NCR Atleos Reports Strong Q1 2024 Financial Results

By Bobby Samwell • Tuesday, May 14 06:05 • Permanent Link

NCR Atleos Corporation (NYSE: NATL) has reported strong financial results for the first quarter of 2024. Here are the key highlights:

Revenue grew 6% year-over-year to $1.05 billion, with recurring revenue reaching a record $763 million, marking a 7% increase.
Adjusted EBITDA saw an 11% year-over-year growth to $162 million, while adjusted free cash flow stood at $69 million.
The GAAP net loss was $8 million, with operating cash flow reaching $148 million. GAAP fully diluted loss per share was $0.11, while non-GAAP fully diluted earnings per share stood at $0.41.
The company has reaffirmed its full-year 2024 guidance and issued second-quarter guidance.

In terms of operating results for the first quarter of 2024: Revenue was $1.05 billion, including $763 million of recurring revenue, compared to $986 million and $710 million, respectively, in the prior year period. Gross profit was $221 million with a gross profit rate of 21.0% on a GAAP basis. Adjusted gross profit was $244 million with an adjusted gross profit rate of 23.2%. Income from operations was $72 million on a GAAP basis, with adjusted income from operations at $116 million. Net loss attributable to Atleos was $8 million on a GAAP basis, compared to net income attributable to Atleos of $36 million in the prior year period.

In terms of segment revenue and adjusted EBITDA: Self-service banking revenue stood at $628 million, with adjusted EBITDA of $134 million and an adjusted EBITDA margin of 21.3%. Network revenue reached $310 million, with adjusted EBITDA of $86 million and an adjusted EBITDA margin of 27.7%. * Total adjusted EBITDA was $162 million, representing an 11% increase year-over-year.

Looking ahead, NCR Atleos Corporation has provided guidance for the second quarter of 2024 and reaffirmed its full-year 2024 targets: Revenue for the second quarter is expected to be in the range of $1.06 billion to $1.09 billion, with adjusted EBITDA in the range of $180 million to $190 million. Full-year targets include revenue in the range of $4.20 billion to $4.40 billion and adjusted EBITDA in the range of $770 million to $800 million.

The company's president and CEO, Tim Oliver, expressed confidence in Atleos' position in the self-service banking market and its ability to facilitate digital to physical transactions for consumers.

For more detailed financial information and analysis, the company has scheduled a conference call for May 14, 2024, at 8:30 a.m. Eastern Time.

Atleos is a leader in expanding self-service financial access, with a focus on improving operational efficiency for financial institutions and driving footfall for retailers.

For further information, you can visit Atleos' investor relations website at https://investor.ncratleos.com/. The market has reacted to these announcements by moving the company's shares -0.7% to a price of $22.55. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.