The following is a summary of the NCR Atleos Corporation (NATL) Q2 2024 Earnings Call Transcript:
Financial Performance:
NATL reported strong Q2 2024 performance with total company revenue at $1.08 billion, led by 7% growth in software revenue and 6% growth in services revenue.
Adjusted EBITDA of $193 million, margin at 17.9%, benefiting from revenue growth in self-service banking and network business.
Diluted adjusted earnings per share were reported at $0.81 with $16 million of adjusted free cash flow generated during the quarter.
Business Progress:
NATL focused on increasing its ATM as a Service offerings, showing robust growth with ATM as a Service revenue growing 31% year-over-year.
Expanded transaction types and added new network geographies contribute to growth.
Introduced deposit acceptance for the US's top banks and expanded with Navy Federal, boosting deposit transactions by 170% year-over-year.
Opportunities:
Expansion of ATM as a Service in North America shows promise with strong customer interest and a backlog of over 4,000 units.
Broader range of outsourced services and more robust network infrastructure capabilities to deliver higher yield returns minimize capital intensity and maximize profitability.
Risks:
Some large unit opportunities in low-cost countries like India not meeting return expectations, impacting growth efficiency.
Global economic slowdown and geopolitical risks introduce uncertainty into financial projections and macroeconomic conditions.
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