Q2 2024 NCR Voyix Corp Earnings Call Transcript
Key Points
- NCR Voyix Corp (VYX) announced the sale of its Digital Banking segment to Veritas Capital for $2.45 billion, plus up to $100 million in contingent consideration.
- The company has partnered with Ennoconn Corp. for point-of-sale and self-checkout hardware, which is expected to improve lead times, innovation speed, and pricing competitiveness.
- A multiphase cost-alignment program has been implemented, resulting in the elimination of approximately 800 staff and $75 million in annualized payroll-related costs.
- Normalized software revenue increased by 5%, and software ARR growth was 6%, indicating strong performance in higher-margin revenue streams.
- The company signed nearly 300 new customers and saw a 35% increase in retail and restaurant platform sites, demonstrating strong customer acquisition and platform adoption.
- Normalized services revenue decreased by 2%, partly due to a $10 million out-of-period adjustment and lower onetime hardware implementations.
- The hardware market has not recovered as expected, leading to continued declines in hardware revenue.
- The company anticipates hardware revenue and related install services to be lower through the balance of the year due to macro trends and the ODM transition.
- Adjusted free cash flow for the quarter was a use of $26 million, impacted by transformation and restructuring initiatives.
- The company has identified approximately $20 million in stranded corporate costs that will need to be addressed following the divestiture of the Digital Banking business.
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.
Good morning, and thank you for joining our second quarter 2024 earnings conference call.
This morning, we issued our earnings release reporting financials for the quarter ended June 30, 2024. The A copy of the earnings release and the presentation that we will reference during this call are available on the Investor Relations section of our website, which can be found at www.ncrvoyix.com, and have been filed with the SEC.
With me on the call today are David Wilkinson, our Chief Executive Officer; and Brian Webb-Walsh, our Chief Financial Officer. This call is being recorded, and the webcast is available on the Investor Relations section of our
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