NCR - Earnings call transcript Q4 2021

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Operator

Please stand by, we are about to begin. Good day. And welcome to the NCR Corporation Fourth 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. President Relations. Vice Treasurer, Nelson, of Investor Michael Please sir. go ahead,

Michael Nelson

thank for afternoon. full year Good our call. and you earnings joining And XXXX fourth quarter

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

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

Mike Hayford

process Tim an commentary financial we then provide the a outlook will release, review and questions. XXXX XXXX. on thank review software-lead-as-a-service Owen, our take company and call. views I a for recurring noted Michael. our with move including strategic joining And into year of to and shift revenue everyone and earnings on to you will your our my higher I full earnings the becoming will also Thanks, I fourth streams. will And in performance us an with then today quarter our on NCR for some update begin business,

we I quarter fourth past year. from on very the We business we and second us, finished the entered year our but hoping continued strong and with a year I year. for some in our shareholders. COVID have brought the entered with XX,XXX that to the work behind hybrid office issues back pandemic. slide delivered to four clients in support two momentum the past continued banks highlights and XXXX our want the begin strong restaurants mind, of to of out very stores, have way this a chain our across Let’s have Keep year, specifically during of in to challenges team our Throughout COVID-related environment. our supply XXXX. mostly been we execute our customer years to engineers also continued am on the call execution flare work who and was throughout improve making half teams to with a by products the continue then the our the services, ups added experience pandemic proud done and to as flexible

will keen time, of with buy belief -- more on the customer care this had customers customers, NCR. our have that a happy we During from focus taking

We the XX.X%. XXX while XX%. points integrating Adjusted also recurring way history. NCR adjusted two total delivered Cardtronics acquisitions expanded companies. basis EBITDA the XXXX, and with one We to growth, XX% midyear margins largest of growth NCR’s the our revenue well successfully acquisition of XX%, on EBITDA with are in In completed revenue completed increased

free Our year. and earnings per for delivered we of share flow increased million $XXX XX% the cash

across had a our have to platforms, company. strong support transition momentum slide five, strategic we a which software-lead-as-a-service growth to to shift moving Now NCR

XX fourth Digital discuss higher we our Tim In more through quarter logo continue have the drivers as obtained our momentum as strong for Terafina. and that which growth. had Digital with will Demand of banking growth been account Digital Our profitability. platform. strong for we three opening, well significantly Banking business positive revenue acquisition Banking Banking, our positive XXXX to renewals, the In detail four all new of in has outlook expects platform, another in our deals strong guidance wins, year, online and later. Banking digital

growth We progress Digital Banking to returning have made significant for a NCR. engine

provided Bank During EECU in go-to-market India’s the basis. both point increased an winning select a one a Banking XX% of And offering. modernize competitive model banks differentiation. Seacoast ATM for of revenue Cardtronics growth same NCR Bank Digital and combining solution, Florida the have selected fourth in and on point-of-sale NCR’s quarter NCR period ATM-as-a-Service the based integrated year-over-year over their fleet. offering interest manage we momentum receive with ATM-as-a-Service imperative ATMs a our of upgrade and solutions. In accelerated We team Texas run, largest retail Baroda, own, positive of Retail, to ATM-as-a-Service key XXXX

our We beauty platform migrate of have commerce A.S. legacy one next to international the over with -- recently gen subscription. largest retailers Watson is a five-year a signed stores NCR one contract world’s largest markets. and a health XX of from with XX,XXX Watson POS A.S. the NCR’s to in

software, legacy company’s win had of commerce our [ph] platform to they hardware product a NCR as to one for competitive five-year also as store. journey run U.K., with and the be in from will in the services subscription migrating ASDA the the with our We largest covering a retailers competitor’s NCR

restaurants traction Landry’s services more This own our restaurant During our the checkout grocers platform. multinational we Digital and Hospitality stores. focused their also gain and exceptional represents In attract helps Aloha XX NCR Bath and retail five-year wallet a started quick expansion across market with better on success from -- self implement quarter company the customers. SaaS itself NCR our freeing self digital of In department delivery and seeing self we proving front-end ability Freshop. specialty and solution First its to commerce NCR focus continue checkout, which Essentials experiences. relationship solutions checkout The has into e-commerce launch launching a to continued and brands, through with Beyond footprint, app to retail gain guest agreement & adoption meaningful are Bed rollout and to end-to-end cloud-enabled new is share for with solutions. leading existing solutions Landry’s our mobile customer e-commerce on delivering signing its entertainment drives easy customers and service expanded delivery. than ordering transformation, subscription a are

expand the Our Cardtronics, performance as to third Payments are partners. success increase financial POS retail and attached quarter business during we quarter we sites the continued and we continue to of processing fourth payment the XX% of with its by from our the and as pleased extremely number with add

more the the increased total of quarter, payment In across network. driving the transactions XX% NCR to Allpoint are quarter XXXX. We compared fourth fourth transactions network

merchant growth and on Allpoint acquiring type network. both expect We the to new growth transaction transaction drive

cryptocurrency solutions advisors. With digital to sell and the PayXXX, will the more process Directors Allpoint the of finally, a buy release, launched our review led launch our we the of in network. of which and include that strategic board our Board have currency press and executive including team, noted as And types ability outside proprietary bring complete to input transaction we will

our have team December increase As by entire highlighted last our you is future. We we company made on the even satisfaction of XXXX. the to MPS heard Day customer progress optimistic at Xth our almost very in transform about since and management Xx more measured at excited about Investor the year,

has marketplace shifted years hardware-centric a the and build over employees, have products invested We our lines. has exceeded company recognized execution across stock by software-lead-as-a-service our from we customers, has and this company reflected our our to the three past of not that price goal performance. been a to while business competitive our have all brand But our

valuation, consider immediately our the directly action taking said We to execution would to and consistently not if sufficient that we transparency liberate have were more and value. appropriate improve market

that we potential to not outcome While from over value actions, and for let to review, With pass shareholders. intend various unlock that, this we were solutions structures an it our do presupposing Tim. me will consider

Tim Oliver

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

strong our metric our and described, substantial every a kept progress. accelerated fourth improvements solid strategic nearly financial Mike We simultaneously As quarter in generated very XXXX.

a to reminder Cardtronics quarter, in the segment. our are Banking last as Just legacy included and similar results

results release, December Day. new Investor the our our So, beginning to with report will QX described our we in XXXX segmentation earnings relative

supply resulting will year-over-year. and initiatives, continue the XX% On right, chain is million. the NCR seventh pricing Let’s cash business. strong quarter. pro the Component X% revenue Slide million the our drive expanded in up of provide remain as basis, our continue On with first of was $XXX or year, counterbalance difficult XX% And aggregate mix to with $XX up I productivity from basis our all generation or left, a Cardtronics and margin predominantly segments, begin another to bottom times to top of billion, was seven non-GAAP its driven quarter overview finally, points pro segments. for in and very in fourth In up flow recurring $X.X the revenue year, said, linear forma Cardtronics shows an all EPS million lead the which year-over-year. linear Omicron for consecutive Cardtronics the forma quarter Adjusted planned. less by in highlights Starting year top or to to by year. to but going the performance. cost full caused $XXX in value the up we level throughout for disruptions both The versus cash up across segments. was was growth or rate far to well solid the accretive In versus revenue That the of push X% our with of all The sale financial very associated quarter. acquisition addition on delivered quarter revenue was XX% this cash up billion, basis, we was pressure our the million. of prior to XX% accelerating to integration and discussion of premium from million goods. fourth the our be is revenue XX% and of marked a particularly finished caused on free quarter six higher helped adjusted financial and track strong additional within top in of result prior increased year-over-year. the XX.X%. $XX XXX XX% EBITDA recurring, Normalizing up this summary, pro revenue full forma fourth in positive proportion the up revenue, processes revenue cycle. and transaction we shift flow, more be EBITDA inclusion XXXX, the XX% XX% of to detail quarter, our growth $X capital, EPS inefficiencies a Retail and slide to by a recurring on The XXXX year-over-year working $X.XX receivables shift, left, than recurring revenue driven costs generation, we X% three together $X.XX, free $XXX

and We a $X.X billion. watermark pro XX% On continue XX% increased which the the Adjusted EBITDA the result $X.XX, progress and the points. was benefit rate revenue, we margin million in rate of strong make full year a from In of forma X% or non-GAAP and NCR for XX% expanded points basis, right, increased a XXXX was EBITDA expanding million. our $XXX the NCR recurring In basis year full margin and XXX $X.XX Cardtronics, XX% free or XX.X%, cash ago NCR up high of standalone adjusted XX% year-over-year. adjusted aggregate comprise context, linear $XXX was revenue top bottom revenue. for EBITDA for to up to total EPS to recurring year-over-year basis up EBITDA drove year-over-year left, meaning XXX without year adjusted expanded for flow standalone

you on Service software To move new addition analysis, new Those Hospitality. these that particularly XX%. with include which Cardtronics QX, results, Legacy our shortly of Digital are review, eight Banking, reporting I $XXX models, Banking describing will Banking or we Cardtronics. segments. in after of your segment to and XX-K. Banking, be we I benefited year-over-year, need discuss remind years our file shows million to will results beginning Payments XX% Before X% Retail Self our segments strengthen NCR with year-over-year Banking revenue several in segments we segment build those was provide our results the of the assist historical in Network, Slide by who up up increased operations. the and

In software in experienced with addition up that we period, for subscription total to signed year-over-year. higher deal much a key XX% software demand contract upfront value a services,

accelerate orders and we for for to is product, XX%. which includes customer up hardware XXXX testing. demand up increased as revenue our increased complete with scalable We saw expected also solutions our Hardware XX% new across orders demand recycler growth

margin inclusion our valuable of as with Cardtronics, revenue hardware, of the of and XX streams. increase key to place. a profitable continue segment year-over-year. in services accretion NCR We well previously Adjusted adjusted durable, was ATM our one-time more successfully we software result The margin to X% sale revenue recognized Banking in valuable was EBITDA from shows by our as with price increases and slide would million revenue and bottom The businesses, productivity mix $XX EBITDA of increased traditionally the replace cost the the points significant that Banking XX.X%. or legacy basis predictable more put and rate expanded results. XX

quarter, full Banking, accelerated Banking basis. consolidation revenue year, and quarter the decline shift revenue a that revenue customer with caused in for growth the sequential of year to In terrific year. year compared a the a on on up X% forma full up registered up throughout forma X% a recurring users Banking to increased to the revenue had up Digital XX% with same to we an The left, pro the fourth only fourth rate solution. to XXXX. traction, pro XX% was Digital The subsequent for Digital continues gain X%. growth accelerated On with quarter recurring a same basis. in-house and X% the move recurring by

as Retail $XX nine, or left, and enterprise the hardware point-of-sale increases starting sales revenue, applications, X% and due self segment slide million at top increased year-over-year, our licenses Moving in revenue higher to Retail levels costs expenses. checkout solutions price well increases software to growth. North as which shows basis cloud American results, higher adjusted and XXX revenue self for X% material margin points EBITDA and expedites services declined and by XX%. while Hardware expansion. and to Retail freight rate were reduced this These constrain staffing year-over-year, margin partially contracted adjusted paced impacts EBITDA checkout offset

segment carries disruptive. platform levels enterprise the and in segment is platform XXXX, we into converting X% We fourth lanes in Retail momentum streams. particular subscription-based have and these of by in platform-based would Beyond, revenue, converting business full recurring lanes. of tripled their our increase conversion A.S. slide our our results locations restaurant Hospitality revenue this occurred were revenue Revenue model. technology multiyear more uptick quarter. that rework In very as customers caused Hospitality from XXXX The checkout XXXX Momentum continue returning strategy are the the results. this substantial lanes in $XX sales XX% high the and upfront the the lane software traditional mentioned less key Watson left, Recurring increased impacted across that key with reopen, center lanes, Slide our Bath year. our business with and The profit illustrates revenue of in to Bed Mike a wins on in bottom XX% strength backlog. into shows to metrics, million success year-over-year to full of our restaurants million of XX number illustrates disruptions market, shifted in to for The have of the contracts that for or transitioning year full of increase self previously comparisons. success expand. business, the as license perpetual which one-time a are strategy this Retail And bottom to strategic XXXX, deals existing becoming ASDA, line shows roughly platform subscription the $XX new virus refreshes. an openings & revenue the Retail for that than KPI with year, expected our nature revenue double-digit

higher Our year than pipeline is ago. was strong and our significantly backlog is a it

of the We XX.X%. XXXX, insulate fourth marketing from and continue sales from and chain cost customers for to freight significant Aloha triage bottom Aloha while recurring increases quarter sites year, enterprise was adjusted increased increased adjusted margin of supplied quarter our and Intentional flat to EBITDA customers EBITDA catalyze to slide an expedited hardware growth rate in components with costs Fourth supply key full Essentials in XXX% for the in the for those impacted margins. Essentials our include chipsets Hospitalities revenue. X% the XXXX. pressure revenue and of metrics and both disruptions. recurring

and a in will Turning targets. as we more targets, for to aspirational the goals slide even we with place as full aggressive slide goals executed XXXX have for this nearly where provide XX, new we set results were we last five-year originally time XXXX year put our the our chain strategic goals disruptions, be pandemic These have and supply organization. XX/XX/XX and complete. This of and present these successfully in

less our discrete strive XXXX, First, our in revenue, represented software XX% to software from and up hardware revenue XX% than services In XXXX. of from we from of XX% our generate of XX% or revenue and services sales.

debt adjusted to to revenues aim be free XXXX. and up on XX% we XX.X% significant XX, our rate, valuable revenue Next, On XX.X% of we from a metrics recurring XX% drive resilient, we to with slide more represented this to facilitate XXXX, compared of of adjusted calculations. XX% in XXXX, margin the more metric more for we and an our aspire In EBITDA progress recurring XXXX. leverage in adjusted total, in XX% to at cash predictable margin flow, made And EBITDA net revenue. present

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

debt our net metric cash which strong financial X.X quarter support a include adjusted to ample million strategy. leverage ratio times. a forma growth our strength forma our pro to We shows fourth X.X and slide pro leverage debt within a the balance remain have times. with of also liquidity We This sheet, well with covenants, the maximum $XXX and of ratio ended of EBITDA

with also credit revolving the million significant over year facility. under XXXX outlook. On available We our full Slide liquidity $XXX have we present XX,

expect and availability the first half We billion range XX%. growth revenue global half. volumes around representing XX% in billion, $X.X second and $X That between represents caution the eases to component transaction of presumes

revenue. a from net impact assume recurring shift the also to We typical

execution that of expect in billion $X.XXX $X.X We presumes This range rate a be $X.XX to the a in price full to first to the be growth expected adjusted growth It to EPS eases $X.XX representing synergies. cost for year, of to includes also dynamic difficult representing is billion, XX% second. half Non-GAAP transaction to XX%. the of XX%. Cardtronics EBITDA the XX%

have a XXX rate tax million shares and count assumed We of in analysis. a XX% that share of

to generate free million SCO-as-a-Service to $XXX cash to to cash calendarization will non-recourse between models, fund expect To strategy. provide of some the and We ability use flow A financing thoughts $XXX also assure your flow want with the QX and ATM XXXX. be key quarterly million. the on alignment I and free to

You very cost will that combined get us to allowed post-virus recall out adjusted fast bounce with to a a XXXX. in start base, low a modest pandemic

still half more first increases and was XXXX costs environment, normalize likely mirror with increase the second a and impacted costs. to in image half changes is function components price catching readily in costs as up volumes of freight available. transaction second half become while with step by the strong, and in significantly revenue that in performance, The our Performance component our be

XX% revenue XX% we to constrain a billion, billion Part sales volumes impacted QX, supply is which and will on to $X.X Omicron reported transaction for will expect So likely basis. up down. hardware be of global $X.XX

in subsequent forward revenue hardware the the do will quarters, not. volumes transaction While push

and $XXX increases advantageous a countered of $XXX price costs adjusted results that mix cost similar in QX. less be by manufacturing EBITDA very million which margin premium rate productivity. We will and hardware A to expect of million, to

EPS expect $X.XX. of non-GAAP $X.XX We to

of We and have quarter of a count share assumed XX% a million tax shares. first rate XXX.X

we quarter not the funded match After quarterly our due adjusted improvement And of slide guidance. first expect financial metrics as to annual to level typical We and expected across use QX, bridges expense modest finally, provides of modest our high adjusted annual XXX(k) higher by a expect seasonal inventory such our produce for of were the and cash to results most billion range, guided described that to our a levels. XXXX. $X.XX sequential in EBITDA to compensation earnings be XXXX annual factors, XXXX drivers depiction EBITDA XX ultimately XXXX cash

shift year price synergies achieve We The from on of is with recurring and million weighted multiyear retail and perpetual million. increased in our models. hardware to the add the to revenue in headwind successful to to in We the away to would will are similar $XXX $XXX And million, our headwind we licenses track anticipate $XX of and roughly associated but transaction volume ongoing shifting for be $XXX be. in software million drive the expect results to benefits to to The XXXX Cardtronics million to net as-a-service primary from shift be expect incremental Cardtronics contracts, full incremental and inclusion amount productivity. more million more the $XXX an larger are adjusted increases selling XXXX, another EBITDA. subscription and $XXX cost we The expected near-term to ATM-as-a-Service. the

call you, With Mike. turn describe We it out to back will at will economics the to sure time. that, any major I those contracts make and

Mike Hayford

on Tim. slide XX. closing Thanks, I am In

customers significant made the financial that consistent, have operating and do, have we what with performance. the more. did strategic on keen belief progress we taking and care We year said would happy of delivering will in Throughout a buy customers our had XXXX we focus strong we

margin a score across is transformation XX% a entered our We with promoter garner strategic a revenue Our customer with we by accelerate and NCR helps to expansion share key wallet paying as XXXX. satisfaction was vision company. as-a-service in and growth off our momentum Improved of and contributor and a XXXX focus industries. XXXX higher all increasing to clear software-led our net

clear. are priorities key our forward, Looking

to platform First, we and expect our to of accelerate as increase growth wallet. payments share we software leverage

we cash XX% to have billion discussed and to aspire XXXX. to expect targets, generate at call revenue to strive free recurring, flow XX% which Investor established in each of We deliver generate new a of five-year XX/XX/X. diluted we year we annual we be we our our non-GAAP growth EPS Day, As $X

Second, and continues capitalize engage at the brings LibertyX to acquisition very we opportunity. transaction This strategy the the with to and digitally consumers retailers that for eager We are and our we are of and additional beginning pay, excited and customers us. this opportunities solutions Cardtronics to on LibertyX closed January transact provide banks remit. about

we execution our drive will strategic we improve Third, actions value that, continue our Operator, stock will we time. This our solid prepared returns past shareholder to of price improved for while rerate please creation open line. believe the the transform demonstrated the to you explore shareholders, valuation. to we business to will a has not drive finally, concludes as accelerate years. for With the your Thank performance call questions. for our open for the reflected remarks today. over three we And

Operator

Please Perlin Thank Capital RBC our Markets. you. go will Dan [Operator first ahead. question Instructions] from take with We

Dan Perlin

we the the some that lot you and extent businesses which look at I can across question wanted release? opportunities, see the on I I you to stage and lengthy segmentation I to know this options, good probably in I you the of you am are on evening, and business I have But some truly want you press their strategic clarity. mentioned trying that the The stand Thank to into as a question, to it. to would start, So I sense have is, Mike, a all guess, details it’s don’t I own? think list everyone. just you. more what mean, the is, at you think there. dissynergies get guys about just the you review. Thanks, thinking Do as that think, provided, these provide look with when the go incremental

Mike Hayford

understand segments, because mean, in visibility it Yeah. business you transparency Thanks, comes business kind outlined around comps look press to look when NCR, five of to release. the at Dan. as gave predominantly, But what we we felt segments, at marketplace into they better alternatives, those the ability -- Yeah. in some gave and so NCR. I we strategic we the five

keep look executed again, segments. and I as transparency We in do could that’s we segments we of intent have to the at at you this we the unlock value, would to But going that are assume gave why really say, five outcome look three minds open. look years. for as and our five listen, that an what we at we was

We years. have three for quarter hit every

improved have We our product.

have our improved We strategy.

We our market. have delivered products to the

customer have We a set.

We the what have with we we we where going about business pretty in and yeah, are very we our are excited and are look trade and the But grown the future. of at up disappointed value, where at take in us hard we long have might we would value appropriately, catch said, the market and do. last doesn’t couple years, look a if we we

that. looking five a that business list we from to that as say of we might that laundry at components you access more would at be look the some standalone, some think, more of whether the those about segments, to capital fair clearly, those of evaluating, or have value think you if things be So would I might identified

little you there’s think and question vehicle. between I could some or always synergy much But, and three we the a businesses? an pure-play out split investment into look pieces and bit synergy. say, We and create how the get, two have look could as compete go company, say, at yeah, two more think and you they entities could at you the

we the clearly the back marketplace, the the we like actually We brand. one customers, credibility things -- to going the challenges brand, of look think we brought are have, at of the

employees. perception We have credibility our brand great with

that investment the with not sure are community. about We

that have people footprint would along and think do look to countries, we I to entity brand with something do we So out, and to do do lines? an we we have manufacturing the to footprint we locations, Do some our -- our don’t look those with in do the at ways something same need at we perform rule invest? entity I more that platform us have in that industries it more pushes to have in would potential interest already don’t on be strategic to in the value sponsors the interested I push in, transaction. software services, some we but might think if know a that expect we would I continues today. are company? be we combine to do

other net So, be us. are that of we we to financially. executed I be very There to have may believe going The come this is think, we ideas some open-minded.

We have executed strategically.

products. our with executed have We

have We years. it’s over valuation. reflected not are our last three the Yet, improved company in not we our --

fact. taking So are simply this step we is because of that the

Dan Perlin

you Thank for detail. great. That’s all the

the a the kind Just here a more, quick you the about the are more of lot about points. today, follow-up kind cost here aspect this point? sit some least low can range demand at kind gave at think you you Thank the business the environment of spectrum and high you you of of of about are to or guidance But concerned you for visibility concerned Tim, what about as of you. are details the toggle across of when you you more see to get from

Tim Oliver

Yeah.

exception up relatively up Crown Cardtronics. U.S. transaction everywhere, Demand volumes the and we When opens more. open is demand So is countries actually start more of good, the at nearly the fine. with to --

mirror. kind get think our in I as the put will we rearview Omicron recover variants of those

can good problem. demand not control, feel year. our will From So -- We our I that. we about controllable demand. cost manage our we will is things perspective, every a those be do cost, which a cost

try our make to base in initiatives look sure to year that sufficient productivity productivity a inflation. offset we team typical get and his manufacturing underway. have Adrian and We at

headwind while from great. into we we is this you the half with that year the As not chain experienced of getting year and better, inflation in it’s last latter supply know, a came significant

our keep pace the how mind, seen out of the we be, be, have in end biggest That that what we end so, thus my up far? can would increases cost determine concern that will my And price plays would in. range with

Dan Perlin

Got it. Thank you.

Operator

you. Thank

We from Matt will question D.A. Summerville take Davidson. the next with

Matt Summerville

call? of would of Tim, much you the NCR, you would at talked XX% growth, couple say how A about legacy Thanks. revenue to if similar the questions, XX% that be to pro periods your guidance, here in look how reporting first, you the forma

Tim Oliver

data. that have I am I will you sure. get not Michael

going going will to you give Cardtronics. of forma inclusive be for pro eight segments are back that We the all of data quarters

didn’t actually math for I do So you… that

Matt Summerville

Okay.

Mike Hayford

Mike. going in ATM-as-a-Service try deals to is will hard I about We we it break quarter. and the this out increasingly -- give would fourth that that an talked to Matt, you gets executed Hey. I three forward example.

we which think, as is talked about are on Who we of see our large ability. look last call, Bank the a we Baroda, optimistic very I entities, both that in and India. small entity at business very

NCR/Cardtronics. to a but is ability the also Our offering only that’s to operate the not NCR/Cardtronics, of deliver components, and combined service,

to about hard that We where -- that really XXXX. it’s in what is more through expect of from? say coming So

So think the I don’t what perspective. see of from out legacy try break to businesses from a you side each us are is coming going to

Tim Oliver

So number growth. of while talking, about it’s my half that is wingman was math, did pro some forma I

the So will be about half growth. XX% to of that forma our XX% will be pro

Matt Summerville

comment I seeing maybe then, to in was a several segment how that, you around Tim, and are would pleased you at times, it. numbers would revenue deliver how on maybe for it otherwise put if ideal wondering able QX? in the in businesses. And wise, et chain, more some could about been much the a the then, supply of Got have are as world whether you be some mentioned backlogs you. Thank NCR you cetera level, you maybe with whole

Tim Oliver

Yeah. Okay.

where is, first feel qualitatively. disclose of good don’t that we the year. entered part I entered backlog So we we where this year about last really versus

nice is in SCO backlog backlog ATMs have to in So to thing. have and a

of how to next. revenue much In terms one the forward quarter from pushed

$XX from and QX XXXX. of now million We forward half from the into have talked hardware $XX into QX, QX revenue pushing to in million first about

on that magnitude. it’s So

Matt Summerville

you, Thank it. guys. Got

Operator

you. Thank

question our from with We Charles Nabhan next take Stephens. will

Charles Nabhan

ask and quarter, Hi. question. degree XXXX? your as the taking as my which you wanted for I about to thanks Good afternoon that for impacted the LibertyX, guidance -- that impacts specifically to well

Tim Oliver

until quarter to there’s the of. nothing So closed speak in didn’t get We the January. deal

some it there’s be of So guidance. how is whether gross the -- it that impact the gross and was we there first quarter you account We basis, no account to will to last for could fourth. depending on But some $XX as for debate revenue, still or million depending accounting. it on it, how a this be year net got to There full on closed year’s full year impact the mid-Jan.

Charles Nabhan

specifically first are commented labor, freight, pass source to to of seeing you standpoint whether a you Great. more like from Okay. half able or And they those you color and on from get areas I but pricing it sounds some are little are know stabilize the a whether year. price, headwinds, supply I in are have raising that the the you on wanted around chain, coming of of supply those

wanted to So I just confirm…

Tim Oliver

Yeah.

Charles Nabhan

latter my as … to understanding well. the there

Tim Oliver

what I still talked so So But to color will increases cost three our it. our I I quarter deny -- color. going first soon think months’ will about up. yet we said four said, of half last within those have some price and is about true. increase as those that’s really on give part. the with bit what’s up you and three first and in time. reiterate would won’t to the increases much a have costs the chasing Owen, give can last I time lagging why maybe catch supply we I price closer up as chain, caution They months going on in going And are price by stopped cost the year. haven’t do that’s we months some we as time I still stop

Owen Sullivan

it’s -- actually we we addresses chain are. increases and from say That the evolving would fluidly a the what price where quickly. pretty supply seeing here I and Yeah. are in and

of out materials seeing we a and on semiconductors. bit the of came are of around issues we in were the fourth now right What As quarter, freight. is terms both the let of lot pressure a the up

starting and better And starting terms we see the we some we are at at the feeling next the us, on are see available and to being some the have quarter. of and look of done hopefully, cost. the is, hope end chain moderating As to what increases supply. over off, obviously, about numbers second freight supply look will to supply abate quarter we we come optionality, of the we and is we first of recertifying then, what supply as as pressure into especially then What creating the in see as quarters, that we we look couple some out

very So, but at strong. we is year, demand as look the

seeing use more starting the see are challenges of I abate some to We the second in of supply chain toward a year. that that environment and half normalized the airports we the we will are hoping and

Charles Nabhan

appreciate I color. Thank you. it. Got the

Mike Hayford

Thanks.

Operator

Thank you.

Woodring from Erik Stanley. next Morgan with hear will We

Erik Woodring

Good guys. Thanks, afternoon.

up earlier of the questions. on follow to Just one

availability $XX that the $XX For Was have million early now I by hardware up. component where to Thanks. situation to were impacted XQ somewhat a a was of XQ million because to then pricing? XXXX. from customers of revenue that was or pushed and specifically And that follow

Tim Oliver

All component availability. No.

Erik Woodring

then, Okay. months And you us at the from have the XXXX? to remind about worked the of much the Thanks. over is, changed deal all has cost savings last as can that that if Super. just of Cardtronics How acquisition through further? how think in kind you few

Tim Oliver

organization. synergies will synergies, traded cost the increasingly Cardtronics that, million a the but still assumption of out, The or costs that NCR $XX all. from $XXX of worth It than aggregate more synergy probably cost you at easy take in in tell or cost get across will we cost head And changed to. somewhat we publicly was hard is not million will legacy far we we got out out it value that We XXXX. out. whether those get cost, get It’s cost gets start Yeah. when to did recall, of

Erik Woodring

Okay. for Thanks. slip there, could Mike. in maybe one if last then, just it And and is you, this one I

-- you the Just, initiated the strategic this curious last for over months has here, That’s has this been it few or initially just the review curious why has timing? why in you that that is today, Thanks. through saw just obviously, now, but works, went that me. why there about something

Mike Hayford

done end performance. we Well, which through got couple and some in great plan it, really we we XX/XX/XX XXXX a strategic of have quarterly We valuation with said now really in Having financial years a are product strategic the XXXX, supply again, than XXXX. have goal. think executing got COVID laid you linger I’d expect all product We quality. we XXXX. goals, are the that, laid -- the we are put performance, the you chain. to things into continue are on hit team say with products our as didn’t about of executed executing going is of out quality, it the did We done late yet, talked together value we to globe. you goals. but the XXXX our was But actually if And that, lower your and last yet, around XXXX, out We it job has improving competitiveness, throughout the talking if yeah, delivered strategic you -- we about strong on improving a

is than whatever unable understand there. business us that market say, we there’s other doesn’t look to and nothing that the or reason value So for think our that, the is a at Again, value to the fact we is the the we have, that inherent we we understand up that market would we steps have business said catch value. for two unlock think years, if take in and the doesn’t give

we simply today price. -- simply our are it’s where sit we on doing So stock based that with

Erik Woodring

Mike. Thanks,

Operator

you. Thank

our next take Kartik Northcoast with Research. will Mehta We question from

Kartik Mehta

are have how to reacted accept you. the wondering through Mike, Hey. decent you there and you that if I talked to of one that? servicing for have am of on Good the are if in push a three afternoon. business for have things that’s years certain banks banking the increases that been price sized banks characteristics well about side and as able and are willing

Owen Sullivan

have of on banks, so the base. us. been but have the Board, reasonable. pretty Yeah. responded we pushed We Kartik, with or customers this we just terms XX the not Across reasonable. were They than our XX customer probably in is more out, as behind have increases implementing, been entire Owen. days But talked our --

sectors, that of In they most they if customers our the and you and about the readily. listen the all restaurant costs retail, to passing fact, in to their on are banking customers have talking done

customer any been has not pushback the base. from there So significant been

Kartik Mehta

that am banks I some the type in in India. wondering in you know just very of you mentioned is in seeing? ATM-as-a-Service of a there they then, interested kind of what have Are are business. Obviously, seen large. But what U.S. banks on find and that India amount target the think, in is or demand I type you U.S. have you the And the that one, I ATM-as-a-Service? are ATMs bank certain of market

Mike Hayford

their network take of banks. mean, their over ATMs, I Allpoint and of addition surcharge-free so the the clients to that to two really capability we out have are was the and states And ability the Yeah. them. ability they network Seacoast case important to EECU all Seacoast a to to community the footprint actually called -- the in for join expand in in

market banks, that, much on the more did, So on prior I calls, larger we to has have I in dialogue than larger with shifted we are call anticipated. market. even ATM-as-a-Service seeing last this banks, the mentioned have we think, maybe we talked some would Baroda, certainly, community Bank of banks, already regional of as about the Indian we an had

Baroda, that this, of in like looked are fairly to of bank scaled have size Bank providers. that that So market,

there’s in an it, Indian opportunity of opportunity We Australia this, has market. we in state. the parts think was Europe market. embraced are embraced in more that knew it have that to starting we So see the

community now to right would start FIs to into the banks, larger state up move going that in a So, we expect forward.

Kartik Mehta

it. Appreciate you. Thank

Operator

you. Thank

question We with our Oppenheimer. will Ian from Zaffino take next

Ian Zaffino

Thank different touch guys? on, going creation, of any sense moving just there value Is you alternatives along type resolution a for five have you are but I you And time something give raise. where were any kind wanted of to with either I something some helpful. be short last so a or so, to the of much. to some got kind an very very very into Hey, a strategic I we may really little ago, early kind color of you vanilla and of or dilutive not like guess, because upon spin what consideration type I guys. that plain on where for bit or instead, detail give we be or alternatives can’t just wanted the we we be have strategic are for get of years of of acceptable we those type going a six know ago separation much would thought maybe of memories little lines? a you Thanks. you bit. years could

Mike Hayford

businesses if us, look it’s the start Yeah. more mean, again, digital once it’s you don’t hospitality high have things. but and do challenge to at at have, I banking, have different value hospitality, we remainco. with evaluate, as those as as look and our I what had are and you more because retail people we And at have you the whether to components hard do Again, each standalone the assets, done have is that’s success. the -- going start platform, look your at of what whether really to are business to SMB, some whether win, paying we parts of to started we compete is one a it’s

customers at it our I something unlocked to about took that the a I the value pointed lot know said, organization wasn’t of what six to management context, company, really to shareholders, we context look the at also was of the of at look totality all, but felt our So our first the look of important function make organizations still a what we an the don’t I ago, the think that place together, but get value Having so that we transaction our employees cost that seem that do It sure and don’t and and team and mean, have add didn’t value. have it organization also you greatest organization, or worked for shareholder see hold future. out like of obviously, the on would I together, that. years believe of that. here. we, transaction, on I funding

So, I on unlocking us shareholder think, you value. very focused will see

Ian Zaffino

All right. you Thank very much.

Operator

Thank you.

question next JPMorgan. our take with Paul Chung will We from

Paul Chung

Hi. my taking Thanks question. for

later there that and drove Digital on? impact kind risks registered on of in-house, the customers there, Are any on what Banking, just of can progression of the that of trends other revenues does revenue bringing kind app you decline? kind on expand user nice So, move there

Mike Hayford

Yeah.

the of and ones. they the platform. frankly, have a So so in a a while, market, is did that, have which I quite equals client, other consolidation mean, to factor of it you of that bank happened typically that small took be you larger This in-house the is once a to merger --

Sometimes those, you win sometimes lose. you

it’s function, a of this right? XXXX, the it months. when you laid for look So for as conversion at and on, out is come of cycle we the come all The customers nine accounts have next out. plan a timing laid called step out, little bit But on, our which when down we

a that, in a is So get combination we we anticipated, the the the on ago will in that the know about and something platform just was this growth -- talked took capture place past. other converted almost what customer had we this that double We we have last we year digits quarter.

Tim Oliver

Digital that often of And Mike, number time revenue not mimic is of out described revenue sync, two-thirds right? are we in period the to metric and imperfect, It Banking have base. does only users the of describes that’s user one about that of linked any in they

level. than think, I So double-digit be growth to overall we revenue, as foot. similar and on year to But direction, to when more full the other back had year the in explain quickly the will the revenue other growing now shoe it plays the you is users were pretty out, users see

Paul Chung

trends, been then, competitive environment, do trend there? pretty you. to Got backlog, Thanks. anything switching about And How think checkout has steady. in the XXXX self retail, demand we

Owen Sullivan

that, XXXX with, seeing That into What enthusiasm more us come Yeah. XXXX same self and self to the only labor. This pressure on we for opportunity the into especially we driving checkout the for would are solutions checkout. say table. on I need retail came we Owen. bring is the is to and based

We the the seeing we into really & Bed also retailer traditional large and traction into Beyond. solutions box moving We the specialty retail the are example expand of the specialty beyond Bath great That’s fuel are a convenience checkout in areas. seeing And it mentioned space. retail. self gain

well-positioned. And for talked Tim the come solutions ‘XX. We into about and as retail expanding. software is market that our the earlier that really hardware reflected think we is backlog we are in think So

Paul Chung

you. Thank

Operator

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

Mike Hayford

All you. right. Thank

So, in of couple closing, quick a just comments.

of we actually kind of the did We First, supply not anticipate a incurred we didn’t XXXX. anticipate COVID. We impact due great that the with the chain. to had kind issues

did the an through and Our still globe things strong XXXX. around those job working a phenomenal delivering team of extremely

and very head XXXX, are future we we the beyond. into in start as optimistic success to in about we for As as growth our our company, products accelerate, we XXXX see see

of We about the are outlook our it our price is software undertaking, of lastly, of are believe and excited we value to as reflected And we stock. company the don’t relates with and are positioned our simply process where headed in our that platforms. strategic we products strategic where then, our we the currently

and shift platform of we NCR software to XX/XX/XX the goals three At commerce years seeing to some ago continued three then to in our our financials side, years, in on at those same We have every delivered and we long-term the the look are If quarter. Retail you the Banking Hospitality and success last platform CSP marketplace. Banking, have goals laid a are time, Digital out ahead and time. the company deliver great the and meet platforms of in we we company going and

We of our our our our businesses. strategic all of product our delivery, have across plan product perception, merge improved service quality, our and of of

our thank CEs I So, continue banks. day, Restaurants field our in again in to closing, our and want supporting our the every team, to stores, work our

alternatives that strategic to deliver from strong unlock a the in to for today. our undertaking put clients. and I those at we and homes, can us joining environment, deliver when want are starting plants to is XX,XXX build today. they steps very call to for these difficult position that, teams everybody team our very and our working the for value able be globe this thank our are continue us continue to office look working With the from in the It teams Our and members, their to around

Operator

you and Thank all you. may conference. your Thank you This participation now disconnect. concludes today’s for

NCR Voyix (VYX) 9 Feb 222021 Q4 Earnings call transcript