same elsewhere. we supply got believe are to with Katy, We everybody’s like or

second we to some others And that know for sales so instance, had that, weren’t we deliver. able quarter,

don’t we away. So sales those anticipate going

Katy Huberty

closed, back have of now fully you’ve next And you cost accretion of million incremental opportunities? or half Cardtronics in from still Okay. and about year this XX% that assuming you are found $XXX the savings year

Tim Oliver

So that. than it’s already accretive more

much $XXX our cost that anticipate already net of and, same QX it’s still And the to tracking million of very we’re target in quarter. yes, mid-teens energies that’s accretion in XXXX. So on the I on this

Katy Huberty

lastly, driving as I Okay. you transition software your Could And on tune about of think focusing the long-term payments, are installed you a think and business something penetration offering you into in base then the to payments to penetration where is what about specifically, that XX% you’ve payments today? talk goal goal just talked and the of XX% of just penetration. the rates just

Owen Sullivan

Yes.

we’d type. systems. XX% XX% kind still volume of end could And think our those of we And POS all to transaction XX% TAM against front goes XX% through that over to was we that view I that of capture goal time. the the felt the again,

a hospitality now, base where back about the payment side, talk into some customer upsold into on accounts, gone enterprise let’s saw, deals You of and handful in our particularly we’ve connections.

we’re there. we market, very the get So into some starting be essentials. go attach to The continues when to in rate strong traction SMB low

to So we’re that see success. starting

products retail are and the we’ve into in the things of retailer back and almost start side to financial retail Cardtronics of through of that end Allpoint a offering the you kiosk business at and payments by XXXX that planning transactions get place of well we into And drive and avenue as the growth. We as the some look go some as with continue payments connected well. that some a in can we and at can that transactions it I call do the network as to drive then,

Katy Huberty

Thank you.

Operator

Markets. Thank you. We’ll take Capital RBC our next question from with Dan Perlin

Dan Perlin

costs. a then EBITDA off look things, adjusted normalized margin, of mix, I [indiscernible]. put had I’m of of XX.X%? kind you environment the Good costs, to chain ask you still for they’re rattled it, context margins adjusting I’m the the receptive would price EBITDA wondering more of is an like, you adjusted goods the in like, chain kind in deliver this of the just supply up guess, clients, pricing part wondering yet be of at I up what you can’t issue. taking And where supply is, a bunch at question margin the if second a kind if how terms of in to the You here evening. question are And pricing Thanks. just can on positive of absorb part Tim, to what is, question where

Tim Oliver

it the the we in deliver million some some Remember, first. revenue more revenue might just goods. deliver quarter, To delivered in fourth, maybe, we that didn’t but there we any in did the in intimated, Yes. I $XX quarter. the third wasn’t clear, less be And quarter, quarter, with was than customer that be and second but the in cleared the

to So instance customer, some ask that get a make we are worth expedited it for expend we’ll whether with them lot freight to the if in those choices that it’s dollars. not or it the costs customer price the here, meaning, of product increases

this customers. until don’t slowed progress, of up have we’ve our any I the We implementation the of know, point. don’t down believe if We you strategic want to. Owen,

Owen Sullivan

with NCR. this is the customers collaborative. Dan, pretty say Owen. right The I make would now comment Yes. This and transparent not to is, unique highly are is conversations our I would

able You are all of see What delivering to that professional we all missing quality is The I’d personal improve. our to continues our behalf additionally, not everyone. been is chain it. We see it the know it. have material supply commitments we’re say, any on space. in we customers. We impacting comfortably say, and do

let’s So despite about there. supply a conversations transparent you have we’re And with deliver. customers fact, to challenges we’ve then deliver chain from cost if our And cost that, the having to we’ll This incremental surcharge is of very to we the go in conversations. within had willing worth standpoint, and been the at need, responded to or level this good away. very those not We’ve you. pressure not this additional said, going off. cost push have conversations, to customer continue cost where It’s the

not by are Our surprised it. customers

going conversations. that to deliver. able need been comfortable fourth And we’ll deliver are they we and continue these demand continue the we where we’re they to have comfortable with we’re as us go able to have is to pretty through quarter, what think to the I that be meet to

base customer our with So terms I in right our relationship now. think helped it’s actually of

Tim Oliver

we Back to a by more software goodness, revenue mix profitability When very revenues a I quarter software, on of was great pressure hardware and and offset the from said, question just was less sell That some we I XX%, it’s advantageous. up described. over the outcome think your of this perspective. margin,

these As And our quarter pricing into the look escalation and of can I I at a effects, like we say wind as one board, lot But that to pressure should bit. also and what see from two when, let’s cost and increase as anticipate perspective all will go have help take cost on we all just which effects QX, and gains offsetting considerably we’ve our with a some, we of go posted in across hold. our across your into to that back I’d XXXX, another. working I we we the know all into the products pricing pressures a if fourth debate. rate QX. we our will those been We go margin think of productivity actions, set are against services believe point, keep cost our the the

Dan Perlin

it. on three you question on another wins. logo up or I called a follow-up new just digital Got said banking? think Can just quick I you’ve ask rather,

as line cycle just banking, out I’m wondering, the we three, we now, the that maybe think anything be I over delays original quarters that look air on missing Like there digital of are in created new any Thank As want five next just just obviously, not to recognized previously? it’s for revenues wins in but on would four, well. pockets sure the about as getting logo implementation make we’re just because you.

Mike Hayford

The quarter-to-quarter. if customers, Dan, the No. only in more I digital adding you that you anticipate. consolidation you to thing you’re adding extent more is banking the accounts marketplace think don’t get stable have very is

what year last kind in described forward, of bottom XXXX, as the off in back So would we felt we going XXXX. came we and we of that grow

higher even talked And we’ve getting growth, seeing low We’re digits. about XXXX that. double then

So back growth up the also we that marketplaces. it’s got in financials, up showing I the we mentioned fact as good digital feel the showing to banking in

success We cross and to our are winning base. deals having selling

Dan Perlin

That’s great. Thank you.

Operator

take We’ll with our question Northcoast you. Mehta Research. from Thank next Kartik

Kartik Mehta

you on time? on good maybe it’s know a delivered or going impact logistics current any said customers products aren’t orders. they just orders future impacting But know Hey, because to that taking be not Mike, you I thoughts pause this and seeing are evening. issue, on

Mike Hayford

Customers pandemic. what Owen that I talked hospitality most about mean, maybe about last of during think I through doing, to if you or are it rolling too. – some rolling get through guess, didn’t retail restaurants stores, they Yes. even refreshes the

So some refresh. year. they of during the put we’ve that might some instances seen off In a

Owen’s to working disappointed around aggressively, haven’t And with the store deliver. openings. we point, to anyone inability are very We particularly new

been clients timeframe. chosen cost, delivered cost to we’ve expedite trade-offs when responsive cost in prioritized, very accelerate receptive to to they’ve they when again, needed getting timing something eat made and to want we’ve If They pay don’t the the that. cost. we’ve not to, decided So with the we’ve of And of we’ve and and that.

that have order, we it. do fill – got I and we run just can’t an seen and where they somebody they’ve So haven’t else

around very open We have around we’ve dialogue cost, prioritized. timing availability, around

get components, team our think get I Owen your need get a store, you great we’ll we’ll and the Adrian to new a parts, we’ll done team saying, opened. have you the store and you job of open the when

Kartik Mehta

other have power Tim, costs about extra much the some and have maybe and of $XXX some of of you’ve million then pricing the $XXX recapture talked and XXXX, you’re you as look wondering, these obviously debating, the can of that going I’m to costs into And some because accelerated. freight that costs debating? of costs million you this how

Tim Oliver

Yes.

the year. have sufficient next I I inflation $XXX know happen So of for be million to think don’t will what’ll initiatives underway next inflation. offset we currently year

drop place will of Adrian plenty as in productivity costs and to start what can. start out put We’ll or we’ll help claw we to things. plastic and go So team initiatives around and back resins steel us his

I XXXX been way inflation we think seen what be the have seen We’ve by rates. just has concern bigger much yet. in not labor higher And the labor attrition will offset of inflation.

both of go long other of importantly some many and into rate manufacture And I where so and is I think we as in – lower think about to have hard locations what XXXX, companies inflation, and cost support. here the you the we and

I whether start good And it’s fruits can we really that, we’ll I now hard to a what challenge it. quarter. think But overcome fourth So be will currently feel we or about not and go but we’ll be the little see for to in that have the the therefore, initiatives underway. ready say

Mike Hayford

to talked quarter the on logistics chain and last that the we cost supply on had Kartik cover seeing And components. the seeing we’re or cost get around increases ability price initiating we’re transport to, to

pass that those stick, all get will to go that the we on. those we’ll move, We will hope those experience quarter, that think happen. I starting going We’re through as to what’s as to those will more And offset.

unique the to not last NCR. that think quarter is words used were this I we

it’s it’s our phenomenon. or supply So competitors logistics it’s the whether same a of chain all cost whether

price we will don’t the marketplace way People will – pass that to So to the guess, we’re understand that’s components, that to expect pay I the increases the they’re get to supplies, we’re would that to the hardware delivering. get the through. adjust get going planning we to have to have

yet. don’t we – that done So just expect stick, to we haven’t that have we have – we

yet We at haven’t through all point. passed this it

Kartik Mehta

All appreciate you much. right. very I Thank it.

Tim Oliver

Sure.

Operator

Thank you. Oppenheimer. We Zaffino next with hear [Operator from Instructions] Ian

Ian Zaffino

they Hi. labor side, just having maybe factor Can How Great. going you inflation I as to sort guess sell look on you’re and customer Or that some not side abate try caused to some a on cost the lot that’s particular, about it SCO of of to your the the ability right necessarily inflation. talks now, as of conversations et far is as talk SCOs, talk cetera? more to other your maybe now? supply have the a also and in side.

Mike Hayford

a self-directed services. in banking their labor in the it things the demand, think or quite during space, restaurant not somebody you hit is banking At to self do have all I frankly a to mean, industry pay whether head been driven whether around to I ability Well, goods table, in maybe we have those else even retail self-service, it’s do of the a we almost it’s it’s checkout entirely and labor. touch in or the things order more self-service table, desire whether demand get by there, pandemic point on it this with cost the the

it. think Grocery Convenience stores there’s it. are fuel stores stores in aggressively Big a particularly been to And have moving self-checkout. so lot done deploy retail, desire. I of box are doing

board. seeing the we’re quite frankly, that So across

Tim Oliver

do Yes. add Mike, up expect to for the full year. be revenue this total that year double I’d we digit SCO

Ian Zaffino

Thank great. much. you Okay, very

Operator

Thank to session. Hayford back you. additional turn the Mr. conclude remarks. And today’s conference does over closing question-and-answer or any that for I’d like to

Mike Hayford

thank to today. us joining Just want everybody again for

was focus, around somewhat in whether focus great or had to third still our is continue by that an our the challenged, commitments last had on it’s as literally three the example We focus we back it’s our challenged on get work customers. prior. years. ability in that pandemic, for our done I on deliver to And the a We’ve supply environment to chains quarter to the offices that globe ability whether think

again, employees in around team team And here very in work management that Our challenging for really delivery that working the customers. our and is of globe proud our focus whole putting the our environment. this has done

to our third on on percentages, important make and progress improving as improving around and – our our on I for or very recurring the think during our KPIs our increasing continue basis. increase we our strong as growth us we year-over-year flow free have platforms cash increasing goals, that revenue exciting including strategic EBITDA shared quarter, strategic margin a

again, you about ended a and our So joining today. our update really financial our again, and you our strategic where up on then the finally us felt for though Day, And third progress. quarter particularly Investor strategic please we our challenges, good around again we reminder Thank where just performance. join will X even initiatives on we through December us plans for

Operator

And today’s not all may do participation. Thank you We for you you. thank That conclude does your conference. disconnect.

NCR Voyix (VYX) 27 Oct 212021 Q3 Earnings call transcript