NCR Voyix Corp (VYX) 2023 Q2 法說會逐字稿

Good day, and welcome to the NCR Corporation Second Quarter Fiscal Year 2023 Earnings Conference Call. Today's conference is being recorded.

美好的一天，歡迎參加 NCR 公司 2023 財年第二季度收益電話會議。今天的會議正在錄製中。

At this time, I'd like to turn the conference over to Mr. Michael Nelson, Treasurer and Vice President of Investor Relations. Please go ahead.

現在，我想將會議交給財務主管兼投資者關係副總裁邁克爾·尼爾森先生。請繼續。

Good afternoon, and thank you for joining our second quarter 2023 earnings call. Joining me on the call today are Mike Hayford, CEO; Owen Sullivan, President and COO; Tim Oliver, CFO and CEO Designate of NCR Atleos; and David Wilkinson, President of our Commerce business and CEO Designate of NCR Voyix.

下午好，感謝您參加我們的 2023 年第二季度財報電話會議。今天和我一起參加電話會議的是首席執行官邁克·海福德 (Mike Hayford)；歐文·沙利文，總裁兼首席運營官； Tim Oliver，NCR Atleos 候任首席財務官兼首席執行官；以及我們商務業務總裁兼 NCR Voyix 候任首席執行官 David Wilkinson。

Before we get started, let me remind you that our presentation and discussions will include forward-looking statements. These statements reflect our current expectations and beliefs, but they're subject to risks and uncertainties that could cause actual results to differ materially from those expectations. These risks and uncertainties are described in our earnings release and our periodic filings with the SEC, including our annual report.

在我們開始之前，請允許我提醒您，我們的演示和討論將包含前瞻性陳述。這些陳述反映了我們當前的預期和信念，但它們受到風險和不確定性的影響，可能導致實際結果與這些預期存在重大差異。這些風險和不確定性在我們的收益發布和向美國證券交易委員會提交的定期文件（包括我們的年度報告）中進行了描述。

On today's call, we'll also be discussing certain non-GAAP financial measures. These non-GAAP measures are described and reconciled to their GAAP counterparts in the presentation materials, the press release dated August 2, 2023, and on the Investor Relations page of our website. A replay of this call will be available later today on our website, ncr.com.

在今天的電話會議上，我們還將討論某些非公認會計準則財務指標。這些非 GAAP 衡量標准在演示材料、2023 年 8 月 2 日的新聞稿以及我們網站的投資者關係頁面上進行了描述並與 GAAP 衡量標准進行了協調。今天晚些時候，我們將在我們的網站 ncr.com 上提供本次電話會議的重播。

With that, I would now like to turn the call over to Mike.

有了這個，我現在想把電話轉給邁克。

Thanks, Michael. I will begin with some of my views on the business, and I'll also provide an update on our previously-announced intention to separate NCR into 2 publicly-traded companies. Tim will then review our financial performance and then Owen, Tim and I will take your questions.

謝謝，邁克爾。我將首先闡述我對該業務的一些看法，並且還將提供有關我們之前宣布的將 NCR 拆分為兩家上市公司的意向的最新信息。然後蒂姆將回顧我們的財務業績，然後歐文、蒂姆和我將回答你們的問題。

Let's begin on Slide 5 with some of the highlights from the first quarter. First, NCR delivered strong performance that included solid recurring revenue growth and significant margin expansion and delivered over $150 million of free cash flow, which has allowed us to delever prior to the spin. Second, we are on track to separate NCR into 2 public companies in the fourth quarter of 2023. Following Tim's comment on our financial results, I will provide an update on those separation activities. Third, in the second quarter, we had slight year-over-year revenue growth on a constant currency basis and 5% recurring revenue growth, also on a constant currency basis. It's important to note that the revenue growth would have been 4% year-over-year without the impact of shifting to subscription. Fourth, adjusted EBITDA increased 17% on a constant currency basis from the second quarter of 2022. Adjusted EBITDA margin expanded to 19.6% this quarter, which represents a 260 basis point increase from the second quarter of 2022. And finally, NCR generated $154 million in free cash flow in the quarter. Over the past 3 quarters, we have generated over $550 million in free cash flow, allowing us to reduce financial leverage ahead of the separation.

讓我們從幻燈片 5 開始，介紹第一季度的一些亮點。首先，NCR 表現強勁，包括穩定的經常性收入增長和顯著的利潤率擴張，並提供了超過 1.5 億美元的自由現金流，這使我們能夠在分拆之前進行去槓桿化。其次，我們有望在 2023 年第四季度將 NCR 拆分為兩家上市公司。在蒂姆對我們的財務業績發表評論後，我將提供這些拆分活動的最新情況。第三，第二季度，按固定匯率計算，我們的收入同比略有增長，經常性收入也按固定匯率計算，增長了 5%。值得注意的是，如果沒有轉向訂閱的影響，收入同比增長將達到 4%。第四，按固定匯率計算，調整後EBITDA 較2022 年第二季度增長17%。本季度調整後EBITDA 利潤率擴大至19.6%，較2022 年第二季度增長260 個基點。最後，NCR 創造了1.54億美元的收入本季度的自由現金流。在過去的三個季度中，我們產生了超過 5.5 億美元的自由現金流，使我們能夠在分拆前降低財務槓桿。

Moving to the business update on Slide 6. We have strong momentum across all 5 of our business segments with progress against our strategic initiatives across all of our KPIs.

轉到幻燈片 6 上的業務更新。我們的所有 5 個業務部門都呈現強勁勢頭，所有關鍵績效指標 (KPI) 的戰略舉措都取得了進展。

In Retail, we continue to deliver on our strategy to be the retail platform company of choice. During the second quarter, NCR achieved multiple platform lane wins as retailers choose the best path for them to the platform. The Save Mart companies, a California-based grocery store operating approximately 200 stores, selected Emerald as their next-gen point of sale. We also continue our market leadership position in self-checkout. RBR announced that NCR once again was the market share leader in self-checkout, with more than twice, the share of the next largest supplier. This marks the 20th consecutive year that NCR has been the market leader in self-checkout solutions.

在零售領域，我們繼續實施成為首選零售平台公司的戰略。第二季度，隨著零售商選擇最適合他們進入平台的路徑，NCR 取得了多個平台通道的勝利。 Save Mart 公司是一家總部位於加利福尼亞州的雜貨店，經營約 200 家商店，選擇 Emerald 作為他們的下一代銷售點。我們還繼續在自助結賬領域保持市場領先地位。 RBR 宣布 NCR 再次成為自助結賬市場份額領先者，其份額是第二大供應商的兩倍多。這標誌著 NCR 連續 20 年成為自助結賬解決方案的市場領導者。

In Hospitality, we continue to experience strong demand across our enterprise and SMB customers. In SMB, our payments attach rate for customers remains approximately 90%, driving a 45% increase in payment sites.

在酒店業，我們的企業和中小企業客戶持續感受到強勁的需求。在中小企業中，我們的客戶支付附加率保持在 90% 左右，推動支付網站數量增長 45%。

In enterprise, Firebird's Wood-Fired Grill chose the NCR Aloha for point of sale. Aloha, with the NCR Commerce platform, will provide a cloud-based solution to transform and connect all of Firebird's fine dining restaurants across 21 states.

在企業中，Firebird's Wood-Fired Grill 選擇 NCR Aloha 作為銷售點。 Aloha 與 NCR Commerce 平台將提供基於雲的解決方案，以改造和連接 Firebird 遍布 21 個州的所有高級餐廳。

In Digital Banking, we continue to have positive momentum. In the second quarter, Digital Banking sales activity was strong with 9 new customer deals and 18 digital banking renewals. We also continue to experience strong cross-sell/upsell momentum. In the second quarter, Cenovus, which has over $60 billion in assets, renewed its digital banking relationship with NCR and added the Terafina small business deposits module.

在數字銀行方面，我們繼續保持積極勢頭。第二季度，數字銀行銷售活動強勁，有 9 筆新客戶交易和 18 筆數字銀行續訂。我們還繼續經歷強勁的交叉銷售/追加銷售勢頭。第二季度，擁有超過 600 億美元資產的 Cenovus 續簽了與 NCR 的數字銀行關係，並增加了 Terafina 小企業存款模塊。

In Payments and Network, we are making progress in both merchant acquiring and the Allpoint network. North America ATM withdrawals and cash expense continued to increase and remain at a 6-year high. International market expansion continues to accelerate. During the second quarter, we signed an agreement to deploy NCR's Cashzone ATMs and provide access to cash for travelers in the Barcelona Airport, which is one of the busiest airports in Europe.

在支付和網絡方面，我們在商戶收單和 Allpoint 網絡方面都取得了進展。北美ATM取款和現金支出持續增加，並保持在6年來的最高水平。國際市場拓展持續加速。第二季度，我們簽署了一項協議，部署 NCR 的 Cashzone ATM 機，並為巴塞羅那機場（歐洲最繁忙的機場之一）的旅客提供現金存取服務。

In Self-service Banking, we continued our momentum in our ATM as a Service solution. Interest in our offering is accelerating from both community banks and large FIs globally. In the second quarter, we signed 10 new ATM service deals, including Kiwi Bank and Union Bank of the Philippines. UIP is transferring operational maintenance and management of its ATM fleet, which includes over 400 ATMs, to NCR. The bank will increase operational efficiencies while strengthening compliance and security. And the Seacoast Bank, which streamlined operations with NCR's ATM as a Service solution, also extended customers' access to cash by joining the Allpoint network.

在自助銀行業務方面，我們繼續保持 ATM 即服務解決方案的發展勢頭。全球社區銀行和大型金融機構對我們產品的興趣日益濃厚。第二季度，我們簽署了10項新的ATM服務協議，其中包括Kiwi Bank和菲律賓聯合銀行。 UIP 正在將其 ATM 機群（包括 400 多台 ATM）的運營維護和管理移交給 NCR。該銀行將提高運營效率，同時加強合規性和安全性。 Seacoast Bank 通過 NCR 的 ATM 即服務解決方案簡化了運營，還通過加入 Allpoint 網絡擴大了客戶獲取現金的範圍。

With that, let me pass it over to Tim.

那麼，讓我把它交給蒂姆。

Thanks, Mike, and thanks to all of you for joining us today.

謝謝邁克，也感謝大家今天加入我們。

I'll start on Slide 7 with a top level overview of our second quarter, which for every guided metric, we are at the higher end or above the guidance we provided back in May. As Mike summarized, in the second quarter, we drove substantial growth in recurring revenue, expanded our profit margins, particularly at gross margin, and generated $154 million of free cash flow. We continue to execute cost productivity actions that are and will generate incremental savings to offset any dissynergies arising from the planned separation. This quarter's results are demonstrative of the exceptional effort of our teams to simultaneously drive financial results, accelerate our strategic plans and ready the company for the pending separation transaction.

我將從幻燈片 7 開始，對第二季度進行頂層概述，對於每個指導指標，我們都處於較高端或高於我們 5 月份提供的指導。正如邁克總結的那樣，第二季度，我們推動了經常性收入的大幅增長，擴大了利潤率，特別是毛利率，並產生了 1.54 億美元的自由現金流。我們繼續執行成本生產力行動，這些行動正在並將產生增量節約，以抵消計劃中的分離所產生的任何不協同效應。本季度的業績證明了我們團隊為同時推動財務業績、加快我們的戰略計劃並為公司即將進行的分拆交易做好準備而付出的巨大努力。

Starting at the top left. Revenue was roughly $2 billion, down 1% year-over-year as reported, and flat on a constant currency basis. The revenue composition consisted of a richer mix of software and services. Hardware revenue had a particularly difficult year-over-year comparison. You will remember then that a year ago Q2, we recognized about $50 million of hardware revenue that was pushed out of the first quarter due to supply chain and transportation issues. Most importantly, recurring revenue was up 4% year-over-year and up 5% adjusted for FX.

從左上角開始。據報導，收入約為 20 億美元，同比下降 1%，按固定匯率計算持平。收入構成包括更豐富的軟件和服務組合。硬件收入的同比比較尤其困難。您會記得，一年前的第二季度，我們確認了大約 5000 萬美元的硬件收入，由於供應鍊和運輸問題，第一季度的收入被推遲了。最重要的是，經常性收入同比增長 4%，經外匯調整後增長 5%。

We continue to have success transitioning from onetime perpetual sales into multiyear subscription-based revenue streams. In the second quarter, we shifted nearly $80 million of high profit revenue from what would have been previously recognized upfront to recurring revenue that will convert over the next several years. This intentional deferral of upfront revenue to recurring revenue lowered total revenue growth by 4 full points. The strong U.S. dollar compared to the year ago period had an unfavorable impact of $18 million, primarily within our retail and self-service banking segments. If we were to adjust for FX and the shift to recurring revenue, total revenue growth would have been about 4%.

我們繼續成功地從一次性永久銷售轉變為基於多年訂閱的收入流。在第二季度，我們將近 8000 萬美元的高利潤收入從之前預先確認的收入轉為經常性收入，這些收入將在未來幾年內轉化。這種有意將預付收入推遲到經常性收入的做法使總收入增長降低了 4 個百分點。與去年同期相比，美元走強造成了 1,800 萬美元的不利影響，主要是在我們的零售和自助銀行業務領域。如果我們根據外彙和經常性收入的轉變進行調整，總收入增長將約為 4%。

In the top right, adjusted EBITDA increased $50 million year-over-year to $389 million, up 15% year-over-year as reported and up 17% on a constant currency basis. Foreign currency exchange rates had an unfavorable impact of $6 million. Adjusted EBITDA margin expanded 260 basis points from the second quarter of 2022 to 19.6%. The increase in margin was driven by lower direct costs such as reductions in fuel, shipping and component costs, as well as the impact of indirect cost mitigation actions and a higher-margin revenue mix. The benefit of lower direct costs similarly added 310 basis points to adjusted gross margin rate.

在右上角，調整後 EBITDA 同比增長 5000 萬美元，達到 3.89 億美元，按報告同比增長 15%，按固定匯率計算增長 17%。外幣匯率造成了 600 萬美元的不利影響。調整後 EBITDA 利潤率較 2022 年第二季度擴大 260 個基點至 19.6%。利潤率的增長是由於直接成本的降低（例如燃料、運輸和零部件成本的降低）以及間接成本削減行動和更高利潤率的收入組合的影響推動的。直接成本降低的好處同樣使調整後的毛利率增加了 310 個基點。

In the bottom left, reported non-GAAP EPS was $0.94, up $0.03 or 3% year-over-year as reported and up 9% on a constant currency basis. The strength of the U.S. dollar reduced EPS by about $0.05. The non-GAAP tax rate was 26.2% versus 19.2% in the prior year, and that impacted EPS by another $0.09. The prior year tax rate benefited from a favorable provision and a tax reserve adjustment.

左下角，報告的非 GAAP 每股收益為 0.94 美元，同比增長 0.03 美元，即 3%，按固定匯率計算增長 9%。美元走強導致每股收益減少約 0.05 美元。非 GAAP 稅率為 26.2%，而上一年為 19.2%，這對 EPS 造成了 0.09 美元的影響。上年稅率受益於優惠撥備和稅收準備金調整。

And finally, we generated $154 million of free cash flow from both higher profitability and the anticipated improvements in working capital. Back in October, we described our desire to generate at least $500 million of free cash flow before the separation transaction to reduce our financial leverage. In the first 3 quarters of those 5, we have already exceeded that bogey under a strong financial position heading into the separation.

最後，我們通過更高的盈利能力和預期的營運資本改善產生了 1.54 億美元的自由現金流。早在 10 月份，我們就表示希望在分拆交易之前產生至少 5 億美元的自由現金流，以降低我們的財務槓桿。在這 5 個季度的前 3 個季度中，我們在財務狀況良好的情況下已經超越了這個目標，進入了分拆階段。

Moving to Slide 8, which shows our retail segment results. Starting at the top left, retail revenue increased 2% year-over-year as reported and increased 3% adjusted for FX, driven by growth in software and services. We also shifted roughly $30 million of high profit revenue that would previously have occurred upfront to recurring revenue that will be recognized over the next 4 to 7 years. This intentional deferral of upfront revenue to recurring revenue lowered revenue growth in retail by 6 points. Adjusted for FX and the shift to recurring revenue, retail revenue would have grown at almost 9%.

轉到幻燈片 8，它顯示了我們的零售部門結果。從左上方開始，零售收入按報告同比增長 2%，在軟件和服務增長的推動下，經外匯調整後增長 3%。我們還將之前預先產生的大約 3000 萬美元的高利潤收入轉移到將在未來 4 到 7 年內確認的經常性收入。這種有意將預付收入推遲到經常性收入的做法使零售業的收入增長降低了 6 個百分點。考慮到外彙和經常性收入的轉變，零售收入將增長近 9%。

Second quarter adjusted EBITDA increased 18% year-over-year, and 21% adjusted for constant currency, resulting from improvements in component, labor and freight costs as well as other cost mitigation and pricing actions taken in the latter part of 2022 and in 2023. The adjusted EBITDA rate was 21.4%, up 290 basis points over the prior year.

第二季度調整後 EBITDA 同比增長 18%，按固定匯率調整後增長 21%，這是由於零部件、勞動力和貨運成本的改善以及 2022 年下半年和 2023 年採取的其他成本緩解和定價措施調整後EBITDA率為21.4%，較上年上升290個基點。

The bottom of the slide shows the retail segment key performance indicators. On the left are platform lanes, a KPI that illustrates the success of our strategy to convert our retail customers to our platform-based subscription model. We increased our number of platform lanes by 28,000 lanes or 81% year-over-year. At the time of conversion, a platform lane drives an incremental $400 in ARR or an increase of $11 million versus last year. The platform lane increase was driven by rollouts at major convenience and fuel customers. While platform lanes currently represent less than 5% of our total lanes, we see accelerating momentum for the conversion of our traditional lanes and have a substantial lane conversion backlog. And once on the platform, the opportunity to cross-sell and upsell new features and functionality drives further ARPU expansion.

幻燈片底部顯示了零售部門的關鍵績效指標。左側是平台通道，這是一個 KPI，它說明了我們將零售客戶轉變為基於平台的訂閱模式的戰略的成功。我們的站台車道數量同比增加 28,000 條，即增加 81%。轉換時，平台車道的 ARR 增加了 400 美元，即與去年相比增加了 1100 萬美元。平台車道的增加是由主要便利和燃油客戶的推出推動的。雖然平台車道目前僅佔車道總數的不到 5%，但我們看到傳統車道轉換的勢頭正在加速，並且車道轉換積壓量很大。一旦進入該平台，交叉銷售和追加銷售新特性和功能的機會將推動 ARPU 進一步擴大。

In the center bottom is our self-checkout revenue. Self-checkout revenue was down 2% year-over-year. Timing of major hardware rollouts in the second quarter of last year versus the third quarter of this year caused that comparative temporal dislocation.

中間底部是我們的自助結賬收入。自助結賬收入同比下降 2%。去年第二季度與今年第三季度主要硬件推出的時間造成了這種相對的時間錯位。

And ARR was up 3% year-over-year. Similar to the impact on revenue, currency rates did modestly negatively affect the ARR calculations, including this one.

ARR 同比增長 3%。與對收入的影響類似，匯率確實對 ARR 計算（包括這一計算）產生了輕微的負面影響。

Turning to Slide 9, showing our Hospitality results. Hospitality revenue declined $3 million or 1%. Lower POS hardware sales were largely offset by an increase in services and software revenue, including cloud services and payment processing.

轉向幻燈片 9，顯示我們的酒店業結果。酒店收入下降 300 萬美元，即 1%。 POS 硬件銷售額的下降在很大程度上被服務和軟件收入的增長所抵消，其中包括雲服務和支付處理。

Adjusted EBITDA was up 30% year-over-year. Adjusted EBITDA margin rate expanded 620 basis points to a multiyear high of 25.5%, a richer mix of software and services revenue, pricing and cost reductions all helped push margin rates higher.

調整後 EBITDA 同比增長 30%。調整後的 EBITDA 利潤率擴大了 620 個基點，達到多年高點 25.5%，更豐富的軟件和服務收入組合、定價和成本降低都有助於推高利潤率。

Hospitality's key strategic metrics on the bottom of this slide include platform sites, payment sites and ARR. Platform sites increased 9%, payment sites increased 45% and ARR was up 8% year-over-year on higher ARPU at both new platform and new payment sites. The average conversion to platform sites currently drives incremental $7,000 a year in ARR, while the average conversion of payment sites currently drives an incremental $4,000. Combined, the additional platform sites and payment sites contributed an incremental $25 million in ARR year-over-year. We continue to see strategic momentum in this business as enterprise clients transition to the platform and expanded their functionality, and SMB clients attach payments.

本幻燈片底部的酒店業關鍵戰略指標包括平台網站、支付網站和 ARR。由於新平台和新支付網站的 ARPU 增加，平台網站數量同比增長 9%，支付網站數量增長 45%，ARR 同比增長 8%。目前，平台網站的平均轉化率每年可帶來 7,000 美元的增量，而支付網站的平均轉化率目前可帶來 4,000 美元的增量。額外的平台網站和支付網站合計貢獻的 ARR 同比增加了 2500 萬美元。隨著企業客戶過渡到該平台並擴展其功能，以及中小企業客戶附加付款，我們繼續看到該業務的戰略勢頭。

Turning to Slide 10, which shows our digital banking segment. Digital banking revenue increased 7% year-over-year driven by client wins, strong renewal momentum and cross-sell success at Terrafina and the channel service platform. We expect second half revenue growth in this business to accelerate to about 10%.

轉向幻燈片 10，它顯示了我們的數字銀行部門。得益於 Terrafina 和渠道服務平台的客戶贏得、強勁的續訂勢頭以及交叉銷售的成功，數字銀行收入同比增長 7%。我們預計下半年該業務收入增速將加速至10%左右。

Adjusted EBITDA was down 5% year-over-year due to an investment in sales, marketing and R&D to grow this business faster. Adjusted EBITDA margin rate was 37.9%.

由於為加快業務增長而對銷售、營銷和研發進行投資，調整後 EBITDA 同比下降 5%。調整後 EBITDA 利潤率為 37.9%。

Digital banking's key strategic metrics on the bottom of this slide include registered users, active users and ARR. Registered users increased 8%, active users increased 6% and ARR was up a similar 6%.

這張幻燈片底部的數字銀行關鍵戰略指標包括註冊用戶、活躍用戶和 ARR。註冊用戶增加了 8%，活躍用戶增加了 6%，ARR 也增加了 6%。

On Slide 11, we do some easy math to help you evaluate the combined segments of retail, Hospitality and digital banking. These segments will form NCR Voyix at the separation transaction. This roll-up is for directional indications only. The eventual financials for this company will be impacted by currently unallocated corporate costs by revenue profit adjustments that reflect the planned perimeter of the transaction, and by synergies or dissynergies that result from the spin.

在幻燈片 11 中，我們做了一些簡單的數學計算，以幫助您評估零售、酒店和數字銀行的綜合細分市場。這些部門將在分拆交易中組成 NCR Voyix。此匯總僅用於方向指示。該公司的最終財務狀況將受到當前未分配的企業成本、反映計劃交易範圍的收入利潤調整以及分拆產生的協同或不協同的影響。

The combined revenue for these segments increased $20 million or 2% year-over-year as reported, and 3% adjusting for currency. Recurring revenue was up 5% year-over-year. The combined adjusted EBITDA was up 16% year-over-year, adjusted for FX, and adjusted EBITDA margin rate expanded by 270 basis points to 24.8%.

據報導，這些部門的合併收入同比增長 2000 萬美元，即 2%，按匯率調整後增長 3%。經常性收入同比增長 5%。經匯率調整後，合併後的調整後 EBITDA 同比增長 16%，調整後 EBITDA 利潤率擴大 270 個基點，達到 24.8%。

Let's move to Slide 12, turning back to our currently reported segments, in this case, the payments and network segment. Starting at the top left, payments and network revenue was flat year-over-year as reported and up 1% adjusted for FX. Adjusted EBITDA increased 2% year-over-year as reported and 3% adjusted for FX. Adjusted EBITDA margin rate expanded 50 basis points to 29.7%, driven by a richer mix of high-value transactions which more than offset higher cash rental costs.

讓我們轉到幻燈片 12，回到我們當前報告的細分市場，在本例中為支付和網絡細分市場。從左上角開始，支付和網絡收入與去年同期持平，經外匯調整後增長 1%。據報告，調整後 EBITDA 同比增長 2%，經匯率調整後同比增長 3%。受更豐富的高價值交易組合的推動，調整後的 EBITDA 利潤率擴大了 50 個基點，達到 29.7%，這足以抵消更高的現金租賃成本。

Because our cash rental costs are calculated using short-term interest rates and are recognized as cost of goods, they have a significant drag on results. That said, a hedging program, algorithm and operational optimization and pricing adjustments have mitigated much of the impact of interest rates. ATM cash rental costs increased $35 million year-over-year on a gross basis and $12 million on a net basis after these mitigation efforts.

由於我們的現金租賃成本是使用短期利率計算的，並被確認為商品成本，因此對業績產生了重大拖累。也就是說，對沖計劃、算法、運營優化和定價調整已經減輕了利率的大部分影響。在採取這些緩解措施後，ATM 現金租賃成本總額同比增加 3500 萬美元，淨額增加 1200 萬美元。

The bottom of this slide shows payments and network key strategic metrics. On the bottom left, endpoints increased 1% year-over-year. In the center bottom are transactions, a KPI that illustrates the payments processed across our Allpoint network and across our merchant acquiring networks. Transactions were up 2% year-over-year on a trailing 12-month basis, fueled by an ATM withdrawal growth rate of 7%. The rise in both the frequency of cash withdrawals and the amount of cash withdrawn per transaction led to an increase in the total amount of cash expense globally to a level the highest we've seen in the better part of a decade. Annual recurring revenue in this business increased 1% year-over-year.

這張幻燈片的底部顯示了支付和網絡關鍵戰略指標。左下角，端點同比增長 1%。中間底部是交易，這是一個 KPI，說明了我們的 Allpoint 網絡和商家收單網絡中處理的付款情況。在 ATM 取款增長率 7% 的推動下，過去 12 個月的交易量同比增長 2%。現金提取頻率和每筆交易提取現金金額的上升導致全球現金支出總額增加至十年來的最高水平。該業務的年度經常性收入同比增長 1%。

Slide 13 shows our self-service banking segment results. Self-service banking revenue was down 3% as reported and down 1% on a constant currency basis, primarily due to the intentional shift of recurring revenue which resulted in lower ATM hardware revenue reported in this quarter. Recurring revenue was up 10% on an FX-adjusted basis over the prior year. We continue to have success transitioning our self-service banking business from onetime perpetual sales into multiyear subscription-based revenue streams. During the quarter, we shifted roughly $36 million in revenue, that would have been upfront previously, to recurring revenue. The intentional deferral of upfront revenue from recurring revenue lowered revenue growth by 5 points. Adjusted for FX and the shift to recurring revenue, self-service banking revenue growth would have been closer to 4%.

幻燈片 13 顯示了我們的自助銀行業務部門的業績。自助銀行收入按報告下降 3%，按固定匯率計算下降 1%，主要是由於經常性收入的有意轉移導致本季度報告的 ATM 硬件收入下降。經匯率調整後，經常性收入較上年增長 10%。我們繼續成功地將自助銀行業務從一次性永久銷售轉變為基於多年訂閱的收入流。在本季度，我們將大約 3600 萬美元的收入（之前的預付款）轉為經常性收入。故意推遲經常性收入中的預收收入使收入增長降低了 5 個百分點。根據匯率和向經常性收入的轉變進行調整後，自助銀行收入增長將接近 4%。

Adjusted EBITDA increased 19% year-over-year and was up 22% on a FX consistent basis. Adjusted EBITDA margin expanded 470 basis points to 25.6%. The remarkable margin expansion from the previous year can be credited to the reduction in direct costs, particularly in expenses related to fuel and components, as well as the increase in higher-margin recurring revenue streams.

調整後 EBITDA 同比增長 19%，按匯率計算增長 22%。調整後 EBITDA 利潤率擴大 470 個基點，達到 25.6%。與上一年相比，利潤率的顯著增長可歸功於直接成本的降低，特別是與燃料和零部件相關的費用，以及利潤率較高的經常性收入流的增加。

The bottom of the slide shows our self-service banking key metrics. On the left, software and services revenue mix increased 200 basis points to 69%. ATM as a Service units increased 304% year-over-year to 18,000 units, and the shift to recurring revenue continues to gain traction, driving ARR up 7% year-over-year.

幻燈片底部顯示了我們自助銀行業務的關鍵指標。左邊，軟件和服務收入組合增加了 200 個基點，達到 69%。 ATM 即服務數量同比增長 304%，達到 18,000 台，向經常性收入的轉變繼續受到關注，推動 ARR 同比增長 7%。

On Slide 14, similar to the review presented on Slide 11 with similar caveats, this slide showcases the combined segment results for payments and network and self-service banking, which are the segments that will comprise NCR Atleos at the time of the separation. As I said before, the unallocated revenue and corporate costs are not reflected here.

在幻燈片14 上，與幻燈片11 上的評論類似，但也有類似的注意事項，這張幻燈片展示了支付、網絡和自助銀行業務的合併部門結果，這些部門在分拆時將構成NCR Atleos 。正如我之前所說，這裡沒有反映未分配的收入和企業成本。

The combined revenue for these 2 segments declined $18 million or 2% year-over-year as reported and 1% adjusted for currency. The reduction was primarily driven by the intentional shift to recurring revenue. Recurring revenue increased 4% year-over-year as reported and 6% adjusted for currency. The combined adjusted EBITDA was up 14% year-over-year adjusted for FX. Adjusted EBITDA margin expanded 330 basis points to 26.4%.

據報告，這兩個部門的合併收入同比下降 1800 萬美元，即 2%，按匯率調整後下降 1%。減少的主要原因是有意轉向經常性收入。據報告，經常性收入同比增長 4%，按貨幣調整後增長 6%。經外匯調整後，綜合調整後 EBITDA 同比增長 14%。調整後 EBITDA 利潤率擴大 330 個基點至 26.4%。

Turning to Slide 15, which describes free cash flow, net debt and adjusted EBITDA metrics to facilitate leverage calculations. As we said before, we generated $154 million of free cash flow in the quarter driven by higher profitability and an improvement in working capital. Days sales outstanding improved by 3 days and days of inventory improved by 2 days sequentially. Our goal to generate $500 million in free cash flow before the separation transaction to reduce financial leverage has been well communicated. We have now, generated over $550 million of free cash flow in the first 3 of those 5 quarters.

轉向幻燈片 15，其中描述了自由現金流、淨債務和調整後的 EBITDA 指標，以方便計算槓桿率。正如我們之前所說，由於盈利能力提高和營運資本改善，我們在本季度創造了 1.54 億美元的自由現金流。銷售周轉天數環比增加了 3 天，庫存天數環比增加了 2 天。我們的目標是在分拆交易之前產生 5 億美元的自由現金流以降低財務槓桿，這一目標已得到充分傳達。現在，我們在這 5 個季度的前 3 個季度中產生了超過 5.5 億美元的自由現金流。

The slide also displays our net debt to adjusted EBITDA metric, which has improved to a leverage ratio of 3.4x, down from 4x in Q2 of 2022, driven by higher profitability and higher cash generation. We remain well within our debt covenants and have significant liquidity, with over $900 million available under our revolving credit facility. We have a robust balance sheet, ample liquidity and strong financial stability to support our growth and the spin transaction.

該幻燈片還顯示了我們的淨債務與調整後 EBITDA 指標的比值，在盈利能力提高和現金生成能力提高的推動下，槓桿率已從 2022 年第二季度的 4 倍降至 3.4 倍。我們嚴格遵守債務契約，並擁有充足的流動性，我們的循環信貸額度可提供超過 9 億美元的資金。我們擁有穩健的資產負債表、充足的流動性和強大的財務穩定性來支持我們的增長和分拆交易。

And finally, on Slide 16, we reiterate our full year 2023 guidance that we provided back at the beginning of the year. That said, after a solid first quarter and a very strong Q2, we now expect to be at the higher end of all of these guided ranges for all financial metrics. And for those of you building models, we expect to further the trend of sequential quarterly improvement in revenue and profitability in each of the remaining 2 quarters of 2023.

最後，在幻燈片 16 上，我們重申了我們在年初提供的 2023 年全年指導。也就是說，在經歷了穩健的第一季度和非常強勁的第二季度之後，我們現在預計所有財務指標都將處於所有這些指導範圍的較高端。對於那些構建模型的人來說，我們預計在 2023 年剩下的兩個季度中，收入和盈利能力將進一步實現季度環比改善的趨勢。

With that, Mike, I'll send it back to you.

邁克，我會把它寄回給你。

Thanks, Tim. And I'm going to continue on Slide 17, with the NCR separation road map. Our go-to-market teams are organized by industry under general manager unit. These teams are ready and have been ready for the spin. Additionally, there are areas of shared services functions such as legal, tax, HR, treasury, IT and others that are well underway in the process of preparing for the separation.

謝謝，蒂姆。我將繼續幻燈片 17，展示 NCR 分離路線圖。我們的市場營銷團隊由總經理單位按行業組織。這些團隊已經準備好了，並且已經做好了旋轉的準備。此外，法律、稅務、人力資源、財務、IT 等共享服務職能領域也在為分拆做準備的過程中順利進行。

We continue to make progress in our process with the SEC and recently submitted an amendment to our Form 10 registration statement. We have already submitted a letter with the internal revenue service regarding the tax-free nature of the separation. At this time, we are expecting the timing of the separation to be in the fourth quarter. As disclosed in the Form 10, the timing of the separation is subject to a number of conditions, in particular, being declared effective by the SEC and the state of the capital markets.

我們在與 SEC 合作的過程中不斷取得進展，並於最近提交了對 Form 10 註冊聲明的修訂。我們已經向國稅局提交了一封關於分居免稅性質的信函。目前，我們預計分拆的時間是在第四季度。正如表格 10 中所披露的，分拆的時間取決於許多條件，特別是 SEC 宣布生效和資本市場狀況的條件。

At this time, we believe the capital markets are favorable to us completing a spin. Once we receive regulatory approval, we will raise new debt and then execute the spin.

目前，我們認為資本市場有利於我們完成剝離。一旦獲得監管部門的批准，我們將籌集新的債務，然後執行分拆。

In closing on Slide 18, looking forward, our key priorities are clear. First, we are on track to separate NCR into 2 public companies in the fourth quarter. Upon separation, we believe each company will benefit from increased operating and financial flexibility in pursuit of its respective and distinct opportunity sets.

在幻燈片 18 的最後，展望未來，我們的主要優先事項很明確。首先，我們有望在第四季度將 NCR 拆分為兩家上市公司。分拆後，我們相信每家公司都將受益於運營和財務靈活性的提高，以追求各自獨特的機會集。

Second, we believe that spinning off NCR Atleos in a tax-free distribution is the best path to unlock shareholder value. But should other alternative options become available in the future that could deliver superior value such as a whole or partial company sale of NCR, the Board continues to remain open considering these alternative scenarios.

其次，我們認為以免稅分配方式分拆 NCR Atleos 是釋放股東價值的最佳途徑。但如果未來出現其他可以帶來卓越價值的替代選擇，例如公司全部或部分出售 NCR，董事會將繼續考慮這些替代方案。

Third, we have made significant strategic progress transforming NCR to a software-led as-a-service company. We have momentum and a clear strategic vision as we transition customers onto our software and payments platforms, with customers on the platform increasing their spend with NCR.

第三，我們在將 NCR 轉型為軟件主導的即服務公司方面取得了重大戰略進展。當我們將客戶轉移到我們的軟件和支付平台時，我們有動力和明確的戰略願景，平台上的客戶會增加 NCR 的支出。

Fourth, we expect to continue our quarterly operating and financial improvements.

第四，我們預計將繼續改善季度運營和財務狀況。

And finally, I'd like to extend an invitation to each of you to participate in our virtual Investor Day for both debt and equity investors, which is scheduled for September 5 of this year. We are looking forward to the event and intend to take a deep dive into our strategy and strategic goals for both NCR Voyix and NCR Atleos.

最後，我想邀請大家參加定於今年 9 月 5 日舉行的面向債務和股權投資者的虛擬投資者日。我們期待這次活動，並打算深入探討我們 NCR Voyix 和 NCR Atleos 的戰略和戰略目標。

This concludes our prepared remarks for today. With that, we will open the call for questions.

我們今天準備好的發言到此結束。至此，我們將開始提問。

(Operator Instructions) And our first question will come from Charles Nabhan with Stephens.

（操作員說明）我們的第一個問題將由 Charles Nabhan 和 Stephens 提出。

I had a two-part question on free cash flows and leverage post spin.

我有一個關於自由現金流和分拆后杠桿的問題，分為兩部分。

First, on the free cash flow, it's good to see things trending seemingly ahead of schedule. I know you're guiding to the top end of that $400 million to $500 million range. My question there is, given the trajectory of free cash flows, is it presumable to potentially expect upside to that $500 million? Or are there any factors like -- that were -- positive factors that were pulled forward?

首先，在自由現金流方面，很高興看到事情的發展趨勢似乎提前了。我知道您正在指導 4 億至 5 億美元範圍的高端。我的問題是，考慮到自由現金流的軌跡，這 5 億美元是否有可能上漲？或者是否有任何類似的積極因素被推動了？

And then, my second part of that question is just how to think about leverage initially post spin? I know you haven't recapitalized the businesses yet, but any color around that would be helpful.

然後，我的問題的第二部分是如何考慮旋轉後最初的槓桿？我知道你還沒有對業務進行資本重組，但是任何圍繞這方面的顏色都會有幫助。

Yes, sure. So on cash generation thus far this year, we knew that we had about $200 million of cash flow that we should have delivered last year that we used to support working capital as we went through some supply chain issues in 2022, and we committed to harvesting that across Q4, 1 and 2. And so, it's been a very strong cash conversion period. And we've, for instance, a year ago, we're down $149 million in inventory loan. Our receivables past dues are down, so we've done a great job of managing working capital and get us back to a level that's, let's call it, sustainable. There's not a lot of cash to be harvested from excess working capital at this point for the remainder of the year, so our conversion at this point will be more closer to profitability.

是的，當然。因此，就今年到目前為止的現金生成而言，我們知道我們去年應該交付約2 億美元的現金流，當我們在2022 年遇到一些供應鏈問題時，我們用這些現金流來支持營運資金，我們致力於收穫第四季度、第一季度和第二季度都是如此。因此，這是一個非常強勁的現金轉換期。例如，一年前，我們減少了 1.49 億美元的庫存貸款。我們的應收賬款逾期有所下降，因此我們在管理營運資金方面做得很好，並使我們回到了可持續的水平。今年剩餘時間裡，目前還沒有大量現金可以從過剩的營運資本中獲得，因此我們此時的轉換將更接近盈利。

I expect profitability to be higher in each of the next 2 quarters, and I expect to generate around $100 million or so a quarter, over the next 2 quarters. That would put us through the high end of our range. But remember that there are going to be onetime cash costs associated with this spin that we need to absorb. I didn't take that range up only to say we will need to invest some cash back into the transaction and pay all of our advisers and all the rest to get this thing done. But even, with that $100 million or so outflow associated with onetime cost during the spin period, we'll be at the high end of our guided range.

我預計未來 2 個季度的盈利能力將會更高，並且預計在接下來的 2 個季度中每個季度將產生約 1 億美元左右的收入。這將使我們達到我們範圍的高端。但請記住，我們需要吸收與這種旋轉相關的一次性現金成本。我提高這個範圍並不是只是說我們需要在交易中投入一些現金，並向我們所有的顧問和所有其他人支付費用才能完成這件事。但即便如此，由於旋轉期間的一次性成本導致大約 1 億美元的資金外流，我們仍將處於指導範圍的高端。

Got it. That's really helpful.

知道了。這真的很有幫助。

And the other half is on the -- so it's leverage coming out. So we'll -- yes. We'll be in market right after Labor Day weekend to start to try to place the debt that we need. We think that it's going to be about $2.5 billion of debt on a net basis, so more like $2.9 billion on a gross basis for SpinCo. Atleos then will have a leverage ratio north of 3.5x, in the 3.7x range out of the gate, and we'll likely work hard to pay that down into the 3x range, as quickly as possible.

另一半在——所以它的槓桿作用就出來了。所以我們會——是的。我們將在勞動節週末之後進入市場，開始嘗試放置我們需要的債務。我們認為，剝離公司的淨債務約為 25 億美元，總債務約為 29 億美元。 Atleos 的槓桿率將超過 3.5 倍，一開始就在 3.7 倍範圍內，我們可能會努力盡快將其降低到 3 倍範圍內。

RemainCo then, or Voyix, will be about to be north of 3x but south of 3.5x. I'm thinking 3.2x, 3.3x of that business as we exit. And that's -- remember they'll keep most of the existing debt that's already outstanding, which has a very favorable coupon, and so their interest expense will be somewhat lower. I think that business will also likely delever a little more post spin and can get safely down below 3x and then probably move toward 2.5x over time.

那麼 RemainCo 或 Voyix 將位於 3 倍以北但 3.5 倍以南。當我們退出時，我認為該業務的規模會增加 3.2 倍、3.3 倍。那就是 - 請記住，他們將保留大部分已經未償還的現有債務，這些債務的息票非常優惠，因此他們的利息支出會略低。我認為，業務也可能會減少更多的後期旋轉，並且可以安全地降至 3 倍以下，然後隨著時間的推移可能會轉向 2.5 倍。

Got it. Okay. And as a follow-up, one of your peers and I guess, customers as well in Euronet noted some slowdown in cash withdrawal activity in Europe. And I know, you're not as exposed to DCC and cross-border as they are, but if you could just quickly comment on some of the trends you're seeing across Europe in terms of cash withdrawal activity?

知道了。好的。作為後續行動，我猜你的一位同行以及 Euronet 的客戶都注意到歐洲的現金提取活動有所放緩。我知道，您不像他們那樣接觸 DCC 和跨境業務，但您能否快速評論一下您在歐洲各地看到的現金提取活動方面的一些趨勢？

Yes. So globally, our cash withdrawal activity was up. And as I said in the discussion earlier, not only were the number of cash withdrawal transactions up, but the amount of cash being withdrawn is up. That's true in the U.S. to a larger degree than it is in Europe, but in the U.K., we still got more cash dispensed and more transactions.

是的。因此，在全球範圍內，我們的現金提取活動有所增加。正如我在之前的討論中所說，不僅現金提取交易的數量增加了，而且提取的現金金額也增加了。與歐洲相比，美國的情況更是如此，但在英國，我們仍然獲得了更多的現金分配和更多的交易。

And I would say our new market in Portugal, Greece, some of the Southern European markets where we opened up new end points, we're seeing actually pretty good growth activity in those markets. So contrary to what you raised.

我想說的是，我們在葡萄牙、希臘和一些南歐市場的新市場開闢了新的終點，我們實際上看到這些市場的增長活動相當不錯。所以與你提出的相反。

Got it. Appreciate the color, guys.

知道了。欣賞一下這個顏色，伙計們。

Sure. Our pleasure.

當然。我們的榮幸。

And our next question comes from Matt Summerville with D.A. Davidson.

我們的下一個問題來自馬特·薩默維爾和 D.A.戴維森。

Just couple of questions. First, on the retail business, Tim, in your prepared remarks, you mentioned a little bit of a timing dynamic. Could you touch on that again? Because it sounded like it may impact the third quarter of this year, if I heard you correctly. Could you just talk through that?

只是幾個問題。首先，關於零售業務，蒂姆，在您準備好的發言中，您提到了一點時間動態。您能再談一下嗎？因為如果我沒聽錯的話，這聽起來可能會影響今年第三季度。你能簡單談談嗎？

Yes. I should have been clear. The -- we had a very big second quarter of -- a year ago in scope shipments. We had a large rollout for one of our major customers. We did not have that in Q2 of this year, but we'll have a similar rollout in Q3. And so it made the comparison in this year's Q2 easy or harder, and should make the one in Q3 a little bit easier.

是的。我應該已經很清楚了。一年前，我們第二季度的示波器出貨量非常大。我們為我們的主要客戶之一進行了大規模的部署。今年第二季度我們沒有這樣做，但我們將在第三季度推出類似的產品。因此，這使得今年第二季度的比較變得容易或困難，並且應該使第三季度的比較變得容易一些。

Got it. Okay. And then, just with respect to the self-service banking business, can you maybe comment just globally on what you're seeing overall in terms of ATM demand? And I thought you did a great job in Hospitality, talking about how adding an incremental site for platform and payment is worth X and Y. Could you do the same thing? What does that math look like for ATM as a service?

知道了。好的。然後，就自助銀行業務而言，您能否就全球範圍內 ATM 需求的總體情況發表評論？我認為您在酒店業方面做得很好，談論了為平台和支付添加增量站點如何值得 X 和 Y。您能做同樣的事情嗎？對於 ATM 即服務來說，數學是什麼樣的？

Yes. The ATM as a service business, if you take the revenue stream over the first 7 years of the life of that ATM, it's going to be about 2.5x the revenue that you would have gotten from an upfront sale with perpetual license and a service agreement. When we wrap the totality of the ATM as a service business around the unit, you should expect 2.5x of revenue over that 7-year period.

是的。 ATM 即服務業務，如果您考慮該 ATM 生命週期前 7 年的收入流，這將是您通過永久許可和服務協議進行預售獲得的收入的 2.5 倍左右。當我們將整個 ATM 作為一項服務業務納入該部門時，您應該預計這 7 年期間的收入將增長 2.5 倍。

As you know, as in the traditional sale, our current model, much of that revenue occurs in year 1. In the new ATM as a service model, that new 2.5x revenue will occur linearly across the 7-year period with a crossover point at about 22 months of when your cross over revenue start to accrete to the upside.

如您所知，與傳統銷售（我們當前的模式）一樣，大部分收入發生在第一年。在新的ATM 即服務模式中，新的2.5 倍收入將在7 年期間線性出現，並有一個交叉點大約 22 個月後，您的交叉收入開始增加。

And then, just overall comment on global ATM demand? Maybe add some regional color as well.

然後，只是對全球 ATM 需求的總體評論？也許還可以添加一些地域色彩。

Yes, good. good everywhere. We -- as we said in the first quarter, we anticipated coming into the year that our revenue in this business would be down 3% or 4% for the year, entirely driven by some flat units, entirely -- decline driven entirely by the shift to recurring revenue of ATM as a Service. We're going to hit or exceed our ATM as a Service numbers for the year, and in fact, this business will have revenue close to flat or up slightly for the full year. So we are 3 or 4 points better from a growth dynamic in this business than we thought, when we started the year, and it's everywhere. The demand is very good everywhere. We enter Q3 with a little more backlog than we entered Q2.

對很好。到處都好。正如我們在第一季度所說，我們預計今年該業務的收入將下降 3% 或 4%，這完全是由一些扁平單位推動的，完全是由轉向 ATM 即服務的經常性收入。我們今年將達到或超過我們的 ATM 即服務數量，事實上，該業務全年的收入將接近持平或略有增長。因此，我們的業務增長動態比年初時的預期要好 3 或 4 個百分點，而且這種情況無處不在。各地的需求都非常好。我們進入第三季度時，積壓訂單比進入第二季度時要多一些。

And I'll just add some comments. So we think the demand environment is still good out there for ATMs, but we're also benefiting from maybe the challenges one of our close competitors is facing right now.

我將添加一些評論。因此，我們認為 ATM 機的需求環境仍然良好，但我們也可能從我們的競爭對手之一目前面臨的挑戰中受益。

And then, I think the other big part is Tim talks about ATM as a service. I think we hit that market just about right in terms of when we came out with an offering. As the demand side has shifted to have more full service full stack outsourcing, we just have to be there with, we think, the best offering.

然後，我認為另一個重要部分是蒂姆談論 ATM 作為一種服務。我認為，就我們推出產品的時間而言，我們已經恰到好處地進入了這個市場。隨著需求方轉向提供更全面的服務全棧外包，我們認為我們只需提供最好的產品即可。

So I think those two things combined have created a much stronger year in self-service banking for us than we anticipated.

因此，我認為這兩件事的結合為我們創造了自助銀行業務比我們預期更強勁的一年。

Great.

偉大的。

And the next question will come from Kartik Mehta with Northcoast Research.

下一個問題將來自 Northcoast Research 的 Kartik Mehta。

Tim, you alluded to this a little bit, but I want to make sure I understood. You had a fantastic second quarter but you didn't increase your guidance, you kind of said the higher end of the guidance. And I'm wondering, is that strictly because of the separation of the company, concerns about the macro environment and want to be cautious in the second half? Or something else completely?

蒂姆，你稍微提到了這一點，但我想確保我理解。你的第二季度表現出色，但你沒有增加你的指導，你有點說的是指導的較高端。我想知道，這是否完全是因為公司分拆，對宏觀環境的擔憂，想在下半年保持謹慎？或者完全是別的什麼？

Yes. No reason to be cautious. I think, look, we're well ahead of our budget for both revenue and profit at this point in the half. We're about $25 million ahead from where we thought we'd be from an EBITDA perspective and somewhat ahead of revenue as well. If you project those forward, we will pay the high end of the range. If you presume, we started at the midpoint of our range, we'll pay at the high end of this range.

是的。沒有理由要謹慎。我認為，看，目前我們的收入和利潤都遠遠超出了預算。從 EBITDA 角度來看，我們比預期的目標提前了約 2500 萬美元，而且也比我們的收入提前了約 2500 萬美元。如果您將這些項目提前，我們將支付該範圍的高端費用。如果您認為我們從範圍的中點開始，我們將支付該範圍的高端。

If I thought that the most likely outcome was above the high end of the range, I would have raised our guidance, but I don't believe that's the case. I believe that we're pacing the high end of that range is a likely outcome for us, so we left it in place. But that wasn't meant to caution any excitement on this quarter. It was a terrific quarter. It came in much better in every regard than we thought. We made great progress nearly everywhere strategically. And what's really important is the cost actions we've taken, and you can see it in gross margin, up some 300 basis points year-over-year. And we're keeping all the, let's call it, indirect cost out, that we took out last year when it was a little harder to control direct costs.

如果我認為最有可能的結果高於範圍的高端，我會提高我們的指導，但我不認為情況是這樣。我相信，我們可能會達到該範圍的高端，因此我們將其保留在原地。但這並不意味著要警告本季度的任何興奮。這是一個很棒的季度。它在各個方面都比我們想像的要好得多。我們在戰略上幾乎在所有方面都取得了巨大進展。真正重要的是我們採取的成本行動，您可以從毛利率中看到這一點，同比增長約 300 個基點。我們保留了所有的間接成本，去年我們在控制直接成本比較困難時就將其剔除。

So, I feel very good about where we are. We're going to have a great year, and the second half will be better than the first. I think we'll post growth in the second half that looks relatively similar to the second -- the first half looks relatively similar to the second half. We'll defer more money and more revenue and profit to recurring revenue streams, but still grow through that. And our margin rates were up about 240 basis points in the first half of the year. That's primarily driven by good cost productivity and the absence of some negatives that occurred in the first quarter of last year, we're still going to expand margin in the second half of the year close to 2 points as a company. So, I think all the goodness we're seeing in the first half will continue into the second and allow us to deliver some really terrific results.

所以，我對我們現在的處境感覺非常好。我們將會度過美好的一年，下半年會比上半年更好。我認為我們將在下半年實現增長，看起來與下半年相對相似——上半年看起來與下半年相對相似。我們將把更多的錢、更多的收入和利潤推遲到經常性收入流中，但仍能從中實現增長。今年上半年我們的保證金率上升了約 240 個基點。這主要是由於良好的成本生產率以及去年第一季度出現的一些負面因素的消失，作為一家公司，我們仍將在今年下半年將利潤率擴大近 2 個百分點。因此，我認為我們在上半場看到的所有優點都將延續到下半場，並使我們能夠取得一些非常出色的成果。

And then, David, just on retail/Hospitality business. Toast and the companies like that are making a lot of noise and seem to be gaining share. And I'm just wondering, how you think your product is positioned and how you would portray kind of market share, and what's happening with NCR's products? .

然後，大衛，關於零售/酒店業務。 Toast 和類似的公司正在引起很大的轟動，並且似乎正在擴大份額。我只是想知道，您認為您的產品定位如何，您將如何描繪市場份額，以及 NCR 的產品發生了什麼？ 。

Yes. Sure, Kartik. So I agree that we see Toast growing their share in the market, adding sites. We too are adding sites as we look, as Tim described, we're adding both payment sites and sites connected to our platform that allows us to expand the recurring revenue. It's not a zero-sum game in that space either, so they're playing in a slightly different segment than the core enterprise segment that we play in as well.

是的。當然，卡提克。因此，我同意我們看到 Toast 在市場中的份額不斷增長，並增加了網站。正如蒂姆所描述的那樣，我們也在添加網站，我們正在添加支付網站和連接到我們平台的網站，這使我們能夠擴大經常性收入。在這個領域，這也不是一場零和遊戲，因此他們所從事的領域與我們所從事的核心企業領域略有不同。

So from a product side, we're very well positioned. We're seeing good feedback from our customers in terms of what we're hearing on Net Promoter Score and net new wins, so we're continuing to win. We're continuing to win against the competition, and we think we're well positioned.

因此，從產品方面來看，我們處於非常有利的位置。我們從客戶那裡看到了關於淨推薦值和淨新勝利的良好反饋，因此我們將繼續獲勝。我們正在繼續贏得競爭，並且我們認為我們處於有利地位。

And our next question will come from Erik Woodring with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的埃里克·伍德林。

I have two as well. Maybe on the first one, it's nice to see such strong growth in a number of your KPIs, platform lane conversions in retail, platform in payments sites and Hospitality, ATM as a service units, all really growing quite nicely. I realize the shift to subscription is, I think you mentioned, a 4-point headwind. And in some cases, as you spelled out, it will take some time to see the revenue tailwind emerge. But can you maybe help us better understand, when we should expect the strong uptick in these KPIs to actually drive an inflection in total revenue growth kind of closer to that 6% to 9% that you've targeted at the Holdco company -- the Holdco level? And then I have a follow-up.

我也有兩個。也許在第一個方面，很高興看到您的許多 KPI、零售平台通道轉換、支付網站和酒店平台、ATM 作為服務單位，都增長得相當好。我意識到，我想你提到過，向訂閱的轉變是一個 4 點的逆風。在某些情況下，正如您所說，需要一段時間才能看到收入順風的出現。但是，您能否幫助我們更好地理解，當我們預計這些 KPI 的強勁上昇實際上會推動總收入增長的拐點接近您為 Holdco 公司設定的 6% 到 9% 的目標時——控股公司水平？然後我有一個後續行動。

Yes. Let me go through the segments and -- that we currently report.

是的。讓我回顧一下我們目前報告的各個部分。

I think you're seeing it in Hospitality already. They grew very nicely at software and services this quarter and had huge margin expansion because of that revenue mix. They missed on POS hardware, which we really don't -- that's not the focus of that business or either of our 2 commerce businesses at this point. So that is an excellent quarter, and I think that's very much the trend you're going to see in retail. As the Hospitality and the retail lanes become a bigger percentage, the platform making a bigger percentage of the total, it will start to move the needle. And the reason we're doing the math and translate it to ARR is to start to show you to try and do the math to make sure you understand these metrics. Admittedly are small currently, but they matter a great deal to our future period growth.

我想您已經在酒店業看到了這一點。本季度他們在軟件和服務方面增長得非常好，並且由於收入組合而實現了巨大的利潤增長。他們錯過了 POS 硬件，而我們確實沒有——這不是該業務或我們目前兩個商業業務的重點。所以這是一個出色的季度，我認為這也是零售業將會看到的趨勢。隨著酒店業和零售店所佔的比例越來越大，平台在總數中所佔的比例也越來越大，它將開始發生變化。我們進行數學計算並將其轉換為 ARR 的原因是開始向您展示嘗試進行數學計算以確保您理解這些指標。誠然，目前規模很小，但它們對我們未來的增長非常重要。

The crossover for the -- you pick up about -- you basically double the ARPU when you get a lane on the platform, you get about $400 right of the gate, and then starts to grow from there. So rather than the Hospitality business where you immediately pick up the software and services upside, it takes a little longer on the retail side. You get them on the platform, you double your revenue stream out of the gate and then it takes the next 12 to 18 months to upsell and cross-sell new product set to continue to have that ARPU grow pretty dramatically. I think, that business is likely to see 2024 be a relatively benign growth year as they shift pretty dramatically toward as a service, but still in the mid-single digits. So seeding future period growth is still growing in the mid-single digits. I don't think that's a terrible outcome.

當你在平台上獲得一條通道時，你會得到大約 400 美元的交叉，然後開始從那裡開始增長。因此，與酒店業務相比，您可以立即獲得軟件和服務的優勢，而零售方面則需要更長的時間。你把它們放在平台上，你的收入來源就會增加一倍，然後需要在接下來的 12 到 18 個月內追加銷售和交叉銷售新產品，從而使 ARPU 繼續大幅增長。我認為，該業務可能會在 2024 年看到相對良性的增長年，因為它們會大幅轉向服務，但仍處於中等個位數。因此，未來的播種期增長仍將以中個位數增長。我不認為這是一個可怕的結果。

On the self-service banking side, it's all about how fast we pace the ATM as a service business. We have lapped -- on the software side of that business, we have lapped the transition to a subscription basis and actually, is a net positive for us currently. We started that process 2.5 years ago. As we start to do hardware now, it takes about 22 months for each contract to cross over. We're growing that business pretty dramatically. We'll call out for you every quarter how many machines we deferred forward, what that revenue impact, the profit impact was and when you can expect to see that come back in our growth rate. And our current model, we've got modest growth for the next 2 years in that business. By the time you get to 2026, actually a really nice growth rate that's in the mid-single digits and moving towards the high single digits as you exit '25 and going to '26. So -- but that will be entirely dependent on how quickly the ATM as a service business takes off, and we'll communicate that very clearly.

在自助銀行方面，關鍵在於我們將 ATM 作為一項服務業務的步伐有多快。我們已經完成了——在該業務的軟件方面，我們已經完成了向訂閱基礎的過渡，實際上，目前對我們來說是一個淨積極的結果。我們在 2.5 年前就開始了這個過程。當我們現在開始做硬件時，每個合同大約需要22個月的時間來交叉。我們的業務正在大幅增長。我們每個季度都會向您通報我們推遲了多少台機器、收入影響、利潤影響是什麼，以及您何時可以看到我們的增長率恢復。在我們目前的模式下，未來兩年我們在該業務上將取得適度增長。到 2026 年，實際上增長率非常好，處於中等個位數，並且當你退出 25 年並進入 26 年時，將向高個位數發展。所以——但這將完全取決於 ATM 作為服務業務的發展速度，我們將非常清楚地傳達這一點。

To a certain extent, the short run, we'll have more revenue growth early, if we don't move toward ATM as a service as quickly as we think.

在某種程度上，從短期來看，如果我們沒有像我們想像的那樣快地轉向 ATM 即服務，我們將儘早獲得更多的收入增長。

Awesome. That was really helpful color. And then maybe, Michael, I know you keep kind of acknowledging NCR would consider alternative scenarios beyond the current spin that they emerge. But, can you maybe share if you've had any of those conversations? Or separately, at what point is it too close to the proposed spin, where you'd kind of have to shut the door on any alternative options? And that's it for me.

驚人的。那是非常有用的顏色。然後，邁克爾，我知道您可能一直承認 NCR 會考慮除當前出現的情況之外的其他方案。但是，您是否可以分享一下您是否進行過這些對話？或者單獨來說，在什麼時候它與提議的旋轉太接近了，你不得不關閉任何替代選項的大門？對我來說就是這樣。

Yes. I mean, I'll just start with -- and I share that it's a little bit of a rhetorical statement to say that a public company or a public company's CEO or public company's Board is open to ideas that would create more shareholder value, so I'll start with that. We make it explicit as we've gone through a process over the last 18 months.

是的。我的意思是，我首先要說的是——我同意，說上市公司、上市公司的首席執行官或上市公司的董事會對能夠創造更多股東價值的想法持開放態度，這有點言辭性的說法，所以我將從那開始。我們在過去 18 個月中經歷了一個流程，因此將其明確化。

Having said that, we embarked on the spin almost a year ago, at the end of September. We felt that was a path that we could execute on that we can control, and most importantly, we felt that this is a path that will create more shareholder value by separating the 2 companies. And so that's the path we expect to execute.

話雖如此，我們大約一年前（九月底）就開始了旋轉。我們認為這是一條我們可以執行、我們可以控制的道路，最重要的是，我們認為這是一條通過分離兩家公司將創造更多股東價值的道路。這就是我們期望執行的路徑。

Having said that, if people come knocking on the door, and people come knock all the time not only the last 12 months. But literally, if you're a public company, people are always talking to you about optionality. I think right now, the whole group here is heads down on a spin, and I anticipate we'll get to that spin, as we talked about in the fourth quarter, and so that's what we're planning to execute on.

話雖如此，如果有人來敲門，而且人們一直都來敲門，而不僅僅是過去 12 個月。但實際上，如果你是一家上市公司，人們總是會和你談論選擇性。我認為現在，整個團隊都在埋頭苦幹，我預計我們會實現這一目標，正如我們在第四季度談到的那樣，這就是我們計劃執行的。

And we have a question from Ian Zaffino with Oppenheimer.

伊恩·扎菲諾向奧本海默提出了一個問題。

This is Isaac (inaudible) on for Ian.

這是代表伊恩的艾薩克（聽不清）。

I just had one question on the cost side. I know you mentioned it in the prepared remarks, but I guess, what you've seen as far as component, labor, freight inflation? It sounds like things have trended in the right direction, but just curious what does guidance assume? Does it assume a continued normalization or for inflation to sort of stay in the same range?

我只是有一個關於成本方面的問題。我知道你在準備好的發言中提到過這一點，但我猜，你對零部件、勞動力、貨運通脹有何看法？聽起來事情已經朝著正確的方向發展，但只是好奇指南假設了什麼？它是否假設經濟持續正常化或通脹保持在同一範圍內？

Yes. The guidance for the full year always presumed that we would lap those difficult environments, as we started this year. We've seen the savings in premium freight and premium labor such as the lack of linear manufacturing and the need to ship products much more quickly, last year. We've lapped that now. The component shortages that we experienced have been solved not just because there's more availability, but because we went and requalified a bunch of new vendors and new designs to make sure that we're insulated or somewhat more insulated from that dynamic going forward. So good old-fashioned hard work from a productivity perspective, better work from our supply chain group, and the elimination of some of the premium freight is all coming through as we expected.

是的。正如我們今年開始的那樣，全年的指導總是假設我們會克服這些困難的環境。去年，我們看到了優質運費和優質勞動力的節省，例如線性製造的缺乏以及更快地運輸產品的需要。我們現在已經完成了。我們所經歷的組件短缺問題已經得到解決，不僅是因為有更多的可用性，還因為我們重新鑑定了一批新供應商和新設計，以確保我們能夠免受或更加免受這種動態的影響。從生產力角度來看，老式的艱苦工作、我們供應鏈團隊的更好工作以及取消一些溢價運費都如我們預期的那樣實現了。

It will continue in the second half of the year. As I said earlier, we'll expand margin in the second half of the year about 2 points, then we were able to get to almost 2.5 points of margin expansion in the first half of the year. So, it's a very similar improvement. It continues on through. And the cost-saving actions that were taken in Q4 of last year and in Q1 of this year are also showing nice returns.

下半年還將繼續。正如我之前所說，我們下半年的利潤率將擴大約 2 個百分點，然後我們上半年的利潤率將擴大近 2.5 個百分點。所以，這是一個非常相似的改進。它繼續進行。去年第四季度和今年第一季度採取的成本節約措施也取得了不錯的回報。

And that does conclude the question-and-answer session. I'll now turn the conference back over to Mike Hayford.

問答環節到此結束。現在我將把會議轉回給邁克·海福德。

Thanks. Thanks, everybody, for joining us today on NCR's second quarter earnings call. As you can all see, the NCR team delivered on an outstanding quarter, literally across the board. And we exceeded all the expectations that we came into the quarter to deliver. I would say, given the potential for the distractions across our entire company during this time of guiding towards the spin, especially proud of the way the team kept the focus, kept the focus on the customers, kept the focus on execution, kept the focus on delivering really tremendous numbers for the quarter. So I want to thank everybody on the NCR team for making that happen.

謝謝。感謝大家今天加入我們 NCR 第二季度財報電話會議。正如您所看到的，NCR 團隊在整個季度都表現出色。我們超出了本季度交付的所有預期。我想說的是，考慮到在引導旋轉的這段時間裡，我們整個公司可能會受到干擾，特別是對團隊保持專注、保持對客戶、保持對執行、保持關注的方式感到自豪。本季度交付的數據確實非常可觀。因此，我要感謝 NCR 團隊中的每個人讓這一切成為現實。

As we get closer to the spin reflected in the last 5 years at NCR, our team here is very proud of the fact that we have been able to transform NCR into a software-led as a service company. We've increased our recurring revenues close to 65%. That was in the 40%, 45% range that was about 5 years ago. We've expanded adjusted EBITDA, as you saw this quarter, close to 20%, to the 500 basis point improvement from when we started, when we were a more hardware-centric company, and we continue to approach almost 80% of our revenue coming from software and services.

隨著我們越來越接近 NCR 過去 5 年所反映的旋轉，我們的團隊對此感到非常自豪，我們已經能夠將 NCR 轉變為一家以軟件為主導的服務公司。我們的經常性收入增加了近 65%。大約 5 年前，這一比例處於 40% 至 45% 的範圍內。正如您在本季度看到的那樣，我們已經將調整後的EBITDA 擴大了近20%，比我們剛開始時（當時我們是一家更加以硬件為中心的公司）提高了500 個基點，並且我們繼續接近收入的近80%來自軟件和服務。

We started about 5 years ago with the customer first strategy. In 2018, we rolled that out. When we did that, our Net Promoter Score was 14. And for those of you that follow Net Promoter Score, 14 is not very good. Each year, we've continued to improve. Our whole team has put a focus on it. And I'm proud to say in our most recent survey, we scored a 61, which is quite an improvement over 14, 5 years ago.

大約 5 年前，我們開始實施客戶至上的戰略。 2018 年，我們推出了該服務。當我們這樣做時，我們的淨推薦值是 14。對於那些關注淨推薦值的人來說，14 並不是很好。每一年，我們都在不斷進步。我們整個團隊都非常關注這一點。我很自豪地說，在我們最近的調查中，我們的得分為 61，這比 14、5 年前有了很大的進步。

If you think about the future of NCR, I could say that, that indicator of strong customer set and that strong improvement over the time period is possibly the best indicator of future success, in this case, both companies. We now have happy customers. Happy customers are keen to executing the strategy, accelerating the growth and transforming NCR into software services-led company. That success is driven by the efforts of every NCR team member each and every day as they take care of our customers.

如果你考慮 NCR 的未來，我可以說，強大的客戶群指標以及一段時間內的強勁改進可能是未來成功的最佳指標，在這種情況下，兩家公司都是如此。我們現在有了滿意的客戶。滿意的客戶熱衷於執行該戰略、加速增長並將 NCR 轉變為軟件服務主導的公司。這一成功得益於每位 NCR 團隊成員每天為客戶服務所付出的努力。

Over the last 5 years, I had the chance, Owen has been with me on a lot of trips, David, Tim, and we've got to meet with our customers around the globe and our employees around the globe. And when you get out in the field and see that and you see what makes this special, it really is the 35,000-plus NCR employees literally at every corner of the globe that work every day hard, work hard to make NCR, the company, put us in a strong position and put us in a real good position to create this two great companies out of one.

在過去的 5 年裡，我有機會，歐文和我一起旅行了很多次，大衛、蒂姆，我們必須會見我們世界各地的客戶和我們世界各地的員工。當你走到現場看到這一點時，你就會明白是什麼讓這一切如此特別，這確實是遍布全球各個角落的 35,000 多名 NCR 員工每天努力工作，努力工作，讓 NCR 這家公司，讓我們處於有利的地位，讓我們真正處於有利的地位，能夠將這兩家偉大的公司合二為一。

I know Owen sitting here would agree with me that we're very excited to be turning over the reins to Tim and David at NCR Voyix and NCR Atleos to continue to execute the strategy, take care of our customers, take care of our employees, increase shareholder value. I'm confident that both will do great running the respective companies, and that both new companies will create long-term shareholder value.

我知道坐在這裡的 Owen 會同意我的觀點，我們非常高興能夠將 NCR Voyix 和 NCR Atleos 的管理權移交給 Tim 和 David，以繼續執行該戰略，照顧我們的客戶，照顧我們的員工，增加股東價值。我相信，兩家公司都會在各自的公司上取得出色的業績，並且兩家新公司都將創造長期的股東價值。

I'm going to thank everybody for joining us today, on our second quarter call.

我要感謝大家今天參加我們的第二季度電話會議。

Well, thank you. That does conclude today's conference. We do thank you for your participation, and have an excellent day.

嗯，謝謝。今天的會議到此結束。我們非常感謝您的參與，祝您度過愉快的一天。