Q4 2021 NCR Corp Earnings Call

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Good day and welcome to the NCR Corporation fourth quarter fiscal year 2021 earnings Conference call.

Speaker 1: Good day and welcome to the NCR Corporation fourth quarter fiscal year 2021 earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Michael Nelson, Treasurer, Vice President of Investor Relations. Please go ahead, sir.

Today's conference is being recorded at this time I'd like to turn the conference over to Mr. Michael Nelson Treasurer, Vice President of Investor Relations. Please go ahead Sir.

Speaker 2: Good afternoon and thank you for joining our full year and fourth quarter 2021 earnings call. Joining me on the call today are Mike Hayford, CEO , Owen Sullivan, President and COO, and Tim Oliver, CFO . Before we get started, let me remind you that our presentation and discussions will include forward-looking statements and

Good afternoon, and thank you for joining our full year and fourth quarter 2021 earnings call. Joining me on the call today are Mike Hayford C E O Owen Sullivan, President and C O O Tim Oliver CFO 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.

Speaker 2: 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.

In our periodic filings with the S E C, including our annual reports on it.

Speaker 2: On today's call, we will 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 February 8, 2022, and on the investor relations page of our website. A replay of this call will be available later today on our website, ncr.com. With that, I would now like to turn the call over to Mike.

Today's call will 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 February eight 2022 and on the Investor Relations page of our website a replay of this call will be available later today on our website.

NCR dot com with that I would now like to turn the call over to Mike.

Thanks, Michael and thank you everyone for joining us today for our fourth quarter and full year.

Speaker 3: Thanks, Michael. And thank you, everyone, for joining us today for our fourth quarter and full year 2020.

2021 earnings call.

Speaker 3: I will begin with some of my views on the business, including an update on our move to NCR becoming a software-led as-a-service company, with a higher shift to recurring...

I will begin with some of my views on the business, including an update on our move MTI, becoming a software led as a service company with a higher shift to recurring revenue streams.

Speaker 3: I will also provide commentary on the strategic review process we noted in our earnings.

I will also provide commentary on the strategic review process, we noted in our earnings release.

Ken will then review our financial performance and an outlook into 2022, and then on M&A I will take your questions.

Speaker 3: Kim will then review our financial performance and an outlook into 2022. And then Owen, Kim and I will take your questions.

Speaker 3: Let's begin on slide four with some highlights from this past year.

Let's begin on slide four with some highlights from this past year.

Speaker 3: We entered the fourth quarter with momentum across our business and finished a very strong year. Keep in mind, we entered 2021 hoping that the COVID pandemic was mostly behind us, but we continued to experience COVID-related flare-ups throughout the year and then the added challenge is brought on by the supply chain issues in the second half of 2020.

We entered the fourth quarter with momentum across our business and finished a very strong year keep in mind, we entered 2021, hoping that the COVID-19 pandemic was mostly behind us.

But we continued to experience COVID-19 related flare ups throughout the year and then added challenges brought on by the supply chain issues in the second half of 2021.

Speaker 3: Throughout the year, our team continued to execute and delivered a very strong year for our shareholders.

Throughout the year, our team continued to execute and delivered a very strong year for our shareholders.

I want to specifically call out at 15000 customer engineers, who have continued to work to support our clients in stores restaurants and banks during the past two years of the pandemic.

Speaker 3: I want to specifically call out our 15,000 customer engineers who have continued to work to support our clients in stores, restaurants and banks during the past two years of the pandemic.

Speaker 3: I'm also proud of the continued execution our teams have done to improve our products and services as we have been making our way back to the office with a flexible hybrid work environment.

I'm also proud of the continued execution our teams have done to improve our product and services as we have been making our way back to the office with a flexible hybrid work environment.

Speaker 3: During this time we've had a keen focus on taking camera customers with the belief that customer happy customers will buy more from NCR.

During this time, we've had a keen focus on taking care of our customers with the belief that customer happy customers will buy more from NCR.

We also successfully completed one of the largest acquisition in Ncr's history, we completed the Cardtronics.

Speaker 3: We also successfully completed one of the largest acquisitions in the NTRS history.

Speaker 3: completed the cartronic acquisition mid-year and are well on our way with integrating the

Acquisition mid year and are well on our way with integrating the two companies.

In 2021 NCI delivered 15% total revenue growth.

Speaker 3: 2021 NCR delivered 15% total revenue growth. With recurring revenue growth,

With recurring revenue growth of 25%.

Speaker 3: adjusted EBITDA increased 39%. While adjusted EBITDA margins expanded 300 basis points to 17.4.

Adjusted EBITDA increased 39%, while adjusted EBITDA margins expanded 300 basis points to 17, 4%.

Speaker 3: Our earnings per share increased 51% and we delivered free cash flow of $460 million for the year.

Our earnings per share increased 51% and we delivered free cash flow of $460 million for the year.

Now moving to slide five.

Speaker 3: We have had strong momentum across our strategic growth platforms which support our transition to shift NCR to a software led as a service company.

We have had strong momentum across our strategic growth platforms, which support our transition to shift NCR to a software led as a service company.

Our 2022 outlook expect another strong year with strong revenue growth and significantly higher profitability, Tim will discuss our guidance in more detail later.

Speaker 3: Our 2022 outlook expects another strong year with strong revenue growth and significantly higher profitability. Tim will discuss our guidance in more detail later.

Speaker 3: In banking, we continue to have positive momentum in our digital banking platform.

In banking, we continue to have positive momentum in our digital banking platform in the fourth quarter digital banking had 37, we know four new logo deals and three business banking wins.

Speaker 3: In the fourth quarter, digital banking had 37 renewals, four new logo deals and three business banking wins, all positive drivers of growth. Demand has been strong for a digital banking platform as well as for our online digital account opening, that which we obtained. The digital banking platform has been strong for a digital banking platform as well as for our online digital account opening, that which we obtained.

Positive drivers of growth demand has been strong for our digital banking platform as well as for online our online digital account opening.

That which we obtained through the acquisition of tariff Fiat.

Speaker 3: We have made significant progress returning digital banking to a growth engine for NCR. During the fourth quarter, digital banking revenue accelerated a 14% growth on a year-over-year same period.

We have made significant progress returning digital banking to a growth engine for NCI during the fourth quarter digital banking revenue accelerated 14% growth on a year over year same period basis.

We are receiving increased interest in our ATM as a service solution.

Speaker 3: We are receiving increased interest in our ATM as a service solution.

Speaker 3: an integrated go-to-market model, combining the NCR and Petro-Hardic team, provided a key point of competitive difference.

An integrated go to market model, combining ncr's patriotic team provided a key point of competitive differentiation.

Speaker 3: Tico's Bank of Florida and Texas-based EECU both selected NCIR's ATM service offering to own, run, manage and modernize their ATM.

He called Bank of Florida, and Texas based <unk>.

See you well selected Ncr's ATM as a service offering one run manage and modernize their ATM fleet.

Speaker 3: And Bank of Dorado, one of India's largest banks with over 9,000 ATMs, selected NCIR's ATMs as a service office.

And Banca Berardo, one of India's largest banks with over 9000, ATM selected NTR ATM as a service offering.

Speaker 3: In retail, we have positive momentum in winning the upgrade imperative for retail point of sale solution.

And retail we have positive momentum in winning the upgrade imperative for retail point of sale solutions.

Speaker 3: We have recently signed a contract to migrate AS Watson from NCR's Legacy POS to our next-gen NCR Commerce Plot from with a five-year subscription.

We have recently signed a contract to migrate a S. Watson from NCR as a legacy Pos.

Our Nextgen MTR commerce platform with a five year subscription a S. Watson is one of the largest.

Speaker 3: One of the world's largest international health and beauty retailers is over 16,000 stores in 28 markets.

One of the world's largest international health and beauty retailers with over 16000 stores in 20 markets.

Speaker 3: We also had a competitive win with ASDA, one of the largest retailers in the UK. ASDA will be migrating from competitors' legacy products to our NCR Commerce platform with a five-year subscription covering software, services, and hardware in our company's business community.

We also had a competitive win with as that one of the largest retailers in the UK as they will be migrating from competitors' legacy product.

MTR commerce platform with a five year subscription covering software services and hardware.

In our company's journey Gran Tierra to run that store.

During the quarter, we continued to gain traction from our digital first retail run in at first half. This SaaS solution helps grocers to implement their own e-commerce and delivery services.

Speaker 3: During the quarter, we continued to gain traction from our digital first retail front end at FreshHop. This SaaS solution helps grocers implement their own e-commerce and delivery services through the NCR Commerce Plot.

The NCR commerce platform.

Speaker 3: In self-checkout, we were also seeing continued options with our market leading solutions. Bad Bass and Beyond has started to roll out NCR Cloud-enabled self-checkout solutions across its footprint, which revs to sense a meaningful expansion of self-checkout into department and specialty retail.

Self checkout. We are also seeing continued adoption with our market leading solutions bed Bath and beyond has started to rollout MTR cloud enabled self checkout solutions.

Yes, its footprint, which represents a meaningful expansion of self checkout into department and specialty retail stores.

Speaker 3: In hospitality, our focus on customer success and wallet share gain is proving itself and our ability to track new customers and better service exists.

In hospitality, our focus on customer success and wallet share gain is proving itself and our ability to attract new customers and better service existing customers MTR expanded our relationship with landry's, a multinational entertainment company with more than 60 restaurant brands, signing a five year Aloha essentials subscription and launch it.

Speaker 3: NCR expanded our relationship with Landry's a multinational entertainment company with more than 60 restaurant brands signing a five year Aloha Essentials subscription and launching e-commerce solutions for quick and easy mobile ordering and deliver.

And launching E Commerce solutions for quick and easy mobile ordering and delivery.

Speaker 3: The agreement drives land reads end-to-end digital transformation, freeing its restaurants to focus on delivering exceptional guest experience.

The agreement drives land Landry's end to end digital transformation training its restaurants to focus on delivering exceptional guest experiences.

Speaker 3: Our payments business continued to success during the fourth quarter as we increase the number of payment processing sites attached to our POS by 42% from the third court.

Our payments business continued to success during the fourth quarter as we increased the number of payment processing site attached to a P. O S by 42% from the third quarter.

Speaker 3: and we are extremely pleased with the performance of cardronics as we continue to add and expand with financial and retail partners. We are driving more transactions across the Al-

And we are extremely pleased with the performance of Cardtronics as we continue to add and expand with financial and retail partners. We are driving more transactions across the <unk> network in the fourth quarter total NCR payment network transactions increased 12% compared to the fourth quarter of 2020.

Speaker 3: In the fourth quarter, total NCR payment network transactions increased 12% compared to

Speaker 3: We expect to drive both merchants acquiring transaction growth and new transaction type growth on the all point net.

We expect to drive both merchant acquiring transaction growth and new transaction type growth.

On the I'll point network.

Speaker 3: With the launch of page 360, which will bring more transaction types, including complete digital currency solutions and the ability to buy and sell crypto currency to our proprietary L.

With the launch of <unk> hundred 60, which will bring more transaction types, including complete digital currency solutions and the ability to buy and sell crypto currency to our proprietary I'll point network.

And finally as we noted in the press release, we have launched a board led strategic review process that will include the input of our executive team our board of directors and outside advisors.

Speaker 3: Finally, as we noted in the press release, we have launched a board led strategic review process that will include the input of our executive team, our board of directors, and outside advice.

Speaker 3: As you heard at our Investor Day on December 9th of last year, the entire management team is very excited about the progress we have made to transform our company. And even more.

As you heard at our Investor Day on December 9th of last year. The entire management team is very excited about the progress we have made to transform our company.

And even more optimistic about the future.

We highlighted it almost three X increase in our customer satisfaction measured by NPS.

Speaker 3: We highlighted it almost 3X increase in our customer satisfaction measured by MPS since 2018. We have shifted our company from a hardware-centric brand to a software led as a service

Since 2018, we have shifted our company from a hardware centric brand to a software led as a service company.

Speaker 3: And we've invested the bill, competitive products across all of our business lines.

And we've invested to build competitive products across all of our business lines.

While this execution over the past three years has exceeded our goal.

Speaker 3: But while this execution over the past three years has exceeded our goal, and has been recognized by our customers, the marketplace and our employees, our stock price has not reflected that performance.

And its been recognized by our customers the marketplace and our employees.

Our stock price has not reflected that performance.

Speaker 3: We have consistently said if execution and transparency were not sufficient to improve our market valuation, we would consider taking the appropriate actions more immediately and directly liberate that value.

We have consistently said if execution and transparency were not sufficient to improve our market valuation, we would consider taking the appropriate action more immediately indirectly liberate that value.

While we were not presupposing an outcome from this review, we do intend to consider various potential actions structures and solutions that will unlock value for our shareholders.

Speaker 3: While we were not presupposing an outcome from this review, we do intend to consider various potential actions, structures, and solutions that will unlock value for our shareholders. I hope they're.

With that let me pass it over to Tim.

Speaker 2: Thanks Mike and thanks to all of you for joining us today. As Mike described, our solid fourth quarter kept a very strong 2021.

Thanks, Mike and thanks to all of you for joining US today as Mike described our solid fourth quarter capped a very strong 2021.

Speaker 2: The simultaneous generated substantial improvements in nearly every financial metric and accelerated our strategic progress.

We simultaneously generated substantial improvements in nearly every financial metric and accelerated our strategic strategic progress.

Speaker 2: Just as a reminder, in similar to last quarter, the legacy car-chronics results are included in our banking segment. So, beginning with our Q1 2022 earnings release, we will report our results relative to the new segmentation described in our December investigation. We will report our results relative to the new segmentation.

Just as a reminder, in similar to last quarter. The legacy Cardtronics results are included in our banking segment. So.

Beginning with our Q1 2022 earnings release, we will report our results relative to the new segmentation, describing our December investor day.

Let's begin on slide six of the top level overview of our fourth quarter financial performance.

Speaker 2: Let's begin on slide six of the top level overview of our fourth quarter financial performance.

Speaker 2: Starting in the top left, revenue was $2 billion, up $403 million or 25% versus the 2024 quarter. Driven by strong growth in all three of our segments.

Starting at the top left revenue was $2 billion up $403 million or 25% versus the 2024th quarter driven by strong growth in all three of our segments.

Normalizing for the inclusion of Cardtronics in the prior year pro forma revenue was up 8% year over year.

Speaker 2: Normalizing for the inclusion of card-chronics in the prior year, Proforma Revenue was up 8% the over-year.

The addition of Cardtronics revenue, which is predominantly recurring helped push our aggregate result up to 35% on a proportion of recurring revenue up to 58% in the quarter.

Speaker 2: The addition of card tronics revenue, which is predominantly recurring, helps push our aggregate result up to 35%, and a proportion of recurring revenue up to 58% in the quarter.

Speaker 2: on a pro-forma basis, recurring revenue was up to 5% URV.

On a pro forma basis recurring revenue was up 5% year over year.

Speaker 2: And the top right adjusted EBITDA increased $95 million or 37% you over year to $353 million.

In the top right adjusted EBITDA increased $95 million or 37% year over year to $353 million.

Speaker 2: adjusted EBITDA margin rate, expanded by 160 basis points to 17.4%.

Adjusted EBITDA margin rate expanded by 160 basis points to 17, 4%.

I'll provide additional detail on the discussion of the segments, but in summary.

Speaker 2: I'll provide additional detail in the discussions of the segments, but in summary, a higher value revenue mix from both the acquisition and sales shift cost productivity and pricing initiatives all together continue to counterbalance premium costs associated with a very difficult supply chain and an accelerating shift to recurring revenue in our retail business.

Our higher value revenue mix from both the acquisition and sale shift cost productivity and pricing initiatives. All together continue to counterbalance premium costs associated with a very difficult supply chain and an accelerating shift to recurring revenue in our retail business.

In the bottom left non-GAAP EPS was <unk> 76, that's up <unk> 17, or 30% from our prior year fourth quarter.

Speaker 2: In the bottom left, non-gas EPS was 76 cents, up 17 cents or 30% from a prior year fourth quarter.

Speaker 2: The integration of cartronics is going very well, and we remain on track for the transaction to be 20 to 25% accretive to NCR EPS within its first poll.

The integration of Cardtronics is going very well and we remain on track for the transaction to be 20% to 25% accretive to and see our EPS within its first full year.

And finally, we delivered another solid quarter of free cash flow generation of $100 million.

Speaker 2: And finally, we delivered another solid quarter of free cash flow, with generation of $100 million. Component lead times in the Omicron disruptions caused this quarter to be far less linear than we planned. The resulting inefficiencies caused pressure on working capital, particularly in receivables and finished goods. That said, this marked the seventh consecutive quarter of positive free cash flow generation as we continue to drive more linear processes throughout our cash cycle.

Component lead times, and the omicron disruptions caused this quarter to be far less linear than we planned the resulting inefficiencies caused pressure on working capital, particularly in receivables and finished goods.

That said this marks the seventh consecutive quarter of positive free cash flow generation as we continue to drive more linear processes throughout our cash cycle.

Speaker 2: Slide 7 shows our financial highlights for the full year. Revenue was $7.2 billion, up $949 million, or 15% versus 2020. Driven by strong growth across all segments. On a pro forma basis, Revenue was up 6%. You'll be...

Slide seven shows our financial highlights for the full year revenue was $7 2 billion up $949 million or 15% versus 2020, driven by strong growth across all segments on a pro forma basis revenue was up 6% year over year.

Speaker 2: We continue to make progress expanding our recurring revenue, which an aggregate was up 25% and comprised 58% of total revenue.

We continue to make progress expanding our recurring revenue, which in aggregate was up 25% and comprised 58% of total revenue.

Speaker 2: On a pro-former basis, recurring revenue was up 8% here.

On a pro forma basis recurring revenue was up 8% year over year.

Speaker 2: And the top right, adjusted EBITDA increased $348 million or 39% year over year to $1.2 billion. Now.

In the top right adjusted EBITDA increased $348 million or 39% year over year to $1 2 billion.

Speaker 2: Adjusted EBITDA margin rate expanded 300 basis points to 17.4% a high watermark for NCR. And for context, standalone NCR meaning without the benefit of cartronics. Adjusted EBITDA increased 19% year-over-year and standalone NCR adjusted EBITDA margin rate expanded 180 basis.

Adjusted EBITDA margin rate expanded 300 basis points to 17, 4% a high watermark for NCR.

And for context, Standalone NCR meeting without the benefit of Cardtronics adjusted EBITDA increased 19% year over year and Standalone NCR adjusted EBITDA margin rate expanded 180 basis points.

In the bottom left non-GAAP EPS for the full year was $2 56 up 87 or 51% from the year ago 2020.

Speaker 2: In the bottom left, non-GAP EPS for the full year was $2.56 of $0.87 or 51% from the year ago 2020.

Speaker 2: And we drove strong, linear free cash flow for a full year result of $460 million.

And we drove strong linear free cash flow for a full year result of $460 million.

Before I move on to discuss the segment view I need to remind those of you who build models that beginning of Q1, we will be reporting our results in our new segments. Those segments are payments and network digital banking self service banking retail and hospitality.

Speaker 2: Before I move on to discuss the segment of you, I need to remind those of you who build models that beginning in Q1, we will be reporting a result in our new segments. Those segments are payments in network, digital banking, self-service banking, retail and hospitality.

To assist with your analysis, we will provide several years of historic results describing these new segments. Shortly after we file our 10-K slide.

Speaker 2: To assist with your analysis, we will provide several years of historic results describing these new segments shortly after we file our 10K. So I'd hate to show their banking segment results, which include the Cartoonic Operating.

Slide eight shows our banking segment results, which include the Cardtronics operations.

Speaker 2: Thanking revenue increased $320 million or 40% year by year, benefited by the addition of cartronic.

Banking revenue increased $320 million of 40% year over year benefited by the addition of Cardtronics.

Speaker 2: Legacy NCR banking was up 7% year over year with particularly strength and software up 15%.

The legacy NCR banking was up 7% year over year with particular strength in software up 15%.

Speaker 2: In addition to a key upfront software deal in the period, we experienced much higher demand for subscription software services with a total sign contract value of 28% year.

In addition to a key upfront software deal in the period, we experienced much higher demand for subscription software services with a total contract value up 28% year over year.

Speaker 2: We also saw increased demand for hardware solutions with revenue of 10% and orders of 28%.

We also saw increased demand for our hardware solutions with revenue up 10% at orders are up 28%.

Speaker 2: Hardware orders growth includes increased demand for our new scalable recycler product, which is expected to accelerate across 2022 as we complete customer tests.

Hardware orders growth includes increased demand for our new scalable recycler product, which is expected to accelerate across 2022, as we complete customer testing.

We continue to successfully replace our onetime revenue that was traditionally recognized with the sale of ATM hardware with more durable predictable and valuable software and services revenue streams.

Speaker 2: We continue to successfully replace our one-time revenue that was traditionally recognized with a sale of ATM hardware, with more durable, predictable, and valuable software and services revenue.

Banking, adjusted EBITDA increased $98 million or 74% year over year.

Speaker 2: Banking adjusted EBITDA increased $98 million or 74% year-over-year. Adjusted EBITDA margin rate expanded by 400 basis points to 20.6%.

Adjusted EBITDA margin rate expanded by 400 basis points to 26%.

The margin increase was a result of significant accretion from the inclusion of Cardtronics.

Speaker 2: The margin increase was the result of significant accretion from the inclusion of cartronics, a more profitable and valuable revenue mix in our legacy and to our businesses, as well as cost productivity and pricing increases we'd previously put in place. The bottom of the slide is.

A more profitable and valuable revenue mix in our legacy NCR businesses as.

As well as cost productivity and price increases we previously put in place.

The bottom of the slide shows our banking segment key results.

Speaker 2: On the left, we had a terrific year in digital banking, with revenue up 9% for the full year. Digital banking growth rate accelerated throughout the year, with a fourth quarter of 14% compared to the same quarter in 2020.

On the left we had a terrific year in digital banking with revenue up 9% for the full year digital banking growth rate accelerated throughout the year with a fourth quarter up 14% compared to the same quarter of 2020.

Speaker 2: Digital banking registered users increased only 3%. The sequential decline was caused by a customer consolidation and a subsequent move to an in-house solution.

Digital banking registered users increased only 3%.

The sequential decline was caused by a customer consolidation and a subsequent move to an in house solution.

Speaker 2: The shift of recurring revenue continues the drain traction, with recurring revenue up 42% for the full year and up 6% on a pro form of base.

The shift to recurring revenue continues to gain traction with recurring revenue up 42% for the full year and up 6% on a pro forma basis.

Speaker 2: And the fourth quarter recurring revenue growth accelerated to 8% on that same pro form of base.

In the fourth quarter recurring revenue growth accelerated to 8% on that same pro forma basis.

Speaker 2: Moving to slide nine, which shows our retail segment results. Starting at the top left, retail revenue increased $51 million or 9% year-over-year, due to higher point of sale and sell, check out solutions revenue.

Moving to slide nine which shows our retail segment results starting at the top left retail revenue increased $51 million or 9% year over year due to higher point of sale and self checkout solutions revenue increases.

Speaker 2: increases in North American hardware sales and software licenses for enterprise and self checkout applications as well as cloud revenue paste this growth.

Increases in North American hardware sales and software licenses for enterprise and self checkout applications as well as cloud revenue pace of this growth.

Speaker 2: Retail adjusted EBITDA declined 1% you over year, while adjusted EBITDA margin rate contracted 150 basis points to 14%.

Retail adjusted EBIT declined 1% year over year, while adjusted EBITDA margin rate contracted 150 basis points to 14%.

Speaker 2: Hardware material costs and freight expedites and higher services staffing levels can strain margin expense.

Hardware material costs, and freight Expedites and higher services staffing levels constrain margin expansion.

These impacts were partially offset by price increases and reduced expenses.

Speaker 2: These impacts were partially offset by price increases and reduced expense.

We continue to have success transitioning our retail business from onetime perpetual sales into multiyear subscription based revenue streams.

Speaker 2: We continue to have success transitioning our retail business from one time for petrol sales into multi-year subscription-based revenue.

Speaker 2: The strategic deals that Mike mentioned at ASDAS, AS Watson, and Bed Bath and Beyond were key wins in the fourth quarter. The nature of these contracts shifted roughly 14 million of very high-profit revenue that would previously have occurred as upfront software license to recurring revenue, which infected the year-to-year comparison.

The strategic deals that Mike mentioned that as the a S Watson and bed Bath, <unk> beyond where key wins in the fourth quarter.

Nature of these contracts shifted roughly $14 million of very high profit revenue that would previously have occurred as upfront software license to recurring revenue, which impacted the year over year comparisons.

The bottom of the slide shows retail segment key metrics on the left self checkout revenue increased 13% for the full year in line with our expected full year 2021 double digit results.

Speaker 2: On the left, self-checkout revenue increased 13% for the full year, in line with our expected full year 2021 double-digit result.

And in the center bottom or platform lanes or kpis that illustrates the success of our strategy of converting our retail customers to our platform based subscription model.

Speaker 2: And in the center bottom of our platform lane, a KPI that illustrates the success of our strategy of converting our retail customers to our platform-based subscription model. In 2021, we more than triple the number of platform lanes.

2021, we more than tripled the number of platform late.

Speaker 2: Well, I meant them for our strategy of converting traditional lanes to platform lanes carries into 2022 with a substantial lane conversion back.

Momentum for our strategy of converting traditional lanes to platform lanes carries into 2022 with a substantial lean conversion backlog.

Recurring revenue in this business increased 9% for the full year.

Speaker 2: Recurring revenue in this business increased 9% for the full year.

Speaker 2: Slide 10 shows our hospitality segment results and illustrates momentum across this business with particular strength in the enterprise market caused by an uptick in new restaurant openings and technology repressed.

Slide 10 shows our hospitality segment results and illustrates momentum across this business with particular strength in the enterprise market caused by an uptick in new restaurant openings and technology refreshes.

Speaker 2: Hospitality revenue increased $49 million or 27% as restaurants reopen, rework their existing locations and expand.

<unk> revenue increased $49 million or 27% as restaurants, reopen rework their existing locations and expand.

Speaker 2: Revenue is returning to 2019 levels and the virus disruptions are becoming less disruptive. Our pipeline is strong and our backlog is significantly higher than it was a year ago. We continue to triage component supply to insulate our customers from supply chain disruptions.

Revenue was returning to 2019 levels and the virus disruptions are becoming less disruptive our.

Our pipeline is strong and our backlog is significantly higher than it was a year ago.

We continue to triage component supply to insulate our customers from supply chain disruptions.

Speaker 2: Fourth quarter adjusted EBITDA was flat from the fourth quarter of 2020, but then adjusted EBITDA margin rate of 11.7%. Intentional increases in sales and marketing costs to catalyze growth and significant cost pressure for both chip sets and expedited freight and hardware for our enterprise customers impacted those margins.

Fourth quarter adjusted EBITDA was flat from the fourth quarter of 2020 with an adjusted EBITDA margin rate of 11, 7% intentional increases in sales and marketing cost to catalyze growth and significant cost pressure for both chipsets and expedited freight and hardware for our enterprise customers impacted those margins.

Hospitality is key metrics on the bottom of the slide include a low heart central sites and recurring revenue.

Speaker 2: Hospitality's key metrics in the bottom of the slide include a low-ha essential site and recurring revenue.

Although hard central sites increased to 148% for the full year, while recurring revenue increased 9% in 2021.

Speaker 2: Aloha Essential Cites increased 148% for the full year, while recurring revenue increased 9% in 2021. Turning to slide 11, where we provide our full year results for our 8060 20 strategic target.

Turning to slide 11, where we provide our full year results for $80 $60 20 strategic targets. These.

Speaker 2: These goals were originally put in place in 2019 as 2024 targets. And even with the pandemic and the supply chain disruptions, we have executed successfully and deemed these goals nearly complete. This will be the last time we present this slide that we have a new set of more aggressive and aspirational five-year goals for our organization.

These goals were originally put in place in 2019, as 2024 targets and even with the pandemic and the supply chain disruptions. We have executed successfully and these goals nearly complete this will be the last time, we presented this slide because we have a new set of more aggressive and aspirational five year goals for our organization.

Speaker 2: First, we strive to generate 80% of our revenue from software and services, or less than 20% of our revenue from discrete hardware sales. In 2021, software and services represented 73% of our revenue up from 72 in 2020. Next, we aim for 60% of our revenues to be recurring to drive more resilient or predictable and more valuable revenue.

First we strive to generate 80% of our revenue from software and services or less than 20% of our revenue from discreet hardware sales in 2021 software and services represented 73% of our revenue up from 72 in 2020.

Next we aim for 60% of our revenues to be recurring to drive more resilient more predictable and more valuable revenue.

Speaker 2: 2021 recurring revenue represented 58% of our total up from 54 in 2020.

<unk> 2021 recurring revenue represented 58% of our total up from 54 in 2020.

Speaker 2: And we aspire to a 20% adjusted EBITDA margin rate. We made significant progress on this metric within adjusted EBITDA margin of 17.4% in 2021 compared to 14.4 in 2020.

And we aspire to a 20% adjusted EBITDA margin rate, we made significant progress on this metric with an adjusted EBITDA margin of 17, 4% in 2021 compared to $14 four in 2020.

Speaker 2: On slide 12, we present free cash flow, net debt, and adjusted ebethometrics to facilitate leverage calculation.

On slide 12, we present free cash flow net debt and adjusted EBITDA metrics to facilitate leverage calculations.

We continued the trend of strong or linear free cash flow, we generated total free cash flow of $100 million.

Speaker 2: We continued the trend of strong or linear free cash flow. We generated total free cash flow of $100 million. We have a strong balance sheet, ample liquidity, and the financial strength that support our growth strategy.

We have a strong balance sheet ample liquidity and the financial strength to support our growth strategy.

Speaker 2: The slide also shows our net debt to adjusted EBITDA metric with a pro forma leverage ratio of 3.7 times.

This slide also shows our net debt to adjusted EBITDA metric with a pro forma leverage ratio of three seven times.

Speaker 2: We ended the fourth quarter with $447 million of cash and remained well within our debt governance, which include a maximum-proform-a-level ratio of 5.5 times.

We ended the fourth quarter with $447 million of cash and remained well within our debt covenants, which include a maximum pro forma leverage ratio of five five times.

Speaker 2: We also have significant liquidity with over $900 million available under the Reballing Credit Facilities.

We also have significant liquidity with over $900 million available under the revolving credit facility.

On slide 13, we present, our full year 2022 outlook.

Speaker 2: On slide 13, we present our full year 2022 outlook.

Speaker 2: We expect revenue of $8.8 billion dollars representing growth between 12 and 15%.

We expect revenue of 8 billion to $8 $2 billion, representing growth between 12 and 15%.

That range represents caution around the first half global transaction volumes and presumes component availability eases in the second half.

Speaker 2: That range represents caution around the first half global transaction volumes and presumes component availability eases in the second half.

Speaker 2: We also assume a typical net impact from the shift to recurring revenue.

We also assume a typical net impact from the shift to recurring revenue.

Speaker 2: We expect adjusted EBITDA to be $1.5 billion to $1.575 billion representing a growth rate of 21 to 27%.

We expect adjusted EBITDA to be $1 5 billion to $1 $5 $75 billion.

Representing a growth rate of 21% to 27%.

Speaker 2: This range presumes a difficult cost-price dynamic in the first half that eases in the second. It also includes full execution of the cartronics transaction synergies. Non-GAT EPS is expected to be $3.25 to $3.55 for the year, representing growth of 27 to 39%.

This range presumes, a difficult cost price dynamic in the first half that eases in the second.

It also includes full execution of the Cardtronics transaction synergies non-GAAP EPS is expected to be $3 25 to $3 55 for the year representing growth of 27% to 39%.

Speaker 2: We've assumed a tax rate of 26% and a share count of 154 million shares in that analysis.

We have assumed a tax rate of 26% and a share count of 154 million shares in that analysis.

We expect to generate free cash flow between 500 $600 million a key to free cash flow will be the ability to use nonrecourse financing.

Speaker 2: We expect to generate free cash flow between $506 million. A key to free cash flow will be the ability to use non-records financing to fund the ATM and go as a service strategy.

The ATM in scope as a service strategy.

To assure alignment with your quarterly models I also want to provide some thoughts on Q1 and the calendar <unk> of 2022.

Speaker 2: To assure alignment with your quarterly models, I also want to provide some thoughts on Q1 and the calendarization of 2022. You will recall that a very low pandemic adjusted cost-base combined with a modest post-virus bounce allowed us to get out to a fast start in 2021.

You will recall that a very low pandemic adjusted cost base combined with a modest post virus bounce allowed us to get off to a fast start in 2021.

Speaker 2: The second half performance, while still strong, was significantly impacted by step phosphorus ... Developed 1ac2&s, motherfuckered at 22,6 and 2500 Euros,elerin,2.

The second half performance, while still strong were significantly impacted by step function changes in our component costs and freight costs.

Speaker 2: Performance in 2022 is likely to be a mirror image of that environment with price increases catching up with costs in the first half.

Performance in 2022 is likely to be a mirror image of that environment with price increases catching up with costs in the first half.

And a second half increase in revenue as transaction volumes normalize and components become more readily available.

Speaker 2: And a second has increased in revenue, has transaction volumes normalized, and components become more readily available.

Speaker 2: So for Q1, we expect revenue of 1.9 billion to 1.95 billion, which is up 23 to 26% on a reported base.

So for Q1, we expect revenue of $1 9 billion to $1 95 billion, which is up 23% to 26% on a reported basis.

Part supply will likely constrain hardware sales and global omicron impacted transaction volumes will be down.

Speaker 2: Heart supply will likely constrain hardware sales and global Omicron-impacted transaction volumes will be down.

Speaker 2: While the hardware revenue will push forward into subsequent quarters, transaction volumes do not. We expected just an EBITDA of $325 million to $350 million, which results in a margin rate very similar to that of Q4.

While the hardware revenue will push forward into subsequent quarters.

Transaction volumes do not we expect adjusted EBITDA of 325 million to $350 million, which resulted in a margin rate very similar to that of Q4.

Speaker 2: A less advantageous hardware mix and premium manufacturing cost will be countered by price increases and cost productivity.

A less advantageous hardware mix and premium manufacturing cost will be countered by price increases and cost productivity.

Speaker 2: We expect non-GAPEPS of 60 cents to 65 cents. We've assumed a tax rate of 26 percent and a first quarter share count of 152.5 million shares.

We expect non-GAAP EPS of <unk> 60 to 65.

We've assumed a tax rate of 26% in the first quarter share count of 152 5 million shares.

Speaker 2: We expect the first quarter to be a modest use of cash due to typical seasonal factors such as our annual 401k match and our annual cash compensation expense that were not funded in 2021 and to expected higher inventory levels. After Q1, we expect modest sequential quarterly improvement across most financial metrics to ultimately produce the results described by our annual guidance.

We expect the first quarter to be a modest use of cash due to typical seasonal factors such as our annual 401k match and our annual cash compensation expense that were not funded in 2021 and.

And two expected higher inventory levels. After Q1, we expect modest sequential quarterly improvement across most financial metrics to ultimately produce the results described by our annual guidance.

Speaker 2: And finally, slide 14 bridges, 2021 adjusted EBITDA of $1.24 billion to 2022 adjusted EBITDA guided range provides a high level depiction of our earnings drivers for 2022.

And finally slide 14 bridges 2021, adjusted EBITDA of $1 billion to $4 billion.

Through 2022, adjusted EBITDA guided range provides a high level depiction of our earnings drivers for 2022.

Speaker 2: We expect benefits from increased volume and price increases to drive $150 to $200 million of incremental adjusted EBITDA. The inclusion of cardronics results for the full years expected to add another $150 million.

We expect benefits from increased volume and price increases to drive a $150 million to $200 million of incremental adjusted EBITDA. The inclusion of Cardtronics results for the full year is expected to add another $150 million.

Speaker 2: and we are on track to achieve a hundred million dollars in cost energies associated with the Contronic Transaction and expect an incremental twenty five million dollars in net productivity.

And we are on track to achieve a $100 million in cost synergies associated with the Cardtronics transaction and expect an incremental $25 million and net productivity.

Speaker 2: The primary headwind in 2022 will be our ongoing shift away from selling perpetual software licenses and hardware to subscription and as a service model. We anticipate this shift to be recurring to be roughly $150 million, similar to the amount 2021, but more weighted to retail and ATM at the service.

The primary headwind in 2022 will be our ongoing shift away from selling perpetual software licenses and hardware subscription and as a service models.

Anticipating this shift to recurring to be roughly $150 million.

Similar to the amount in 2021, but more weighted to retail and ATM as a service.

The more successful we are shifting our revenue through multiyear contracts the larger the near term headwind would be.

Speaker 2: The more successful we are shifting our revenue to multi-or contract, the larger the near term headwind would be.

Speaker 2: We will make sure to call out any major contracts and describe those economics at the time. With that, I'll turn it back to you Mike. Thanks Tim. In closing, I'm on slide 15.

We will make sure to call out any major contracts and describe those economics at the time.

With that I will turn it back to you Mike Thanks, Tim.

In closing I'm on slide 15.

Speaker 3: We have made significant strategic progress in 2021. And we did what we said we would do, delivering consistent, strong, financial, and operating performance.

We have made significant strategic progress in 2021.

And we did what we said, we'd do delivering consistent strong financial and operating performance.

Speaker 3: Throughout the year, we've had a keen focus on taking care of our customers with the belief that happy customers will buy more. I would say that we are. Our focus is paying off with our net promoter score increasing by 33% in 2021 and 2020.

Throughout the year, we've had a keen focus on taking care of our customers with the belief and happy customers will black will buy more.

Our focus is paying off with our net promoter score increasing by 33% in 2021, and 2020 improved customer satisfaction help NCI garner a higher share of wallet and was a key contributor to revenue growth and margin expansion across all of our industries.

Speaker 3: Improved customer satisfaction helps NCR garner a higher share wallet and was a key contributor to revenue growth and margin expansion across all of our industries.

We entered 2022 with momentum.

Speaker 3: In a clear strategic vision as we accelerate our transformation to a softer lead as a service.

And a clear strategic vision as we accelerate our transformation to a software led as a service company.

Speaker 3: Looking forward, our key priorities are clear. First, we expect to accelerate growth as we leverage our software and payments platform to increase share of wallet. As we discussed at our investor day, we have established new five-year targets, which we call 80-

Looking forward our key priorities are clear first we expect to accelerate growth as we leverage our software and payments platform to increase share of wallet.

As we discussed at Investor Day, we have established a new five year targets.

Which we call 80 15 one.

Speaker 3: We strive to generate 80% of our revenue to be recurring.

We strive to generate 80% of our revenue to be recurring.

We expect to deliver 15% annual non-GAAP diluted EPS growth each year.

Speaker 3: We expect to deliver 15% annual non-gap diluted EPS growth each year.

And we aspire to generate $1 billion.

Speaker 3: And we aspire to generate $1 billion, $1 billion, a free cash flow in 2020. And we aspire to generate $1 billion, $1 billion, a free cash flow in 2020.

$1 billion of free cash flow in 2026.

Speaker 3: Second, we are eager to capitalize on the opportunities that cartonics and Liberty X rings us. We closed the Liberty X transaction at the beginning of January and we are very excited about this opportunity. This acquisition continues our strategy to digitally engage with consumers and provide retailers and banks additional solutions for the customers to pay transactions.

Second we are eager to capitalize on the opportunities that Cardtronics and Liberty X brings us we closed the Liberty X transaction at the beginning of January and we are very excited about this opportunity. This acquisition continues our strategy to digitally engage with consumers and provide retailers and banks additional solutions for the customers.

To pay transact and be met.

Third we will continue to improve execution to drive solid returns for our shareholders, while we transform the business to drive a rebate.

Speaker 3: Third, we will continue to improve execution to drive solid returns for our shareholders while we transform the business to drive a re-rate of our evaluation.

Our valuation.

Speaker 3: Finally, we will explore strategic actions to accelerate shareholder value creation. As we believe our stock price has not reflected, the improved performance demonstrated over the past three years.

Finally, we will explore strategic actions to accelerate shareholder value creation as we believe our stock price has not reflected the improved performance demonstrated over the past three years.

Speaker 3: This concludes our prepare remarks for today. With that, we will open the call for questions. Thank you for your time. Up.

This concludes our prepared remarks for today with that we will open the call for questions. Thank you for your time.

Operator, please open the line.

Thank you.

Speaker 1: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speaker phone, please make sure that your mute function is turned off to allow your signal to reach our equipment. Once again, that is star one. If you would like to ask a question, we will take our first question from Dan Perlin with RBC Capital Markets. Please go ahead.

If you would like to ask a question. Please signal by pressing star wondering your telephone keypad.

Using a speakerphone. Please make sure that your mute function is turned off to lay your signal to reach our equipment.

Once again that is star one if you'd like to ask a question we.

We will take our first question from Dan Perlin with RBC capital markets. Please go ahead.

Thanks, and good evening everyone.

Speaker 2: Thanks and good evening everyone. I wanted to just start Mike with a strategic review. I know you probably don't want to go into details on this, but the question I guess I have is as we look across the business and the incremental segmentation that you guys have provided, which I think provide a lot more clarity.

I wanted to just start Mike with the strategic review I know you probably don't want to go into details on it but.

A question I guess I have is as we look across the business and the incremental segmentation that you guys have provided which I think provide a lot more clarity.

Speaker 4: The question is, when you think about the opportunities, I mean, can all these businesses at this stage truly stand on their own? Do you see this synergy used to the extent that you would look at some of the options, and I think it's a lengthy list that you mentioned in the press release? So I'm just trying to get some sense of what you're thinking there. Thank you.

The question is when you think about the opportunities we can all of these businesses at this stage truly stand on their own.

Do you see dis synergies to the extent that you would.

Look at some of the options and I think it's a lengthy list that you mentioned in the press release, So I'm just trying to get some sense as to what Youre thinking there. Thank you.

Speaker 3: Yeah, thanks Dan. Yeah, I mean, so we gave transparency around five business segments predominantly because they...

Yes, Thanks, Dan.

We gave transparency.

Hi.

Our business segments predominantly because they.

As you look at NCR those sides of the segments, we felt gain better visibility into comps in the marketplace.

Speaker 3: As you look at NCR, those five business segments, we felt gave better visibility into comps to the marketplace and the ability to understand NCR. But when it comes to what we look at for strategic alternatives, we kind of outlined some in the press release. We're gonna keep our minds open. I would assume that that.

Ability to understand.

Sure.

But when it comes to what we looked at the strategic alternatives, we kind of outlined in the press release, we're going to we're going to keep our minds open.

Assume that that.

Speaker 3: An outcome is you look at the five segments that work on the intent of why we gave transparency and five segments.

An outcome as you look at the size segment that wasn't the intent gladly Gabe.

By segment.

Speaker 3: But as we look at what we could do to unlock value, and again, we...

As we look at what we could do to unlock value and again Lee.

We really look at this and say listen we executed four three years, we've hit every quarter for three years.

Speaker 3: you know we really look at this and say let's listen we've executed for three years we've hit every quarter for three years

We improved.

Speaker 3: improved our product, improved our strategy, we've delivered our products to the market, we had customer set, we've grown our business, and we're pretty excited about where we're going in the future. But yeah, we looked at where we trade, and we're very disappointed with the value in the set.

We improved our product.

That strategy we've delivered.

Hi, Matthew we had customer sat.

We are growing our business.

And we're pretty excited about where we're going in the future, but yes, we look at where we trade and we're very disappointed with the value.

So the last couple of years, if if the market doesn't catch up in value appropriately we would take.

Speaker 3: The last couple of years, if the market doesn't catch up in value, as appropriately, we would take...

Speaker 3: a long hard look at what we might do. So, you know, if you think about the laundry list of things that we...

Lon.

Look at what we might do so.

Think about the laundry list of things that we.

Speaker 3: might be evaluating clearly looking at some of those components that you identified some of the five business segments whether some of those might have more value or more access to capital to stand-limbs.

Might be evaluating.

Clearly looking at some of those components that you identified some of the five business segments, whether it's some of those might have more value or more.

Access to capital Standalone, I think that would be fair to say, we would look at that.

Speaker 3: I think that would be fair to say we'd look at that. I think you could look at the company and say.

I think you can look at the company and say sequentially I forget how much synergy between the two business. We think there is some synergy but good luck and thanks.

Speaker 3: The question we get, how much energy is between the two business? We think there's some synergy.

Speaker 3: But yeah, you could look and say, could you split into two or three pieces and have entities that are a little bit more pure play as they go out and compete and create an investment.

Could you split into the two or three pieces in half.

Is that a little bit more.

Sure play as they go out and compete and create an investment vehicle.

Speaker 3: You know, we're gonna look at things like that. We actually think one of the challenges we have, the marketplace, the customers, clearly, we brought back the brand, the credibility of the brand. We have great brand perception, credibility with our employees. We're not sure about that with investment community, so do we have to do something with the brand and the entity that people invest in? Do we have to look at our footprints of...

We're going to look at things like that we actually think one of the challenges we have the marketplace. The customers clearly we've brought back the brand credibility of the brand we have great brand perception credibility with our employees.

Not sure about that with investment community. So do we have to do something with the brand and in the end.

That people invest in.

Do we have to look at our footprint.

Jason.

Speaker 3: countries, our manufacturing footprint, and we need to do something along those lines.

Entry, our manufacturing footprint, and we need to do something along those lines.

Speaker 3: I don't think we would rule out, do we look at, do we combine with an entity in some way, shape a form that continues to push us more to solve for services, pushes more on the platform company, I would expect it to be in the same industry that we're already in today. I don't know if we have potential strategic.

I don't think we would rollout daily look at do we combine let's say.

Entity in some way shape or form that continues to push us more to software services.

Moreland the platform company.

It to be in the same industries that we're already in.

And today.

Yes.

I don't know if any of the potential strategic buyer interested but I didn't think we'd have some sponsors that might be interested in.

Speaker 3: By interested, but I do think we've got some sponsors that might be interested in Transaction. So I think we're gonna be very open-minded. There may be some other ideas that come to us.

The transaction. So I think we're going to be very open minded there may be some other ideas that come to us.

The net of it is we.

Speaker 3: The lead we have executed financially, we've strategically executed with our products, we've improved our company over the last three years, but yet.

So Lee we have executed financially we've executed basically in vaccine with our products, we've improved our company over the last three years, but yet.

Speaker 3: We're not reflected in our evaluation. So this is the step we're taking simply because of that fact.

Is that reflected in our valuation. So this is the steps, we're taking simply because of that back.

Speaker 4: That's great. Thank you for all that detail. Just a quick follow up for Tim. When you think about the guidance, and you gave a lot of detail to your about some of the toggle points, but are you more, as you sit here today, are you more concerned about the cost aspect of the business to get you to kind of the high low range, or you're more concerned about the demand environment across the spectrum of what you can at least see from visibility at this point? Thank you.

That's great. Thank you for all that detail.

Just a quick follow up for Tim when you think about the guidance and you gave a lot of details here about kind of some of the toggle points, but are you more.

As you sit here today are you more concerned about the cost aspect of the business to get you to kind of the high low kind of range or are you more concerned about the demand environment across the spectrum of what you can at least see from visibility at this point. Thank you.

Speaker 2: So, yes, so demand is fine. Demand is actually relatively good nearly everywhere with the exception of transaction volumes at cardronics. When the crown countries start to open up more and the US opens up more, I think those will recover as we get and get kind of put the Omicron variants in our rear-view mirror. So demand will not be a problem. I feel good about it.

So yes. So demand is fine demand is actually relatively good nearly everywhere with the exception of transaction volumes at Cardtronics.

Lynn.

The crowd countries start to open up more and the U S opens up more I think those will recover as we get into <unk>.

Put the omicron variance in our rearview mirror, so demand will not be a problem I feel good about our demand.

Speaker 2: From a cost perspective, those things we can control, which is, you know, this hour cost, the control cost, we'll manage that. We do every year, we have productivity initiatives underway. Adrian is his team, look at our manufacturing base and trying to make sure that we get sufficient productivity in a typical year to offset inflation. As you know, we came into this year with a significant headwind from inflation. We experienced no latter half of last year, and while the supply chain is getting better, it's not great. And so my biggest concern would be, can our price increase?

From a cost perspective, those things, we can control which is.

Our cost of controllable costs, we will manage that we do every year, we have productivity initiatives underway Adrian and his team look at our manufacturing base and try to make sure that we get sufficient productivity in a typical year to offset inflation. As you know we came into this year with a significant headwind from inflation that we experienced in the latter half of last year and well.

The supply chain is getting better its not great and so my biggest concern would be Ken our price increases.

Speaker 2: Keep pace with the cost that we've seen thus far that that would be in my mind how that plays out over the Termine what end of the range we end up in

Keep pace with the cost that we've seen thus far that would be in my mind, how that plays out will determine what end of the range we end up in.

Got it thank you.

Thank you we'll take our next question from Matt Summerville with D. A Davidson.

Speaker 1: Thank you, we'll take the next question from Matt. I'm gonna go with the A-Daydleton.

Thanks, a couple questions first if you look at your guidance, Tim the 12% to 15% revenue growth how much of that would you say would be pro forma legacy NCR similar to how you talked about the reporting periods here on the call.

Speaker 4: Thanks, a couple of questions first. If you look at your guidance, Tim, the 12 to 15% revenue growth, how much of that would you say would be pro forma legacy NCR, similar to how you talked about the reporting periods here in the call.

I'm not sure I'll have Mike, we'll get you that data, we're going to we're going to give you pro forma.

Speaker 2: I'm not sure I'll, I'll, Michael get to that data. We're gonna, we're gonna give you a pro format.

Speaker 2: data going back to headquarters for all of the segments that'll be inclusive of cartronics. So I actually didn't do that math for you. We're gonna do it. Imagine this is my guy. I was, you know, it gets increasingly hard going forward to try to break that out and I'll give you an example. We talked about three.

Data going back eight quarters for all of the segments that will be inclusive of Cardtronics I'd actually didn't do that math for you.

Matt This is Mike.

Yes.

Basically hard going forward to try to break that out and I'll give you. An example, we talked about three ATM as a service deals that we executed in the fourth quarter.

Speaker 3: A.C.M. and Service Deals that we executed in the fourth quarter. And I think we talked to the last call. We're very optimistic about that business. So we see entities both small and make it brighter, which is very large entity in India.

Yes, I think we talked about it last call.

Very optimistic about that business as we see entities, both small and in thanking Brad which is very large entity in India, who look at our ability our ability as NCI slash cardtronics.

Speaker 3: who look at our ability, our ability is NCR, flash paratrox, not only to deliver the...

To deliver the components the service, but also to operate.

Speaker 3: service but also to operate. And that's combined offering of NTR, our time says really hard to say what is, where is that coming from? We expect more of that in about 2022. So I don't think you're gonna see us trying to break out what is coming from each side of the businesses from a legacy perspective. So while my wingman was talking, I did some math. It's about half of that number is, is pro forma growth. So the 12 to 15.

And that's a combined offering of Ncis. So it's really hard to say what is where is that coming from we expect more of that in.

I think about 2022, so I don't think youre going to see us try to breakout what is coming from each side.

The businesses from a legacy perspective.

<unk> was talking I did some math that's about half of that number is.

Pro forma growth.

Of the 12 to 15 will be about half of that we pro forma growth.

Speaker 4: Got it. And then you mentioned several times Tim about how pleased you are with some of the backlogs you're seeing in the businesses. I was wondering if you could maybe put some numbers around that whether it be there's a whole forensic are at the segment level. And then maybe comment on in a more ideal world supply chain, etc. wise, how much revenue maybe you would have otherwise been able to deliver in Q4.

Got it and then you mentioned several times Tim about how pleased you are with some of the backlogs youre seeing in the businesses I was wondering if you could maybe put some numbers around that whether it would be as a whole for NCR at the segment level and then maybe comment on in a more ideal world supply chain et cetera.

Oh wise, how much revenue, maybe you would have otherwise been able to deliver in Q4. Thank you.

Speaker 2: Okay, yeah, so the first part of that is we don't disclose backlog that qualitatively I feel really good about

Okay, Yes.

The first part of that is we don't disclose backlog that qualitatively I feel really good about.

Speaker 2: where we entered the this year versus where we entered last year. So to have backlog and ATMs and to have backlog and scopes is a nice thing. In terms of how much revenue pushed forward from one quarter to the next, we've talked about $40 to $50 million in hardware revenue pushing forward from Q3 into Q4 and now from Q4 into the first half of 2022. So it's on that magnitude.

Where we enter it.

This year versus where we entered last year, so to have backlog in Acs at the half hour bug in scope.

There is a nice day.

In terms of how much revenue push forward from one quarter to the next we've talked about $40 million to $50 million in hardware revenue pushing forward from Q3 into Q4 and now from Q4 into the into the first half of 2022.

It's on that magnitude.

Got it thank you guys.

Thank you we'll take our next question from Charles <unk> with Stephens.

Speaker 1: Thank you, we'll take our next question from Charles Neyven with Ask Steven.

Speaker 5: I get afternoon and thanks for taking my question. I wanted to ask you about Liberty X, specifically the degree to which that impact that the quarter as well as your guidance for 22.

Hi, good afternoon, and thanks for taking my question I wanted to ask you about Liberty acts specifically the degree to which.

That impact that impacted the quarter as well as your guidance for 2002.

So theres nothing in the quarter to speak of but we didn't get the deal closed until January . So there was no effect of the fourth.

Speaker 2: So there's nothing in the quarter to speak up. We didn't get to deal close until January . So there was no impact to the fourth. We got to close mid-Jance. There'll be some impact to the first quarter. And the last year's full year revenue, depending on how you account for it, there's still some debate as to whether this is gross or net accounting. But depending how we account for it on a gross basis, it could be $80 million of that guy.

We got it closed mid Jan there'll be some impact to the first quarter and the full year last year full year revenue, depending on how you account for it there's still some debate as to whether this is gross or net accounting with depending how we account for it on a gross basis it could be $80 million of that guidance.

Okay great.

Speaker 5: Okay, great. And I know you've commented on supply chain, but I wanted to get a little more color specifically around the source of some of those headwinds, whether they're coming from freight supply or labor, whether you're seeing those areas stabilized and it sounds like you're raising price, you're able to pass that on from a pricing standpoint in the first half of the year. So I just wanted to confirm that a ladder by understanding there as well.

And I know you've commented on supply chain, but I wanted to get a little more color specifically around the source of some of those headwinds whether they are coming from freight supply or labor.

Whether youre seeing those areas stabilize and it sounds like you're raising price youre able to pass that on from a pricing standpoint in the first half of the year. So I just wanted to confirm.

Yes, the latter my understanding there as well.

So I'll do the first part.

Speaker 2: So I'll do the first part. I'll reiterate, we said last time, let it all give color and which really going on in supply chain. He's much closer to it than I am. But we've talked last quarter about our price increases, lagging our cost increases by about three to four months time. And I think that's still true. And I said we would catch up within those three months time that as soon as price, as cost stops going up.

We said last time I Wouldnt give color on what's really going on in supply chain. He's much closer to it than I am, but we've talked last quarter about.

Our price increases lagging our cost increases by about 3% to four much time, and I think thats still true and I said, we would catch up within those three months time that as soon as its price its.

It's cost stopped going up.

Speaker 2: They haven't yet stopped going up. So we're still chasing a bit. Those constant increases with price. And that's why I have some caution in the first half here. Oh, maybe you can get some color. Yeah, that addresses the price.

You have stopped going up and so we're still chasing a bit those cost increases with price and Thats why I have some.

Caution in the first half of the year, but maybe you can give some color.

<unk> addresses.

The price increases.

Speaker 3: where we are. I would say from what we're seeing in a supply chain and it's evolving pretty fluidly here and actually quickly. As we came out of the fourth quarter, a lot of the issues were around both materials and freight. What we're seeing right now is...

Where we are I would say from what we're seeing in our supply chain and it's evolving pretty.

Fluidly here and actually quickly as we came out of the fourth quarter a lot of the issues were around both materials and freight.

What we're seeing right now is.

A bit of a let up on the pressure in terms of the.

Speaker 3: bit of a let up on the pressure in terms of the

The semiconductors.

Speaker 2: We look at what we've done in terms of recertifying the supply chain and creating some optionality. We're starting to see some of that pressure come off, especially as we look at the end of the first quarter and into the second quarter. What we hope we then see is the freight numbers.

As we look at what we've done in terms of recertifying, the supply chain and creating some optionality.

Turning to see some of that pressure come off, especially as we look at the end of the first quarter and into the second quarter.

What we hope we see is the freight numbers starting to abate.

Speaker 3: starting to evade and and supply being available to us and as we look out over the next couple of quarters we're feeling better about the supply and then hopefully what we'll see as supply increases is obviously some moderate

And and supply being available to us and as we look out over the next couple of quarters, we're feeling better about the supply and then hopefully what we'll see as.

Supply increases as obviously some.

Moderating our cost.

Speaker 2: So, but as we look at the year, demand is very strong. We're seeing some of the challenges of supply chain starting to evade, and we're hoping that...

But as we look at the year.

Land is very strong.

Seeing some of the challenges the supply chain starting to abate and we're hoping that we'll see.

Speaker 2: more normalized environment and I use that in air quotes toward the second half of the year.

More normalized environment and I use that in air quotes towards the second half of the year.

Got it I appreciate the color. Thank you.

Yeah.

Thank you, we'll hear next from Erik Woodring with Morgan Stanley .

Speaker 1: Thank you very much from Eric Wooding with Morgan Stanley .

Speaker 4: Thanks guys, good afternoon. Just to follow up on one of the earlier questions, for the 40 to 60 million of hardware revenue, that was somewhat pushed from three, Q to four, Q and now two, to early 2022, was that specifically because of component availability or was that a situation where customers were impacted by pricing? And I'm not falling off, thanks.

Thanks, guys. Good afternoon, just to follow up on one of the earlier questions for the $40 million to $50 million of hardware revenue that.

That was somewhat pushed from <unk> to <unk> and now two to early 2022 was that specifically because of component availability or was that a situation where customers were impacted by pricing and not all fall. Thanks.

No all component availability.

Okay Super and then can you just remind us how to think about the cost savings from the Cardtronics, Texas acquisition in 2022, how much of it is if that has changed at all over.

Speaker 4: Okay, super. And then can you just remind us how to think about the cost savings from the card-tronetaxes acquisition in 2022? How much that is, if that has changed at all, over the last few months, as you've kind of worked through the deal further. Thanks.

Over the last few months as you've kind of worked through the deal further thanks.

Speaker 2: Yet it's not changed at all. The assumption is we'll still get that $120 million of cost out. It gets increasingly hard to tell when we take cost out, whether it was cartronics costs or synergy costs or legacy or cost. We will get out far more than that cost and aggregate across the organization. And you'll recall we did get a somewhat of a head start too. We probably got $30 million worth of value from those synergies, the easy synergies that publicly traded costs out in 2021.

Yes, it has not changed at all of the assumptions, we'll still get the $120 million of cost out it gets increasingly hard to tell when we take cost out whether it was cardtronics cost.

Synergy cost or legacy NCR cost, but we will get out far more than that cost in aggregate across the organization and Youll recall, we did get it somewhat of a head start to we probably got $30 million worth of value.

From those synergies the easy synergies publicly traded costs out in 2021.

Okay. Thanks, and then maybe just one last one if I could slip it in there and this is for you Mike just obviously you went through the strategic review initially here, but just curious why today why now why has that.

Speaker 4: Okay, thanks. And then maybe just one last one if I get some of it in there. And this is for you. Like just, you know, obviously you went through the strategic review initially here, but just curious why today, why now, why has that, you know, is there something that you saw over the last few months that has initiated this or has this been in the works just curious about timing. But that's it for me.

Is there something that you saw over the last few months that has initiated this or has this been in the works just curious about timing, but that's it for me. Thanks.

Well.

Speaker 3: Well, we've talked, again, I saved it last couple of years, that...

Todd.

Same in the last couple of years that debt.

Speaker 3: We put a strategic plan together late 18 and going into 19. We laid out some strategic goals. You know, we laid out an 80, 60, 20 goal. We executed quarterly and we've done a, the teams done a really great job improving the product, the product competitiveness, product quality.

We put a strategic plan together late 18 and going into 19, we laid out some strategic goal.

Laid out 80 620 <unk>.

We executed accordingly.

It seems like a really great job of improving the product competitiveness of credit quality.

Speaker 3: And yet, as we got to the end of 21, which if you think about it, we didn't expect COVID to continue to linger throughout 21 it did.

And yet as we got to the end of 'twenty, one, which if you think about it we didn't expect COVID-19 to continue to linger throughout 'twenty one it did.

Speaker 3: Around the globe, we got hit with the things we're talking about now with supply chain.

Around the globe, we got hit with the things you're talking about now with supply chain.

Speaker 3: that yet we deliver really strong 21 performance.

But yes, we deliver fairly strong funny one performance.

Speaker 3: Having said all that, if you're actually putting on financial performance, you're improving the product quality, you're executing on your strategic goals.

Having said all that if you're executing on financial performing improving the product quality, you're executing on your strategic goals.

Speaker 3: But yet our value and our valuation is actually lower than it was in 2018. So there's nothing other than the fact that we look at that and say, whatever reason the market doesn't understand our business or is unable to give us the value that we think is there. Again, we've said for two years, if the market doesn't catch up and understand, the value we think is inherent in the business that we have, we would take the steps to unlock that value. So it's simply, we're doing that simply based on case.

Yes.

Value and our valuation is actually lower than it was in 2018. So there's nothing other than the fact that we look at that and say.

Whatever reason the market doesn't understand our business are unable to give us the value that we think is there.

We said for two years, if the market doesn't catch up and understand the value. We think is inherent in the business that we have we would take the steps to unlock that value. So it's simply we're doing that simply based on where we sit today with our stock price.

Speaker 6: Thanks.

Thanks, Mike.

Thank you we'll take our next question from Kartik Mehta with Northcoast research.

Speaker 1: And you will take our next question from Cartic Meta with North Coast Research.

Speaker 7: Take good afternoon, Mike. One of the things you've talked about in a few years are price increases on the service being side for banking, that's a decent sized business for you. And I'm wondering how the banks have reacted, and if you've been able to push that through, and if there's certain characteristics of banks that are willing to accept that.

Hey, good afternoon, Mike.

One of the things you've talked about sitting here as well our price increases on the servicing side for banking since that's a decent sized business for you and I'm wondering how the banks have reacted and if you've been able to push that through.

If there are certain characteristics of banks that are willing accept that.

Speaker 3: Yeah, I targeted this as only, across the board not just with the banks, but our entire customer.

Yes, Kartik this is owen.

Across the board not just with the banks, but our entire customer base.

Speaker 3: They've been more than reasonable. We talked we were probably 90 days behind in terms of implementing so on us. But as we have responded or pushed the increases out, our customers have been pretty reasonable. In fact, if you listen to most of our customers,

Ben more than reasonable we talked we were probably 30 90 days behind in terms of implementing so on us, but as we have responded.

Or push that.

<unk> increases our customers have been pretty reasonable and in fact, if you listen to most of our customers.

Speaker 3: in the retail and the restaurant and the banking sectors. They're all talking about passing costs onto their customers and they've done that readily. So there has been not been any significant pushback.

And the retail and the restaurant and the banking sectors Theyre, all talking about passing cost onto their customers and that does that readily. So there has been not.

Any significant pushback from the customer base.

And then just on the ATM as a service business I know you mentioned the banks in the U S and one I think in India, Obviously, the bank in India is very large, but I'm wondering in the U S. What type of banks have you seen that are interested in ATM as a service or there is certain amount of Atms that they have that you find as kind of the target.

Speaker 7: And then just on ATM is a service business. I know you mentioned the banks in the US and one I think in India. Obviously the bank in India is very large, but I'm wondering in the US, what type of banks have you seen that are interested in ATM is a service? Are there certain amount of ATM that they have that you find is kind of the target market? Or what type of demand and your thing?

<unk>.

Or.

Type of demand.

You are seeing.

Speaker 3: Yeah, I mean, the two we called out CCOIS and ECU in the state are community banks. And they actually, so in addition to the ability to take over their footprint of ATMs, the ability is enjoying the Alpoin Network in the case.

Yes, you mean, the two we called out <unk> <unk>.

And the state.

Community banks.

And they actually so in addition to the ability to take over their footprint of ATM.

The ability then joined the <unk> network in the case of seacoast.

Speaker 3: and have that capability to extend a search registry network for all their clients was really important to them. So we're seeing that, certainly on community banks, the regional banks, as I mentioned last.

And have that capability.

A surcharge free network for all of their client base is really important to them. So we're seeing that certainly on the Canadian banks regional banks as I mentioned last call. We did we've had dialogue with some larger banks, maybe even larger than we would have anticipated. Thank you Brian I think we talked about on prior calls the Indian.

Speaker 3: How we did, we've had dialogue with some larger banks.

Speaker 3: maybe even larger than we would have anticipated. Bank of Rada, I think we talked about the on fire calls. The Indian market has already shifted too much more of an ATM as a service market. So Bank of Rada, in that market, Bank of that size that are fairly scaled like this, have looked to be...

It has already shifted to much more of an ATM as a service market. So thank you Brad and that market banks of that size that are fairly scaled like this look.

Lets to providers. So we knew that was an opportunity in the market. We think there's more opportunity in the Indian market.

Speaker 3: So we knew that was an opportunity in market. We think there's more opportunity in the Indian market.

Speaker 3: Australia has embraced this part of Europe . I'm raised that we're starting to see it in the States. So in the States right now, community banks, we would expect that to start to move up into larger and larger FIs going forward.

Wailea.

Embraces parts of Europe embraced it and we're starting to see it in the states. So in the states right now community Bank, we would expect that to start to move up into larger and larger size going forward.

Thank you I appreciate it.

Speaker 1: Thank you. We'll take our next question from Ian DeFina with Oppenheimer.

Thank you we'll take our next question from Ian Zaffino with Oppenheimer.

Speaker 8: Hey guys, thank you very much. I just want to touch upon the strategic alternatives a little bit. I just kind of want to get a sense of what may not be an acceptable resolution for you guys. And I guess maybe we have a little bit of um...

Hey, guys. Thank you very much just wanted to touch upon the strategic strategic alternatives, a little bit I, just kind of wanted to get a sense of what may not be an acceptable resolution for you guys and I guess, maybe we have a little bit of.

Speaker 8: memories the last time, five years ago, six years ago or so, we thought we were going to be moving into some type of value creation, and instead we got something very different, with a delude of sort of raise. Is there any type of consideration for that, or are we really going for kind of like plain vanilla strategic alternatives, where you have either a spin or some type of separation or something like that?

Memories last time, five years ago, six years ago or so.

We felt we're going to be moving into some type of value creation and instead, we got something very different.

With a dilutive short of range.

Is there any type of consideration for that.

Or are we really going for kind of like plain vanilla.

Sure TJ alternatives, where you have either.

Then or some type of separation or something along those lines.

Speaker 8: I know you can't give so much detail because you're very early on but but any color you can kind of get with the

And I know you can't give so much detail because youre very early on but any color you can kind of give would be helpful. Thanks.

Yes.

Speaker 3: Yeah, I mean, I don't, again, we're gonna look at different things. Again, the challenge is, as we've had parts of our business start to have more and more success, and if you look at some of the components we have, whether it's hospitality, whether it's hospitality, SMB, whether it's digital banking, whether it's what we don't have to retail platform, as those businesses have started to compete and win.

Again, we're going to we're going to look at different things again.

Challenges as we've had parts of our business start to have more and more success and if you look at some of the components, we have whether it's hospitality, whether it's hospitality SMB, whether it's digital banking, that's what we've got the retail platform.

Businesses have started to compete and win and people are paying us but each one.

Speaker 3: And people would ping us, but each one of the stand alone is really hard to evaluate because once you start to look at your high value assets, what do you do with the remain code? So we felt it was really important.

Standalone, it's really hard to evaluate because once you start to look at your high value asset what do you do with the remaining costs. So we felt it was really important to look at the totality of our company I look at the context first of all of our shareholders, but also look at the context of our customers.

Speaker 3: to look at our hospitality of our company, look at the context, first of all, of our shareholders, but also look at the context of our customers and our employees, and make sure that what we do holds together so we get the greatest value. Not the organization, but else, and have an organization, what organizations that still function and have a future.

Employees and make sure that what we do holds together.

Greatest failure.

Organization, but also have an it organization organization thats still function and have a future.

Having said that you pointed out on the transaction that took place I believe about six years ago.

Speaker 3: Having said what you pointed out on the transaction that took place, I believe, about six years ago, we obviously weren't here. The management team wasn't here. I don't know that I would see something like that. I mean, that transaction in the cost of funding for that. It didn't seem to add a lot of value, the organization. I don't think it's unlocked, shareholder value. So I think you'll see a very focused unlocking shareholder value. All right, ladies, thank you very much. Thank you very much.

Honestly, we're just gonna management listen here.

I don't know that I would see something like that I mean that transaction and the cost of funding for that didn't seem to add a lot of value to the organization and I don't think it unlocked shareholder value. So I think youll see us very focused on unlocking shareholder value.

<unk>.

Alright, great. Thank you very much.

Thank you we'll take our next question from Paul Chung with Jpmorgan.

Speaker 1: Hi, thanks for taking my questions. So just on digital banking, nice progression on revenues there. Can you expand on kind of the register user decline? Are there risks of other customers kind of bringing the app in-house? Now, what drove that move there? And does that kind of impact any revenue trends later on?

Hi, Thanks for taking my questions. So just on.

Digital banking.

Nice progression on revenues there can you expand on.

Kind of the registered.

User of decline.

Are there risks of other customers kind of bringing the app in house.

What drove that moved there and does that kind of impact any revenue trends.

Ron.

Speaker 3: So that is, so this is a pack of the consolidation bank market which you have once for a while, typically you have small ones. This happens to be a larger client, but frankly it emerged of equal.

Okay.

So thats just a fact of the of the consolidation of the bank market, but you have once in a while typically have smaller just happened to be a larger client.

Quite frankly did a merger of equals.

And and.

Speaker 3: And they took it in house to the other plait from sometimes to win though, sometimes to lose. So this is a little bit of a step.

They took it in house to the other platform, sometimes you win sometimes you lose.

So this is a little bit of a step down function, which we called out but.

Speaker 3: called out. But as you look at our plans for 2022, we have it all laid out, right? The conversion cycle in the timing of one press was come on. When accounts come on, it's laid out for the next nine months. So we know what we're captured that will get the growth and devil digits that we've talked about in the past. This is something we anticipate if this was a

But as you look at our plans for 2022, we have that all laid out the conversion cycle and the timing of when customers come on when accounts come on is laid out for the next nine months. So we know what we capture that will get the growth in double digits that we've talked about in the past.

Something we had anticipated this was a combination that took place almost a year ago and that.

Speaker 3: Combination that took place almost a year ago and that and the cut sort is converted on the other platform last quarter

That's why it is converted on the other platform last quarter and.

Speaker 2: And Mike, we've often described that metric as imperfect, right? It only describes about two-thirds of the revenue in digital banking that's linked to the number of users. And they are out of sync. Revenue does not mimic in any one period of time that user base. So when users were growing more quickly than revenue, we had to explain it the other direction. Now it's the shoes and the other foot. But I think as the year plays out, you'll see overall full year growth in users and revenue be pretty similar back to double digital up.

And Mike we've often describe that metric is imperfect traded only describes about two thirds of the revenue in digital banking, it's linked to the number of users and they are out of sync revenue does not mimic in any one period of time that user base. So.

When when users were growing more quickly than revenue we had to explain it the other direction no issues on the other foot, but I think as the year plays out Youll see overall full year growth.

Users and revenue to be pretty similar back that double digit level.

Speaker 1: Gotcha. And then switching to retail, self-checkouts been pretty steady. How do we think about the trend in 22, demand trends, backlog, competitive environment, anything there? Thanks.

Gotcha, and then switching to retail self checkout has been pretty steady.

How do we think about the trend in 'twenty to demand trends backlog competitive environment.

Anything there thanks.

Yes. This is all what I would say that.

Speaker 9: The same enthusiasm we came into 21 left.

The same enthusiasm we came into 'twenty, one with we come into 'twenty, two is for retail and especially self checkout, what we're seeing based on pressure on labor.

Speaker 9: and especially self-check out what was seen based on pressure on labor. That is only driving the need and the opportunity for us to...

That is only driving the need and the opportunity for us to bring more self checkout solutions to the table, we're seeing it expand beyond the traditional.

Speaker 9: to bring more self-checkout solutions to the table. We're seeing an expand beyond the traditional large box retailer into the specialty areas. We mentioned Bed Bath and Beyond. That's a great example of moving into the specialty retail. And we're also seeing.

Large box retailer into the specialty areas, we mentioned bed Bath and beyond that's a great example of moving into the specialty retail and we're also seeing the self checkout solutions really gained traction in the convenience fuel and retail space. So we think the market is expanding.

Speaker 9: The self checkout solutions really gain traction in

Speaker 9: fuel and retail space. So we think the market's expanding. We think our software and hardware solutions are really well positioned. And the backlog that Tim talked about earlier is reflected in that for retail as we come into 22.

I think our software and hardware solutions are really well positioned and the backlog that Tim talked about earlier is reflected in that for retailers who come into 'twenty two.

Thank you.

Yep.

Okay.

Thank you that does conclude today's question and answer session I would like to turn the conference back over to Mr. Mike Hayford for any additional or closing remarks.

Speaker 1: Thank you that does conclude today's question and the intercession. I'd like to turn the conference back over to Mr. Mike Kford for an additional closing remarks.

Alright, thank you.

Speaker 3: All right, thank you. So some closing, just a couple quick comments. First, we had a great 2021. We did not anticipate the kind of impacts that we actually incurred due to color, but we didn't.

So in closing just a couple quick comments first we had a great 2021.

We did not anticipate the kind of impact that we actually incurred due to accommodate and anticipate the kind of issues with the supply chain.

Speaker 3: to create the kind of issues with supply chain. Our team.

Team.

Speaker 3: around the globe did a phenomenal job of working through those things and still delivering an extremely strong 2021. As we had into 2022

Around the globe did a phenomenal job of working through those things and still delivering an extremely strong 2021.

As we head into 2022.

Speaker 3: We're very optimistic about the future for our company. As we see growth starts to accelerate, as we see success in our products in 2022 and beyond. We're excited about the strategic outlook of where we position our products and where we are headed with our software platforms. And then lastly, and finally.

We're very optimistic about the future for our company.

We see growth start to accelerate as we see success in our products.

In 2022 and beyond.

Very excited about the strategic outlook of where we've positioned our.

Products, and where we are headed with that.

Our software platforms and then lastly.

Speaker 3: On the relates to our strategic process that we are undertaking, we simply don't believe the value of our company is currently reflected in the price of our stock. If you look at the last three years, we've delivered on our financials every quarter. We lay up from long term goals three years ago, 80, 60, 20, and we are going to meet those goals ahead of time.

As it relates to our strategic process that we are undertaking.

We simply don't believe the value.

<unk> is currently reflected in the price of our stock.

If you look at the last three years, we've delivered on our financials every quarter.

Laid out some long term goals for years ago, 80, 60, 20, and we're going to meet those goals.

At a time at the same time, we've continued to shift our company to a software platform company and deliver platforms and banking the CSP in.

Speaker 3: At the same time, we've continued to shift our company to a software platform company and deliver platforms and banking, the CSP, and individual banking, and then in the retail and hospitality side, the NTR Commerce platform, and we're seeing great success in the marketplace. We've improved our market perception of our product quality, of our product delivery, of our service, and of our strategic plan across all of our business.

And in digital banking and then in the retail and hospitality side <unk> Commerce platform and we're seeing great success in the marketplace. We have improved our market perception of our product quality of our product delivery of our service and our strategic plan across all of our businesses.

Speaker 3: So, in closing, I want to again thank our team, our CES and the field continue to work every day supporting our stores, our restaurants and our banks.

So in closing I want to again, thank our team our CES in the field continue to work every day supporting our stores in our restaurants and our banks have changed the plants continue to deliver and bill and our teams continue in a very difficult environment working from their homes working from the office when they can to deliver for our clients. It is.

Speaker 3: teams and the clients continue to deliver and build, and our teams continue in a very difficult environment, working from their homes, working from the office when they can to deliver for our clients. It is these team members 35,000 strong around the globe that put us in this very strong position to be able to look at strategic alternatives to unlock our value. And those are the steps we are undertaking starting today.

These team members.

John around the globe.

In this very strong position to be able to look at strategic alternatives to unlock value and those are the steps we are undertaking starting today.

Speaker 3: With that, I want to thank everybody for joining us for our call.

With that I want to thank everybody for joining us for our call today.

Speaker 10: Thank you for your participation and you may now disconnect.

Thank you that does conclude today's conference. Thank you all for your participation and you may now disconnect.

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Good day and welcome to the NCR Corporation fourth quarter fiscal year 2021 earnings Conference call.

Speaker 1: Good day and welcome to the NCR Corporation 4th Quarter Fiscal Year 2021 earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Michael Nelson's treasure, vice president and investor relations. Please go ahead, sir.

Today's conference is being recorded at this time I would like to turn the conference over to Mr. Michael Nelson Treasurer, Vice President Investor Relations. Please go ahead Sir.

Speaker 2: Good afternoon and thank you for joining our full year and fourth quarter 2021 Ernie's call. Joining me on the call today are Mike Haiford, CEO , Owen Sullivan, President and COO and Tim Oliver, CFO . Before we get started, let me remind you that our presentation and discussions will include forward-looking statements.

Good afternoon, and thank you for joining our full year and fourth quarter 2021 earnings call. Joining me on the call today are Mike Hayford, CEO , Owen Sullivan, President and COO and Tim Oliver CFO 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.

Speaker 2: The 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.

And our periodic filings with the SEC, including our annual reports on today's call. We will 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 February eight 2022 and on the Investor.

Speaker 2: Today's call, we will 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 February eighth 2022 and on the Investor Relations page of our website. A replay of this call will be available later today on our website, N CR Dot com. With that, I would now like to turn the call over to myike.

<unk> page of our website a replay of this call will be available later today on our website NCR dot com with that I would now like to turn the call over to Mike.

Thanks, Michael and.

Speaker 3: Thanks, Michael. And thank you, Argonne, for joining us today for our fourth quarter and full year 2020.

And thank you everyone for joining us today for our fourth quarter and full year.

2021 earnings call.

Speaker 3: I will begin with some of my views on the business, including an update on our move, the NCR becoming a software led as a service company, with a higher shift to recurring

I will begin with some of my views on the business, including an update on our move NCR, becoming a software led as a service company with a higher shift to recurring revenue streams.

I will also provide commentary on the strategic review process, we noted in our earnings release.

Speaker 3: I will also provide commentary on the strategic view process we noted in our earning

Tim will then review our financial performance and an outlook into 2022, and then Owen Tim and I will take your questions.

Speaker 3: Tim will then review our financial performance and an outlook into 2022. And then Owen, Tim and I will take your question.

Speaker 3: Let's begin on slide 4 with some highlights from this past year.

Let's begin on slide four with some highlights from this past year.

Speaker 3: We entered the fourth quarter with momentum across our business and finished a very strong year. Keep in mind, we entered 2021 hoping that the COVID pandemic was mostly behind us, but we continued to experience COVID-related flare-ups throughout the year, and then the added challenges brought on by the supply chain issues in the second half of 2022.

We entered the fourth quarter with momentum across our business and finished a very strong year keep in mind, we entered 2021, hoping that the COVID-19 pandemic was mostly behind us.

We continued to experience COVID-19 related flare ups throughout the year and then added challenges brought on by the supply chain issues in the second half of 2021.

Speaker 3: Throughout the year, our team continued to execute and deliver a very strong year for our shareholders.

Throughout the year, our team continued to execute and deliver a very strong year for our shareholders.

Speaker 3: I want to specifically call out our 15,000 customer engineers who have continued to work to support our clients in stores, restaurants and banks during the past two years of the pandemic.

I want to specifically call out our 15000 customer engineers, who have continued to work to support our clients.

Stores restaurants, and banks during the past two years of the pandemic.

Speaker 3: I'm also proud of the continued execution our teams have done to improve our products and services as we have been making our way back to the office with a flexible hybrid work environment.

I'm also proud of the continued execution our teams have done to improve our products and services as we have been making our way back to the office with a flexible hybrid work environment.

Speaker 3: During this time we've had a keen focus on taking camera customers with the belief that customer happy customers will buy more from NCR.

During this time, we've had a keen focus on taking care of our customers with the belief that customer happy customers will buy more from NCR.

Speaker 3: We also successfully completed one of the largest acquisitions in the Ontario's history.

We also successfully completed one of the largest acquisition in <unk> history.

Speaker 3: We completed the cartronics acquisition mid-year and are well on our way with integrating the

Completed the Cardtronics acquisition mid year and are well on our way with integrating the two companies.

Speaker 3: 2021 MCR delivered 15% total revenue growth. With recurring revenue growth of...

In 2021, NCI delivered 15% total revenue growth.

With recurring revenue growth of 25%.

Adjusted EBITDA increased 39%, while adjusted EBITDA margins expanded 300 basis points to 17, 4%.

Speaker 3: adjusted EBITDA increased 39%. While adjusted EBITDA margins expanded 300 basis points to 17.4.

Speaker 3: Our earnings per share increased 51%, and we delivered free cash flow of $460 million for the year.

Our earnings per share increased 51% and we delivered free cash flow of $460 million for the year.

Now moving to slide five.

We have had strong momentum across our strategic growth platforms, which support our transition to ship NCI to a software led as a service company.

Speaker 3: We have had strong momentum across our strategic growth platforms which support our transitions to shift NCR to a software led as a service company.

Our 2022 outlook expect another strong year with strong revenue growth and significantly higher profitability, Tim will discuss our guidance in more detail later.

Speaker 3: Our 2022 outlook expects another strong year with strong revenue growth and significantly higher profitability. Tim will discuss our guidance in more detail later.

In banking, we continue to have positive momentum in our digital banking platform in the fourth quarter digital banking had 37, we know four new logo deals and three business banking wins.

Speaker 3: In banking, we continue to have positive momentum in our digital banking platform.

Speaker 3: In the fourth quarter, digital banking had 37 renewals, four new logo deals and three business banking wins, all positive drivers of growth. Demand has been strong for a digital banking platform as well as for our online digital account opening, that which we obtained

Positive drivers of growth demand has been strong for a digital banking platform as well as for online our online digital account opening.

Which we obtained through the acquisition of <unk> we.

Speaker 3: We have made significant progress returning digital banking to a growth engine for NCR. During the fourth quarter, digital banking revenue accelerated the 14% growth on a year over year's same period.

We have made significant progress returning digital banking to a growth engine for NCI during the fourth quarter digital banking revenue accelerated to 14% growth on a year over year same period basis.

Speaker 3: We are receiving increased interest in our ATM as a service solution.

We see an increased interest in our ATM as a service solution.

An integrated go to market model, combining the NTN Tektronix team provided a key point of competitive differentiation.

Speaker 3: integrated go-to-market model, combining the NCR and Petro-Hardic team, provided a key point of competitive difference.

He called Bank of Florida, and Texas.

Speaker 3: Tiko's Bank of Florida and Texas-based EECU both selected NCIR's ATM as a service offering to own, run, manage, and modernize their ATM.

You well selected Ncr's ATM as a service offering.

<unk> run manage and modernize their ATM fleet.

Speaker 3: And Bank of Toronto, one of India's largest banks with over 9,000 ATMs, selected NCIRS ATMs as a service office.

And think about it one of India's largest banks with over 9000, Atms selected Ncr's ATM as a service offering.

In retail we have positive momentum in winning the upgrade imperative for retail.

Speaker 3: In retail, we have positive momentum in winning the upgrade imperative for retail point of sale solution.

Sales solutions.

Speaker 3: We have recently signed a contract to migrate AS Watson from NCR's Legacy POS to our next-gen NCR Commerce Plot from with a five-year subscription.

We have recently signed a contract to migrate.

Watson from NCR as a legacy Pos.

Our next 10, MTI commerce platform with a five year subscription a S. Watson is one of the largest.

One of the world's largest international health and beauty retailers with over 16000 stores in 20 markets.

Speaker 3: One of the world's largest international health and beauty retailers with over 16,000 stores in 28 markets.

We also had a competitive win with asked that one of the largest retailers in the U K as they will be migrating from competitors' legacy product.

Speaker 3: We also had a competitive win with ASDA, one of the largest retailers in the UK. ASDA will be migrating from competitors' legacy products to our NCR Commerce platform with a five-year subscription covering software, services, and hardware in our company's journey, Grand Sier at a Run the Store.

NCR commerce platform with a five year subscription covering software services and hardware in our company's journey Gran Tierra to run the store.

Speaker 3: During the quarter, we continued to gain traction from our digital first retail front-end app fresh hop. This SaaS solution helps grocers implement their own e-commerce and delivery services through the NCR Commerce Plot.

During the quarter, we continued to gain traction from our digital first retail run in at first half.

<unk> solution helps groceries to implement their own e-commerce and delivery services due to the NCR commerce platform.

Speaker 3: In self-checkout, we were also seeing continued options with our market leading solutions. Bad Bass and Beyond has started to roll out MCR Cloud-enabled self-checkout solutions across its footprint, which revbed the sense of meaningful expansion of self-checkout into department and specialty retail.

And self checkout. We're also seeing continued adoption with our market leading solutions bed Bath and beyond has started to dwell on MTN cloud enabled self checkout solutions across its footprint, which represents a meaningful expansion of self checkout into department and specialty retail stores.

Speaker 3: In hospitality, our focus on customer success and wallet share gain is proving itself that our ability to track new customers and better service exists.

In hospitality, our focus on customer success and wallet share gain is proving itself and our ability to attract new customers and better service existing customers NCR expanded our relationship with land in multinational entertainment company with more than 60 restaurant brands, signing a five year Aloha essentials subscription and launch.

Speaker 3: NCR expanded our relationship with Landry's a multinational entertainment company with more than 60 restaurant brands signing a five year Aloha Essentials subscription and launching e-commerce solutions for quick and easy mobile ordering and delivery.

And launching E Commerce solutions for quick and easy mobile ordering and delivery.

Speaker 3: The agreement drives land reads end-to-end digital transformation, freeing its restaurants to focus on delivering exceptional guests experience.

The agreement drives land landry's and digital transformation, freeing it's restaurants to focus on delivering exceptional guest experiences.

Our payments business continued to success during the fourth quarter as we increased the number of payment processing site attached to our pls by 42% from the third quarter.

Speaker 3: Our payments business continued to success during the fourth quarter as we increased the number of payment processing sites attached to our POS by 42% from the third quarter.

Speaker 3: And we are extremely pleased with the performance of cardronics. As we continue to add and expand with financial and retail partners, we are driving more transactions across the Al-

And we are extremely pleased with the performance of Cardtronics as we continue to add and expand with financial and retail partners. We are driving more transactions across the <unk> network in the fourth quarter total NCR payment network transactions increased 12% compared to the fourth quarter of 2020.

Speaker 3: In the fourth quarter, total NCR payment network transactions increased 12 percent compared

We expect to drive both merchant acquiring transaction growth and new transaction type growth.

Speaker 3: We expect to drive both merchants acquiring transaction growth and new transaction type growth on the all point net.

On the <unk> network.

Speaker 3: With the launch of pay 360, which will bring more transaction types, including complete digital currency solutions and the ability to buy and sell crypto currency to our proprietary L.

With the launch of <unk> hundred 60, which will bring more transaction types, including complete digital currency solutions and the ability to buy and sell crypto currency to our proprietary <unk> network.

Speaker 3: Finally, as we noted in the press release, we have launched a board led strategic review process that will include the input of our executive team, our board of directors and outside advice.

And finally as we noted in the press release, we have launched a board led strategic review process that will include the input of our executive team our board of directors and outside advisors.

Speaker 3: As you heard at our investor day on December 9th of last year, the entire management team is very excited about the progress we have made to transform our company. And even more up.

As you heard at our Investor Day on December 9th of last year. The entire management team is very excited about the progress we have made to transform our company.

And even more optimistic about the future.

We highlighted it almost three X increase in our customer satisfaction measured by NPS.

Speaker 3: We highlighted at almost 3X increase in our customer satisfaction measured by MPS since 2018. We have shifted our company from a hardware-centric brand to a software led as a service

2018, we have shifted our company from a hardware centric brand to a software as a service company.

Speaker 3: And we've invested a bill, competitive products across all of our business lines.

And we've invested to build competitive products across all of our business lines.

While this execution over the past three years has exceeded our goal.

Speaker 3: But while this execution over the past three years has exceeded our goals, and has been recognized by our customers, the marketplace and our employees, our stock price has not reflected that performance.

And its been recognized by our customers the marketplace and our employees.

Our stock price has not reflected that performance.

Speaker 3: We have consistently said if execution and transparency were not sufficient to improve our market valuation, we would consider taking the appropriate actions more immediately and directly liberate that value.

We have consistently said if execution and transparency were not sufficient to improve our market valuation, we would consider taking the appropriate actions.

Immediately indirectly liberate that value.

Speaker 3: While we are not presupposing an outcome from this review, we do intend to consider various potential actions, structures, and solutions that will unlock value for our shareholders. ..

While we were not pre supposing an outcome from this review, we do intend to consider various potential actions.

<unk> and.

And solutions that will unlock value for our shareholders.

With that let me pass it over to Tim.

Thanks, Mike and thanks to all of you for joining US today as Mike described our solid fourth quarter capped a very strong 2021.

Speaker 2: Thanks Mike and thanks to all of you for joining us today. As Mike described, our solid fourth quarter kept a very strong 2021. This is literally since the last log, the budget for the core project, where the mobile development process had been implemented. As a result, the system developed a new systems that we could prepare for the future release

Speaker 2: The simultaneous generated substantial improvements in nearly every financial metric and accelerated our strategic progress.

We simultaneously generated substantial improvements in nearly every financial metric and accelerated our strategic strategic progress.

Speaker 2: Just as a reminder, in similar to last quarter, the legacy car-chonics results are included in our banking segment. So, beginning with our Q1 2022 earnings release, we will report our results relative to the new segmentation described in our December investigation.

Just as a reminder, in similar to last quarter. The legacy Cardtronics results are included in our banking segment. So.

Beginning with our Q1 2022 earnings release, we will report our results relative to the new segmentation described in our December Investor Day.

Speaker 2: Let's begin on slide six with the top level overview of our fourth quarter financial performance.

Let's begin on slide six of the top level overview of our fourth quarter financial performance.

Speaker 2: starting in the top left, revenue was $2 billion, up $403 million or 25% versus the 2024th quarter. Driven by strong growth in all three of our segments.

Starting at the top left revenue was $2 billion up $403 million or 25% versus the 2024th quarter driven by strong growth in all three of our segments.

Speaker 2: Normalizing for the inclusion of cartronics in the prior year, pro forma revenue was up 8% the over year.

Normalizing for the inclusion of Cardtronics in the prior year pro forma revenue was up 8% year over year.

Speaker 2: The addition of card tronics revenue, which is predominantly recurring, helps push our aggregate result up to 35% and a proportion of recurring revenue up to 58% in the course.

The addition of Cardtronics revenue, which is predominantly recurring helped push our aggregate result up to 35% on a proportion of recurring revenue up to 58% in the quarter.

On a pro forma basis recurring revenue was up 5% year over year.

Speaker 2: on a pro forma basis, recurring revenue was up 5% de-orbit.

Speaker 2: And the top right adjusted EBISA increased $95 million or 37% you over year, the $353 million.

In the top right adjusted EBITDA increased $95 million or <unk>, 37% year over year to $353 million.

Speaker 2: Adjusted EBITDA margin rate, expanded by 160 basis points to 17.4%.

Adjusted EBITDA margin rate expanded by 160 basis points to 17, 4%.

I'll provide additional detail on the discussion of the segments, but in summary.

Speaker 2: I'll provide additional detail in the discussion of the segments, but in summary, a higher value revenue mix from both the acquisition and sales shift, cost productivity and pricing initiatives all together continue to counterbalance premium costs associated with a very difficult supply chain, and an accelerating shift to recurring revenue in our retail.

The higher value revenue mix from both the acquisition and sales shift cost productivity and pricing initiatives. All together continue to counterbalance premium costs associated with the very difficult supply chain and an accelerating shift to recurring revenue in our retail business.

Speaker 2: In the bottom left, non-gas EPS was 76 cents, up 17 cents or 30% from a prior year fourth quarter.

In the bottom left non-GAAP EPS was <unk> 76 up <unk> 17, or 30% from our prior year fourth quarter.

Speaker 2: The integration of cardronics is going very well, and we remain on track for the transaction to be 20 to 25% accretive to NCR EPS within its first poll.

Integration of Cardtronics is going very well and we remain on track for the transaction to be 20% to 25% accretive to and see our EPS within its first full year.

Speaker 2: And finally, we delivered another solid quarter of free cash flow, with generation of $100 million. Component lead times in the Omicron Disruptions caused this quarter to be far less linear than we planned. The resulting inefficiencies caused pressure on working capital, particularly in receivables and finished goods. That said, this marks the seventh consecutive quarter of positive free cash flow generation, as we continue to drive more linear processes throughout our cash cycle.

And finally, we delivered another solid quarter of free cash flow generation of $100 million.

Lead times and the omicron disruptions caused this quarter to be far less linear than we planned the resulting inefficiencies caused pressure on working capital, particularly in receivables and finished goods.

This marks the seventh consecutive quarter of positive free cash flow generation as we continue to drive more linear processes throughout our cash cycle.

Slide seven shows our financial highlights for the full year revenue was $7 2 billion up $949 million or 15% versus 2020, driven by strong growth across all segments on a pro forma basis revenue was up 6% year over year.

Speaker 2: Slide 7 shows our financial highlights for the full year. Revenue was $7.2 billion up $949 million or 15% versus 2020. Driven by strong growth across all segments. On a pro forma basis, Revenue was up 6% year-refer-

Speaker 2: We continue to make progress expanding our recurring revenue, which an aggregate was up 25% and comprised 58% of total revenue.

We continue to make progress expanding our recurring revenue, which in aggregate was up 25% and comprised 58% of total revenue.

Speaker 2: on a pro-former basis recurring revenue was up 8% here.

On a pro forma basis recurring revenue was up 8% year over year.

In the top right adjusted EBITDA increased $348 million or <unk>, 39% year over year to $1 2 billion.

Speaker 2: And the top right, adjusted EBITDA increased $348 million or 39% year over year to $1.2 billion.

Speaker 2: Adjusted EBITDA margin rate expanded 300 basis points to 17.4% a high watermark for NCR. And for context, standalone NCR meaning without the benefit of cartronics. Adjusted EBITDA increased 19% year over year and standalone NCR adjusted EBITDA margin rate expanded 180 basis.

Adjusted EBITDA margin rate expanded 300 basis points to 17, 4% a high watermark for NCR.

And for context, Standalone NCR, meaning without the benefit of Cardtronics adjusted EBITDA increased 19% year over year and Standalone NCR adjusted EBITDA margin rate expanded 180 basis points.

In the bottom left non-GAAP EPS for the full year was $2 56.

Speaker 2: In the bottom left, non-GAPEPS for the full year was $2.56 of $0.87 or 51% from the year ago 2020.

Up 87, or 51% from the year ago 2020.

And we drove strong linear free cash flow for a full year result of $460 million.

Speaker 2: And we drove strong, linear free cash flow for a full year result of $460 million.

Speaker 2: Before I move on to discuss the segment view, I need to remind those of you who build models that beginning in Q1, we will be reporting a result in our new segments. Those segments are payment to network, digital banking, self-service banking, retail and hospitality.

Before I move on to discuss the segment view I need to remind those of you who build models that beginning of Q1, we will be reporting our results in our new segments. Those segments are payments and network digital banking self service banking retail and hospitality.

Speaker 2: To assist with your analysis, we will provide several years of historic results describing these new segments shortly after we file our 10K. Slide 8 shows our banking segment results, which include the cartonic operation.

Just with your analysis, we will provide several years of historic results describing these new segments. Shortly after we file our 10-K slide.

Slide eight shows our banking segment results, which include the Cardtronics operations.

Banking revenue increased $320 million of 40% year over year benefited by the addition of Cardtronics.

Speaker 2: Thanking revenue increased $320 million of 40% year by year, benefited by the addition of cartronic.

Legacy NCR banking was up 7% year over year with particular strength in software up 15%.

Speaker 2: Legacy NCR banking was up 7% over year with particularly strength and software up 15%.

Speaker 2: In addition to a key upfront software deal in the period, we experienced much higher demand for subscription software services with a total sign contract value of 28% yours.

In addition to a key upfront software deal in the period, we experienced much higher demand for subscription software services with a total contract value up 28% year over year.

Speaker 2: We also saw increased demand for our hardware solutions with revenue of 10% and orders of 28.

We also saw increased demand for our hardware solutions with revenue up 10% and orders up 28%.

Hardware orders growth includes increased demand for our new scalable recycler product, which is expected to accelerate across 2022, as we complete customer testing.

Speaker 2: Hardware orders growth includes increased demand for our new scalable recycler product, which is expected to accelerate across 2022 as we complete customer tests.

Speaker 2: We continue to successfully replace our one-time revenue that was traditionally recognized with a sale of ATM hardware, with more durable, predictable, and valuable software and services revenue.

We continued to successfully replace our onetime revenue that was traditionally recognized with the sale of ATM hardware with more durable predictable and valuable software and services revenue streams.

Speaker 2: Banking adjusted EBITDA increased $98 million or 74% year over year. Adjusted EBITDA margin rate expanded by 400 basis points to 20.6%.

Banking, adjusted EBITDA increased $98 million or 74% year over year.

Adjusted EBITDA margin rate expanded by 400 basis points to 26%.

Speaker 2: The margin increase was a result of significant accretion from the inclusion of cartronics, a more profitable and valuable revenue mix in our legacy NTR businesses, as well as cost productivity and price increases we've previously put in place. The bottom of the slide shows

The margin increase was the result of significant accretion from the inclusion of Cardtronics.

A more profitable and valuable revenue mix in our legacy NCR businesses as.

As well as cost productivity and price increases we previously put in place.

The bottom of the slide shows our banking segment key results.

Speaker 2: On the left, we have a terrific year in digital banking, with revenue up 9% for the full year. Digital banking growth rate accelerated throughout the year, with a fourth quarter of 14% compared to the same quarter in 2020.

On the left we had a terrific year in digital banking with revenue up 9% for the full year digital banking growth rate accelerated throughout the year with a fourth quarter up 14% compared to the same quarter of 2020.

Speaker 2: Digital banking registered users increased only 3%. The sequential decline was caused by a customer consolidation and a subsequent move to an in-house solution.

Digital banking registered users increased only 3%.

The sequential decline was caused by a customer consolidation and subsequent move to an in house solution.

Speaker 2: The shift in recurring revenue continues the grain traction, with recurring revenue up 42% for the full year, and up 6% on a pro form of base.

The shift to recurring revenue continues to gain traction with recurring revenue up 42% for the full year and up 6% on a pro forma basis.

Speaker 2: And the fourth quarter recurring revenue growth accelerated to 8% on that same pro form of base.

In the fourth quarter recurring revenue growth accelerated to 8% on that same pro forma basis.

Moving to slide nine which shows our retail segment results starting at the top left retail revenue increased $51 million or 9% year over year due to higher point of sale and self checkout solutions revenue.

Speaker 2: Moving to slide nine, which shows our retail segment results. Starting at the top left, retail revenue increased $51 million or 9% year-over-year, due to higher point of sale and sell-checkout solutions revenue.

Speaker 2: increases in North American hardware sales and software licenses for enterprise and self checkout applications as well as cloud revenue paste this growth.

Increases in North American hardware sales and software licenses for enterprise and self checkout applications as well as cloud revenue pace of this growth.

Retail adjusted EBIT declined 1% year over year, while adjusted EBITDA margin rate contracted 150 basis points to 14%.

Speaker 2: Retail adjusted EBITDA declined 1% you over year, while adjusted EBITDA margin rate contracted 150 basis points to 14%.

Speaker 2: Hardware material costs and freight expedites and higher services staffing levels constrain margin expansion.

Hardware material costs, and freight expedites and higher services staffing levels constrained margin expansion.

Speaker 2: These impacts were partially offset by price increases and reduced expense.

These impacts were partially offset by price increases and reduced expenses.

Speaker 2: We continue to have success transitioning our retail business from one time for petrol sales into multi-year subscription-based revenues.

We continue to have success transitioning our retail business from onetime perpetual sales into multiyear subscription based revenue streams.

Speaker 2: strategic deals that Mike mentioned that ASDUS, AS Watson, and Bed Bathroom beyond were key wins in the fourth quarter. The nature of these contracts shifted roughly 14 million of very high-profit revenue that would previously have occurred as upfront software license to recurring revenue, which impacted the year-over-year comparison.

The strategic deals that Mike mentioned that as the a S Watson and bed Bath, <unk> beyond where key wins in the fourth quarter.

The nature of these contracts shifted roughly $14 million of very high profit revenue that would previously have occurred as upfront software license to recurring revenue, which impacted the year over year comparisons.

The bottom of the slide shows retail segment key metrics on the left self checkout revenue increased 13% for the full year in line with our expected full year 2021 double digit results.

Speaker 2: On the left, self-checkout revenue increased 13% for the full year, in line with our expected full year 2021 double-digit result.

Speaker 2: And in the center bottom are platform lanes. A KPI that illustrates the success of our strategy of converting our retail customers to our platform-based subscription model. In 2021, we more than triple the number of platform lanes.

And in the center bottom or platform lanes or kpis that illustrates the success of our strategy of converting our retail customers to a platform based subscription model.

In 2021, we more than tripled the number of platform later on.

Speaker 2: Momentum for our strategy of converting traditional lanes to platform lanes carries into 2022 with a substantial lane conversion back.

Momentum for our strategy of converting traditional lanes to platform nine carries into 2022 with a substantial lean conversion backlog.

Speaker 2: Recurring revenue in this business increased 9% for the full year.

Recurring revenue in this business increased 9% for the full year.

Speaker 2: Slide 10 shows our hospitality segment results and illustrates momentum across this business with particular strength in the enterprise market caused by an uptick in new restaurant openings and technology repressed.

Slide 10 shows our hospitality segment results and illustrates momentum across this business with particular strength in the enterprise market caused by an uptick in new restaurant openings and technology refreshes.

Speaker 2: Hospitality revenue increased $49 million or 27% as restaurants reopen, rework their existing locations and expand.

Hospitality revenue increased $49 million or 27% as restaurants, reopen rework their existing locations and expand.

Speaker 2: Revenue is returning to 2019 levels and the virus disruptions are becoming less disruptive. Our pipeline is strong and our backlog is significantly higher than it was a year ago. We continue to triage component supply to insulate our customers from supply chain disruptions.

Revenue was returning to 2019 levels and the virus disruptions are becoming less disruptive.

Our pipeline is strong and our backlog is significantly higher than it was a year ago.

We continue to triage component supply to insulate our customers from supply chain disruptions.

Fourth quarter adjusted EBITDA was flat from the fourth quarter of 2021, and adjusted EBITDA margin rate of 11, 7%.

Speaker 2: Fourth quarter adjusted EBITDA was flat from the fourth quarter of 2020, one of the adjusted EBITDA margin rate of 11.7%. Intentional increases in sales and marketing costs to catalyze growth and significant cost pressure for both chipsets and expedited freight and hardware for our enterprise customers impacted those margins.

Potential increases in sales and marketing cost to catalyze growth and significant cost pressure for both chipsets and expedited freight and hardware for.

For our enterprise customers impacted those margins.

Speaker 2: Hospitality's key metrics in the bottom of the slide include a low-ha essential site and recurring revenue.

Hospitality is key metrics on the bottom of the slide include a low heart central sites and recurring revenue.

Speaker 2: Aloha Essentials sites increase 148% for the full year, while recurring revenue increased 9% in 2021. Turning to slide 11 where we provide our full year results for our 8060 20 strategic targets.

Although hard central sites increased to 148% for the full year, while recurring revenue increased 9% in 2021.

Turning to slide 11, where we provide our full year results for $80 $60 20 strategic targets. These.

Speaker 2: These goals were originally put in place in 2019 as 2024 targets. And even with the pandemic and the supply chain disruptions, we have executed successfully and deemed these goals nearly complete. This will be the last time we present this slide that we have a new set of more aggressive and aspirational five-year goals for our organization.

These goals were originally put in place in 2019, as 2024 targets and even with the pandemic and the supply chain disruptions, we have executed successfully and Dean these goals nearly complete this will be the last time, we presented this slide because we have a new set of more aggressive and aspirational five year goals for our organization.

Speaker 2: First, we strive to generate 80% of our revenue from software and services, or less than 20% of our revenue from discrete hardware sales. In 2021, software and services represented 73% of our revenue up from 72 in 2020. Next, we aim for 60% of our revenues to be recurring to drive more resilient or predictable and more valuable revenue.

First we strive to generate 80% of our revenue from software and services or less than 20% of our revenue from discreet hardware sales in 2021 software and services represented 73% of our revenue up from 72 in 2020.

Next we aimed for 60% of our revenues to be recurring to drive more resilient more predictable and more valuable revenue.

Speaker 2: 2021 recurring revenue represented 58% of our total up from 54 in 2020.

<unk> 2021 recurring revenue represented 58% of our total up from 54 in 2020.

Speaker 2: And we aspire to a 20% adjusted EBITDA margin rate. We made significant progress on this metric within adjusted EBITDA margin of 17.4% in 2021 compared to 14.4 in 2020.

And we aspire to a 20% adjusted EBITDA margin rate, we made significant progress on this metric with an adjusted EBITDA margin of 17, 4% in 2021 compared to $14 four in 2020.

On slide 12, we present free cash flow net debt and adjusted EBITDA metrics to facilitate leverage calculations.

Speaker 2: On slide 12, we present free cash flow, net debt, and adjusted ebethometrics to facilitate leverage calculation.

Speaker 2: We continued the trend of strong or linear free cash flow. We generated total free cash flow of $100 million. We have a strong balance sheet, ample liquidity, and the financial strength to support our growth strategy.

We continued the trend of strong more linear free cash flow, we generated total free cash flow of $100 million.

We have a strong balance sheet ample liquidity and the financial strength to support our growth strategy.

Speaker 2: The slide also shows our net debt to adjusted EBITDA metric with a pro forma leverage ratio of 3.7 times.

This slide also shows our net debt to adjusted EBITDA metric with a pro forma leverage ratio of three seven times.

We ended the fourth quarter with $447 million of cash and remained well within our debt covenants, which include a maximum pro forma leverage ratio of five five times.

Speaker 2: We ended the fourth quarter with $447 million of cash and remained well within our debt covenants, which include a maximum pro-formal leverage ratio of 5.5 times.

Speaker 2: We also have significant liquidity, with over $900 million available under the balling credit facility.

We also have significant liquidity with over $900 million available under the revolving credit facility.

Speaker 2: On slide 13, we present our full year 2022 outlook.

On slide 13, we present, our full year 2022 outlook.

Speaker 2: We expect revenue of $8.8 billion dollars representing growth between 12 and 15%.

We expect revenue of 8 billion to $8 2 billion representing growth between 12 and 15%.

That range represents caution around the first half global transaction volumes and presumes component availability eases in the second half.

Speaker 2: That range represents caution around the first half global transaction volumes and presumes component availability eases in the second half.

Speaker 2: We also assume a typical net impact from the shift to recurring revenue.

We also assume a typical net impact from the shift to recurring revenue.

We expect adjusted EBITDA to be $1 5 billion to $1 $5 75 billion.

Speaker 2: We expected just that EBITDA should be $1.5 billion to $1.575 billion representing a growth rate of 21 to 27%.

Representing a growth rate of 21% to 27%.

Speaker 2: This range presumes a difficult cost-price dynamic in the first half that eases in the second. It also includes full execution of the card-chronics transaction synergies. Non-GAT EPS is expected to be $3.25 to $3.55 for the year, representing growth of 27 to 39%.

This range presumes, a difficult cost price dynamic in the first half that eases in the second.

It also includes full execution of the Cardtronics transaction synergies non-GAAP EPS is expected to be $3 25 to $3 55 for the year representing growth of 27% to 39%.

Speaker 2: We've assumed a tax rate of 26% and a share count of 154 million shares in that and out.

We have assumed a tax rate of 26% and a share count of 154 million shares in that analysis.

Speaker 2: We expect to generate free cash flow between $506 million. A key to free cash flow will be the ability to use non-recourse financing to fund the ATM and just go as a service strategy.

We expect to generate free cash flow between 500 $600 million.

A key to free cash flow will be the ability to use nonrecourse financing.

The ATM in scope as a service strategy.

Speaker 2: To assure alignment with your quarterly models, I also want to provide some thoughts on Q1 and the calendarization of 2022. You will recall that a very low pandemic adjusted cost-base combined with a modest post-virus bounce allowed us to get out to a fast start in 2021.

To assure alignment with your quarterly models I also want to provide some thoughts on Q1 and the calendar <unk> of 2022 you.

You will recall that a very low pandemic adjusted cost base combined with a modest post virus bounce allowed us to get out to a fast start in 2021.

The second half performance, while still strong were significantly impacted by step function changes in our component costs and freight costs.

Speaker 2: The second half performance, while still strong, was significantly impacted by step quick bump to changes in our component costs and on a freight costs

Performance in 2022 is likely to be a mirror image of that environment with price increases catching up with costs in the first half.

Speaker 2: Performance in 2022 is likely to be a mirror image of that environment with price increases catching up with costs in the first half

Speaker 2: And a second has increased in revenue as transaction volumes normalize and components become more readily available.

And a second half increase in revenue as transaction volumes normalize and components become more readily available.

So for Q1, we expect revenue of $1 9 billion to $1 95 billion.

Speaker 2: So for Q1, we expect revenue of 1.9 billion to 1.95 billion, which is up 23 to 26% on a reported base.

This is up 23% to 26% on a reported basis.

Speaker 2: Part supply will likely constrain hardware sales and global Omicron-impacted transaction volumes will be down.

Part supply will likely constrain hardware sales and global omicron impacted transaction volumes will be down.

Speaker 2: While the hardware revenue will push forward into subsequent quarters, transaction volumes do not. We expected just at EBITDA of $325 million to $350 million, which results in a margin rate very similar to that of Q4.

While the hardware revenue will push forward into subsequent quarters.

Transaction volumes do not we expect adjusted EBITDA of $325 million to $350 million, which results in a margin rate very similar to that of Q4.

Speaker 2: A less advantageous hardware mix and premium manufacturing cost will be counter by price increases and cost productivity.

A less advantageous hardware mix and premium manufacturing cost will be countered by price increases and cost productivity.

We expect non-GAAP EPS of <unk> 60 to 65.

Speaker 2: We expect non-GAPEPS of 60 cents to 65 cents. We've assumed a tax rate of 26 percent and a first quarter share count of 152.5 million shares.

We've assumed a tax rate of 26% in the first quarter share count of $152 5 million shares.

Speaker 2: We expect the first quarter to be a modest use of cash due to typical seasonal factors such as our annual 401k match and our annual cash compensation expense that were not funded in 2021 and to expected higher inventory levels. After Q1, we expect modest sequential quarterly improvement across most financial metrics to ultimately produce the results described by our annual guidance.

We expect the first quarter to be a modest use of cash due to typical seasonal factors such as our annual 401, K match and our annual cash compensation expense that were not funded in 2021 and.

And two expected higher inventory levels. After Q1, we expect modest sequential quarterly improvement across most financial metrics to ultimately produce the results described by our annual guidance.

Speaker 2: And finally, slide 14 bridges, 2021 adjusted EBITDA of $1.24 billion through 2022 adjusted EBITDA guided range provides a high level depiction of our earnings drivers for 2022.

And finally slide 14 bridges 2021, adjusted EBITDA of $1 billion to $4 billion.

2022, adjusted EBITDA guided range provides a high level depiction of our earnings drivers for 2022.

Speaker 2: We expect benefits from increased volume and price increases to drive $150 to $200 million of incremental adjusted EBITDA. The inclusion of cartonics results for the full years expected to add another $150 million.

We expect benefits from increased volume and price increases to drive a $150 million to $200 million of incremental adjusted EBITDA.

Closing of Cardtronics results for the full year is expected to add another $150 million.

Speaker 2: and we are on track to achieve a hundred million dollars in cost energies associated with the contract transaction and expect an incremental twenty five million dollars in net productivity.

And we are on track to achieve a $100 million in cost synergies associated with the Cardtronics transaction and expect an incremental $25 million and net productivity.

Speaker 2: The primary headwind in 2022 will be our ongoing shift away from selling perpetual stock for licenses and hardware to subscription and as a service model. We anticipate this shift to recurring to be roughly $150 million, similar to the amount 2021, but more weighted to retail and ATM as a service. The primary headwind in 2022 will be our ongoing shift away from selling perpetual stock for licenses and hardware to subscription and as a service model.

The primary headwind in 2022 will be our ongoing shift away from selling perpetual software licenses and hardware subscription and as a service models.

We anticipate this shift to recurring to be roughly $150 million similar to the amount in 2021, but more weighted to retail and ATM as a service.

Speaker 2: The more successful we are shifting our revenue to multi-or contract, the larger the near term headwind would be.

The more successful we are shifting our revenue through multiyear contracts the larger the near term headwind would be.

Speaker 2: We will make sure to call out any major contracts and describe those economics at the time. With that, I'll turn it back to you Mike. Thanks Tim. In closing, I'm on slide 15.

We will make sure to call out any major contracts and describe those economics at the time.

With that I will turn it back to you Mike Thanks, Tim.

In closing I'm on slide 15.

Speaker 3: We have made significant strategic progress in 2021.

We have made significant strategic progress in 2021.

Speaker 3: And we did what we said we would do, delivering consistent, strong, financial, and operating performance.

And we did what we said, we'd do delivering consistent strong financial and operating performance.

Throughout the year, we've had a keen focus on taking care of our customers with the belief and happy customers will buy more.

Speaker 3: Throughout the year, we've had a keen focus on taking care of our customers with the belief that happy customers will buy more. Our focus is paying off with our net promoter score increasing by 33% in 2021 and 2020.

Our focus is paying off with our net promoter score increasing by 33% in 2021, and 2020 improved customer satisfaction help NCR garner a higher share of wallet and was a key contributor to revenue growth and margin expansion across all of our industries.

Speaker 3: Improved customer satisfaction helps NCR garner a higher share wallet and was a key contributed to revenue growth and margin expansion across all of our industries.

We entered 2022 with momentum.

And a clear strategic vision as we accelerate our transformation to a software led as a service company.

Speaker 3: In a clear strategic vision as we accelerate our transformation to a software led as a service

Speaker 3: Looking forward, our key priorities are clear. First, we expect to accelerate growth as we leverage our software and payments platform to increase share of wallet. As we discussed at our investor day, we have established new five-year targets, which we call 80- retail.

Looking forward our key priorities are clear first we expect to accelerate growth as we leverage our software and payments platform to increase share of wallet.

As we discussed at our Investor Day, we have established a new five year targets.

Which we call 80 15 one.

Speaker 3: We strive to generate 80% of our revenue to be recurring.

We strive to generate 80% of our revenue to be recurring.

Speaker 3: We expect to deliver 15% annual non-gap diluted EPS growth each year.

We expect to deliver 15% annual non-GAAP diluted EPS growth each year.

Speaker 3: And we aspire to generate $1 billion, $1 billion, a free cash flow in 2020. And we aspire to generate $1 billion, $1 billion, $1 billion, a free cash flow in 2020.

And we aspire to generate $1 billion.

$1 billion of free cash flow in 2026.

Speaker 3: Second, we are eager to capitalize on the opportunities that cartonics and Liberty X rings us. We closed the Liberty X transaction at the beginning of January and we are very excited about this opportunity. This acquisition continues our strategy to digitally engage with consumers and provide retailers and banks additional solutions for the customers to pay transactions.

Second we are eager to capitalize on the opportunities that Cardtronics and Liberty X brings us we closed the Liberty X transaction at the beginning of January and we are very excited about this opportunity. This acquisition continues our strategy to digitally engage with consumers and provide retailers and banks additional solutions for the customers.

To pay transact and be met.

Speaker 3: Third, we will continue to improve execution to drive solid returns for our shareholders while we transform the business to drive a re-rate of our evaluation.

Third we will continue to improve execution to drive solid returns for our shareholders, while we transform the business to drive a rebate.

Our valuation.

Speaker 3: Finally, we will explore strategic actions to accelerate shareholder value creation, as we believe our stock price has not reflected the improved performance demonstrated over the past three years.

Finally, we will explore strategic actions to accelerate shareholder value creation as we believe our stock price has not reflected the improved performance demonstrated over the past three years.

Speaker 3: This concludes our prepare remarks for today. With that, we will open the call for questions. Thank you for your time. Up.

This concludes our prepared remarks for today with that we will open the call for questions. Thank you for your time.

Operator, please open the line.

Speaker 1: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speaker phone, please make sure that your mute function is turned off to allow your signal to reach our equipment. Once again, that is star one. If you would like to ask a question, we will take our first question from Dan Perlin with RBC Capital Markets. Please go ahead.

Thank you.

If you would like to ask a question. Please signal by pressing star one on your telephone keypad.

Using a speaker phone. Please make sure that your mute function is turned off to let your signal to reach our equipment.

Once again that is star one if you would like to ask a question we.

We will take our first question from Dan Perlin with RBC capital markets. Please go ahead.

Speaker 4: Thanks and good evening everyone. I wanted to start Mike with a strategic review. I know you probably don't want to go into details on it, but the question I guess I have is as we look across the business and the incremental segmentation that you guys have provided, which I think provide a lot more clarity.

Thanks, and good evening everyone.

I wanted to just start Mike with the strategic review I know you probably don't want to go into details on it but.

The question I guess I have is as we look across the business and the incremental segmentation that you guys have provided which I think provide a lot more clarity.

Speaker 4: The question is, when you think about the opportunities, I mean, can all these businesses at this stage truly stand on their own? Do you see this synergy used to the extent that you would look at some of the options, and I think it's a lengthy list that you mentioned in the press release? So I'm just trying to get some sense as to what you're thinking there. Thank you.

The question is when you think about the opportunities we can all of these businesses at this stage truly stand on their own.

Do you see dis synergies to the extent that you would.

Look at some of the options and I think it is a lengthy list that you mentioned in the press release, So I'm just trying to get some sense as to what Youre thinking there. Thank you.

Speaker 3: Yeah, thanks Dan. Yeah, I mean, so we gave transparency around five business segments predominantly because they...

Yeah. Thanks, Dan So we have we.

We gave transparency.

Hi.

Business segments predominantly because they.

Speaker 3: As you look at NCR, those five business segments, we felt gave better visibility and to comps to the marketplace and the ability to understand NCR. But when it comes to what we look at for strategic alternatives, we kind of outlined some in the press release. We're gonna keep our minds open. I would assume that that.

As you look at NCR those sides of the segments, we felt gain better visibility into comps in the marketplace.

Ability to understand NCR.

But when it comes to what we looked at the strategic alternatives, we kind of outlined in the press release, we're going to we're going to keep our minds open I would assume that that.

Speaker 3: An outcome is you look at the five segments that work from the intent of why we gave transparent tan five segments.

An outcome as you look at the size segments that wasn't the intent gladly Gabe transparency in five segments, but as we look at what we could do to unlock value and again.

Speaker 3: But as we look at what we could do to unlock value, and again, we...

Yes.

Speaker 3: You know, we really look at this and say, listen, we've executed for three years. We've hit every quarter for three years.

We really look at this and say, let's listen we've executed for three years, we've hit every quarter for three years.

Speaker 3: improved our product, we've improved our strategy, we've delivered our products to the market, we had customer set, we've grown our business, and we're pretty excited about where we're going in the future. But yeah, we looked at where we trade and we're very disappointed with the value in the set.

Yes.

We improved our product.

That strategy, we've delivered are markedly at customer sat.

We are growing our business.

And we're pretty excited about where we're going in the future, but yes, we look at where we trade and we're very disappointed with the value and we said for the last couple of years, if if the market doesn't catch up of value us appropriately we would take.

Speaker 3: for the last couple of years, if the market doesn't catch up and value us appropriately, we would take...

Speaker 3: a long hard look at what we might do. So, you know, if you think about the laundry list of things that we might be evaluated.

Long.

Look at what we might do so.

Think about the laundry list of things that we.

It might be evaluating.

Speaker 3: Clearly, looking at some of those components that you identify some of the five business segments, whether some of those might have more value or more access to capital to stand alone.

Clearly looking at some of those components that you identified some of the Si business segments, whether it's some of those might have more value or more.

The capital Standalone.

Speaker 3: I think that would be fair to say we'd look at that. I think you could look at the company and say,

That would be fair to say, we'd look at that.

I think you could look at the company and say sequentially I guess, how much synergy between the two business. We think there is some synergy but yes, you can look and say could you.

Speaker 3: The question we are going to get, how much energy is between the two business? We think there's some synergy.

Speaker 3: But yeah, you could look and say, could you split into two or three pieces and half?

Could you split into the two or three pieces that have entities that have a little bit more share play as they go out and compete and create an investment vehicle.

Speaker 3: And it sees that a little bit more pure play as they go out and compete and create an investment.

Speaker 3: You know, we're gonna look at things like that. We actually think one of the challenges we have, the marketplace, the customers, clearly, we brought back the brand, the credibility of the brand. We have great brand perception, credibility with our employees. We're not sure about that with investment community, so do we have to do something with the brand and the entity that people invest in? Do we have to look at our footprint of...

We're going to look at things like that we actually think one of the challenges we have the marketplace. The customers clearly we've brought back the brand credibility of the brand we have great brand perception credibility with our employees, we're not sure about that with investment community. So do we have to do something with the brand and in the entity that people invest in.

Do we have to look at our footprint location country.

Speaker 3: countries, our manufacturing footprint, we need to do something along those lines.

Countries.

Manufacturing footprint that we need to do something along those lines.

Speaker 3: I don't think we would rule out, do we look at, do we combine with an entity in some way, shape a form that continues to push us more to solve for services, pushes more on the platform company, I would expect it to be in the same industry that works.

I don't think we would rule out daily look at do we combine with an entity in some way shape or form that continues to push us more to software services pushes Moreland the platform company.

Expect it to be in the same industries that we're already in today.

Speaker 3: in today. I don't, you know, I don't know if it has potential to cheat.

I don't know if any of the potential strategic buyer interested but I didn't think we'd have some sponsors that might be interested in.

Speaker 3: I'm interested, but I do think we'd have some sponsors that might be interested in

Speaker 3: Transactions so I think we're gonna be very open minded. There may be some other ideas that come to us

The transaction. So I think we're going to be very open minded there may be some other ideas that come to us.

The net of this is we believe we have executed.

Speaker 3: So, Lee, we have executed financially, we've technically executed with our products, we've improved our company over the last three years, but yet...

Financially we've executed basically in vaccine with our products, we've improved our company over the last three years, but yet.

Speaker 3: We're not reflected in our evaluation. So this is the step we're taking simply because of that fact.

Is that reflected in our valuation. So this is the steps, we're taking simply because of that back.

Speaker 4: That's great. Thank you for all that detail. Just a quick follow up for Tim. When you think about the guidance and you gave a lot of detail to your about some of the toggle points, but are you more, as you sit here today, are you more concerned about the cost aspect of the business to get you to kind of the high low range or you're more concerned about the demand environment across the spectrum of what you can at least see from visibility at this point? Thank you.

That's great. Thank you for all that detail.

Just a quick follow up for Tim when you think about the guidance and you gave a lot of details here about kind of some of the toggle points, but are you more.

As you sit here today are you more concerned about the cost aspect of the business to get you to kind of the high low kind of range or are you more concerned about the demand environment across the spectrum of what you can at least see from visibility at this point. Thank you.

Speaker 2: So, yeah, so demand is fine. Demand is actually relatively good nearly everywhere with the exception of transaction volumes at cardronics. When the crown countries start to open up more and the US opens up more, I think those will recover as we get and kind of put the Omicron variant in our European mirror. So demand will not be a problem. I feel good about it.

So yes. So demand is fine demand is actually relatively good nearly everywhere with the exception of transaction volumes at Cardtronics.

Lynn.

The crowd countries start to open up more in the U S opens up more I think those will recover as we get into kind of put the omicron variance in our in our rearview mirror, so demand will not be a problem I feel good about our demand.

Speaker 2: From a cost perspective, those things we can control, which is, you know, this hour cost, the control will cost, we'll manage that. We do every year, we have productivity initiatives underway. Adrian is his team, look at our manufacturing base and trying to make sure that we get sufficient productivity in a typical year to offset inflation. As you know, we came into this year with a significant headwind from inflation that we experienced in the latter half of last year. And while the supply chain is getting better, it's not great. And so my biggest concern would be can our price increase?

From a cost perspective, those things, we can control which is.

Our cost of controllable costs, we will manage that we do every year, we have productivity initiatives underway Adrian and his team look at our manufacturing base and try to make sure that we get sufficient productivity in a typical year to offset inflation. As you know we came into this year with a significant headwind from inflation that we experienced in the latter half of last year and well.

The supply chain is getting better its not great and so my biggest concern would be Ken our price increases.

Speaker 2: Keep pace with the cost that we've seen thus far that that would be in my mind how that plays out over the Termine what end of the range we end up in

Keep pace with the cost that we've seen thus far that would be in my mind, how that plays out but we're determined what end of the range we end up in.

Yeah.

Got it thank you.

Thank you we'll take our next question from Matt Summerville with D. A Davidson.

Speaker 11: Thank you all for the next question from Matt, so I'm going to go with the A-Davidson.

Speaker 4: Thanks, a couple of questions first. If you look at your guidance to the 12 to 15% revenue growth, how much of that would you say would be pro forma legacy NCR, similar to how you talked about the reporting periods here in the call?

Thanks, a couple questions first if you look at your guidance, Tim the 12% to 15% revenue growth how much of that would you say would be pro forma legacy NCR similar to how you talked about the reporting periods here on the call.

Speaker 2: I'm not sure I'll, all of Michael get to that data. We're gonna, we're gonna give you a pro format.

I'm not sure I'll have Mike will get you that data, we're going to we're going to give you a pro forma.

Speaker 3: data going back eight quarters for all of his segments that'll be inclusive of cartronics. So I actually didn't do that math for you. Imagine this is my guy. I was, you know, it's, it gets increasingly hard going forward to try to break that out and I'll give you an example. We talked about three.

Data going back eight quarters for all of the segments that will be inclusive of Cardtronics I'd actually didn't do that math for you.

Matt This is Mike.

Yes, it gets increasingly hard going forward to try to break that out and I'll give you. An example, we talked about three ATM as a service deals that we executed in the fourth quarter.

Speaker 3: ATM and service deals that we executed in the fourth quarter. And I think we talked to the last call. We're very optimistic about that business. So we see entities both small and they make a variety, which is very large entity in India.

Yes, I think we've talked about it last call.

Very optimistic about that business as we see entities, both small and I think the broad which is very large entity in India, who look at our ability our ability as NCR slash cardtronics.

Speaker 3: who look at our ability, our ability is NCR flash parked electronics, not only to deliver the...

To deliver that component the service, but also to operate and that's a combined offering of Ncis time. So it's really hard to say what is where is that coming from we expect more of that in.

Speaker 3: service but also to operate. And that's a combined offering of NTR, our time says, really hard to say, what is that coming from? We expect more of that in about 2022. So I don't think you're gonna see us trying to break out what is coming from each side of the businesses from a legacy perspective. So while my wingman was talking, I did some math. It's about half of that number is pro-form a growth. So the 12 to 15.

It's about 2022, so I don't think youre going to see us try to breakout what is coming from each side.

The businesses from a legacy perspective, so while my wingman was talking I did some math, it's about half of that number is.

Pro forma growth.

The 12 to 15 will be about half of that we pro forma growth.

Speaker 4: Got it. And then you mentioned several times Tim about how pleased you are with some of the backlogs you're seeing in the businesses. I was wondering if you could maybe put some numbers around that whether it be is a whole forensic or at the segment level and then maybe comment on in a more ideal world, supply chain, etc. wise, how much revenue maybe you would have otherwise been able to deliver in Q4.

Got it and then you mentioned several times Tim about how pleased you are with some of the backlogs youre seeing in the businesses I was wondering if you could maybe put some numbers around that whether it would be as a whole for NCR at the segment level and then maybe comment on in a more ideal world supply chain.

Et cetera wise, how much revenue, maybe you would have otherwise been able to deliver in Q4. Thank you.

Speaker 2: Okay, yeah, so the first part of that is we don't disclose backlogs. I qualitatively, I feel really good about...

Yes. So the first part of that is we don't disclose backlog that qualitatively I feel really good about where we enter it.

Speaker 2: where we entered the this year versus where we entered last year. So to have backlog and ATMs and to have backlog and scopes is a nice thing. In terms of how much revenue pushed forward from one quarter to the next, we've talked about $40 to $50 million in hardware revenue pushing forward from Q3 into Q4, now from Q4 into the first half of 2022. So it's on that magnitude.

This year versus where we entered last year, so to have backlog in Acs and to have Bob <unk> as it is.

As a nice day.

In terms of how much revenue push forward from one quarter to the next we've talked about $40 million to $50 million in hardware revenue pushing forward from Q3 into Q4 and now from Q4 into the into the first half of 2022.

It's on that magnitude.

Got it thank you guys.

Thank you we'll take our next question from Charles <unk> with Stephens.

Speaker 11: Thank you, we'll take our next question from Charles Neyven with Ashteevon.

Hi, good afternoon, and thanks for taking my question I wanted to ask you about Liberty acts specifically the degree to which.

Speaker 5: I get afternoon and thanks for taking my question. I wanted to ask you about Liberty X, specifically the degree to which that impact that the as well as your guidance for 22.

That impact that impacted the quarter as well as your guidance for 2002.

Speaker 2: So there's nothing in the quarter to speak up. We didn't get that deal closed until January . So there was no impact to the fourth. We got it closed. Made Jan, there'll be some impact to the first quarter. And the last year's full year revenue, depending on how you account for it, there's still some debate as to whether this is gross or net accounting. But depending how we account for it on a gross basis, it could be $80 million of that guy.

So theres nothing in the quarter to speak of but we didn't get the deal closed until January . So there was no effect of the fourth.

We got it closed mid Jan there'll be some impact to the first quarter and the full year last year's full year revenue, depending on how you account for it but there's still some debate as to whether this is gross or net accounting, depending how we account for it on a gross basis it could be $80 million of that guidance.

Speaker 5: Okay, great. And I know you've commented on supply chain, but I wanted to get a little more color specifically around the source of some of those headwinds, whether they're coming from freight supply or labor, whether you're seeing those areas stabilized and it sounds like you're raising price, you're able to pass that on from a pricing standpoint in the first half of the year. So I just wanted to confirm that the latter, I understand there as well.

Okay, Great and I know you've commented on supply chain, but I wanted to get a little more color specifically around the source of some of those headwinds whether they are coming from freight supply or labor.

Whether youre seeing those areas stabilize and it sounds like you're raising price youre able to pass that on from a pricing standpoint in the first half of the year. So I just wanted to confirm.

Yes, the latter my understanding there as well.

Speaker 2: So I'll do the first part. I'll reiterate, we said last time, let it all go in and give color, and which really going on and supply chain, he's much closer to it than I am. But we've talked last quarter about our price increases, lagging our cost increases by about three to four months time. And I think that's still true. And I said we would catch up within those three months time that as soon as price, as cost stops going up.

So I'll do the first part and I'll reiterate we said last time ill give color on what's really going on in supply chain. He is much closer to it than I am, but we've talked last quarter about.

Our price increase is lagging our cost increases by about 3% to four months time, and I think thats still true and I said, we would catch up within those three months time that as soon as its price its cost stopped going up.

Speaker 2: They haven't yet stopped going up. So we're still chasing a bit. Those constant increases with price. And that's why I have some caution in the first half here. Oh, maybe you give some color. Yeah, that addresses the price.

They haven't yet stopped going up and so we're still chasing a bit those cost increases with price and Thats why I have some.

Some caution in the first half or maybe you can give some color there.

That addresses the price increases.

Speaker 9: And where we are I would say from what we're seeing in a supply chain and it's evolving pretty fluidly here and actually quickly as we came out of the fourth quarter a lot of the issues were around both materials and freight What we're seeing right now is

We are I would say from what we're seeing in our supply chain and it.

All being pretty full.

Fluidly here and actually quickly as we came out of the fourth quarter a lot of the issues were around both materials and freight.

What we're seeing right now is.

A bit of.

Speaker 9: bit of a let up on the pressure in terms of the

Up on the pressure in terms of the.

The semiconductors.

As we look at what we've done in terms of recertifying, the supply chain and creating some optionality.

Speaker 9: We look at what we've done in terms of recertifying the supply chain and creating some optionality. We're starting to see some of that pressure come off, especially as we look at the end of the first quarter and into the second quarter. What we hope we then see is the freight numbers.

Starting to see some of that pressure come off, especially as we look at the end of the first quarter and into the second quarter.

What we hope we see is the freight numbers starting to abate.

Speaker 9: starting to abate and and supply being available to us and as we look out over the next couple of quarters we're feeling better about the supply and then hopefully what we'll see as supply increases is obviously some moderate

And supply being available to us and as we look out over the next couple of quarters, we're feeling better about the supply and then hopefully what we'll see as.

Supply increases as obviously some.

Moderating our cost.

Speaker 9: So, but as we look at the year, demand is very strong. We're seeing some of the challenges of supply chain starting to evade, and we're hoping that...

But as we look at the year.

Land is very strong.

Seeing some of the challenges of supply chain, starting to abate and we're hoping that we'll see.

Speaker 9: more normalized environment and I use that in air quotes toward the second half of the year.

A more normalized environment and I use that in the air quotes towards the second half of the year.

Got it I appreciate the color. Thank you.

Yeah.

Speaker 11: Thank you very much from Eric Woodring with Morgan Stanley .

Thank you, we'll hear next from Erik Woodring with Morgan Stanley .

Thanks, guys. Good afternoon, just to follow up on one of the earlier questions for the $40 million to $50 million of hardware revenue.

Speaker 4: Thanks guys, good afternoon. Just to follow up on one of the earlier questions, for the 40 to 60 million of hardware revenue, that was somewhat pushed from three, Q to four Q and now two, to early 2022, was that specifically because of component availability or was that a situation where customers were impacted by pricing? And that all fall off, thanks.

That was somewhat pushed from <unk> to <unk> and now two to early 2022 was that specifically because of component availability or was that a situation where customers were impacted by pricing at all.

Thanks.

No all component availability.

Speaker 12: Okay, super. And then can you just remind us how to think about the cost savings from the card-tronetaxes acquisition in 2022? How much that is, if that has changed at all, over the last few months as you've kind of worked through the deal further, thanks.

Okay Super and then can you just remind us how to think about the cost savings from the Cardtronics, Texas acquisition in 2022, how much that is if that has changed at all over.

Over the last few months as you've kind of worked through the deal further thanks.

Speaker 2: Yet it's not changed at all. The assumption is we'll still get that $120 million of cost out. It gets increasingly hard to tell when we take cost out, whether it was electronics cost or synergy cost or legacy NCR cost, we will get out far more than that cost and aggregate across the organization. And the end-year call we did get at somewhat of a head start too. We probably got $30 million worth of value from those synergies, the easy synergies that publicly traded costs out in 2021.

It has not changed at all the assumptions, we'll still get the $120 million of cost out it gets increasingly hard to tell when we take cost out whether it was cardtronics cost.

Synergy cost or legacy NCR cost, we will get out far more than that cost in aggregate across the organization and Youll recall, we did get it somewhat of a head start to we probably got $30 million worth of value.

From those synergies the easy synergies publicly traded costs out in 2021.

Okay. Thanks, and then maybe just one last one if I could slip it in there and this is for you Mike just obviously you went through the strategic review initially here, but just curious why today why now why has that is there something that you saw over the last few months that has initiated this or has this been in the works just curious about timing but.

Speaker 12: Okay, thanks. And then maybe just one last one if I get some of it in there. And this is for you. I'm like, just, you know, obviously you went through the strategic review initially here, but just curious why today, why now, why has that, you know, is there something that you saw over the last few months that has initiated this or has this been in the works? Just curious about timing, but that's it for me.

That's it for me thanks.

Speaker 3: Well, we've talked, again, I've saved me a lot of couple of years, that...

Well, we've talked again I'd say for the last couple of years that debt.

Speaker 3: We put a strategic plan together late 18 and going into 19. We laid out some strategic goals. You know, we laid out an 80, 60, 20 goal. We executed quarterly and we've done the teams that are really great at improving the product competitive and this product quality.

We put a strategic plan together late 18 and going into 19, we laid out some strategic goals, we laid out at $86 20 goal.

We executed accordingly.

The team's done a really great job of improving the product competitiveness credit quality.

Speaker 3: And yes, as we got to the end of 21, which if you think about it, we didn't expect COVID to continue to linger throughout 21 it did.

And yet as we got to the end of 'twenty, one, which if you think about it we didn't expect COVID-19 to continue to linger throughout 'twenty one it did.

Speaker 3: Around the globe, we get hit with the things we're talking about now with supply chain.

Around the globe, we got hit with the things you're talking about now with supply chain.

Speaker 3: that yeah, we delivered really strong 21 performance.

Yes, we deliver fairly strong 'twenty one performance.

Speaker 3: Having said all that, if you're actually putting on financial performing, you're improving the product quality, you're executing on your strategic goals.

Having said all that if you're executing on financial performing improving the product quality, you're executing on your strategic goals.

Speaker 3: But yet our value in our valuation is actually lower than it was in 2018. So there's nothing other than the fact that we look at that and say, whatever reason the market doesn't understand our business or is unable to give us the value that we think is there. Again, we said for two years, if the market doesn't catch up and understand.

Our value and our valuation is actually lower than it was in 2018. So there is nothing other than the fact that we look at that and say.

Whatever reason the market doesn't understand our business areas unable to give us the value that we think is there.

We've said for two years, if the market doesn't catch up and understand the value. We think is inherent in the business that we have we would take the steps to unlock that value. So it's simply doing that simply based on where we sit today with our stock price.

Speaker 3: The value we think is inherent in the business that we have, we would take the steps to unlock that value. So it's simply, we're doing that simply based on where we sit today. We can start now.

Thanks, Mike.

Thank you we'll take our next question from Kartik Mehta with Northcoast research.

Speaker 11: And you will take our next question from Cartic Meta with North Coast Research.

Hey, good afternoon, Mike.

Speaker 7: Hey, good afternoon, Mike. One of the things you've talked about in a few years are price increases on the service link side for banking at the decent size business for you. And I'm wondering how the banks have reacted and if you've been able to push that through and if there's certain characteristics of banks that are willing to accept that.

One of the things you've talked about in here as well our price increases on the servicing side for banking since that's a decent sized business for you and I am wondering how the banks have reacted and if you've been able to push that through.

If there are certain characteristics.

Banks that are willing accept that.

Yes, Kartik this is owen.

Speaker 9: Yeah, Carter, this is only, across the board, not just with the banks, but our entire customer.

Across the board not just with the banks, but our entire customer base.

Speaker 9: They've been more than reasonable. We talked we were probably 90 days behind in terms of implementing so on us. But as we have responded or pushed the increases out, our customers have been pretty reasonable. In fact, if you listen to most of our customers,

Ben more than reasonable we talked we were probably 30 or 90 days behind in terms of implementing so on us, but as we have responded.

Or pushed.

<unk> increases out our customers have been pretty reasonable and in fact, if you listen to most of our customers.

Speaker 9: in the retail and the restaurant and the banking sectors. They're all talking about passing costs onto their customers and they've done that readily. So there has been not been any significant pushback.

And the retail and the restaurant and the banking sectors Theyre, all talking about passing costs onto their customers and they have done that readily so there has been not.

Then any significant pushback from the customer base.

And then just on the ATM as a service business I know you mentioned the banks in the U S and one I think in India, Obviously, the bank in India is very large, but I'm wondering in the U S. What type of banks have you seen that are interested in ATM as a service or there is certain amount of Atms that they have that you find as kind of the target.

Speaker 7: And then just on ATM is a service business. I know you mentioned some banks in the US and one I think in India. Obviously the bank in India is very large, but I'm wondering in the US, what type of banks have you seen that are interested in ATM is a service? Are there certain amount of ATM that they have that you find is kind of the target market? Or what type of demand and your seeing?

<unk>.

Or.

Type of demand Youre seeing.

Yes, you mean, the two we talked about <unk>.

Speaker 3: Yeah, I mean, the two we called out CCO is going to ECU in the state, our community banks. And they actually, so in addition to the ability to take over their footprint of ATMs, the ability to enjoy the alt-point network in the case.

And the state.

Community banks.

And they actually so in addition to the ability to take over their footprint of ATM.

The ability then joined the <unk> network in the case of seacoast.

Speaker 3: and have that capability to extend a search rescue network for all their clients was really important to them. So we're seeing that certainly in community banks, the regional banks, and the mental assets.

And have that capability.

A surcharge free network for all their client, but it's really important to them. So we're seeing that certainly on the Canadian banks the regional banks as I mentioned last call. We did we've had dialogue with some larger banks, maybe even larger than we would have anticipated. Thanks, operator, I think we talked about on prior.

Speaker 3: How we did, we've had dialogue with some larger banks.

Speaker 3: maybe even larger than we would have anticipated. Bank of Rada, I think we talked about the on-prior calls. The Indian market has already shifted too much more of an ATM as a service market. So Bank of Rada, in that market, banks of that size that are fairly scaled like this.

The Indian market has already shifted to much more of an ATM as a service market. So think of <unk> in that market banks of that size that are fairly scaled like this.

Speaker 3: have looked at providers. So we knew that was an opportunity in market. We think there's more opportunity in the Indian market.

<unk> looked at look to providers. So we knew that was an opportunity in market. We think there's more opportunity in the Indian market.

Speaker 3: Australia has embraced this part of Europe . I've embraced it and we're starting to see it in the States. So in the States right now, community banks, we would expect that to start to move up into larger and larger FIs going forward.

<unk> has embraces parts of Europe have embraced it and we're starting to see it in the states. So in the face of it not many banks, we would expect that to start to move up into larger and larger size going forward.

Thank you I appreciate it.

Speaker 11: Thank you. We'll take our next question from Ian DeFina with Oppenheimer.

Thank you we'll take our next question from <unk> <unk> with Oppenheimer.

Speaker 8: Hey guys, thank you very much. I just want to touch upon the strategic alternative.

Hey, guys. Thank you very much I just wanted to touch upon the strict strategic alternatives a little bit I, just kind of wanted to get a sense of what may not be an acceptable resolution for you guys and I guess, maybe we have a little bit of.

Speaker 8: a little bit. I just kind of want to get a sense of what may not be an acceptable resolution for you guys. And I guess maybe we have a little bit of um...

Speaker 8: memories the last time, five years ago, six years ago or so, what we thought we were going to be moving into some type of value creation. And instead we got something very different.

Memories that last time five years ago, six years ago or so.

We thought we were going to be moving into some type of value creation and instead, we got something very different.

Speaker 8: you know with with the delude of sort of raise. Is there any type of consideration for that? Or are we really going for kind of like plain vanilla strategic alternatives where you have either, you know, a spin or some bit of separation or something like that?

With a dilutive short of rage.

Is there any type of consideration for that.

Or are we really going to where kind of like plain vanilla.

Sure TJ alternatives, where you have either.

Thin or some type of separation or something along those lines.

Speaker 8: I know you can't give so much detail because you're very early on but but any color you can kind of get with the

And I know you can't give so much detail because youre very early on but any color you can kind of give would be helpful. Thanks.

Speaker 3: Yeah, I mean, I don't, again, we're gonna look at different things. Again, the challenge is, as we've had parts of our business start to have more and more success, and if you look at some of the components we have, whether it's hospitality, whether it's hospitality, SMB, whether it's digital banking, whether it's what we don't have to retail platform, as those businesses have started to compete and win.

Yes.

Again, we're going to we're going to look at different things.

Challenges.

<unk> had parts of our business start to have more and more success and if you look at some of the components, we have whether it's hospitality, whether it's hospitality SMB, whether it's digital banking that's what we've got the retail platform as those businesses have started to compete and win and people are paying us but each one.

Speaker 3: And people would ping us, but each one, as a standalone, is really hard to evaluate because once you start to look at your high value assets, what do you do with the remain code? So we felt it was really important.

Standalone, it's really hard to evaluate because once you start to look at your high value asset what do you do with the remaining costs. So we felt it was really important to look at the totality of our company I look at the context first of all of our shareholders, but also look at the context of our customers and our employees.

Speaker 3: to look at our hospitality of our company, look at the context, first of all, of our shareholders, but also look at the context of our customers and our employees, and make sure that what we do holds together so we get the greatest value under the organization, but also have an organization or organizations that still function and have a future.

And make sure that what we do hold together.

<unk> greatest failure.

Organization, but also have an it organization organization, that's still function and have a future.

Yeah.

Speaker 3: Having said that you pointed out on the transaction that took place, I believe, about six years ago, we obviously weren't here. The management team wasn't here. I don't know that I would see something like that. I mean, that transaction, the cost of funding for that didn't seem to add a lot of value, the organization. I don't think it unlocked shareholder value. So I think you'll see a very focused unlocking shareholder value. All right, ladies, thank you very much. Thank you very much.

Having said that you pointed out on the transaction that took place I believe about six years ago.

Honestly, what did you hear the management listen here.

I don't know that I havent see something like that I mean that transaction the cost of funding for that didn't seem to add a lot of value to the organization I don't think it unlock shareholder value. So I think youll see us very focused on unlocking shareholder value.

Yes.

Alright, great. Thank you very much.

Thank you we'll take our next question from Paul Chung with Jpmorgan.

Speaker 1: Hi, thanks for taking my questions. So just on digital banking, nice progression on revenues there. Can you expand on kind of the register user decline? Are there risks of other customers kind of bringing the app in-house? Now, what drove that move there? And does that kind of impact any revenue trends later on?

Yes.

Hi, Thanks for taking my questions. So just on <unk>.

Digital banking.

Nice progression on revenues there can you expand on.

Kind of a registered.

User of decline.

Are there risks of other customers kind of bringing the app in house now what drove that move there and does that kind of impact any revenue trends.

Later on.

Okay.

Speaker 3: So that is, first of the factor of the consolidation of the bank market, which you have once for a while, typically you have small ones. This has to be a larger client, but I frankly did emerge of equal.

It is.

So thats just a fact of the of the consolidation of the bank market, but you have once in a while typically have smaller just happened to be a larger client.

Quite frankly did a merger of equals.

Speaker 3: And they took it in house to the other place. Sometimes it went though, sometimes it lose. So this is a little bit of a step.

And and they took it in house to the other platform. Sometimes you win sometimes you lose so this is a little bit of a step down function, which we called out.

Speaker 3: hauled out. But as you look at our plans for 2022, we have it all laid out, right? The conversion cycle in the timing of one customer's come on. When accounts come on, it's laid out for the next nine months.

But as you look at our plan for 2022.

We have that all laid out the conversion cycle and the timing of when customers come on when accounts come on is laid out for the next nine months. So we know what we capture that will get the growth in double digits that we've talked about in the past.

Speaker 3: So we know we're captured that we'll get the growth and double digits that we've talked about in the past. We, you know, this is something we anticipate at this Jose.

We had anticipated this was a combination that took place almost a year ago.

Speaker 3: a combination that took place almost a year ago and that and the cut sort of just converted down the other platform last quarter.

And a customer just converted on the other platform last quarter.

Speaker 2: And Mike, we've often described that metric as imperfect, right? It only describes about two-thirds of the revenue in digital banking. It's linked to the number of users. And they are out of sync. Revenue does not mimic in any one period of time that user base. So when users were growing more quickly than revenue, we had to explain it the other direction. Now it's the shoes and the other foot. But I think as the year plays out, you'll see overall full year growth in users and revenue. Be pretty similar back to that double digital up.

And Mike we've often described that metric is imperfect traded only described about two thirds of the revenue in digital banking that's linked to the number of users and they are out of sync revenue does not mimic in any one period of time that user base.

When users were growing more quickly than revenue, we had to explain in the other direction issues.

The issues on the other foot, but I think as the year plays out Youll see overall full year growth.

Users and revenue to be pretty similar back to that double digit level.

Speaker 1: Gotcha. And then switching to retail, self-checkouts been pretty steady. How do we think about the trend in 22, demand trends, backlog, competitive environment, anything there? Thanks. Yeah.

Got you and then switching to retail self checkout has been pretty steady.

How do we think about the trend in 'twenty to demand trends backlog competitive environment.

Anything there thanks.

Yes. This is all what I would say that.

The same enthusiasm we came into 'twenty, one with as we come into 'twenty, two is for retail and especially self checkout, what we're seeing based on pressure on labor.

Speaker 9: The same enthusiasm we came into 21 West.

Speaker 9: and especially self-check out what was seen based on pressure on labor. That is only driving the need and the opportunity for us to...

That is only driving the need and the opportunity for us to to bring more self checkout solutions to the table, we're seeing it expand beyond the traditional.

Speaker 9: to bring more self-checkout solutions to the table. We're seeing an expand beyond the traditional large box retailer into the specialty areas. We mentioned Bed Bath and Beyond. That's a great example of moving into the specialty retail. And we're also seeing.

Large box retailer into the specialty areas, we mentioned bed Bath <unk> beyond that is a great example of moving into the specialty retail and we're also seeing the self checkout solutions really gained traction in the convenience fuel and retail space. So we think the market is expanding.

Speaker 9: The self checkout solutions really gain traction in

Speaker 9: and retail space. So we think the market's expanding. We think our software and hardware solutions are really well positioned and the backlog that Tim talked about earlier is reflected in that for retail as we come into 22.

Thank our software and hardware solutions are really well positioned and the backlog that Tim talked about earlier is reflected in that for retail as you've come into 'twenty two.

Thank you.

Yes.

Yeah.

Thank you that does conclude today's question and answer session I would like to turn the conference back over to Mr. Mike Hayford for any additional or closing remarks.

Speaker 11: Thank you that does conclude today's question and answer session. I'd like to turn the conference back over to Mr. Mike Kford for an additional closing remarks.

Alright, thank you.

Speaker 3: All right, thank you. So I'm closing this couple of quick comments. First, we had a great 2021. We did not anticipate the kind of impact that we actually incurred due to colorboard. We didn't...

Yeah.

So in closing.

Comments first we had a great 2021.

We did not anticipate the kind of impacts that we actually incurred due to COVID-19 .

Speaker 3: to pay the kind of issues with supply chain. Our team.

Anticipate the kind of issues with the supply chain.

Team.

Speaker 3: around the globe did a phenomenal job of working through those things and still delivering an extremely strong 2021. As we had into 2022

Around the globe did a phenomenal job of working through those things and still delivering an extremely strong 2021, as we head into 2022.

Speaker 3: We're very optimistic about the future for our company. As we see growth starts to accelerate, as we see success in our products in 2022 and beyond. We're excited about the strategic outlook of where we've positioned our products and where we are headed with our software platforms. And then lastly, is a driver.

We're very optimistic about the future for our company.

We see growth start to accelerate as we see success in our products.

In 2022 and beyond.

Very excited about the strategic outlet, where we've positioned our products and where we are headed with.

Our software platforms.

And then lastly.

Speaker 3: On the relates to our strategic process that we are undertaking, we simply don't believe the value of our company is currently reflected in the price of our stock. If you look at the last three years, we've delivered on our financials every quarter. We laid out some long term goals three years ago, 80, 60, 20, and we are going to meet those goals ahead of time.

As it relates to our strategic process that we are undertaking.

We simply don't believe the value of our company is currently reflected in the price of our stock.

You look at the last three years, we've delivered on our financials every quarter, we laid out some long term goals for years ago, $86 20, and we're going to meet those goals ahead of time at the same time, we've continued to shift our company to a software platform company and deliver platforms and banking the CSP.

Speaker 3: At the same time, we've continued to shift our company to a software platform company and deliver platforms and banking, the CSP, and individual banking, and then in the retail and hospitality side, the NCR Commerce Platform, and we're seeing great success in the marketplace. We've improved our market perception of our product quality, of our product delivery, of our service, and of our strategic plan across all of our business.

And in digital banking and then in the retail and hospitality side, the NCI Commerce platform and we're seeing great success in the marketplace. We have improved our market perception of our product quality of our product delivery of our service and our strategic plan across all of our businesses.

Speaker 3: So in closing, I want to again thank our team, our CES and the field continue to work every day supporting our stores, our restaurants and our banks.

So in closing I want to again, thank our team our CES in the field continue to work every day supporting our stores in our restaurants and our banks our teams in the plants continue to deliver and bill and our teams continue in a very difficult environment working from their homes working from the office when they can to deliver for our clients. It is.

Speaker 3: teams and the client continue to deliver and build, and our teams continue in a very difficult environment, working from their homes, working from the office when they can to deliver for our clients. It is these team members, 35,000 strong, around the globe, that put us in this very strong position to be able to look at strategic alternatives to unlock our value. And those are the steps we are undertaking starting today.

These team members 35000 strong around the globe.

In this very strong position to be able to look at strategic alternatives to unlock value.

And those are the steps we are undertaking starting today.

Speaker 3: With that, I want to thank everybody for joining us for our call.

With that I want to thank everybody for joining us for our call today.

Speaker 11: Thank you, it does conclude today's conference. Thank you all for your participation and you may now disconnect.

Thank you that does conclude today's conference.

Thank you all for your participation and you may now disconnect.