Retail technology company Diebold Nixdorf Inc ( DBD ) reported first-quarter FY24 sales growth of 4.3% year-on-year to $895.40 million, beating the analyst consensus estimate of $875.65 million.

Banking revenue increased 9.4% to $648.8 million, and Retail revenue declined 7% to $246.6 million.

The gross profit fell 0.3% to $208.6 million and the gross margin contracted 110 basis points to 23.3%.

Operating income for the quarter was $23.8 million against a loss of $(2.1) million. Operating margin expanded 290 basis points to 2.7%.

EPS of $(0.39) missed the analyst consensus estimate of $0.23.

Adjusted EBITDA jumped 62.2% to $103.3 million with a margin of 11.5%. Diebold held $407.3 million in cash and equivalents as of March-end.

“We are off to a solid start in 2024. We reported strong results during the first quarter, showing good progress on our financial and operational priorities to expand gross margin and free cash flow. This resulted in another quarter of improved profitability and free cash flow conversion compared to the prior-year period,” said President and CEO Octavio Marquez.

Outlook: Diebold reaffirmed FY24 revenue guidance of low single-digit growth.

The company sees adjusted EBITDA of $410 million – $435 million and a free cash flow conversion of 25%.

Price Action: DBD shares are trading higher by 9.11% at $34.00 at the last check Thursday.