NCR Voyix (VYX) Conference Transcript

Summary of NCR Voyix (VYX) Conference Call - June 10, 2025 Company Overview - Company: NCR Voyix (VYX) - CEO: Jim Kelly, who has 25 years of experience in the payments industry [4][3] Key Points Discussed Company Transition and Financials - Jim Kelly has been in the CEO role for over four months, following the company's split in October 2023 [5][4] - The company divested its digital banking business, Condescent, to Veritas for $2.5 billion, significantly reducing leverage from over 4 times to between 1.5 to 1.8 times [7][8] - The company aims to normalize revenue volatility associated with hardware sales, which have fluctuated due to past inventory issues [8][9] Customer Relationships and Market Position - NCR Voyix maintains strong relationships with approximately 400 core customers, representing over 70-80% of the company's revenue [10][11] - The company has a low attrition rate of 1% of revenue, indicating strong customer retention [15][16] - There is a focus on improving legacy applications and infrastructure to enhance customer service [12][15] Market Trends and Customer Spending - Despite concerns about tariffs, the company has absorbed less than $2 million in tariff impacts and has not seen a slowdown in customer demand [22][23] - Revenue has remained stable and consistent, with no significant declines noted in customer spending [26][27] Strategic Focus and Product Development - The company is pivoting towards a SaaS-based model, moving away from traditional licensing and hardware sales [56][71] - New product launches are expected to enhance the customer experience, with a focus on cloud-based solutions and real-time data [60][71] - The company is not looking to become a payments company but will support customers in processing payments as part of its service offerings [50][51] Future Outlook and Growth Opportunities - The CEO anticipates that new customer acquisition will increase, as the company has not pursued new customers aggressively in the past [48][49] - The partnership with Worldpay is expected to enhance capabilities in grocery and fuel sectors, with initial results anticipated by late 2025 or early 2026 [44][47] - The company is focused on driving software and services business, with ongoing pilots for new products [56][58] Capital Allocation - NCR Voyix announced a $200 million buyback program, which includes the option to buy back preferred shares, reflecting a commitment to returning value to shareholders [73][75] Additional Insights - The company has faced challenges in the past with customer commitments and infrastructure investments, but is now focused on improving these areas [12][15] - The transition to a platform company is seen as critical for future growth, with a significant emphasis on understanding customer needs and providing tailored solutions [13][71] This summary encapsulates the key discussions and insights from the NCR Voyix conference call, highlighting the company's strategic direction, financial health, and market positioning.