NCR Voyix: Digital Banking Growth Leads Software and Services Segment Higher

NCR Voyix’s most recent results show that, in the wake of the division of NCR into two companies, demand for point-of-sale (POS) solutions in the retail and restaurant sectors remains robust.

CEO David Wilkinson said on the conference call with analysts, “With the spinoff of the ATM business now behind us, we are laser focused on driving growth from our software and service revenue streams.”

The company’s software and solutions segment saw revenue grow 4% on a normalized basis to $696 million in the latest quarter and now represents 70% of total company revenues. The segment includes the platform and physical POS technology.

Digital banking products, which enable restaurants, retailers and FIs to transact, saw average revenue per unit gain 6% year over year.

Active users were up 3% to 19.4 million.

The company noted in its materials that 13 new FIs signed up in the latest quarter.

Strong API Call Volumes

“Platform traffic and usage continue to increase, with the volume of API calls exceeding $100 billion,” last year, said Wilkinson, who added that the growth rate was more than 35% vs. 2022.

“Our platform sites and payment sites increased 8% and 34%,” Wilkinson said, led by NCR Voyix’s midmarket portfolio of customers.

As for digital banking, he said, “We are making solid progress accelerating growth for the segment by deepening our existing relationships, selling our value-added services, and creating a pipeline.”

CFO Brian Webb-Walsh said on the call that restaurant-related revenues were up 2%. He said that revenue in the current year should be $3.6 billion to $3.7 billion, down 1.5% at the midpoint, as hardware is expected to decline, due to lumpiness in demand from large enterprises, but software related sales should see a normalized growth rate of 2% to 4%.

Shares were flat in after-hours trading.

Management noted on the call that recurring revenue was 8% higher in digital banking year over year and 12% for restaurants. Digital banking should be up 7% this year, said the CFO, based on cross-selling opportunities.