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Sep 30, 2021
Diebold Nixdorf Q3 2021 Earnings Report
Reported third quarter financial results
Key Takeaways
Diebold Nixdorf reported a decrease in total net sales by 3.7% year-over-year, primarily due to global supply chain and logistics issues. Despite solid market activity, $90 million of revenue modeled for the third quarter has been deferred to future periods. The company is revising its 2021 outlook, expecting total revenue of $3.90 billion to $3.95 billion.
Continued growing demand for products and solutions amid a challenging global supply chain and inflationary environment.
Strong Retail segment revenue, up more than 9% on a GAAP basis and up 7% on a constant currency basis, with continued growth in self-checkout (SCO) solutions.
Ended the quarter with backlog up 19% over the third quarter last year, pointing to a solid foundation for future periods.
Seeing some moderation of supply chain constraints that gives confidence for a strong fourth quarter and continued improvement in 2022.
Forward Guidance
The company now expects total revenue of $3.90 billion to $3.95 billion, which reflects approximately $120 million in revenue deferral from 2021 to 2022. Non-billable supply chain and sourced product inflation is estimated at approximately $26 million for the fourth quarter and approximately $45 million for all of 2021. Revised outlook for 2021 includes a $75 million unfavorable impact to 2021 gross margin from year-end revenue deferral and full-year inflationary pressures.
Positive Outlook
- Continued to scale debit and credit platforms with Vynamic™ Payments offering at a top-10 global bank across 17,000+ ATMs.
- Awarded a large Managed Services agreement in North America with a Tier 1 financial institution, including a large order of DN Series ATMs.
- Expanded a relationship with a large, multi-country retailer in central Europe, which included a competitive takeaway with a rollout of SCO devices across 2,500 stores in 15 countries over the next three years.
- Secured a significant $16 million contract renewal with a large global petrol convenience retailer's Southeast Asia operations, including point-of-sale, help desk support, software and other solutions.
- Entered the electric vehicle (EV) charging station services business, a promising and rapidly growing market, with early customer wins.
Challenges Ahead
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