The following is a summary of the NCR Voyix Corporation (VYX) Q3 2024 Earnings Call Transcript:

Financial Performance:

• NCR Voyix reported Q3 2024 total normalized revenue of $708 million, a decline of 11% primarily due to lower hardware and hardware-related install services.

• Normalized adjusted EBITDA for the quarter was $101 million.

• Reported and normalized software revenue was $245 million, a slight decrease of 2% year over year but increased 2% when excluding a one-time software true-up.

• Services revenue decreased by 3% due to lower hardware installations.

• After the sale of the digital banking segment and related asset disposals, $1.84 billion was used to pay down debts.

Business Progress:

• NCR Voyix completed the sale of its digital banking operations, resulting in $2.45 billion in gross proceeds, part of which was used to reduce indebtedness and improve the balance sheet significantly.

• The company anticipates the hardware deal with Ennoconn to become effective by year-end, transferring certain transitional services until fully operational in 2025.

• Continues to convert enterprise customers to its cloud-native commerce platform, with significant platform site growth in retail and restaurants.

• Plans to restructure sales teams and implement a revised incentive compensation plan to drive new customer acquisitions and expand market share.

Opportunities:

• Continued focus on strategic investments using digital banking proceeds to accelerate the launch of next-generation cloud solutions, aiming to capture growth opportunities and enhance software offerings.

• Initiatives to expedite contract renewals and legacy software conversions to cloud solutions were launched, aiming to boost long-term customer retention and revenue stability.

Risks:

• The company anticipates a continued decline in hardware sales, impacting associated service revenues and overall financial performance.

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