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Mar 31, 2022
NCR Q1 2022 Earnings Report
NCR's first quarter results were announced, revealing a revenue increase of 21% and strong momentum in strategic initiatives.
Key Takeaways
NCR Corporation reported a 21% increase in revenue to $1.86 billion for Q1 2022, driven by strong execution across strategic growth initiatives, particularly in Payments, Digital Banking, and Hospitality. However, the company faced headwinds from the Omicron variant, the war in Eastern Europe, and inflation, which negatively impacted the results, leading to a GAAP diluted EPS loss of $(0.27) and a non-GAAP diluted EPS of $0.33. The company is adjusting its full-year guidance to reflect these challenges.
Revenue increased by 21% year over year, reaching $1.86 billion.
Recurring revenue grew by 35%.
GAAP diluted EPS from continuing operations was $(0.27), while non-GAAP diluted EPS was $0.33.
The company is adjusting its 2022 full-year guidance due to macroeconomic and geopolitical challenges.
Revenue by Segment
Forward Guidance
NCR expects sequential improvement in financial performance throughout the remaining quarters of 2022, assuming the external environment does not worsen. The company has adjusted its full-year guidance to reflect the shortfall in Q1 results and the expected net residual impact for the rest of the year.
Positive Outlook
- Financial performance is expected to improve sequentially in each of the remaining three quarters of the year.
- Further price increases are being implemented.
- Cost productivity actions are being taken.
- Focus remains on advancing strategic growth initiatives.
- Transformation into a software-led, as-a-service company continues.
Challenges Ahead
- First quarter results were negatively impacted by a virus wave, the war in Eastern Europe, and cost inflation.
- Revenue reduction or delays of more than $90 million were experienced due to external factors.
- Adjusted EBITDA reduction of more than $70 million occurred due to lower revenue and higher costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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