VYX - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the NCR Voyix Q4 2024 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sarah Jane Schneider, Vice President, Investor Relations. Thank you.

begin. may You

Unknown Executive

XXXX. thank with Webb-Walsh, during the and today earnings Denny and found website, our the on earnings joining fourth the filed that section December the our reporting With release Financial Relations the crocs.com me Good our Retail. the call Investor call section been at Relations and call. President, you [ Investor and [ can the are This which SEC. XXXX presentation are President, XX, and ], webcast ended quarter conference for will our Chief our copy morning, This on have is quarter be Restaurants; Officer; of financials Wilson ], website. of earnings reference Codell morning, we the for A Executive our call this available we of release Kelly, on issued Darren recorded, Jim is Officer; Brian Chief being available

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

these refer additional SEC. reports on release filed place For We to to with caution factors, on statements. information and these reliance please undue the earnings our our other you not

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

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

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

James Kelly

and you Jim Jane, morning. quarter to all like appointed of I Sarah am NCR Thanks, Chief Officer. Kelly, welcome newly fourth our call. good to Voyix would I earnings Executive

know, last of Directors may me gain I XX-month operations, of 'XX, in Chair May year. you new our As keen appointed Board insights my independent allowed stepping followed This before customers the role. by October in to products, period and into of was Executive of into Chair strategy

current view as and a would our largest key point-of-sale our we our our results, for believe strengths. to wanted today record discussing I the the like share of supporting and brands of Ahead observations upon I my my elaborate growth some the fourth strong and retail objectives competitive restaurants. position grocery and to on fuel, has execute convenience positioning, to self-checkout I and have quarter company. I which what company initial track foundation extensive restaurant as software is of Beginning #X in with the and an global accepted

strong years, XX cycle While generally revenue is as is the retention our illustrated clearly these we enterprise sales X for as years. relationships very XX% committed, long last This competitive. XX for over years. Once the by of over point-of-sale sometimes maintain

The second platform. is our

past demands the growing retailers of the restaurants has years, to platform invested the meet around Over significantly in the our X globe. and company

end over revenue. have at services platform this company calls total software wholesale XXX prior represents we XX,XXX the customers growth insights our revenue teens in success connect existing of to real-time increase on paths API from several functionality Further, of access our have additional approximately to The the sites the the an approach enterprise of and point-of-sale We XXXX. customers reflected and conversion. is enables and This a to platform, customers platform. and in avoiding XX% XX% of billion year high

widely been platform for multisite has with businesses. Aloha more available many our on nearly today, operating casual restaurants, a which a cloud for XX,XXX of fast point-of-sale year locations than In

to plans platform of have enterprise we XXXX, customers. launch solutions, in several For two labs which with are

and existing of this enhanced a release to actively deliver prospects are capabilities beginning base with phased We working our year.

newest self-checkout solutions in our in U.S. available Pacific. and of are the Europe parts retail, In launched XXXX Asia in

full expect globally We rollout by year-end.

are in in fuel for and XXXX. followed point-of-sale Our Asia both this in a deployments and the U.S. with release year, later scheduled pilot Pacific by

along As with released sites transaction anticipate to accelerating the we platform existing our our from of market, platform demand and growth. new solutions are suite strong customers, base

difference third service. is The

leverage trained global to uniquely implementation extensive team for needs to positioned are hardware highly offering. and of software restaurants We a X,XXX our store maintenance provide with our service professionals We meet the and customers. of retailers management,

support and Our ensure XX/X seasons. remote the particularly field service holiday teams during unmatched

were transparency these cost bundling beneficial are and services customers subscription. we improve services opportunity. resource And historically, gain annual on fee-for-service we a This payments and While allocation as are an contract, mutually services basis a approach while subscription built a or is our contract. greater drive offering where stand-alone, into And software we efficiency. now are lastly, multiyear

payment and successfully complex to has midsized diverse requirements payment with and executed we the have small the company its strategy meet enterprise of existing the platform. with authorization unable restaurants, third-party While retailers been

nonexclusive enterprise to of X-year we to the meet United solutions our in entered States. beginning such, in the customers As with have functionality leader provide into Worldpay, agreement payment global necessary needs the a a

parallel our XXXX, roll will other this out customers. with markets. the customers. billion U.S. For Worldpay to capabilities relates in offering customers in U.S., enterprise and these which their our to payment to processed we majority these we will later to point launching to work sale, implemented of payments begin $XXX capabilities Once year, existing the of through In over new

I X The product our deployment better accountability, will quarters, with last our to ensuring our leverage I will together traveling to taken the provide to over on the the next and we strengthening service customers on strengths Benny Finally, Denny? and position balance meet are urgency expectations. and update an turn to focus year achieve will call and actions over executing be relationships that, us rightsize plans. the sheet operations on restaurant. to With and core streamline growth

Unknown Executive

Jim. Thanks, signed as and existing platform. restaurant business quarter, new services our also than enterprise than more fourth customers customers, In to software converted XXX XXX our we including more restaurant an the

payment Our X% increased sites respectively. platform and X%, and by

Software stores and In process through ARR their increased competitive a Yogurt division, X% and Land platform increased contract total ARR the enterprise in we multiyear with service a U.S. our to XXX across the X% quarter. won payments

sale and analytics Aloha data provide will cloud and delivery point third-party addition We management. in of ordering integrated online to capabilities,

and while reducing of and software in-store ordering Yogurt enable payment Land and store cost proprietary hardware will solution Our data ownership. to centralize online

highlighted focused As software existing platform. you on earlier, we're converting our customers to

and converted QX, grow their brands. operator example, casual For we enable cost of in International, Chili's to to dining Maggiano's and and disruption continue minimize restaurant a company them leading as to Brinker they

Beginning members with over one services franchisees, Ireland. footprint through an look services contract was services We fast global to this our expand business offering. the incumbent chains We due improve U.K. displaced million corporate Internationally, the business $XX global we this a customer share comprehensive end-to-end competitive increased crew agreement and efficiency support and food with our to process provider we signed employees. their time. to restaurant outcomes across of for the largest for provide and customer in this managed their year,

their this with strong remains to rate attach payments contract attaching payments essentially all our customers new quarter. Finally,

to As turn our to implement aggressively year, processing discuss paid Darren the will our into additional well over we agreement on this we'll base to call cross-selling later now drive was focus retail payments I our performance. enterprise growth.

Unknown Executive

myself the Thanks, everyone. Retail Like Denny. briefly segment. President as wanted of our introduce Good morning, Jim, to I

I Following insight roles being customers the a provided in me excellent appointed in NCR into company, career International its of XXXX. November before in operations. joined initially a role, payments, and strategic . These President

the to to turning our quarter, than our nearly additional more XX leading Now signed performance. XXX sites. In retail business fourth customers,

XX% by ARR increased by software increased X% increased sites X% platform total ARR quarter. in and Our the and

large to the of later desk our agreement Further, with expanded their Europe enhance in provide example chains will addition year. customers. support solutions renewed platform platform upgrade existing to for services to and to point this in and our an As execution, platform value-added grocery sale of self-checkout these our two we U.K. we and help

new X-year Japan with the to contract our national to a chain solution footprint. a in point-of-sale grocery signed connected store provide we platform Similarly, across their

including the month, earlier expanded hardware total to contract renewed world. we support, in government a catalog, a receiving, Defense sites will of million. software nearly sale and around ordering, maintenance and Finally, to we pricing XXX agreement, this with announced military for Agency as long-standing Under $XXX the relationship value we addition provide a point Commissary of

move we will expanding call As renewal at through on Jim that, winning Brian. focus with the time And our to additional outlined, and turn we agreements Brian? of as continue will customers XXXX. the over existing I to

Brian Webb-Walsh

Thank you, morning, good and Darren, everyone.

provide fourth update brief hardware our quarter would discussing Before performance, the like ODM a implementation. to I on

Our Ennoconn replicate team operational become our the transition. ensure very technology is to closely infrastructure are in no disruption details fully of agreement our can working needs the the to before to Ennoconn ODM through and there customers.

Exiting in expect of full to guidance. to the we hardware hardware approximately operational. continue will our such, XX% will composition XX% from is most be year to which improve once revenue As our recurring ODM XXXX, reflected and recognize for revenue

has reductions and software contribution addition implementing we QX. and are certain As company's XXXX. in part software The our the composition $XX by recurring. licenses XX% will hardware, we exiting to revenue are these which services, our to improve onetime related cost to totaled of certain further recurring onetime items for continued million This offset shift services to model been profit in

possible to end-to-end We primarily software restaurant customers. are quickly continuing retail deliver recurring committed as and services our to as to offering an company becoming and a while

these financial impacts included the the year. The continue the However, revenue our fourth Atleos the countries and exited, adjusted all reported exclude in normalized be reflected These to full EBITDA discontinued our countries year half we to will operations in we'll exited for on to first from remaining expect the quarter XXXX. historical are 'XX our relates [ financials guidance. be ] Once for during results it countries periods. as Lastly, of measures, and two this

the For sales. reflecting XX% due reported revenue million, hardware normalized was in was revenue $XXX and million, weakness the expected decline a quarter, to $XXX of

commercial prior the services agreements terminated million to and due impact to period with million Altleos. X% of now NCR declined the Software revenue $XX $XXX

these driven revenue and Excluding agreements, streams. of X%, hardware maintenance, the by and services revenue our Software growth from impact platform payments increased

in revenue and which Software to due of $XXX onetime by offset the primarily platform million agreements. was X% due decline license revenue, revenue revenue our from payments previously million software Services streams. revenue to year-over-year perpetual $XXX to partially flat commercial a decreased mentioned was

services these hardware which the increased revenue of agreements, impact revenue. X%, reflects in maintenance the Excluding increase

margin as XXX $XXX largely increased to in to adjusted XX.X%. quarter Adjusted in noncore significant the approximately basis cost digital improvement impact in stranded EBITDA expanded million. banking $XXX EBITDA executed XX% $XXX driven was the million exiting XXXX as increased actions in-year a fourth of the year prior to result XX% company This million the of Normalizing for points costs the businesses. of by

As approximately of quarter, the increase year. the end our of platform, the on prior XX,XXX sites XX% from had an fourth of we

respectively. Software total ARR increased X%, ARR and segment X% and

to and revenue basis results the improvement to by to EBITDA Total revenue our hardware efficiency revenue million, Beginning X% increased segment X% coupled payments our This points XXX Let's increased services Software million driven quarter. increased Adjusted with hardware. turn and segment XX% X% margin expected due million and the decline growth. expanded XX.X%. to $XX to by to with in initiatives. software for $XX services to revenue growth, maintenance $XX declined restaurants, was million as $XXX driven

to Turning retail.

X% of was $XXX expected revenue. due revenue while segment sales. decrease revenue to by while as increased X% software revenue XX.X%. in our declined maintenance expanded decline license million, combination the growth onetime growth XXX EBITDA million This the in to services $XXX to decline software Software hardware in Adjusted efficiency revenue reflects a million. initiatives. XX% services declined growth million driven to in services The revenue $XXX reflects the Total to basis improvement margin increased and $XXX to XX% hardware points

corporate to and banking for related quarter. XX% excluding Adjusted we spin expenditures was other the $XX $XX considering flow in unrestricted reflect and anticipated year, decreased quarter a to decreased cash Corporate this rate initiatives cash for other the the million initially dis-synergies Lastly, of before tax prior digital strategic and conversion spin pertaining the sale This represents When XXXX the from and restructuring. nearly of other lapping We to $XX million expenses restructuring digital implemented proceeds XX%. free expenses million last payments XX% related of banking $XXX initiatives. when These year. million. cost impacts normalizing the and in results

based planning in to $XXX of ended and We our quarter on XXXX based which million amount turns $XXX adjusted $XX the was paid X.X updated pro million, estimates forma have have of tax lowered with on net We leverage of the QX. EBITDA. million

During shares shares million the our program. the million for under quarter, in million X total. we million $XXX repurchase completed In X.X purchasing February, repurchases, approximately we repurchased $XX share remaining

As we XXXX, our we at net below two turns. into to move leverage pro expect maintain ratio forma or

will and As both of in preferred repurchases share and prioritize allocation we we addition the investments platform in common cash related cash. consider with our products considering future flow, to excess

outlook. Turning to our

of revenue. guidance revenue inclusive providing hardware are We

to in point time go-forward basis. commissions guidance As the half discussed, become only expect the we a the to second which will at of some at the our Ennoconn we reflect related update on year, ODM effective

As billion, range to from mostly hardware, $X.XXX X% $X.XX a X% presentation. shown of which to decline, as by Slide expect we XX the driven currency-neutral reflects to billion revenue such, on

increase adjusted representing $XXX range million to Adjusted range Currency-neutral is to single to from EBITDA margin expected software single expected are digits adjusted XX.X%. onetime and software high in to EBITDA commercial for expected XXXX. ARR to core sites to revenue is and from grow services to XXXX. services million, the ceasing Our in agreements an in to agreements and XX% $XXX Altleos of with low XX.X% increase XX%. mid- is and platform both expected terminated digits

Our not the mitigate can and the the tariffs extent any regarding current impact of include outlook uncertainty timing the which and given pending ultimate does potential structure the to the company impact.

expected accelerated excluding when between to digital reflects is be is rate restructuring and XX%. be and cash share tax per weighted proceeds. flow conversion and million and million of shares count million $XXX the approximately banking free $XXX year to digital on of for share investments funded a Adjusted fully $X.XX. $XXX to This being product $X.XX of expected earnings sale of expected diluted to rate average between an the Non-GAAP unrestricted banking in adjusted XX%. XXX diluted taxes based related of million XX% an $XX by million million This the $XX is

benefit working XXXX. inventory anticipate the business. now include capital the inventory the $XX inventory adjusted expected does million payable. was anticipate support ODM of services $XXX impact Our comprised which us guidance parts will free and ODM of goods benefit in XX% cash approximately the parts At of total Once to when $XX we with remaining of positive million, taking as flow transition, unrestricted not account from we $XXX transition to service and million year-end, will of to primarily The finished is Ennoconn, raw service our flow transitions the accounts into company cash million. remain complete, a materials

revenue is customers of first some due significant a to largest QX prior one in hardware quarter. to period. I'd refresh expected year our in the the mid-teens Finally, to retail from provide on like the color decline

adjusted results, to actions expect reflects teens growth EBITDA We XXXX. versus QX which reported demonstrate cost high taken in QX XXXX

over to Our to our initiatives. sequentially addition Operator? the begin turn of go I normal EBITDA will question-and-answer is the With the adjusted revenue the as year, call timing reflecting through cost to and seasonality session. expected improve that, in operator we XXXX the our to

Operator

be first now from Northcoast Mehta will [Operator Instructions] We session. Research. conducting from The is Kartik question question-and-answer the

Kartik Mehta

could seeing could could opportunity how Maybe and you maybe on of in forward. just seems you benefit? the start agreement announced. full think of benefit you for be of you on timing elaborate like just take It significant that could a of if long you a achieving when that the terms payments that Jim, that going kind

James Kelly

last move that Yes, prior a payments in it CEOs is I bringing as two the has by billion good prior into or you number. a actually support $XXX I saw you the was -- capabilities, heard could over to Unfortunately, restaurant last comments translates support different ago, of the It issuers fuel the not Mike, know, software, just because complexities did over significantly the been aligning think other as several the space. just probably payments in Unfortunately, have complexities ] billion given XX transactions. organization company but made, not the retail big [ XX years. with the platform JetPay and or while could the the of it restaurant

of ] be to accounts live And the currently in is with some of summer be expectation JetPay customers the will end said, advantage their before out system [ to as to the as spring . in at conversion my latest selling also, operational, I prior both on early So as addition, will could to as next soon new Worldpay. the as by are retail is -- it the migrating that America going take because footprint -- this be And provider that start then then regions. two the of and which markets probably domestically. start Europe, the we'll the the to will migrating rolling we're Latin start

And of had previous to our revenue million go in give $XXX EVO, of magnitude, billion an if and -- about we just close my to you to did volume. we you $XXX company, order back

product of new of great base with us months. as customers. well get been our along to I So as sell have Worldpay they in sales think achieved that for our terms enable this will And is the worked this this of as to partner to is And We've to that and agreement number to work on services completely said, previous. multiples an into size. has have a I fortunately, one company. I It's revenue for a would new a again, liked source with think this

Kartik Mehta

two a think follow-up, you obviously role as you, of on take can the for advantage at of new kind that. just Darren, But you you've I was congrats or business, wondering as a And one looked XXXX? in opportunities

Unknown Executive

the there's models, well next huge for our generation across of question. the Yes, potential. to kind space recurring solutions revenue a kind untapped markets. all especially fit The Thanks opportunities is real services as of our and in

quarters, of a through state didn't in are of which of significant services hear product, in now, our customers implementation also why the pretty we is announcements quarter. of some got our our terms opportunities any But I couple opportunity. line name pipe them next next both that over but the we've product going of which you'll in think the include So number next-generation future

So -- year, and payments There's too. plenty opportunities there. then bolt-on the the in later of functionality channel

Operator

The from from Will Nance is next Sachs. question Goldman

William Nance

services that I these the First is would the about just generates what talk arrangements structures to remaining do of cadence Could that, drag exiting the you of the year. outlook. time? software the tough on software question be hear you about compares licensing? total revenue? on the How licensing over on exposure sort of think and a exiting how And you the long this for

James Kelly

question. for thanks the again Well,

a that I is think we're we're what heading. laying out direction

script, said that So occur end, look a model sold was was year, both to perpetuated seems ago better the forward, reasons sign on be company, and a organization direction it's it that them it's kind will the the have up sight. I've better licensing sales impact And we're likely for we the long as around for years subscription case. what the going this us. to in Darren better But Denny we the the through would Because that for and pro been so has onetime previously. is there given and of place customers NCR forma just what we it be as stated of in will in we that some would in be obviously, for script. basis the itself we for the like time. that line was that the

his going existing of last customers bigger more But impact. started forward. The just stance this even why prepared going going comments that's underway push identified company And already Brian in the we're direct to forward had with make take a aggressive had customers. we're the going to and a year, and path. this David and new

not impact. has So obviously it's it number, a large but some

to I think Brian this. wants add to

Brian Webb-Walsh

mostly onetime I we left there's would if just but it add that execute of of software probably $XX we're like at to, think year, gone. we the software, million to $XX million will license still going the revenue end be

William Nance

helpful. That's it. Got

So presumably, these to is think, you $XX outlined than in today? the drag continue million things, the, XXXX lower I that if exit you

Brian Webb-Walsh

Yes. Agree.

James Kelly

this selling occurred you at technology the ODM spin, the have end efforts If restructuring of would look ultimately, but want to gotten have last we of done way after what's year, was by banking the lot year, a we challenges digital the liked some side the being well this our to and customers there's to now a change. no as software of see going to those repositioning how But make impact the be this implemented going company the aspects steps that we're sure year. product as business other forward, are and on sales

William Nance

it. Got

sense. That Okay. makes

Okay. And then the outlook. question the on hardware was just second

hardware. quarter follow-up gross the as outlook. on there's deal like-for-like understanding some for outlook So a share revenue And way first to there previously? Is the $XXX million about pro gave we net on think the forma outlook how basis the revenue for the a ODM could to you compares versus of you just that need any on

why calling out significant I a another out refreshes. the Is pretty from tough still happening? think Is quarter called that year? you headwinds this that last first delaying comp year, in people hardware you're

James Kelly

Yes.

and So are you EBITDA, we $X.XX, to metric. forma it $X.XX. first we be we file in up in said take pro at the on the hardware the year metrics revenue, business had published, We ended $XX.XX. said question ended $XX.XX up can gross how that we pro that would targeting we at around forma and the move we if finished forma And the we the the with revenue, net pro that see

margin was XX.X%. about So the

line performed So we said. we in essentially what with

revenue hardware just you for year directly. this think you expected year. because the can XX%. I forma we're held based most we're But the see, of selling of about we about in And if the on we our what spending at hardware look that giving As would say hardware up year, our gross pro midpoint down line guidance, last with has anticipate guidance you

When think are pressure because people year, less general, last this in hardware yes, doing I about and we're year having refreshes.

of less refreshes. year, doing year are large if one think now last lot did this customers we in But this cadence that do customer I the activity had that specifically, Our between of about is QX more their year, QX. and activity a QX spread

us so hardware. And giving a issue timing on that's

So that Darren the last of rate sold the deals revenue that around year we services. ramp our second that and the decline half in lot they moderates software because as Denny through deals in the mentioned, half. we of go second we big year as of and of ramp A and

Operator

next Inc. question from Nabhan Stephens is Charles from The

Charles Nabhan

contract. the is question first on government My

I total secondly, had X-year $XXX recognition a revenue I how think is a the And them? there? you know we Could you timing -- much give if for that already of don't contract value of you had about million. incremental? in it's terms XXX think a said deal how relationship of that the little of us with detail should

James Kelly

Yes.

long-standing it So pretty that have, a is relationship meaningfully. expand but did we

pick so ramp to towards contract and year, this of incremental the it so quarter first see in getting that from end revenue start up. we'll And to starts revenue the we're

Charles Nabhan

quick a just Got guide. the it. on And follow-up

potential initiatives if and coming have the terms you place on could that versus just from any revenue think then a about the should in secondly, impact nonrecurring on remaining as growth, we efficiency And you In year well. touch of margins the in how standpoint? recurring

Brian Webb-Walsh

Yes.

grow and expected So grow recurring this year, restaurants -- nicely X% in both retail to revenues to X%.

and exiting it services hardware talked with we're from down, from we've is the purpose. that revenue. on then so both nonrecurring And coming the pressure all install because just around the onetime the then the revenue hardware about partially the And pressure being

how of that's we that playing kind So out. see

our And of last actions think months about taking first X We've we in that for vendor And actioned involves efficiencies then or that's quarter. And key is $XXX the with cost functions. related we're being is there program been is a X working costs, about XX% other headcount, around this in-sourcing our our finding year, the that mostly then just to and XX% vendors. when of million the vendors.

go And EBITDA as through we the so timing of actions the actions cost that's will the go and ramp and we through year, kind sequentially cost the year. those the improve revenue why of ramping will moderating is as

James Kelly

this Jim. And is

color add to that. to Just some

have do is -- with the years those company, to that to customer opposed that actions over teams lot the I became our base. onetime accustomed So people now existing services a exiting to think, supporting of the as

of implementations. the seeing locations, my I provided feasible for come were or past, said company, to that's And in. in a a the extent the the equipment away that's delivering field you're shifting it's solutions on these think supporting thousands reductions in delivering their recurring comments, in as nature onetime it's as and without multinationals business, in more that's, from software large delivering to some our which I on these are whether of services onetime business to differentiators service, we're clearly a where in one the team our people, X,XXX of and support customers. not people with ground the

had take largely SOWs didn't They because in existing place year, place. last that were we

But we that. So with some it there's this reposition wasn't feasible. a as associated for the then model, and consequences start recurring more year obviously company

Operator

Zaffino from from & Ian The next Oppenheimer is Company. question

Ian Zaffino

guys just . retail and you Can for there? growth expectations the now talk right environment about

Brian Webb-Walsh

coverage. of That's broad Thanks, the globe a covering retail we're terms in Obviously, question. pretty

or active market and hardware on of that seeing can -- despite That both explore their -- So lanes, all one new customers in is And actually territory a we're in upgrade terms interesting, conversations new opportunities adding in solutions of lot on to in the cetera. situation new there but the said, sites, off-line. efficiencies we software zero their but -- outlined, with estates, customers, [indiscernible] also of their looking in terms markets, our very of from out services et to active that solutions expansion. Brian logo existing

flow-through level The type New much to at having be issue in and was self-checkout been probably it's a significant very record [ the both Germany. Shrink a in environment. any last of interest in efficiency. shows, in services on retail of terms So grocery solutions trade to kind York next-gen continues in the Sam's ] and under or

efficiencies lot both there's their interest a helping retailers of in improve So losses. of and their kind

range and -- and the to product solution cover have we lines that. So

I So say. buoyant, . would it's

James Kelly

I add would to that. Yes.

back customers accessing the representative existing the from estate go of in If software comments more XX% platform is coming in And the you platform. on our of look and not at new next-generation itself, -- a but additionally, the and on interested the our customers solutions. That growth more I that. made just the growth both platform to that side. are it's in transactions

here to side. of services part the here again, I a marketplace. As we the I U.S. new talking I services was very for us talked about we of think the And differentiator large significant in was have this RFP walking just of is a business I our that Head around underappreciated or in North customer the that's apart. RFI two, that The very, that's sets And the maybe and the he had not just America, entered previously. a company morning, in combination for is little bit think,

the So technology efficiency is customers, always sure greater driving have and my make we from the has that invested over very our to products. for expectation is those heavily company years.

year Denny little and said, market. in late been begin of can we a Darren, there's to there's that and that some also my of lot a we've comments, lot, them But customers. market this with a coming maybe discussing in as getting to think I

we've of this overachieving year. seen in So we're what just days about modestly optimistic prospect the early the given of

Operator

from Markets. Perlin question Dan is Capital next from RBC The

Daniel Perlin

got which guys are to that appreciate comments your to accelerate? immediacy of the in prepared and you here, the of a that opened you had now hoping you're with there accelerate question like CEO is all remarks. as switch I priorities Jim, change change is to a with the Or strategic that what up in something. suggests back My seat occurred the result, kind given the you management

thoughts So just . hear I'd to love your there.

James Kelly

a been long Well, thank Dan. you, It time. has

think were I Vegas we time sitting you last at the in show think talked, I ETA I or and something.

Daniel Perlin

. Right.

James Kelly

was because actually say? I which left a story highly everybody cousel a had my to because there, there, me, are are what a like, had it's when would I stone, at I going of Actually, was. when you stones to left painful. incredibly a looking lot stone But And I general kidney drink water idea kidney no kidney recommend I what Anyway... sad

Daniel Perlin

take that will I I advisement. under appreciate.

James Kelly

go. you There

broad circling here years. The on not big at on to ongoing brought product You bring was was I'm and The for EVO set to It a didn't software, [indiscernible], it's the enough because in to of many more was something, they not probably though memory. but back there I try a wanted a earlier, the that at conversation so and ask It's it was our alignment impactful to bad investment is in I payments restaurant Mike get very has said it number for stone just Darren side. people. not the thrust as to just added said, Even kidney of us payment We've early than anyway, -- think which just like payments been made and payments business. I very I invest. it's think unfortunate an to been that our question, pleasant. effort

a Worldpay, a there partnership forward to team have going Adam big opportunity. So I been and that the looking think great we're a to strong is forward. Charles, with, and very very work with

some side, will think very as these it retail $X company, as then I you other is, on billion a the the in across our company, know, components with U.S. take And of was the historically, said, think piece I implement large I as markets, it. line top off of we the And other that pressure we lots to think different the

is Now the big separated. business ATM that

do there not all very servicing organizations, base, on have I finite the less enterprise new focus on clearly that. There of of focusing of large or but them close think big customers. probably somewhat the was we nearly a than to a is number

January So base customers. servicing was more and which or and as place the on took sales message the about at more also focus growth. very in but kickoff, much finding important

customers think in factors. mean we're we those behind the some date. today probably have of I combination delivery that So our two I

where also this which So them additional of complete backlog additional we because as of will the that's drive can then first follow as a big it, of think that's you aspect also growth revenue. the of rollout, kind rest and

a think aren't we Unfortunately, number have immediately. this impactful year be I So to start payments of that areas will clearly 'XX. and going into

converted, end that start but As fully implemented as of said, as summer, quickly probably it's the possible. the it's I we'll selling and summer where like more

piece. last One

one lot of that just was of growth, sale But with just I us, the organization think attention I to a going plus and getting and behind is the into that to have what diversion ODM the 'XX, come resources Part a is circled of think it described. banking obviously, that the number we different in executing away everybody took objective. growth not digital going of spin, helpful and from which around forms. and focus, I is of

Daniel Perlin

Excellent.

moment. that payments make side revenues follow-up there The a enterprise clear. just to on you been is side. other payment share I'm sure around want were of did? that in prior maybe understand pay and had being and it. we're I restaurant sure on by Just -- you in question processors Clearly, we'll side, that being But trying the make handled on obviously, the a enterprise of -- process a totality component or have handled understanding I just quick of to the the with the equation. rev the previously on didn't agreement that's them generated the some for

James Kelly

JetPay what acquired. maybe year remember know or was, 'XX so. don't it was I Previously, No.

So the of a that company. was acquired public entirety it. They

was share. now traditional by structure there So a company. kind that There of the ISO was rev owned wasn't

payments I were were think, software Voyix. divested That in, NCR not of they So those was the were divested all customers was in business. that accounts 'XX. But that

were company. So payment pre-existing of the of stayed with space the the sold the customers, the platform, the authorization that with were those rest infrastructure together JetPay customers

not And so someone we've that new third but continued the to rev a would agreement. was it is be to was a share structure in and else. fee-for-service now with payments. you party, It because share a It's have there just we're no expect. utilizing platform what rev do sold We in ours, used a third-party to basis be

authorization an system. to only limited it's Dan, And

So kept. company of the the rest infrastructure the

have we And you leverage cost, variable in the fixed so low payments, costs. expect would that cost, high fixed

So we have cost. fixed the all

just transactions we that more fixed is the the company. put So incremental to cost margin over

Operator

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

Matt Summerville

questions. of couple A

of like, everyone A ago, months their million I'm was need First, ODM. right, now for adjusts number the this this end hardware. year. and sure the We're majority on again. models is clear in models, where you I take [indiscernible] sort it basically of to few make like going of the put want of to going done to the year to $XXX have now need readjusted sounds all the kind cutover cutover by to net the

me of understand or So then initially Help And transition? events about have what took maybe what this kind a misunderstood was place I follow-up.

James Kelly

Okay.

wasn't So as but Executive was directly at it Chair I the here to time. the me,

was with done last I Japan to there that for described, And I half expectations was our minus the some was of as the big the of to assuming this projects to and you're is going I'm still interest done, call, that's would by know were primary about and was discussion extent, Pacific sale of this our create fit $X.X that internally the business, to questions I service. And on that the you same And completely of my was wasn't needed that year. going is and a market that European to billion believe big expectations, ODM. set for is ready part end make yes, So do in uncomfortable Asia the transparent nothing the get ahead The -- we or that be at that need And that just it. digital on launching the and banking with a but right. for absolutely position previous two this business. obviously, time, customers, all sure because we them. the thing or it concerns the

system I in I be weeds, able SAP is not -- system. facility. SAP complexities an but distribution system, that to our an the warehouse in think, around of the out the customers to mean, system was out center, Nashville, sufficient their servicing as not in Oracle which turned able the the our challenge manage the get largest The Nashville over time is, to And U.S.-based system to provider

a third-party they've pulled believe them being acquired that's package And so I met couple weeks they using that a have already ago. of and and back. implemented. with They're now

in did kind we would just care have confusion, it of also as create half. you So want halfway, you to we we care dearly we pretty in our to guys customers as guys, about could importantly, obviously, any gone it but and to more about split much confusions more regard. that not But

just first I So think we're the one hedging. right. the exact timing, We get didn't

too, again, disruption And into want tested and So to that the piloted and to take tested sure we're to make I going hedging any to don't company. we've that well make tested and the have that and just tested it's we summer. sure

you the local Chairman the that we with company, is disappointing and ago. disappointing the well. Ennoconn CEO that is still we're have and weeks committed. as and heading. a to I put couple direction still fully saw very It's you And the piece, you. out, to said met I us what as As of yes, net extremely leader, The it's

going as employees tell we've one that that are now thing they mix I of tied works our for that because them me, and we think a something and mean, that that thought excuse supporting well had in kind all up the to organization of I else. business, was sales customers to this have are happen, number too --

we party most didn't little go customers. a done probably for to these for and going of in them here don't banking, or smoothly they into a our particular, and pulled year is this What's year. next problem important transactions rush bit create of out our for that together out responsibility ourselves haven't for and the with take be I in third mean we we They're they balance digital the probably So our through either. another just yet partner. it that get But infrastructure -- like

Matt Summerville

helpful very That's color.

I follow-up, a wanted touch retail and market on the as to environment. Just overall

that And particular sort for of this if wondering disruptive type of Specifically, of cycles disintermediating they can. historically to not North front disruptive America, increasingly business. to I is software and the, the move least one kind the at of in-house, They're retailer. extent unbundle that here is of sales completely some we're become largest bringing guess an if has the I'm unheard to hearing storefront behavior the retailer in looking which point-of-sale end to of

you of extent trend? disintermediation sort is the can to a give Just and insight color whether broader this and unbundling, this a becoming little into

James Kelly

from I but to and can amount have experience merge, tremendous the add this. of I've watching movie, David heard stories this [indiscernible] a and Unfortunately, don't here. Darren others

at have and -- do, their as they're it's same I larger, And systems, investing think something they I millions some necessarily of in it and -- companies have done we're X% support get at the technology else. in constantly. retention in to it the some we it's to And think And and do. changes or CapEx I OpEx feel comments, as not cycle hard. systems it think time, to seen here. But as just successfully. And This done either of it's year, to mentioned maybe they every space. build way. though hard build is my single hundreds XX%. life at support worthwhile do extremely It's and that experts I think something they that tangential attrition this of what I've this rate what do They representative is new obviously, have

we've us it people. done examples and of know have I we need happen I of have like the think So you that reach we XX,XXX provide. can recently and But that who companies there talking for that case. are who to I clearly be had there's don't it. that also directly. mean And that expertise the more described, those you're examples out When situation about the

it seems to We of in making easy super understand are the plus off. professionals These hard consumers complexities the is have who point to that just highly us work X,XXX how skilled actually it what alone engineering at as of team. sale, people product the pull

from I their of to And I of to amplify that the I'm accounts that to heard European that their them heading heavily overall could sit their company. that case. yes, can on the couple biggest a next-gen indication month, next ones, as actually here in weeks, our of next to is today, Darren we And large have one I large anything this, be talk any to next that solution. solution is of the to us stores. of is don't our deliver don't month. So how accounts, some things guess, we any have week relying to one their important the point-of-sale U.K.

trend. I Do could I see happen. Yes, let Darren add with this. I that to trend. be So wants also think it. a it he I'll if But I'm would it's new suspect be will to a

Unknown Executive

that's a a it's Jim been then down of have self It's are form extremely that acquiring I have many said, is as to many out extremely they back actually because extremely that investment heavy. national as want retailers there as And as acquire, and and realize reversed that have some it is, path. But costly. pulled go wanted trend to multinational will self-serve. large it number, very you where reality repeat the retailers think last done in can in decade, is they the -- limited self-process that's and it, or

I us. services strength for the some and think real points kind agenda as the we are next-gen software signposted of

many or solution, software Edge actually unique enabling applications. third-party So have of our outsourcing workflows Equally, XX% our environment. software about called retailers help changing hardware infrastructure. through and a we their a a if product desk they're to entire are Edge are actually, support

I So looking, many are solutions. retailers shrink about as said,

So inadvertent capture fraud. or using camera deliberate to systems

face, fingerprint payment retailers solutions, et biometric looking wanting type Some are at be that cetera.

we enabling that, do is don't they journey of seeing. take. to as be platform that limited that in-house expensive debt, challenging. and if material trend terms and I we'll that stuff solution think unique need whatever a they some be partial see take trend our support edge our kind in it's them of even But but pretty will to To And cases,

James Kelly

Yes.

to because and for which platform calls specifically a customized. last solution -- to application applications back. is heard it's bespoke legacy think can the customers from differentiated development about know that how with you very which customers, way, the hear add specific going on-site Just in as still only that maybe don't other The points. your a I we so that opposed you works platform functionality was have many lot also that many where two I you've -- But

to a to complex. to it -- Moving new increasingly get features added becomes trying

a next solution have So our now similar as without we cloud pursuing generation. for

changing. customer just a -- I bespoke who will retailer because a saying, as technology is disappointed or them, who Darren think we'll constantly was think it I to builds be

have to market. embrace to that comes the flexibility need newer technology you the So to

Operator

next question is from Parker from Stifel. The Lane .

J. Lane

on put to that getting target, what exceed place there's on under if Jim, base to or out leadership achievability the of in I is a about there of installed target the meet the stepping prior that here you've had XX% platform your of any of you looking of was updated the by the initiatives into platform? wondering, target view with on role, you're XX% pace

James Kelly

to target. or that. something about that previously. don't When I heard it's I've I make XX% want of a to Yes. It's the to only offered want me no a yes don't they not position say

platform. which the of pace on the XX% think at growing I we're

the of X that another context platform the reasonable in of XX% years think years. is I onto or base customer our . in X

Yes.

me be to to seems reasonable. it think I

the as earlier, model history think Global, And EVO is executing here. been at and The here investments. has now. right years. I buying about that's been have It's both that investments have been the companies, been over entire I have -- model said think the investments many focus those I there's my on not made

challenge really we'll have. it's So And a about now that that's executing.

don't of expectation I that setting. out so as And see line for

Operator

is Morgan The question Stanley. from from Woodring next Erik

Erik Woodring

business us of to obviously, Jim, realize you this most call sure just software this and geopolitically. it but I dynamic, can of the at the missed call, is very And services. let's not if market I'm First -- one, shifting very help I maybe top understand it, remains just

risk there. delay, the Just think tariffs of ODM kind the do with we around of how transition

And Just I about help any a that? think framework have if at how that us provide quick there can follow-up. you a just to is risk Or then all? .

James Kelly

a and it Is that TV. night got out I him last into I sounds was again home when stretching on watching late like TV dinner April. I heard say they're Yes, after what

Erik Woodring

just minutes March Canada X, a said Mexico, X. start ago, just of March on tariffs You today China, additional XX% couple

ago, a like I which was the asked. this few minutes So is only reason

James Kelly

Well, here. on I don't have a TV it

have So ability the I didn't in comments, to single Brian, I that. at see looked said think, every our haven't of X -- generally contracts them, but his Look, in if -- as And I -- speaking, will is the I I on. the think good to way. hardware for margin for very pass those to news not because us. the able that's mean business a customers low be feel customers same we

politics or about with associated of we in speak that tariffs a absorbing XX% So business I want I be don't of don't think to to anything want nature. the tariff.

morning. sounded like I guidance think that that we're than changing made we'll -- if it, -- position more was Like result -- or it as I this we'll and then it taking for night, and But it update a guidance said made either of address comment the was otherwise. happens, what now, April. see a right we'll it taking sounds last wait like

we happens. -- we'll a a new This is had administration, so figured [indiscernible]. I see So what

Erik Woodring

understand. Totally

having else reported in just some And should can I thinking longer I'm understand anything I of there on it perspective. really ARR maybe and kind want completely term, about that those these appreciate of one-timers when to platform to a back of of just you bit path greater to and of single about then the latest all directionally adjust rates get better converge Or little little but growth kind -- kind we up the more. we relative relative just on low Brian, mid- the sites, us a When kind of growth point? subscriptions increasing ARR of, of the single monetization. layering platform the in growth is revenue just holding about the to When Just sites? to for expect get software kind you're and Is services understand. bit again, maybe actual you maybe, the help the that is success digits that's just to high in think looking and digits 'XX, licenses.

James Kelly

I'll then take not all in have of a them and field. add. we Recognize X,XXX the that piece that Brian people, can of

building have lot people. time of that. A are and them X,XXX to We services

Part So that's that of it. that there's aspects but addressing. a subscription, model is other to we're

on the we address how pure just I for aspect. an than you that we we're in effort that is compensated faster. the at look to and more software, to much you software from commitment revenue make side, how of if growing really coming service the want impact don't relates has much, site. That fast service of The the business our software If add? customers at our know terms to issue

Brian Webb-Walsh

the I agreement recurring. when be ODM would say we'll positive the live, XX% is just goes

today we with grow recurring payments NexGen continuing this X% that talked X% expect to our to year. about platform, We our products.

smaller. help of So things a is that lot nonrecurring forward us going that there's becomes

James Kelly

repeating because I outlined payments, side, but of came number software and are on from not again, payments have I again. as the years, And payment a for

And These into you growth. multiyear others that would will expect to that significant space. the so accelerate and overall you'll help the are in revenue, another ARR contracts in industry driver of our enter I just see payment similar

Erik Woodring

the the trying relationship Is how volume. Q&A $XXX that customers the of about it were processing here? of revenue, should in we kind that, What follow if be that's be of $XXX talking billion you're is in million that compare we we when that's thinking maybe making having Was I close you the POS. Jim, $XXX Voyix that kind of on again, point very to -- about how think up top to but could do about you And earlier the were should at of at call, you talking to billion just about with quickly. here fact saying not should the your kind XXXX, were NCR the

James Kelly

as seen large billion payments customers the it number. our much the probably we're at rest and a billion XX very big rate. untapped And global JetPay more largely these transactions of would place, about smaller they could revenue $XXX them margins if at story, in think margins. is think But oriented with again, is is [indiscernible] more it and merchants, Global. larger happy those idea to billion be we're the are today, business thinner that year at Don't $XXX would the is be had small, that of more are Yes. the a had a almost We of idea have mix mix large a or what I but restaurant where small We than put at of was number, EVO. of big I -- a into XXX%. was

the capabilities to that on So a application customer, same the do within every new not time we payments couldn't side. win platform, have we retail there or attached it, we unfortunately, that because were

all space, advantage those capabilities, of. and a can leader now is have take Worldpay because in now they that So we

be a payments, as early is not I to a U.S. they expectation to spring end going and But we to have as Now just the to long of new there's even but can even replace we we the the worked converted hope look and access billion for summer. to starting payments that for retailer value for earlier, the is of longer. business us at now by we're We But point will customers, U.S. to up to other it's what that an as restaurant sign only base payments. offering we'll our do going doing experience to again. have in will have throat or economic be to that my when to offer it. base the living, open talk different over, software The we've number entire is footprint. deal capability not think, that them can pay we system. or markets we time we're for or And then we that's so out, effectively the think $XXX to have speak. new to that The about up complement one had in the price allow at them players that double that get the choke, be it. sell to well involved It's customers better we the the as to so just their XYZ, I two as when not customer. a then asked the you can And a don't fuel, to sell to services, for offer take but whether have viable, They as economically customers. the the

Operator

There turn Jim Kelly this would are over I at closing further floor time. back to for comments. to the no like questions

James Kelly

and for for you thank continued and us good operator, interest in Have Voyix. all a day. you, NCR Thank your joining

Operator

This concludes today's teleconference.

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NCR Voyix (VYX) 27 Feb 252024 Q4 Earnings call transcript