| Diebold Nixdorf (NYSE: DBD), a world leader in transforming the way people bank and shop, today reported its third quarter 2024 financial results. |
| Key Financial Highlights* |
| • Revenue of $927.1 million, (1.7)% YOY |
| • Gross profit (GAAP) of $236.6 million, (1.4)% YOY; gross profit (non-GAAP) of $259.0 million, +8.2% YOY |
| • Gross margin (GAAP) of 25.5%, +10 basis points YOY; gross margin (non-GAAP) of 27.9%, +250 basis points |
| • Operating profit (GAAP) of $46.4 million, (21.1)% YOY; operating profit (non-GAAP) of $101.8 million, +7.2% YOY |
| • Operating profit margin (GAAP) of 5.0%, (120) basis points YOY; operating profit margin (non-GAAP) of 11.0%, +90 basis points YOY |
| • Net cash use from operating activities (GAAP) of $(15.5) million, an 81.1% improvement YOY; free cash flow use (non-GAAP) of $(24.9) million, a 73.7% improvement YOY |
| • Net income (loss) (GAAP) of $(21.7) million, (152.4)% YOY; Adjusted EBITDA (non-GAAP) of $117.5 million, +7.7% YOY |
| Management Commentary |
| Octavio Marquez, Diebold Nixdorf president and chief executive officer, said: “I am proud of our team as we have now delivered seven consecutive quarters of gross margin expansion and delivered a strong third quarter. This reflects our accelerated adoption and execution of lean operating principles and continuous improvement across the company. Given the strength of our year-to-date financial performance and outlook for the fourth quarter, we are now expecting to finish the year at the high end of our adjusted EBITDA guidance range." |
| Marquez continued, "We have made meaningful progress with improving profitability and driving more linear revenue and cash flow, all while keeping our customers at the centre of everything we do. We remain focused on continuing our momentum through year-end and progressing in our efforts to build a more disciplined, high-performing banking and retail technology leader that is positioned for long-term success." |
| Key Highlights |
| • Continued strength in Banking with major wins in the U.S., Netherlands, Brazil and Asia-Pacific, as financial institutions around the world continue to invest in their self-service channels with DN Series® recycling ATMs and supporting service agreements. |
| • In Retail, continued to generate demand for self-checkout solutions across Eurasia while strengthening our leading position in self-service kiosks and expanding the North American business with leading QSR brands. |
| • Accelerating adoption of lean manufacturing principles; conducted Shingijutsu Kaizen events at plants in Germany and Brazil, and successfully launched a new cloud-based sales and operations planning model. |
| • Continue to invest in the company's services infrastructure to align processes and improve customer service. |
| • Achieved a credit rating upgrade with a positive outlook from Moody's Ratings, reflecting solid operational execution and expectations for improved annual free cash flow generation. |
| • Announced the company is the first ATM solution provider ready to support the Microsoft® Windows 11® operating system. |
| Full-Year 2024 Financial Outlook (unchanged from previous guidance) |
| |
Current Guidance |
| Total Revenue |
Flat |
| Adjusted EBITDA 1,2 |
$435M - $450M |
| Free Cash Flow Conversion |
+25% |
· The company expects to finish the year at the high end of its adjusted EBITDA range, reflecting stronger profitability driven by its continuous improvement efforts. |
| · Full-year revenue outlook incorporates continued strength in banking, offset by retail product market headwinds, as well as a modest unfavourable impact from foreign currency exchange. |
| 1 - See Note 1 below for Non-GAAP adjustments to net sales, gross profit and operating expenses, which include selling and administrative expenses, research, development and engineering expenses, gain/loss on sale of assets, net, and impairment of assets, and Note 2 for adjusted EBITDA and adjusted net income (loss). |
| 2 - With respect to the company’s adjusted EBITDA and free cash flow conversion (free cash flow / adjusted EBITDA) outlook for 2024, it is not providing reconciliations to the most directly comparable GAAP financial measures because it is unable to predict with reasonable certainty those items that may affect such measures calculated and presented by GAAP without unreasonable effort. These measures primarily exclude future restructuring and refinancing actions and net non-routine items. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, operating profit and net income calculated and presented by GAAP. |
| About Diebold Nixdorf |
| Diebold Nixdorf, Incorporated (NYSE: DBD) automates, digitizes and transforms the way people bank and shop. As a partner to the majority of the world’s top 100 financial institutions and top 25 global retailers, our integrated solutions connect digital and physical channels conveniently, securely and efficiently for millions of consumers each day. The company has a presence in more than 100 countries with approximately 21,000 employees worldwide. Visit www.DieboldNixdorf.com for more information. |
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| Diebold Nixdorf |
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