8-K: NCR Voyix Reports Mixed Q4 and Full Year 2024 Results, Provides 2025 Outlook

NCR Voyix reported a decrease in revenue but an increase in adjusted EBITDA for both the fourth quarter and full year 2024, while also providing its financial outlook for 2025.

Summary

• NCR Voyix reported its fourth quarter and full year 2024 financial results.
• Fourth quarter revenue was $682 million, down from $796 million in the prior year.
• The net loss from continuing operations was $9 million, compared to a $272 million loss in the prior year.
• Adjusted EBITDA for the quarter was $114 million, up from $65 million in the prior year.
• Full year revenue was $2.8 billion, compared to $3.2 billion in the prior year.
• The net loss from continuing operations for the full year was $202 million, compared to a $729 million loss in the prior year.
• Adjusted EBITDA for the full year was $347 million, up from $337 million in the prior year.
• The company's ARR was $1.64 billion, compared to $1.56 billion in the prior year.
• For 2025, the company expects total revenue between $2.575 billion and $2.650 billion and adjusted EBITDA between $420 million and $445 million.
• The company completed a $100 million share repurchase program in February 2025, buying back 7.3 million shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive; while revenue is down, adjusted EBITDA is up, and the company is providing a positive outlook for 2025; the completion of the share repurchase program is also a positive sign.

Positives

• Adjusted EBITDA increased for both the fourth quarter and full year.
• The company completed a $100 million share repurchase program.
• ARR increased year-over-year.
• Platform and payment sites saw significant growth.
• Net losses decreased significantly compared to the prior year.

Negatives

• Revenue decreased for both the fourth quarter and full year.
• The company reported a net loss from continuing operations for both the fourth quarter and full year.
• Full year Normalized Adjusted EBITDA decreased from $407 million to $363 million.

Risks

• The company's 2025 outlook does not include potential impacts from trade tariffs.
• The company's outlook excludes the impact of delayed Atleos country transfers.
• The company's outlook assumes foreign currency exchange rates remain consistent with rates as of January 2025.
• The company's ability to achieve its 2025 outlook is subject to various risks and uncertainties, including those related to its growth strategy, technological developments, customer service, cost reduction initiatives, and strategic relationships.

Future Outlook

For the full year 2025, the company expects total revenue between $2.575 billion and $2.650 billion, software and services revenue between $1.995 billion and $2.020 billion, hardware revenue between $580 million and $630 million, adjusted EBITDA between $420 million and $445 million, non-GAAP diluted EPS between $0.75 and $0.80, and adjusted free cash flow-unrestricted between $170 million and $190 million.

Management Comments

• In the fourth quarter, we delivered revenue and adjusted EBITDA in-line with our expectations, said James G. Kelly, Chief Executive Officer.
• I am pleased with our continued execution on our transformation initiatives in 2024, which included the sale of Digital Banking and significant improvements to our cost structure and balance sheet, among others.
• I look forward to building on our recent progress to meet the evolving needs of our valued customers, expand market share, and position the Company to achieve its growth plans.

Industry Context

NCR Voyix operates in the competitive digital commerce solutions market, serving the retail and restaurant industries; the results reflect the ongoing transformation and strategic shifts within the company, including divestitures and a focus on recurring revenue streams.

Comparison to Industry Standards

• It is difficult to compare NCR Voyix directly to industry standards without more specific information on its competitors and their performance.
• However, the company's focus on increasing ARR and adjusted EBITDA aligns with industry trends towards recurring revenue models and improved profitability.
• Companies like Toast and Block (formerly Square) in the restaurant and retail space, respectively, also emphasize software and services revenue, making them potential comparables, though their business models and target markets may differ.

Management Changes

Stakeholder Impact

• Shareholders may be impacted by the share repurchase program and the company's future performance.
• Employees may be impacted by the company's cost reduction initiatives and strategic shifts.
• Customers may be impacted by the company's focus on meeting their evolving needs.
• Suppliers may be impacted by the company's hardware business transition to an outsourced design and manufacturing model.

Next Steps

• The company will continue to implement its hardware ODM agreement with Ennoconn.
• The company will update its 2025 outlook to reflect net hardware commission revenue upon fully implementing the hardware ODM agreement.
• The company will focus on meeting the evolving needs of its customers and expanding market share.

Key Dates