NCR Corp. said Tuesday (Feb. 8) that its fourth-quarter results showed gains in digital banking — and in registered users for those digital banking revenues.
The company said that revenues in the fiscal quarter were up 3% to $2 billion.
Drilling down a bit, the company said that its recurring revenue in 2021 was $4.1 billion out of $7.2 billion.
Drilling down into the segments, Banking revenues were $1.1 billion million, up 40% from $795 million on the heels of the Cardtronics deal.
Digital banking revenues, as noted in the company’s supplemental, were $133 million, compared to $117 million last year, up 14%, and were up 9% for the full year.
Digital banking registered users surged to 25.3 million in the latest quarter, up from 24.3 million in last year’s fourth quarter. Recurring revenues in the segment came to $742 million, where that metric had been $413 million before the pandemic.
Retail-related revenues stood at $620 million versus $569 million last year. Hospitality segment revenues were $231 million, up a bit from $182 million last year. Retail revenue increased 9% due to growth in self-checkout and point-of-sale revenue and higher services revenue. Hospitality revenue, up 27% as noted in the company’s earnings release, was driven primarily by an increase in point-of-sale revenue, as well as higher services revenue.
Retail Traction
CEO Mike Hayford said on the conference call with analysts that during the quarter, “we continued to gain traction from our digital first retail front end app, Freshop. This SaaS solution helps grocers implement their own eCommerce and delivery services” all the way through to self-checkout.
The company increased the number of payments processing sites attached to its POS by 42% from the third quarter.
On the call, Chief Financial Officer Tim Oliver said that the company continues to have success converting retail customers to NCR’s platform-based subscription model.
NCR also said in its release that it would consider strategic alternatives (which could include a sale of the company). Other possible corporate actions could include a spin-off, merger or sale of the company, other structural changes, changes to branding or geographic footprint or other transactions or alternative.
After hours, the firm’s stock was up 10% to nearly $43.
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