NCR Atleos Corporation (NYSE: NATL) ("Atleos") reported financial results today for the three months ended December 31, 2023. Fourth quarter results and other recent highlights include:

• Completed separation transaction from NCR Corporation on October 16^th

• More than 20,000 ATM-as-a-Service active units at year-end

• Solid fourth quarter results, including:

– Revenue of $1.1 billion, up 3% year-over-year; recurring revenue of $777 million, up 10% year-over-year

– Net loss attributable to Atleos of $161 million on a GAAP basis; GAAP basis diluted loss per share attributable to Atleos of $2.28 and Non-GAAP diluted earnings per share of $0.69

• Q4 2023 Adjusted EBITDA was $178 million, up 7% year-over-year after normalizing Q4 2022 for an estimated impact of $20 million from delayed legal entity transfers and separation dis-synergies

• Full year 2024 financial targets consistent with separation projections: Revenue of $4.2 - $4.4 billion; Adjusted EBITDA of $770 - $800 million

"The fourth quarter was a strong start for Atleos as a separate company, and a great finish to the year. Our core businesses performed exceptionally well, with financial results in line with the projections made for the separation transaction. Execution was outstanding, as we simultaneously completed the split from legacy NCR Corporation and achieved our operating objectives," said Tim Oliver, President and Chief Executive Officer. "Our market leading self-service banking solutions continue to gain appeal with banks, consumers, and other commercial partners, leading to solid top line fundamentals for the fourth quarter that included 10% growth in recurring revenue, which accounted for 71% of total revenue, up from 67% in the prior year period. The shift to recurring revenue and resulting positive underlying profit trends reinforce our confidence that our strategy has the Company on the right path."

Mr. Oliver continued, "Given the momentum of our businesses, progress on key initiatives, and continued favorable market dynamics for our solutions, we provided 2024 financial targets today that are consistent with the preliminary views from our December 5^th investor update call. Looking beyond 2024, we are energized by the opportunity to lead a transformation in self-service banking solutions and the potential to create significant value for shareholders."

Fourth Quarter 2023 Operating Results

• Fourth quarter revenue was $1.098 billion, including $777 million of recurring revenue, compared to $1.065 billion and $709 million, respectively, in the prior year period.

• Fourth quarter gross profit was $198 million with a gross profit rate of 18.0% on a GAAP basis, compared to $242 million and 22.7% in the prior year period. Fourth quarter adjusted gross profit (non-GAAP) was $272 million with an adjusted gross profit rate of 24.8%, compared to $267 million and 25.1% in the prior year period.

• Fourth quarter income from operations was $35 million on a GAAP basis, compared to $90 million in the prior year period. Fourth quarter adjusted income from operations (non-GAAP) was $150 million compared to $144 million in the prior year period.

• Fourth quarter net loss attributable to Atleos was $161 million on a GAAP basis, compared to net income attributable to Atleos of $7 million in the prior year period.

• Fourth quarter Adjusted EBITDA was $178 million, and included several items that impacted the comparability to prior year period results of $187 million. Excluding those items, the Company estimates that Adjusted EBITDA would have increased 7% year-over-year in the fourth quarter of 2023.