NCR Corporation’s Recurring Revenue Rises Amid Shift To ‘NCR-as-a-Service’

NCR Corporation reported on Tuesday (April 27) as part of its financial results that revenue was up 3 percent and recurring revenue was up 9 percent from Q1 2020 to Q1 2021, according to an earnings announcement.

“Our first-quarter results represent a great start to the year with increased momentum in our shift to NCR-as-a-Service,” NCR Corporation President and Chief Executive Officer Michael Hayford said in the announcement. “Our performance included strong recurring revenue growth, margin expansion and cash flow generation.”

In terms of NCR Corporation’s potential acquisition of automated teller machine (ATM) operator Cardtronics, Hayford noted in the announcement that the transaction “remains on track for a midyear 2021 close, subject to regulatory and [Cardtronics’] shareholder approval.”

For its Q1 2021 results, NCR reported that retail revenue climbed by 13 percent because of growth in self-checkout and point-of-sale revenue in addition to higher services revenue. It said that hospitality revenue climbed by 6 percent and was mainly fueled by a rise in point-of-sale revenue in addition to higher services revenue.

However, the company reported that banking revenue dropped by 1 percent because of a fall in ATM hardware revenue that was offset, in part, by greater software and services revenue.

All in, NCR Corporation reported non-GAAP diluted earnings per share (EPS) of 51 cents on $1.544 billion in revenue. Analysts had estimated 47 cents per share in earnings on $1.54 billion in revenues.

NCR Corporation and Google Cloud unveiled a “global strategic partnership” on Tuesday (April 27) before NCR reported its earnings.

Through the terms of the deal, NCR will grow cloud availability for its digital banking software collection, such as NCR Channel Services and NCR Authentic, according to an announcement.

“This initiative expands the cloud deployment options for NCR’s customers, making it easier and faster for financial institutions to bring new digital banking services to market and accelerate digital transformations with confidence,” Frank Hauck, president and general manager of NCR Banking, said in the announcement.