Workflow
Aloha sales manager
icon
Search documents
NCR Voyix Corp(VYX) - 2025 Q1 - Earnings Call Transcript
2025-05-08 13:02
NCR Voyix (VYX) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Company Participants Sarah Jane Schneider - VP - IRJames Kelly - President, CEO & DirectorNick East - EVP & Chief Product OfficerBenny Tadele - EVP & President, RestaurantsDarren Wilson - EVP & President, Retail and PaymentsBrian Webb-Walsh - Executive VP & CFODan Perlin - Managing DirectorErik Woodring - Managing Director - Equity ResearchWill Nance - Vice President Conference Call Participants Matt Summerville - Managing Director & Senior Rese ...
NCR Voyix Corp(VYX) - 2025 Q1 - Earnings Call Transcript
2025-05-08 13:00
Financial Data and Key Metrics Changes - Total revenue for the quarter was $617 million, a decline of $93 million or 13% due to softness in hardware sales and exiting $20 million of one-time software and services revenue [28][30] - Recurring revenue increased by 2% to $407 million, representing 66% of total company revenue [28][30] - Adjusted EBITDA increased by 19% to $75 million, with a margin expansion of 330 basis points to 12.2% driven by cost actions [28][29] Business Line Data and Key Metrics Changes - In the restaurant segment, total revenue declined by 5% to $191 million, with recurring revenue decreasing by 1% to $138 million [29][30] - The retail segment saw total revenue decline by 14% to $420 million, while recurring revenue increased by 4% to $265 million [29][30] - Software ARR and total segment ARR increased by 52% respectively, and platform sites increased by 27% to 77,000 sites [28][29] Market Data and Key Metrics Changes - The U.S. market represented approximately 60% of annual hardware sales, with tariff-related costs expected to be between $8 million and $12 million for the balance of the year [9][33] - The company is focusing on international markets, with two executives based outside the U.S. to better understand global customer needs [6][60] Company Strategy and Development Direction - The company is transitioning to a cloud-native platform and payment initiatives, with launches expected in the second half of the year [6][12] - The Voyage Commerce Platform (VCP) will enable customers to transform physical locations into digital experience channels, enhancing customer engagement and loyalty [12][16] - The company is prioritizing capital allocation towards share repurchases and investments in products and infrastructure [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer demand for platform solutions and the ongoing transition to recurring revenue models [6][28] - The company maintains guidance for the year, expecting currency-neutral revenue to range from $2.575 billion to $2.65 billion, reflecting a 6% to 9% decline [33][34] - Management noted that customer relationships remain strong, with low revenue attrition and ongoing interest in upgrading to new technologies [68][70] Other Important Information - The company repurchased approximately 5 million shares for $62 million during the first quarter, with a total of 10 million shares repurchased for $125 million since November 2024 [30][32] - The company is implementing mitigations for tariff impacts by sourcing suppliers in lower or non-tariff markets [9][47] Q&A Session Summary Question: Update on self-checkout demand - Management noted ongoing interest in self-checkout solutions as retailers seek cost efficiencies and automation [39][40] Question: Details on restructuring plan and tariff mitigation - The restructuring plan is sized at $100 million, with expected spending increasing to $65 million due to additional restructuring needs [45][46] Question: Status of payments integration with Worldpay - The integration with Worldpay is on track, with expectations for completion by the end of summer [56][57] Question: Insights on macroeconomic impact on spending - Management reported low revenue attrition and strong customer relationships, indicating no significant pullback in spending [68][70] Question: Retail business margin dynamics - Retail margins were impacted by hardware declines and product mix, but recovery is expected in Q2 [74]