NCR Voyix Corp(US:VYX)2024-03-01 00:16Financial Data and Key Metrics Changes - For Q4 2023, total revenue was $963 million, flat as reported and up 1% on a normalized basis [42] - Full year revenue was $3.83 billion, up 1% as reported and up 2% on a normalized basis [43] - Adjusted EBITDA for Q4 was $134 million, down 19% as reported and down 24% normalized [45] - Full year adjusted EBITDA was $618 million, up 4% as reported and up 2% normalized [46] - Full year margin expanded 40 basis points, driven by growth in software and services [47] Business Line Data and Key Metrics Changes Restaurant Segment - Q4 restaurant revenue increased 2%, with software and services revenue up 7% [48] - Full year restaurant revenue increased 3%, and software and services revenue increased 10% [49] - Q4 adjusted EBITDA for the restaurant segment increased 22% [49] Retail Segment - Q4 retail segment revenue declined 3%, with a 1% decline in software and services [50] - Full year retail revenue was flat, reflecting 3% growth in software and services [50] - Q4 retail adjusted EBITDA declined 14% [51] Digital Banking Segment - Q4 digital banking revenue increased 8%, and full year revenue increased 6% [52] - Q4 digital banking adjusted EBITDA was flat, while full year adjusted EBITDA declined 6% [52] Market Data and Key Metrics Changes - The company added approximately 14,000 sites to its platform and signed more than 650 new customers in 2023 [12] - Platform traffic and usage increased, with API calls exceeding $100 billion, up 35% from 2022 [13] Company Strategy and Development Direction - The company is focused on driving growth from software and service revenue streams post spin-off of the ATM business [7] - Key strategic initiatives include investing in technology innovation and expanding customer relationships across all segments [10][11] - The company aims to better address the mid-market segment, which is seen as a significant growth opportunity [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive growth and efficiencies across all businesses [41] - The outlook for 2024 includes total revenue guidance between $3.6 billion and $3.7 billion, reflecting a decline in hardware revenue [55] - Management noted that recurring revenue is growing, with software and services expected to grow 2% to 4% [56] Other Important Information - The company reported a fraudulent ACH debit transaction impact of $23 million for 2023, with ongoing investigations [61][62] - The company plans to file a 10-K with details about material weaknesses in internal controls over financial reporting [63] Q&A Session Summary Question: Key growth metric ARR trends across segments - ARR grew 5% in 2023, with digital banking at 8%, restaurants at 12%, and retail at 1% [66] Question: Changes in win rates post spin-off - Management feels focused and competitive, with no significant changes in market dynamics [67][68] Question: Drivers of change in revenue outlook for 2024 - Hardware revenue is expected to decline, impacting overall revenue growth [70][71] Question: Digital banking growth expectations - Digital banking is anticipated to grow 7% in 2024 [76] Question: Cash flow conversion expectations - Cash conversion is expected to improve as separation costs decrease [80] Question: Investments in SMB focus - The company is investing about $15 million in sales across all segments, focusing on mid-market operators [83][84] Question: Cost-saving measures and expectations - The company is targeting $100 million in annualized cost savings across various areas [87][90]