VYX - Earnings call transcript Q2 2024

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

Operator

Greetings, and welcome to the NCR Voyix Q2 2024 Earnings Call. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Alan Katz, VP of Investor Relations. Thank you.

You may begin.

Alan Katz

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

issued with release the be copy and our the we call which that morning, This earnings can during reference section the June release the been this XXXX. have of we earnings website, will quarter available reporting www.ncrvoyix.com, XX, The Relations the found A on SEC. at of are and filed presentation Investor ended for financials our

David are Brian today our call Chief Financial and the on me Officer; Wilkinson, Webb-Walsh, Officer. Executive With Chief our

This call of is Investor is our being on section webcast recorded, and Relations available the website. the

Before statements could results to we will forward-looking are today subject expressed remarks differ materially to cause actual from and advised implied statements. begin, which forward-looking please those by risks, such that factors, These contain forward-looking or statements. uncertain be other

please on our with reports information filed these additional For to factors, and release our other SEC. earnings the refer

on not you caution We statements. to undue reliance these place

call this of no them. during and the obligation to statements undertake call, this speak we Forward-looking of update date as only

certain will clarity our providing believe discussing performance. or will measures regarding financial addition, we which In provide today, be additional non-GAAP ongoing we

available the X-K to filed measures please this morning measure Form non-GAAP the reconciliation in our this press Relations discussed on release materials call Investor our our see website. For full accordance with a exhibit an the our on of GAAP comparable section regulations, most financial in SEC furnished of supplemental as and

call I would over turn now to that, like David. the With to

David Wilkinson

our call. to would good welcome and of to second you XXXX Alan, everyone. quarter I earnings like Thanks, morning, all

our Digital we of for initiatives. point-of-sale strategic concerning morning, announced addition provider including hardware our agreements self-checkout the leading business, discussing a actions results, our will provide and also details quarterly expanded with the In to and cost-alignment our this recent sale Banking partner financial

in the of XXXX. everyone plan business in drive remind this of long-term The strategic of began multifaceted to XXXX spin-off review our and initial operations was that enhanced completion optimize with shareholder the the like ATM company's Atleos. value part the would realized I NCR to into October

Board and Following streamline value better customers enhanced and continued shareholders. to efforts the to sharpen NCR serve our the company's the business drive our focus spin, the Voyix to

As X, you will see have on the actions. we taken Slide following

the Banking First, billion we to $X.XX Capital to purchase a to announced our price, $XXX up plus agreement contingent definitive of divest Digital for million segment consideration. Veritas

a both Second, we announced Ennoconn and for point-of-sale Corp., leading partnering self-checkout. provider with hardware

approximately approximately program, end and we ongoing costs third, an multiphase of $XX implemented globally all costs. staff with contemplates elimination in a And annualized million or program QX. the This at XXX cost-alignment of operating of which the began assessment payroll-related capitalized

leverage, the new cost current actions the for and NCR variability later the These profile improved Voyix of align expansion. will capital will position moderate reduce to revenue of discuss Brian XXXX, growth operating call. our the program our on in and future top accelerated the cost-alignment line beginning significantly margin hardware-related details structure and

America. and banks Digital across revenue previously, and of financial $XXX approximately offering for provider of X,XXX global million, in a business end-to-end As the of Banking we physical truly industry-leading business the an digital-first unions this digital credit described over provider serves the facilities institutions is solutions X,XXX XXXX With and and employees employs channels. have only across X North

Banking, its to on this Voyix and Digital focus core divesting each both benefits allowing competencies. believe We business NCR

for identifying value our we X selection while Over conducted shareholders. best resulted which for maximizing owner business the the the last process, a rigorous months, in

expect transaction We to the by close year-end.

their we agent hardware, our function the self-checkout as customers. selected of For will leading hardware, Ennoconn we with sales manufacturer whereby have maintain a and and relationship point-of-sale Corp.,

Ennoconn. by of from warranty hardware revenue. aspects sales only of be other is in net Once hardware we the implemented, sale, the commission agreement including design, and all manufacture hardware our the record fulfilled However, will will the

the design next should hardware evolution company's and allow the the to exclusively of internal handled and times, our step business, will hardware natural lead This of market-leading third-party from is outsourced of now This by company. software leading access enhanced manufacturing competitive over which increasingly benefit with the customers speed and be to a innovation manufacturing in improved the products has pricing. years transitioned

Turning to X. Slide

XXXX. allocation and efforts outlined markets, enhance growth strategic of operations half objectives in and for strengthen company. XXXX the restaurant our customer We on have and focus to our go-forward existing segments resources relationships, new these retail our customers, key second into profitable improve for We of the core believe attract drive

we can be sites Today, have These our around the platform. as conversions. connected platform first, XX% of follows: to accelerate best summarized

Our expectation is next platform accelerate years. over conversion the to X

As convert we will existing the we related platform capabilities, our platform significantly revenues and of continue value-added customer to to our customers to improve adoption software customers. increase

improve have programs to share of past we ensure place our and incentive resources right Second gaining the in upon markets. performance across is to

finally, market. And of in including demands commerce added our acquisitions the meet customers, of accelerating to capabilities, growing Voyix our invest tuck-in platform speed to

time. actions believe realignment and operating of will these the our model improvements see revenue earnings to enable continued and We growth in meaningful us support over

X. our turn would our on few second over I I to of discuss financial highlights to the a like review some moments results, to quarter Slide call Before take to Brian

For decreased normalized the true-up and prior software adverse software adjustment a X% prior onetime onetime and X% of revenue year. increased impact services when the from the period the quarter, revenue excluding normalized

higher-margin executed We transformation within of saw the revenue initiatives the impact streams. on and our growth continued

signing our across results sales XXX nearly solid segments, customers. new including achieved We

than to from retail sites, increase of more now converting have an of and our also the nearly customers and platform XX,XXX total year. XX% platform restaurant a We prior continued

strategy, increased and services segment The ongoing growth ARR coupled ARR of X% of platform network, in and growth of execution our global our sales drove investment our X%. software with total

and X% customers, and demonstrate to than signing payment quarter, new our continued to X. In more platform on by Turning respectively. momentum, we XXX restaurant Slide sites our XX%, increasing segment second the and

X% ARR the increased and ARR Software increased X% quarter. total in

Canada. group North division, X provide platform Within our the to new Voyix across opportunity provide sites, full a restaurant we than to hospitality a a for our multiyear brands XX franchisee Essentials agreement we sites an solutions Under of enterprise restaurant signed more contract commerce the Aloha with XX-plus additional with a suite approximately to American with the will large agreement, in future.

business significantly their comprehensive Our operations opportunities on to enable improve this execute business. solution allowing to will them streamline scale customer and their growth and agility,

their restaurant strategy quarter in also This to we of solutions platform across digital the X,XXX-plus quarter, for large long ordering out customer new locations. XXXX. rolled ordering This third time, digital our platform fast-casual power customer domestic our a leveraged

to today, the including and fully monitoring customer physical and mobile channels. across the our of ordering experience implemented have As they order menu our management services, and digital solutions, integrate online

also Our customers costs. technology integral digital will their be to while lowering for their operating their end transformation

to in efforts, we continued execute our business, more logos. mid-market on new signing Lastly, than XXX our growth

Our payment sites with their new for increase this point-of-sale payments of customers well to contracts. attaching segment signed to as XX% mid-market continued the

Turning to segment our retail on Slide XX.

signed mid-market sites. we X customers additional leading nearly to XXX customers quarter, This and XX enterprise

our as newly signed convert by increased onboard customers platform XX% to also customers. we and continued We sites on-premise

attributed X% to ARR ARR the Software increased impact total platform. and the of to increased X% powerful attaching

will in of XX,XXX new acquired signed with multiyear our customer platform supplier suite enterprise the next-gen agreement, with States. we this point-of-sale, across XXX grocery solutions, business, our large stores. provide Under a loyalty our store agreement of United and full including self-checkout wholesale newly we for customer In operator and retail a lanes grocery their

entire convenience customer fuel expanded and the Canada our long-standing XXXX, with their footprint store of X,XXX end to the of connect approximately modernize a their relationship lanes platform also will to of solution. We By Voyix. NCR point-of-sale across we

we'll additional work Following the cross-sell migration, solutions. to

agreement and lanes. following execution our more sites, of their largest expanded services our X,XXX successful holiday one traffic with of our retail consisting renewed XXX,XXX than we to across support Lastly, customers

not their for a services. of but agreement of contract our only us customer As performance, include X to scope with expanded additional years, the renewed this additional the an result

Turning to XX. Slide

quarter. Banking EBITDA Registered XX increased XX X% grew strong performance segment year, the and financial grew operational ARR XX%. revenue business X% users adjusted increased million, million while Our to users demonstrated active of the Digital X% prior increased and X%. number this and Compared to to

the I Banking sale year-end. of we anticipate Digital to stated close by earlier, As

to to We of beyond the continue support transition business Capital year-end. Veritas the will

With financial quarter that, second transactions the I and will performance our discuss turn to financial Brian, it who will the of today. impact over announced

Brian Webb-Walsh

morning I and to a financial actions Thank updated discussing pro you, everyone. and giving on results, the announced morning, commenting company the by our strategic forma before today will David, second the begin view good outlook actions. this impact of effect XXXX strategic my our remarks of the quarter

Banking business with start XX. will sale the I on the Digital Slide of

to our the XX business sell mentioned, definitive contingent we entered $XXX $X.XX reflects potential Digital a of XXx flow. consideration a last of have to a billion cash million. David on multiple agreement into up free This adjusted for As plus months Banking

Upon and bonds our all intend primarily to pay facility. the terminate our of debt, certain amounts use closing, we including to expense result to reduce EBITDA. outstanding net net pro to This our forma loan, company. of down term proceeds repurchase AR adjusted These a leverage designed turns will XXXX of interest X approximately in are efforts the based our under ratio on the

offset of from the impact flow net will cash cost takeout divestiture. reduction the our and impact The interest the

to hardware. Turning

Ennoconn hardware agreement manufacturer our an solutions executed ship provide customers. leading valued customer. implemented, warranty, the and have we will to design, indicated, hardware directly manufacture, David point-of-sale As with and supply a self-checkout Once to to

to agent revenues our lower customers hardware These record sales net from margins past continue will from commission the to sales. expect hardware expected sell to to hardware and net We be these an modestly a basis. on than are as revenue

the pertaining and IP on designs point-of-sale self-checkout hardware. have retained to all We

Banking cost of businesses reflect leaner the of organization. aligning the company new support the the our ATM is structure, and of reality With and the go-to-market exit corporate modification hardware Digital services our and to

capital million the we comprised As XXX staff costs costs. of totaling annualized $XX of eliminated of and payroll such, at operating end QX,

look time Additional work company model identify a divestiture core in today. rate program eliminated achieved continue Those of time and be our closed incremental at costs have to This as to largely is the ODM spin. included nonpayroll underway be of to is the Atleos been accelerate structure $XX initiatives laid of This out over cost restaurant we the the once the implemented. to are will has performance. and to retail million focus run our and expected transformation that is another we the

results that XX. results QX our the commentary Atleos spinoff these NCR like you would will QX normalized to items we I our in results. impact the providing of divestitures exclude complexity results. completed that of Thus, primarily the impact My has these normalized created focus to XXXX. and the spin-related are of remind Slide Turning on in reported on

previously restaurant the $XX reflecting the decline revenue adjustment our For million, impact and discussed and $X reported was company, primarily of normalized revenue on impact adverse million had segments corporate a on a This retail the in and services both revenue. a out-of-periods million million and $X impact other. software hardware $XXX and adjustment and to

our Excluding results this expected. were item, as

and versus out-of-periods normalized flat software payment was was a the and of true-up QX million, revenue prior and software Reported XXXX. excluding adjustment X% $XXX the year from increased

revenue $XXX normalized lower services implementations. to due and Reported Normalized onetime X% million. decreased was hardware services revenue

normalized Adjusted XX.X%. EBITDA XX.X%, line margin margin This basis, was $XXX in $XXX was expectations. a on Reported adjusted our adjusted and with million; normalized EBITDA was million. was EBITDA

share per XX%. reflected a $X.XX, was Adjusted quarter rate of non-GAAP earnings tax which for the

reported Beginning and Slide $XX and with as an in second prior Please the segment, revenue X%, XX, onetime million, which normalized with quarter, results was flat turn the revenue $XX compared quarter. increase our prior Reported our normalized flat year. reported. was restaurant the excluding million to segment for the services adjustment of and details periods software

declined declines revenue of X% normalized the $XXX segment reflecting a basis, Total in hardware. million on expected

and and had XX.X%, profit adjusted These a solid of expanding on points driven by primarily XXX mix XX%; results Restaurants EBITDA with basis our million, a transformation $XX were of normalized margin basis. increasing performance a initiatives.

retail. to Turning

X% of for in Software $XX of onetime software when adjusting the true-up million $XXX QX revenue increased million, was which XXXX.

the to to X% lower was as installation a X% the due due services. reported onetime $XXX decreased revenue revenue decrease of prior true-up. Services hardware Software software from year million,

Total retail basis a normalized to revenue in the on expected due declined X% declines hardware.

XX% on due declined of declines hardware EBITDA the million $XX onetime software basis to and normalized true-up. a Adjusted

previously exceeding continued onboard as for Digital demonstrate increased momentum the to X% expectations and quarter, our revenue cross-sell we signed customers. Banking

the XX% by Adjusted transformation call. increased basis by we discussed QX points, on XXX margin driven previously leverage and and EBITDA expanded our operating initiatives

Corporate included exited. line. million, Lastly, revenue commercial spin-related a $X and which I'd Atleos, the on to other our agreements $XX we million like corporate and which $XX to with adjusted with expenses spend moment have quarter also now corporate amounted of In of other synergies. million for associated our QX, included

the cash. to quarter Please We ended billion X.Xx net debt Slide leverage, XX. of of $XXX turn with million and $X.X

$XXX facility, XX, our drawn million. As we of June under million credit had revolving $XXX

cash of and spend use restructuring free the of quarter actions. million, associated the impact the was adjusted $XX adverse for our which Our flow and transformation initiatives a includes strategic with

Turning to Slide XX.

We revenue discontinued adjusted Banking EBITDA the beginning which XXXX and have third with operations treated to will in our Digital remove as for full the updated business, prior the year all and periods the guidance quarter. be associated

macro and the install result through announcement the lower of services the the with related transaction, balance We be of of trends. a also anticipate will year hardware coupled ODM continued revenue as

and billion we a $X.XX to for now year billion. $X.XXX between result, expect revenue As the be

now separated software We also revenue. services and have

revenue to and billion is $X hardware be between million. to expected is billion. between be Services $XXX expected $X.XX And is revenue expected $X.XX revenue $XXX and million be and billion. between $X.XX Software to billion

is between million, Adjusted million and be to $XXX reflecting EBITDA $XXX margin XX.X% XX.X%. expected to of a

flow announced have today We guidance closed our and beginning proceeds. will and free reinstate EPS the allocate the in adjusted incoming once XXXX transactions we cash

in reflects growth have the and More EBITDA starting we midpoint our of cost pro These of be the a to that forma impact will the revenue our view of turning XX, the guidance. for forma presented and full utilizing initiatives pro levels Slide year outlook XXXX updated transactions point targets importantly, XXXX. adjusted the

moving revenue with net the for and agreements reflects our recognition be approximately exit billion. result a transaction We commercial This anticipate $X.XX of will the as hardware to ODM revenue forma pro of Atleos.

We from of pro year $XX results impact million approximately a our EBITDA rate ODM EBITDA reduction adjusted $XXX vendor reflects adjusted full approximately AR million cost already $XX XX%. includes moving margin of taken. of we to benefit forma the and actions in and related million anticipate be will million. the have This a from benefit model facility. a that reductions payroll-related the run It to cost also This of termination the $XX an

Following debt the net pro actions, expect anticipated X Digital leverage of pay-down approximately to our the divestiture, cost forma be we closing and turns. Banking

initial flow cash point rate be guidance. $XXX anticipated Our to conversion a expected a XX XX% percentage pro improvement representing forma from to free adjusted is million, or roughly our approximately XXXX XX

the significant represent company. step announcements Today's a forward for

meaningfully of forward our on progress free of closing the and objectives. our our strategic conversion. I improve flow focusing balance growth strength Following am these look and sheet transactions, by will cash the on the we encouraged the company's to made we initiatives have

With to session. that, question-and-answer open begin the it over the I the to will line. operator turn Please

Operator

Nance Instructions] [Operator Goldman first Sachs. from is question Will from The

William Nance

in on Xx I ask I and the cash balance oh, wanted to ask somewhere all -- go congrats announcements. forma strategic and on at flow. like of wanted to free it roughly sounds sheet to the Xx the ahead pro X EBITDA,

steady-state of is transaction allocation capital are leverage sort how about and completed? thinking targeted Just you the once

Brian Webb-Walsh

Yes.

Will. thanks, So

to And right CapEx provide to tuck-in So that the add to base. that our then basis can allocating capabilities go-forward And on through to we'd get platform a repurchase start current and we products We'd we we think continue consider Xx for the invest is once capital think we to right as would in the acquisitions we consider allocation, our lastly, proceeds. target. share about leverage net now, customer platform.

William Nance

quick transaction? included stranded dis-synergies appreciate any I follow-up, a in for missed just are Got pro and just associated just are of I details this And considerations numbers? it. you I the with clarify, Could costs And those lot of as sort this, if that. or then forma morning. like the a apologize there

Brian Webb-Walsh

of a corporate we'll $XX TSA coverage million first we stranded. and year, remove roughly In the to of costs the the of considered that through there's will in as cost the been the portion all become rolls TSA then get it's modeling, Yes, and off.

Operator

is question next & from Needham Company. from The Mayank Tandon

Mayank Tandon

XX, your at Slide looking I you Just news all looking retail wanted changing in you Brian, there change, just and restaurants ask numbers, the first. Maybe Digital forecast also the obviously for or for just impact to quantify any are that you kind trying segments? see Brian fees. to side digest sure at today, again, the there just the you But to want is could and if of the no the take retail a on it change, of of Banking make the out if is business. restaurant way

Brian Webb-Walsh

Sure, Mayank.

are revenue million So on the for the at if derisked to $XX we're because look services related second pressure you $XXX we've the in half is seeing line million Banking. those and in to the the of then Digital a hardware $XXX And the removing the to million retail in the and bit announcement. restaurants XX, ODM $XX hardware million line, software Slide it plus

the the an is hardware look change, actions. by pressure, at then $XXX perspective, EBITDA rest And the Digital you the to related if million cost from added and EBITDA Banking partially offset is

Mayank Tandon

are it. helpful. deleveraging. the next you the time, around restrictions restrictions or be -- way. the any able of -- do given of you certain of can. sort me What more And question, course just flow-through, to might portions debt you that there where on there pay then sort any Got ask is the delever let not portions, certain That maybe Are down Very clears up. how sort of over the you this

take I time. how over So of that to place want dynamics deleveraging just understand will the

Brian Webb-Walsh

Yes.

of and AR plan and to the $XXX is take So off balance million. the the pay a going is to out A terminate then Loan the which notes portion we're facility, our revolver to and Term senior

we So use proceeds. the how plan to that's incoming

David Wilkinson

the use we on proceeds. restrictions, what how no And Mayank, --

Operator

Summerville Davidson. question is next The D.A. from from Matt

Matt Summerville

XX of between retail you things and also hardware then and in both separately of What's touch ago? days point-of-sale restaurant A can questions. in the And couple environment business side the the from terms if of retail. relative on to changed self-checkout delineate

David Wilkinson

of market or of and a There still hasn't a large the sweat change the Yes, couple much lack is not those enterprise clients recovery longer been things. the of The a seeing the little recovery. change. cycle. go a the hardware assets of through refresh We're

did reason Ennoconn of that we Part did is reduce strategic the the we to variability. transaction the with

on a and in that relevant much it's general restaurant rate probably numbers. And a what SCO across and retail hardware mix we're services, refresh it's of variability focus we're well. just will equal we equal less As become that software in It's on and seeing decline market overall fairly our good and the trend volatility terms pretty POS, seeing. as between and enterprise

Matt Summerville

the And away you all go working does think be just with retain then Digital of and that sale, indebtedness as obviously Digital proceeds? about to of -- and company you'll be with transactional clear is down Or any on the Banking exit does capital the the debt Voyix structure. Voyix's there very want stay Banking? I

Brian Webb-Walsh

retain debt-free proceeds. It's pay Yes. and and we'll the had we it we pay down and -- debt the with

Operator

The Parker is Stifel. next question Lane from from

J. Lane

talked back relate talk you hardware broader that Just decline that market to that and hardware guidance. model to announced the how Can just $XXX wanted in double about just that you ODM related model hardware to the the versus to ODM million million $XXX trends of guys to about? you that's much

Brian Webb-Walsh

ODM majority and recovery. discounted it the transition is the seeing restaurants related Yes. then and given that and of could maybe say across trends retail And I would that, lack we're of risk macro XX% the the to environment more we've and create. the it that the

would think as I it XX-XX. So about

J. Lane

the end a or by that provide And cost of eliminated employees that aspects can color -- the the savings that just initiatives? savings what roles XQ, were were or impacted cost on at little the color. most organization million XXX the of on Appreciate $XX of Understood. then you

David Wilkinson

focused I we're activity as were on clearly described what We in on noncustomer-facing. Yes. roles doing mean, our doubling remarks. down we're that sales we in prepared

cost of we that of in be we we were the the back So really left those. the functions knew would just that and getting getting of a transactions ahead business we these lot X were ahead announced were with stranded corporate so office

Operator

Oppenheimer. of Zaffino Ian from is question next The

Ian Zaffino

then parts that. far talk Just services Anything like outsourcing service the wanted like people? with to the questions I growth to trajectory And Anything by guess agreement? anything then ability side, on -- or other as as different changed new I'll ask the on yes, follow-up. made of X that for or

David Wilkinson

Yes.

our that the selected what XX% piece that look of when at ourselves helps Brian business clearly services So the in recurring. us core is I business with the services pro of clients. our partner that's to differentiate purposefully allow that overall, maintain forma market. described relationships servicing would in We us a a

how did we critical obviously, that IP maintained maintained in -- the selection in -- we or the transaction. So that was and that we how all

to the market look we outside that focus recurring we the decline hardware-only business. And at macro be sales today. some over when almost Voyix installs of clearly less the particularly today, services and this we the on of in onetime don't of services see maybe seeing will of So with some revenue overall, hardware that trend a the go for XX% we're in us, is impact -- service big our actually non-NCR

third-party. it's already So

So the strategy we as been that see the this executing. of extension we've next just

Ian Zaffino

Okay. And on follow-up then that. just a

revenues? that to ratio? work the get side, kind from think, will you that? in every As far slowdown going have you're of into it So amount hardware on incremental so, lose sweating, the dollar mentioned, I does what's or x services, the assets services mean of And hardware services of the we're then might as seeing a you if if return

could want if far ratio upon And you to also then touch leverage and be? ultimate you ratio as like just leverage as where

David Wilkinson

take I'll hardware. service, Yes, the the

at not X-to-X yes, sweat for looking they more up. there's correlation, lose. whatever that hardware if and we assets line say go would is replacement break or a dollar you So longer, a the I I'm services direct revenues the bottom

to and come partner focus services, referral will into on customers play. our Where through then where hardware teams specifically, and where we'll is ODM software a pull where sales solution we that's complete and back will be need arrangement it the focused will the and to

the we in we continued back do I as as see services of the through But half described. look year growth

we're or of services the want out, in at things those separated about you see we've looking do growing both software capital? and services year. Brian, talk we area the As area to back half

Brian Webb-Walsh

Yes.

So point. turns the expect we at at leverage view net of is current and company what the X the seems this

David Wilkinson

Yes.

growth. that think gives flexibility as I options to us turn and we

-- the as we'll January before In Banking ODM will into we these of get year-end the X. XXXX, That described, the take Digital move transactions will in terms to transaction for close We'll model effect going hardware. year-end.

those So look that behind transactions us XXXX we'll and at sheet. gives us, then get a with lot to of options balance clean a

Operator

The from question is Instructions] Stanley. [Operator Erik Woodring next Morgan from

Erik Woodring

maybe announcements from of I the Atleos. of how seems there your all the on like of those? as I of at not growth on to think it the segment of EBITDA and spin the changes you given by share model, kind as Banking moving Digital some of revenue is following morning. pieces, that Congrats XX you but realize are X over segment the some Can Obviously, might even relevant EBITDA margin the growth stalwart guidance to the early and hardware lot How to a months imagine last change. the existing viewed prior this just just this the some margin much, about trajectory details level, shared of a maybe lot thoughts multiyear business. was but business?

a at initially, on be helpful. least updates about multiyear I think would just you have then a So And how any longer this to follow-up. term period, that have maybe over

David Wilkinson

Erik. Yes,

at the of at came were overall, this the at we and line business out and you negative top top look line beginning our you a grower. the year we because of volatility, looked hardware If

transactions even not that mix, these and in Digital included transactions, we we'll growing. foundation believe forma outlined the that new to that So XXXX go off in Brian's with us pro we the baseline these believe We gives of. grow that we Banking were with as the that,

we we when else. -- XXXX. The the will the It think or look the When yes, the to us unlock to we at didn't. it ability growth Banking we around anyone value out sale, market don't Digital the you give a spun surprise is deleveraging so from thought turn So when to the feedback whole value. of would new the we Atleos, perimeter premise I into go exposing and

had value way we had our some that to unlock So to we committed shareholders. in

can into do, we now we of flexibility lot growth delever XXXX. balance us the a That as And look sheet. in gives we

so platform of invest the is product winning. like remaining, to and you ARR those growth ARR the to retail continue really We're single-digit at year mid- shape. When both services growth and businesses restaurant, We look in good in in high half that and back looks software the the ARR are in businesses. the of X in

better we're So services get seeing market, XXXX. to see And cover of in drive the continue strength our better growth, incented as to we mean, as described, focus. to I we'll the teams aligned software true and go-to-market growth the I I think

to detail? want you know more I Brian, give don't if

Brian Webb-Walsh

to just flow be and $X.XX a would a sheet. conversion with billion, a services XX% margin, EBITDA XX% company, going say cash we're primarily balance strong software I free

is business, profile to point, the the the starting profile of the grow off. then a So great forma foundation pro

Erik Woodring

a of helpful. any announced me. your just lot of on any you're feedback exactly moving that's again, of that, morning. customers, with it disruption this you've these helpful. of for you've as just gotten would Obviously, understand follow-up. some you be changes, from And early And maybe that Can pieces what within for maybe Okay. just from us a accounting That's how the then these with risk help don't super any feedback I know partners early And you've gotten customers, or changes partners? if feedback some but both

David Wilkinson

and had Banking, -- solve shareholders. we had Two X Digital this focus core Clearly, things software and our focus got X very monetizing things One on. back thoughtfully. into was to needed finding And Sure. address we volatility value third new We the went and getting better we we hardware into on that this to get a was services. to was as structure. the way costs the asset to

executed X needed So right we that of and said priority. we do all the things we the on to have

So that's number one.

that. against plan had a we thoughtful So

plan the that with that of having employees partners, clients. way look big that the us we of with those with the understand conversations was at allows in the relationships Part the with having the we the of the business structured our how big conversations transaction, customers, our hardware inside you having company conversations terms maximum manage flexibility best. When

and one offer that. allows provide provider disruption. if to service still we to way a that they an them clients that us complete want still minimize support platform end-to-end single done technology to And the can that in can of we solution, the So our offerings we've and

we've to that heard the we've this been customers has with. feedback that the So positive previewed

On think are as the last a Digital conversations morning. into the side, had customers handful night, this customers Banking happy We've of those with well. I

overall, for understand what the doing believe and we're it and positive been that strength over changes, out our So we're in this. really and the why us doing creates the it feedback of has customers coming

Operator

is question from from Davidson. Summerville Matt D.A. next The

Matt Summerville

to compare the is just expected of you I previously revenue exactly commission hardware from what you recognition generation? and want the this changing strategy only contrast sort how were couple manufacturing with -- component and Can a of a and other follow-ups. add just what doing being than

Brian Webb-Walsh

Yes.

taking is the to we're be -- to to be They're So delivering manufacturing. to all going and so is the I be also design going outsourcing say inventory to the customers, setting Ennoconn risk. in what addition fulfilling now They're would MSRPs. doing our logistics. going

and in there's so the the lot now a lot really that's a changing. acting sales change of relationship. agent We're as there's So

David Wilkinson

our side to pushes did design, whole purchasing. party. We further on had our do would step supply we would chain all purchase. outsource Even for We third it of we the one though manufacturing, it supply out and the takes this a chain

Operator

like to turn CEO, session. I closing Wilkinson, over the comments. the floor to David This question-and-answer would NCR for back Voyix concludes

David Wilkinson

you, today. Thank joining for everyone,

announcements today's and on earlier, forward stated I step journey move our and our As to customers. represent both the another shareholders for incremental our company value create

like all commitments. to colleagues our Voyix made delivering thank our globe for on we've the to the NCR progress I'd contribution of on their around

segments to help for serving and customers achieve to the I strategic in like they would also and appreciation to on restaurant our objectives. my them put every us trust bringing day reiterate retail We platform remain our them the their journey. and committed

fortifies base Our I to our both focus in on signing initiatives continued acute our progress provides customers. growth our you. you our Thank new foundation to execution of a from new forward of objectives operational go November and on within our through and our our structure call updating and look strategic existing more

Operator

concludes today's teleconference. This

your You Thank you lines may disconnect for at participation. this time. your

NCR Voyix (VYX) 6 Aug 242024 Q2 Earnings call transcript