NCR Atleos Q4 2024: Diverging Views on Demand, ARPU Focus, and ATM-as-a-Service Growth
Tuesday, Mar 4, 2025 11:25 am ET
3min read These are the key contradictions discussed in NCR Atleos Corporation's latest 2024 Q4 earnings call, specifically including: Geographic Demand Trends for Hardware and As a Service Offerings, Focus on Higher ARPU Units, ATM-as-a-Service Deployment Cadence and Backlog Metrics, ATM-as-a-Service Unit Expectations, and Regional Market Demand:
Strong Financial Performance:
- NCR Atleos reported over $4.3 billion in revenue for 2024, with adjusted EPS of $3.22 and adjusted free cash flow of over $242 million.
- This performance exceeded financial targets and was driven by an accretive shift in revenue mix towards services, cost productivity initiatives, and solid execution of strategic growth plans.
Self-Service Banking Business Growth:
- The self-service banking segment saw a 9% growth in recurring revenue, with services and software contributing to 10% revenue growth in Q4 2024.
- This growth was supported by increased adoption of ATM as a service, which reached an ARR of over $212 million, and successful service level improvements.
Network Segment Performance:
- The network segment reported mid-single digit revenue growth for the full year, with adjusted EBITDA margin expanding by 150 basis points.
- Growth was driven by increased transaction volumes in North America and international markets, new partnerships, and deposit transaction growth of almost 200%.
Operational and Strategic Progress:
- NCR Atleos successfully managed a significant expansion in self-service banking, with a 40% growth in ATM as a service ARR expected for 2025.
- Strategic progress included enhancing service levels, introducing new product innovations, and expanding partnerships to create comprehensive service revenue opportunities.
Strong Financial Performance:
- NCR Atleos reported over $4.3 billion in revenue for 2024, with adjusted EPS of $3.22 and adjusted free cash flow of over $242 million.
- This performance exceeded financial targets and was driven by an accretive shift in revenue mix towards services, cost productivity initiatives, and solid execution of strategic growth plans.
Self-Service Banking Business Growth:
- The self-service banking segment saw a 9% growth in recurring revenue, with services and software contributing to 10% revenue growth in Q4 2024.
- This growth was supported by increased adoption of ATM as a service, which reached an ARR of over $212 million, and successful service level improvements.
Network Segment Performance:
- The network segment reported mid-single digit revenue growth for the full year, with adjusted EBITDA margin expanding by 150 basis points.
- Growth was driven by increased transaction volumes in North America and international markets, new partnerships, and deposit transaction growth of almost 200%.
Operational and Strategic Progress:
- NCR Atleos successfully managed a significant expansion in self-service banking, with a 40% growth in ATM as a service ARR expected for 2025.
- Strategic progress included enhancing service levels, introducing new product innovations, and expanding partnerships to create comprehensive service revenue opportunities.
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