The following is a summary of the NCR Atleos Corporation (NATL) Q1 2024 Earnings Call Transcript:

Financial Performance:

• NCR Atleos Corporation reported total company revenue of $1.05 billion for Q1 2024.

• Services revenue grew by 8%, driving a 7% increase in recurring revenue to $763 million.

• Adjusted EBITDA increased 11% YoY to $162 million and diluted adjusted earnings per share were $0.41.

• The company generated approximately $69 million of adjusted free cash flow in the quarter.

• Reduction in the net leverage ratio to below 3.5x.

• Despite pleasing EBITDA growth, adjusted free cash flow remained flat due to a $19 million cash payment for debt.

• The company anticipates a total increased interest cost on the debt for the year to be $290 million.

• The company is working towards a cash flow conversion rate of 25% in the first half of the year.

Business Progress:

• The company secured 12 new ATM-as-a-Service deals, including their first one in Hong Kong and now supports clients in 12 countries.

• Won key contracts in cash-intensive growth markets such as Mexico, Egypt, and Turkey and added a second large U.S. bank to the deposit network.

• Extended relations with CVS and 7-Eleven Canada and notched high FinTech transaction volumes.

• The company introduced an AI-driven tool to improve customer service and implemented productivity initiatives for cost management.

• NCR Atleos is on track with the separation from NCR Voyix, expecting full separation by Q3 that will enable further cost savings.

• The company successfully launched a partnership with a leading gig economy payment solution and activated the first retail deposit locations in the U.K.

• Plans to reduce indebtedness quickly, perform predictably, and attract new investors. Unit scale growth for Self-Service Banking expected to drive total segment margins improvement.

• With their ATM-as-a-Service model, they aim to target 30,000 units by the end of the year.

• The company is considering instituting a stock repurchase program as part of its capital return strategy.

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