ATLANTA - NCR (NYSE:VYX) Voyix Corporation (NYSE: VYX), a global leader in digital commerce solutions, reported its first-quarter financial results today, surpassing analyst expectations for adjusted earnings per share (EPS) but witnessing a slight dip in revenue compared to the same quarter last year.
The company announced a Q1 adjusted EPS of $0.13, which was $0.10 higher than the analyst estimate of $0.03. However, revenue for the quarter was $862 million, a decrease of 6% from $916 million in the first quarter of 2023, and marginally above the consensus estimate of $856.55 million.
Despite the earnings beat, NCR Voyix's stock price fell by 2.5%, indicating a negative market response. This decline in stock price occurred even as the company reiterated its full-year 2024 revenue guidance, forecasting $3.6 to $3.7 billion, which aligns with the analyst consensus of $3.63 billion.
David Wilkinson, CEO of NCR Voyix, attributed the company's performance to its product-led strategy, which has been successful in driving customer conversions to its Commerce Platform and securing new customers.
"We see opportunities across all of our segments to enhance our existing customer relationships, expand our market share and deliver market-leading technology and best-in-class services, the combination of which will drive profitable growth," Wilkinson said.
In the first quarter, NCR Voyix's Software & Services Revenue increased by 2% to $666 million compared to the previous year, signaling growth in this strategic area.
The company also reported a Total Segment Annual Recurring Revenue (ARR) of $2.1 billion, marking a 5% increase from 2023, with Software ARR up by 6%.
The company's Retail segment experienced a 7% decrease in revenue, falling to $491 million from $528 million the previous year. However, this was offset by a 4% increase in adjusted EBITDA for the segment.
The Restaurants segment saw revenue decrease by 4% to $202 million, while its adjusted EBITDA soared by 25%. The Digital Banking segment reported a 7% rise in revenue to $147 million and a 10% increase in adjusted EBITDA.
Looking ahead, NCR Voyix remains focused on its transformation initiatives to drive cost savings and maintain its market position. The company's financial outlook for the full year 2024 remains unchanged, with expectations for total revenue between $3.6 billion and $3.7 billion, and adjusted EBITDA projected to be between $632 million and $657 million.
Investors and analysts will continue to monitor NCR Voyix's performance closely, particularly in light of the stock's reaction to the Q1 results and the company's ability to sustain growth and profitability in a competitive digital commerce landscape.
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