Vontier Corporation (VNT) Earnings Call Transcript & Summary

Good morning. My name is David, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to the Vontier Corporation's Retail Solutions Teach-In. [Operator Instructions] Please note that today's call may be recorded. [Operator Instructions] I would now like to turn the call over to Ms. Lisa Curran, Vice President of Investor Relations. Ms. Curran, you may begin.

Thank you, David. Good morning, everyone, and welcome to Vontier's Retail Solutions Teach-In. Joining me is Mark Morelli, President and Chief Executive Officer; Dave Naemura, Chief Financial Officer; Aaron Saak, President of Gilbarco Veeder-Root; and Dan Pittman, President of DRB. Today's presentation is available on the Investor Relations section of our website at www.vontier.com. Before we start, I want to remind everyone that certain statements on this call are forward-looking in nature and are subject to the risks and uncertainties discussed in our previous SEC filings, which you should read in conjunction with the information provided on this call. Please review the forward-looking statements on Slide 2 for more details. In addition, a replay of this conference call will be available later today. We will present certain non-GAAP financial measures on today's call. Information required by SEC Regulation G relating to these non-GAAP financial measures is available on the Investors section of our website under the heading, Financials. At the end of our meeting, we will open up the call to both analysts and investors to participate in our Q&A panel. We ask that each caller keep to one question and one follow-up to allow time for the other participants. At this time, I'm pleased to turn the call over to Mark.

Thanks, Lisa, and welcome, everybody. We're excited to showcase the strength of our leadership team that's here with me today as well as our recently closed acquisition of DRB. The DRB focus on technology and software is an excellent fit with our existing retail solutions business. And in fact, we now have a retail solutions business at critical scale, $500 million with a high-quality portfolio. It serves a $3.6 billion attractive TAM with secular drivers supporting mid-single-digit growth rates. And this is an excellent example of how we're moving up the technology stack, and we're focused on the highest part of the value chain, the workflows. In fact, there's 2 themes that I'd like you to pay attention to as you go through the presentations here today. The first is on consumer experience workflow solutions. This is where we are solving high-value problems for our customers, bringing consumers into their format and footprints. The second is customer productivity workflow solutions. And this is how we, in fact, make them make more money on operating their assets. So very excited that you can hear about those and see those come to life in our presentations. We're also well positioned for growth. There's lots for us to leverage. We've got a global presence of market-leading brands that are very well positioned to take advantage of unprecedented market evolution and growth. We are building and demonstrating capability to monetize off deep rich data analytics. In fact, there are multiple factors for growth. And when I talk about this, what I mean is smart, sustainable solutions, not only in developed markets, but also high-growth markets where we have a compelling runway for growth. I've never been more excited about our organic and inorganic growth and portfolio diversification opportunities. We're making really important progress, accelerating profitable growth we're focused on increasing our recurring revenue on reducing our portfolio's ICE exposure and how we focus on really attractive end markets with long-term secular growth drivers. And with that, I'm pleased to transition the presentation to Aaron's Saak. But before we do, I just want to say a couple of things about his presentation. I'm very excited on the progress that we are making building out retail solutions within GVR. And this is not an ICE dependent business nor is it EMV dependent and it's part of our profitable growth initiatives. This is industry-leading platform technology solutions and is focused on convenience retailing. It incorporates market-leading positions, end point-of-sale payment solutions and site automation, and you'll see that we are on a growth journey from fueling to a mobility solutions provider. So with that, take it away, Aaron.

All right. Thank you, Mark, and good morning. It's my pleasure to have the opportunity to speak with all of you today about GVR and I know many of you know GVR, but today, we're going to highlight, as Mark mentioned, really an exciting and growing part of our portfolio that's focused on convenience retail technologies. But first, I want to take a moment just to give an overview of GVR more broadly. We are the #1 global supplier of solutions for mobility infrastructure, and our customers include the world's leading convenience store brands and commercial fleet operators. Our products include everything from point-of-sale software and payment systems that we're going to talk about more this morning. It includes fuel dispensers and increasingly EV technologies. We're approximately 500 -- or 5,000 employees strong around the world, and we have manufacturing in over 9 countries, and we sell in over 40 and we're headquartered in North Carolina, where we're speaking to you from this morning. When we think about our growth initiatives inside GVR, we really focus on 4 key pillars: the first is to capture regulatory drivers, and this is both environmental and payment security regulations occurring across the world; secondly, and really the focus of this morning is around the establishment and growing of our retail workflow solutions business; and then finally on -- excuse me, third, is expansion of high-growth markets. And it really plays off these first 2 where we see regulations in high-growth markets as well as increasing retailer sophistication and the build-out of new sites and infrastructure. And then finally, we have our investments in continued excitement about e-mobility that both plays to our core vertical of C-stores but takes us into new vertical markets as well. So when you put those together, about our advantages in GVR. We're really a leader in technology for regulatory and infrastructure build-out cycles. We have a diverse mix of customers spanning multiple geographies and increasingly focused on software solutions that enable increasing recurring sales and bigger share of wallet from our most important customers and increasing stack of solutions in alternative energy and fuels like e-mobility. So this year, GVR is going to be about $2 billion in revenue. We operate in a market that's $12 billion in TAM, growing in mid-single digits, and our recurring revenue is mid-20%. And today, we're going to focus on our retail solutions portfolio. So the pie chart in the middle part of this page, it's really that purple section that makes up retail solutions for GVR. So I hope you see we have a really industry-leading platform with significant global scale and one that's increasingly focused in workflow solutions. Now as we go to the next slide, I want to provide some more details about our offerings. And our strategy is to provide the most complete line of solutions for the convenience retail market constantly moving up the tech stack as our customers evolve. And let me start on this diagram in the center with our environmental offerings. This includes our pumps and gauges that help our customers maintain compliance and improve air quality. As you move through the diagram into the center, you'll see fueling dispensers. And as many of you know, this is really a core part of our offering, and we have a #1 global position in this line of offerings. We also have a very large field service network, particularly servicing high-growth markets in places like India, that's a real strength of the company as we can provide continued service and aftermarket offerings to our customers. But today, we're going to spend more time talking about this box and blow out on the left, which includes our workflow solutions for retail. It starts with our point-of-sale offering, our Passport-branded POS but we've really built very purposely over the last few years an expansion off a point-of-sale to include loyalty and incentive technologies, food ordering technology and capabilities and more recently, self-checkout and frictionless experience for customers can provide their consumers that enable digital payment. So as we continue to focus, we move up the technology stack with our customers as their consumer needs evolve. Now I want to go to the next slide and talk about some of the key market dynamics underpinning the long-term growth of GVR. This includes: first, the continued growth of the car parc. Today, the car parc is over 1 billion vehicles worldwide. We expect that to continue to grow. And by 2030, we still expect most of the car parc, well over 90% to be fueled using internal combustion technology. Now we fully acknowledge and we're excited about the opportunity EV charging provides us. And as many of you know, we've been making investments and focused on building out our own e-mobility suite of offerings. Secondly, is the trend of retailer sophistication, and this is really core to the discussion this morning. Our customers are on an evolution. They're on an evolution from being that neighborhood gas station to really evolving quickly to be a small format, very sophisticated retailer, expanding their in-store offerings as well as using data and analytics to improve their own profitability but also the consumers' experience. And third, as I mentioned earlier, is this expansion of -- growth markets. And it really plays to our strength as we see the build-out of the car parc, increasing regulation and sophistication of retailers emerging markets around the world. And we're very purposely focused on what that growth dynamic for GVR. And then finally, we have regulation, and we see this really in 2 areas. The growth of environmental regulations, playing off of ESG themes that are very important to our customer and to consumers and very topical today with what's going on around the world; and secondly, payment security that we continue to see being adopted worldwide. So when you put these 4 fundamental market dynamic trends together, we think GVR is uniquely positioned to benefit given our global scale and the breadth of our technology. Now as we go to the next slide, I want to talk about how we're very purposefully positioning GVR in our portfolio to take advantage of these trends and grow in what we see as a $3 billion market for convenience retail workflow solutions. And we think about our portfolio really in 3 groups: the first is payment solutions. And here, we have a #1 global position that we've built over many years, but we continue to expand the portfolio in mobile payment enablement, payment security as well as adding screen content to bring the consumer from the forecourt into the store as well. Secondly is our strong position in point-of-sale software, our Passport-branded offerings where we have a #2 position in North America and also a strong position in countries around the world. Here, we've expanded the offering over the last several years to include self-checkout technology, food ordering and loyalty and incentive technology. And this is a good example of where we've used M&A as an accelerator of our strategy with the acquisition of [ Odyssey ] through -- a few years ago to help give us more technology around incentive programs. And then finally, we have site automation solutions. And I want to take just a brief moment to better define what we mean by site automation. We're here, we're purposely using software that integrates the hardware at fueling sites with a very basic POS system to enable payments, ensure compliance for our customers as well as help them improve their operational efficiency of the overall site. These offerings are really targeted specifically to high-growth markets and provide us a beachhead with key customers as they become more sophisticated and continue to move up the technology stack. And here again, we've used M&A as an accelerator of our strategy with the acquisition of Orpak to give us the #1 position in high-growth markets. So overall, we continue to see and position this portfolio to evolve from a fueling to a broad-based mobility retail convenience solutions provider. Now as we go to the next slide, one of the reasons that we're particularly excited about this market are the opportunities presented in convenience retail, given the resiliency of this market through multiple economic cycles. And you can see this on the chart on the left-hand side of the page, where we look at the sales of -- inside sales in U.S. C-stores over almost 20 years. It's growing at mid-single digits consistently over this period of time through the Dot-Com Bubble, the Great Recession and more recently, COVID, where even though we saw lower growth in COVID, we saw an expansion of the basket size. So that's what consumers are buying as they go in to a C-store over this last 18 months. And what really reinforces this trend and gets us excited is what our customers are saying in terms of their transaction volume. And here on the right-hand side of the page, we're showing data from Circle K, a very important GVR customer and data that they shared at their recent investor conference. What you see in the top pie chart is the number of transactions occurring across the Circle K network. And over 65% of those transactions are occurring inside the store where consumers are going in, buying goods and services separate from the fuel, which is now only 25% by number of transactions. And when you look at the gross profit of the in-store products and you translate those number of transactions into profit dollars, now well over 50% of their gross profit is coming from in-store convenience purchases. And this is a trend not just at Circle K, but it's occurring in all of the leading retailers across the world, and we expect this trend to continue as our core customers expand their in-store offerings. And what this data points to, and I think it's what many of us experience in everyday life is that convenience retail is diversifying and expanding as consumer buying behavior evolves. And you can really see this on the next slide with some interesting data points. It's expanding in ways as our core customers, market leaders like Wawa, enhance the quality of their offerings recently named, America's Favorite Sandwich Chain. Casey's, now the fifth largest pizza chain in the United States. It's also evident with market-leading retailers expanding their omnichannel and presence in how they manage their consumers, where 7-Eleven now has over 25 million members in its loyalty program doubling in the last decade. And it's also evident with how we see demographics evolving, and we've been doing work to survey customers and retailers with Deloitte. And now we know about 56% of millennials say they will go to a C-store that offers frictionless checkout experiences significantly higher than what we see in the baby boomer generation. Also 60% of millennials saying they'll pass C-stores to get to the particular retailer that offers an improved product selection. So it's about diversity of the offering and expansion, the quality of the offering, managing the customer and managing the entire experience. We see this trend continuing. We see it playing out today with major retailers. And we see those retailers very publicly saying they're going to continue to invest in owning this customer experience, modernizing their store and diversifying their offering. Now with that, as we go to the next slide, what you see is this ecosystem gets more complex and it gets more complex as our customers diversify their offerings. And so we traditionally start in the forecourt, where we have pumps and gauges and dispensers and it's really a fueling operation. But as I just mentioned, as you move into the C-Store, you start to see a very quick expansion of point solutions, all revolving around the new offerings that the consumer is buying. This includes new capabilities for food ordering, HVAC, energy management systems, new solutions that employees need to get trained on and actually an expansion of the footprint of the C-Store outside the C-Store to new areas like car wash. And Dan Pittman, the President of DRB, is going to talk to this in a minute, but it's an extreme opportunity for retailers to expand their offerings and improve their margins, but it brings in new systems that have to get integrated into the operation of the C-Store. And over the top of all of this is mobile payment, mobile ordering and the loyalty programs that consumers use. So this is a complex ecosystem, and we're really focused inside of GVR on helping our customer solve their highest-value problems. And when we think about this, we think about 2 major areas. The first is helping them improve operational efficiency through both data analytics and remote site management. And this includes helping them increase their device uptime, helping them with solutions and easier workflows that reduce employee training time, a big concern in this industry, and overall lowering their inventory to improve their free cash flow. Secondly, is a real focus on consumer experience. This is helping them as they become an omnichannel retailer with frictionless checkout, enabling digital payments and integrating loyalty and incentive programs into their standard offering. Integrating all of these workflows together helps our customer win, and it's a focus of where we're bringing new products and solutions to market in GVR. And so with that in mind, I want to take a few moments to talk through some examples where we're deploying new solutions and helping our customers grow. And first, I want to talk about Maplefields, a very important customer to GVR that came to us looking for a new point-of-sale solution that provided capabilities for frictionless checkout. And they were going to pivot from their incumbent point-of-sale solution provider. And so they chose Passport, our market-leading brand in North America and expanded the offering of the basic pause to Passport Express Lane, one of our new offerings that offers frictionless checkout for the consumer, the self-checkout scan-and-go technology. What this provides for us is not just the sale of the basic point-of-sale system, but the expansion of Express Lane checkout and really doubled the opportunity for us off the initial purchase. It also provides the opportunity for our software and maintenance contracts with Maplefields to help keep their network running for years. And with the broad breadth of our portfolio, provides continued opportunities for upgrades and cross-selling of GVR technology. Now with that case study, I'd like to move now to high-growth markets on our next page and talk about how we're deploying an exciting new platform for us, Passport X with a key customer, Sonol. Sonol is a long-standing GVR customer, which has traditionally only purchased hardware. They came to us recently with a need to upgrade their point-of-sale system as their retail environment becomes more sophisticated, looking for new functionality. And they chose Passport X, our new point-of-sale platform that helps integrate loyalty as well as head office and back office systems, really targeting high-growth markets. This becomes our first large-scale deployment in HGMs. And similar to the Maplefields' example, gives us the opportunity to offer software and maintenance contracts for the customer as well as to continue cross-selling and upselling the GVR portfolio. And we think this is a very important beachhead for us as we continue to focus on bringing new technology to high-growth markets. Finally, a key area we've been focused on is increasing the number of our customers utilizing our remote service offerings. And this is really an advantage I think that's clear for our customers and helping them to improve both their operational efficiency, but also the consumer experience by allowing remote downloads of software, remote troubleshooting and fixes when they do have issues on their site. And ultimately, this reduces truck rolls. So it reduces service technicians having to go to a site to provide an upgrade overall increasing their device uptime. And so we're really very excited here by our continued rollout of our remote site offering. Today, we have over 35,000 sites contracted with our Passport service offering in North America. This allows us to troubleshoot 85% of issues remotely without having to roll a truck. And then also I think very clearly, it provides us the opportunity to very effectively, efficiently and quickly provide downloads of new softwares that are both security upgrades and functionality enhancements to our customer. So we're focused on the remote services and this continued expansion of what we think is a very value-added productivity enhancing tool for our customers. So as we go to the next slide, I want to take a moment to kind of zoom out on the dynamics taking place in this market. I think we have a very clear evolution going on in convenience retail, and it's been playing out for several decades and during most of our lifetimes. And it starts many years ago with that neighborhood gas station, where people simply went to fill up their tank and get on their way. But really, over the last 30 years, what we've seen is the rise of the C-Store and an expansion of the footprints of the site, a diversification of the offering. And today, it's where the majority of the profit sits for the retailer. And we see that only accelerating in the days and years ahead. And it becomes now an increasingly sophisticated omnichannel retailer, diversifying further their offerings in their store, diversifying their offerings outside the store with the establishing of EV charging networks in car wash. And it brings with it complexity in new workflow solutions needed to help to continue to drive operational efficiency and an improved consumer experience. And there's really no better example than this -- than shown in the picture on the right-hand side of this page of a new Circle K site, this one in Europe, where you see at the center of the C-Store, a very big format with parking to drive consumers in to buy a diversity of goods from foods, fresh fruit to dry goods. But you also see the diversification on the outside of the store, both petroleum fueling, but an EV charging bank. And all of this integrated together with mobile payment and a loyalty program that connects the consumer both when they're on site and when they're off this particular piece of real estate. And we think these trends and our relationships with the leading retailers around the world really play to our strengths and give us a tailwind as we continue to grow and move up the technology stack with our customers, providing market-leading solutions as consumers evolve. And so with that, I want to summarize this discussion on GVR. And as we mentioned at the start of the presentation, we're the #1 global provider of technology in mobility infrastructure. We've had a long track record of organic growth using M&A to accelerate our strategy while also driving margin expansion. We continue to grow with regulation, both environmental regulation and payment regulation, along with building out our capabilities in EV charging -- this as an exciting part of our growth, not only in the C-Store vertical, but taking our capabilities and charging to other opportunities outside of C-Stores. And we have a large opportunity of growth in HGMs, driven by infrastructure upgrades that includes regulation-driven requirements as well as increasing retailer sophistication. And finally, as I've discussed, we continue to be excited by the growth and expansion of our C-Store workflow offerings really focused on our customer and helping them drive improvement in consumer experience as well as improving their operational efficiency. And so with that, I'm very excited about the future of GVR and what we're doing in convenience retail, and I thank you for your time, and I'm going to hand it back to Mark.

Thanks, Aaron. Aaron is going to be with us to answer Q&A. I think you can see from his presentation that the future of the convenience store is bright and transforming. I'm very excited about our unique position here with both scale and depth in retail solutions. When you think about it, we are solving high-value problems that enable our customers to attract consumers. And this means they're better at omnichannel retailing. The modern convenience retailing is a complex business, and the complexity is rising. It's got a convergence of alternative fuels, electric charging, services as well as fresh food offerings. So our ability also to improve uptime and productivity is absolutely critical. So with that, I'd like to transition the conversation over into our next section, which is about DRB. And I've got Dan Pittman, who's the President of DRB with me. When I think about DRB, I think of it as an end-to-end technology platform. It combines this deeply embedded point-of-sale technology, and they layer on top of that workflow and monitoring software solutions, and they are sticky, and it results in recurring revenue solutions. They also do things like facilitating payments and digital marketing solutions. So with that, take it away, Dan.

Good morning, everybody. I'm really excited to talk about a growing dynamic industry and tell you the story of a very fast-growing company within that industry, within that space and how it outpaces the industry growth even because we solve very high-value problems for our customers, and we actually move up the stack to the point where we're developing deep connection with the consumer and just driving tremendous value. DRB is really excited about the industry of car washing. And we see it as the intersection of capitalism and entrepreneurial-ship, and those folks need partners to really grow their businesses. And I really think that when you're done, you'll understand why we're a great partner to help them grow, why we add value and also why this is such a great fit here with Vontier as we look forward to the future. First of all, in where at marketing -- we're the clear #1 player in our space. And we have been for quite some time, and we're growing in many, many areas of how we help our customers. The workflow solution is a big piece of what we're doing. We've moved well beyond the point of sale. And we're really the brain of the car wash. We often say we're the brain. We're not the brawn of the car wash. 19 of the top 20 customers work with us. They have a good relationship with us, and we continue to grow. That puts us in a very, very powerful position as the industry looks to consolidate in the future. The brands we have under our flag are very, very powerful. They have very specific needs. It's important to understand that all of these products, all these brands the ROI themselves, there's a reason that our customers want these products to help grow their business and manage their business. Our purpose statement at DRB is we sweat your assets. Our passion is to help these companies grow and we make sure that our products as they come out, they have a very specific ROI gives us a great selling advantage. There's about 500 people doing this in North America. The revenue comes from North America. We're headquartered in the Midwest in Akron, Ohio, where about half of those employees sit and then we are spread throughout the countries. Today, we're going to focus on just 4 areas that were really have initiatives to grow out the business and again, to help our customers more. First of all, technology leadership, we'll have a tracker we'll drill into that a little bit further. The recurring revenue is an important piece. It's important to note that for the last 3 years, every product that DRB has brought to the market includes a recurring revenue component, and most of them are completely recurring. I'm going to drill deep into data analytics and digital marketing and really show you a path that we can give our customers to have a connection with the consumer, their customer, they can never have before and how that's really changing the industry and leading the industry. And then payments facilitation. It's become a growing, growing piece of this business as more and more of this is recurring revenue. The [ dire ] of most car wash operators is to get consumers buying recurring wash memberships. And so the management of that wallet and the ability to manage that consumer is very important, and we'll dive into that great opportunity for us. So the advantages for us, clearly, as Mark said, that the platform that stretches across the organization to help manage the business, very integrated, very ROI-based, customer workflow. It's really important. We actually manage our customer, the car washes workflow with our technology, but we also manage the consumer flow, and we make things very, very easy for them. So it's not only frictionless, it's also very, very simple for them to understand what's going on. Value proposition. We are a very sticky organization. Our site retention is very high 90s, and the net dollar retention really shows the ability for us to add modules that add value that actually get wallet share over the years of these long-term customers that come to us and they do not leave us. And then the seamless tech stack integration. I'll show you the stack here in a couple of slides, and you'll understand how we can really maneuver and configure the flow within the system that each individual site needs to make sure they have a big win. And when you look at the company from a numbers perspective, you just certainly see the $170 million of revenue. Again, this would all be considered that retail environment that we're focusing on today, a very strong and growing TAM, mid-single-digit growth rate and the recurring revenue at 40%, we're very excited over the next few years, the trend of all the new products being recurring, we'll move that up the graph. POS and control systems is the heart of what we do. It's usually the entry point and then there's a lot of value add we put on to that in the control systems. And we take control system, that is workflow, that is capacity management, that is getting the most out of that $4 million or $5 million car wash asset that they could possibly get. We have a lot of software solutions that add other pieces, back office solutions, capacity solutions, workforce solutions, but we're really excited about the data and really becoming the thought leaders in the industry for data and how to use that powerfully for our customers. Our installed base, we're clearly mostly tunnel. And again, it's a very, very fast-growing piece of the business. We're also highly excited. As you heard Aaron talk how we can work with him to make sure that the C-Store is getting the most out of the site. Our C-Store customers tell us that when they focus on car washing, it becomes the #2 or 3 profit category for them. So this partnership is going to be fantastic as we advance over the next few years. Now moving to the next slide, I wanted to give you guys a picture of what a car wash does and what we do on the car wash, an important statistic. We're 90% of the technology on the car wash site, and we're 90% of technology to the company if they're multisite, the company uses. And it's really divided in a few chunks that we'll go through here. It's important to note that we don't build equipment. I said earlier, we're the brain and not the brawn. We build the control, we build the POS. We build back-office reporting. We build the HR interaction for the consumers. We have a massive offering of e-commerce that allows these people to obviously go beyond the property on which they sit. That the first category that we just labeled software here, by far, the industry-leading POS software that gives a great deal of capabilities both to the customer, the car wash operator and an interface for the consumer that makes it self-serve and very easy. And our control system allows that car wash to make sure that every customer gets the absolute best experience as they go through the tunnel. A big piece of our industry is that next bucket of workflow, managing when things turn on, when things turn off, make sure we get the right wash and managing capacity, capacity a big deal. Imagine spending $4 million, $5 million, $6 million in a car wash and you reach your threshold of capacity as the car wash was built. We have technology that gives the ability to speed up the car wash, put cars closer together and create a very safe environment for that to happen. So imagine being able to add 15%, 20%, 25% of capacity to an asset like that. We've got patented technology and workflow solutions that do that. And finally, insights, what we'll spend a lot of time on the rest of this discussion. We manage about 25 million consumer relationships for our customers, 25 million. We have an enormous amount of data, and we can identify profiles and personas and use them to a very, very great scale to help our customers market their car wash, which we'll cover in a few minutes. Additionally, as the retailer gets much more sophisticated, as Aaron mentioned, these operators are getting more sophisticated. They want business intelligence. They want insights that allow them to make decisions. They want their phones to tell them what's going on when they're not on site, so they can manage their business and actions that come out of those insights. And of course, workforce management, the ability to not only just clock people in and out on our system, but also do things like pay them commission performance as they sell some of those monthly plans. Again, you can see how each one of these has an ROI to the customer, the math makes it very, very easy, and that's why our win rates just continue to go up. As we go to the next slide, I want to talk about the stack a little bit. And the stack really goes from left to right. And there's a lot of branded products. And I mentioned earlier, we can configure the site to optimize the business solution for our customers. But as you look at those and as you think of the flow, I want to give a consumer journey of Mrs. Smith. And you know we have 25 million consumers we manage but we want 25 million and 1. We always want to grow the consumer base. And so what we do is on that left side, that enabling technology. I mentioned the 25 million Fast Pass types. We use that information to mine what the ideal consumer is -- and then we buy a lot of demographic data. So we'll just say, Joe, the car washer, he wants to improve his membership. He wants to go from 1,000 monthly Fast Pass or monthly plan members and he wants to go to 2,000. So he contracts with us. And what we do is we mine that data and we buy ergonomic and psychographic data and Joe the car washer's area, and we combine that. And Boise, we've got a team of people. We've got folks that are behavioral economists and data scientists and they begin to work with Joe to make sure they understand what he's looking for. And we look for the ideal person. And it's based on geography. It's based on a lot of different variables. We look for about 40 or 50 variables that identify the key consumers -- shocked in market, we can now rifle market. And what we do is we find Mrs. Smith. As Mrs. Smith [ pass ] sitting at home, she's on her computer, she's on her phone. She's on her Facebook. She's looking at Google. And we're really trying to find the Mrs. Smith that are about 6 to 8 minutes away from Joe, the car wash. And that -- the far left side, that POS system actually sends this digital marketing team, a code, a barcode, to Mrs. Smith. She clicks on an offer on her phone and boom, there's your barcode. You can get a free car wash. We just want traffic. We want a chance to sell to her. When Mrs. Smith comes in and she holds that barcode up to our device. Remember, everything you see on this page is integrated. It worked all the way through, and we know why Mrs. Smith is there. We know we want to sell her. She gets the screen of what we'd like to sell to her. And hopefully, we can convert her to a membership plan where she's paying $35 a month for a membership. And if that happens, then we know we've achieved -- to Mrs. Smith and her IP address, we know how to relate to her. We know how to keep her warm. We know how to keep it from churning. We have a data lake that's got AI built on top of it that allows us to know if Mrs. Smith is in jeopardy and when to send something to her. And if she leaves and she's not a fast class member that we then have the ability to market to her in that capacity. This is a huge value. And it gives an intimate connection with the consumer, somebody in the car wash industry up until we built these things, really didn't have the ability to do that. So hopefully, that's a picture of how we solve a very high-value problem and how our technology actually can lead to bringing consumers to the site. Now that we've talked about the car wash a lot and also kind of our stack. Let's talk about the industry kind of as a whole and some secular tailwinds. First of all, I get the question a lot, why is this industry growing so fast? And it's really -- it's a combination of several things, a perfect storm in a very good way for DRB and for the customers that we serve. First of all, the "do it for me" has really impacted -- the do-it-for-me culture has really impacted the car wash industry. People don't want to watch cars in their driveways anymore. They want it to be very quick. They want it to be seamless. You can also get a better car wash that way. Also the generational change. I have a saying I use all the time. Millennials don't own hoses. It's just a different generation of consumers that we have that don't buy hoses, don't buy buckets, don't buy sponges. And these are the people that are really, really helping us grow this industry. Then you've got the aging population that just doesn't want to wash their cars anymore. And again, Car pride, we were just at MIT a couple of weeks ago on the strategy session and the car pride of the American [ consumer ] drives the desire for a clean car and the product that we help our customers sell kind of guarantees a clean car with a recurring format where they can wash the car whenever it's dirty. So that's just a general statement about the growth of the industry. The industry is consolidating some. A couple of things are happening. There's a great deal of private equity money coming into car washes. I'm sure as folks read about that, you see the trend happening more and more. We play with the top players. We play with the top 19 of the 20 and PE money, the smart money coming in. They want technological solutions that make their businesses more efficient and also guarantee performance, and we're by far the market leader there. So we've developed great relationships. Of the top 20 car washes, 3 or 4 didn't exist 3 or 4 years ago, they've all been built by PE money, and we have deep relationships with all those people when we're growing with them. And it's important to note that as it grows very quickly, there's an enormous amount of research that really makes the point, there is a tremendous, tremendous opportunity over the next decade plus, to build car washes. And we're very excited about making sure we're the partner that helps folks grow. The other thing is, even with the smaller car wash that's coming in the industry, you give them the ability to compete with whoever it is on their street. So there's a broad, broad set of customers. They're really partner with us so we have great relationships with. Another thing happening is the shift from full-service -- many of you, years ago, most car washes were very large format. You got out of your car, they washed it, they vacuumed it -- different things. The convenience economy, is at odds with that. And more and more of these whole serves are converting. And they really need our technology to do that. And again, we're the clear #1 in conversions from full service to the express model. Again, they want speed. And also for the car washes, nobody wants to have an accident and a collision inside a car wash. It will ruin your Saturday, if you will. And we give the technology that keeps that from happening. Another thing for us is just the building of car washes. You see the numbers are there. Averaging 5, 6, some years, 700 we're probably in the middle of the year that's much larger than that. We just see a tremendous opportunity. We don't see any markets being highly saturated. And so there's just a great deal of building going on. Plus, a lot of these facilities are very old. There's a constant steady diet of upgrade that we've been able to cash in on and also, again, add value to our customers. And the interesting piece is there are still a lot of car washes around this country. We call it the cigar box POS. They operate out of a cigar box. They don't have technology. They don't have automation. Those are all places where we can add value to them. Then Aaron also mentioned the retailer sophistication. A lot has changed. First of all, the private equity coming in is maturing a little bit, but also the generational move. There's many moms and dads that are moving the business now to the kids and even to the grandkids. And there's a higher expectation for technology. They want very short technology cycles, which we'll talk about in a little bit. They want us to own that consumer -- or steward that consumer for them. And they want predictable subscription. They want to weatherproof their business, and we're the ones that give the best solution. So we're really excited as this industry evolves, we believe we've positioned ourselves to pull all the right levers to create the greatest value for our customers. Drilling into those categories that I -- the 4 growth initiatives I mentioned at the beginning, let's just drill into those just a little bit. First of all, technology leadership. Our flagship product is the clear industry standard. It gives the ability to manage on-site, to manage our entire business off-site, to manage e-commerce, to make sure that you've got a visualization and transparency into your business. And again, workflow for your consumer, workflow for our employers, your employees and also workflow for the back office. So again, we provide those things in a way that make it very easy to run your business. Because of that, we're really moving up on actually now right about now getting close to 4,000 systems that do this, and you'll see the 12% CAGR from a site perspective. So again, a very fast-moving industry. And we're really not only rewriting the way we're pushing out faster than the CAGR growth of the industry. We're excited about how that leverages us going into the next slide, which just really talks about the recurring revenue model, that we've really shifted to the last few years. What we've done is we've taken the know-how of 30 years of car wash and industry leadership, and we've not just rewritten it, we actually have built a transformational platform. It gives an infinite scale. So as the industry consolidates, somebody has 500, 1,000 sites, there'll be no issue from that perspective, a very, very advanced business intelligence and business insights. We partnered with several people to help us do this. And then the ability for the technology to move very, very quickly. Now every 45 to 60 days, we now have releases with this new gold standard platform, Patheon, that puts out new functions and new features that allows us to really keep pace with a market that's really starting to speed up on what their desire is for technology. We're the only ones built to kind of capture that and move with them. It's why this investment has been so fantastic for us. And what's nice is what it will do to our recurring revenue. We'll drive that percentage from 40% up pretty dramatically. So existing sites that have our current product. We see a 30% growth year-over-year as far as sites that convert to this recurring SaaS offering. So we're really excited about that, what that does. -- to both the percentage of recurring but also, of course, margins over time. And then for new sites, it will go even faster because they may not have a POS system as they start if it's their first site, especially, they're going to be very, very willing to just start out on this new platform. And again, this is going to help our recurring revenue grow very, very nicely as we kind of move into the next generation of car wash solutions. The next piece I mentioned the data. I mentioned Mrs. Smith, and you're familiar with their story, but I want to give some real kind of hands-on or tactical examples. The types of things we do to be very, very successful and make sure our customers grow as they partner with us with data leadership. First of all, just an interesting insight. If someone signs up for a membership where they come to a car wash 2 times in a month or a little bit more, they become statistically much, much higher of a chance to buy a recurring membership. So we have the data to know when that's happening, and we market like crazy. We get their attention, whether it be actually on the car wash site or whether it be on their phone and their iPads, and thing like that. So what we do is we have a 4x higher ability to capture and get folks to convert the membership when you're working with us in our data. So again, powerful, powerful ROI. When we use our insights, we can help a car wash operator get to 5,000 subscription members 3x faster. And some of these 3x faster than folks that might be using other marketing partners and things like that. So what that does to be very practical. That means $150,000 to $180,000 a month for that car wash operator and the ability to really have all his SBA loan, all those things paid, as employees paid through that recurring membership. It's incredible power for our customers. It makes them feel very brave to grow and build the next wash and partner with us. So it's a very virtuous cycle we're doing here. And finally -- or next to last year is the uplift. We do a lot of behavioral science and behavioral economics to make sure we understand all the offerings that a car wash has, whether it be a basic wash or a monthly membership. And what we do is we work with them and we use the data and the demographics in their area of the financial status of the folks in those areas, and we do a lot of work with them. And what we do is we give them new pricing models and typically without washing 1 additional car even, we can often add a 20% average ticket value to that business. So again, just tremendous value for that car wash operator to get more. Again, we sweat your assets, we're helping them get more out of that asset. And then finally, we have a creative group that is also integrated with this data team. So when we get in front of Mrs. Smith, she is at least twice as likely to click through, take our offering, show up at the car wash and help our capture rate. So -- and then the last thing, moving to the next slide with payments facilitation. I want to emphasize why we have the right to play here and the tremendous value that we bring. If you think about the story I told you about the consumer, whether it be Joe's car wash or Mrs. Smith in our example, it's important to know that, to make that happen seamlessly, there's a lot of integration with the POS and the payments processor. Of course, it needs to be really easy for the car wash operator at the end of the day, week, month to reconcile those books, it needs to be integrated. But we go much further than that. We're actually managing the wallet for Mrs. Smith. And we're also doing that. We're keeping it very, very secure to keep Joe, the car washer, very, very safe. And then it even goes beyond that, I'll just give an example of the card account update that you see there on the left. Many of us have had monthly memberships, have a credit card expire, have a break in service, your Netflix doesn't work because there's been an issue with their credit card. Because of our deep, deep integration, we have the ability to notify people to work through that, possibly even transition to a new credit card. The technology helps the best churn obstacle be overcome for that car wash operator. And again, just tremendous value to be able to do that. So we're really excited about really great partnerships we have and just our expertise and the value we bring. And of course, from us, from a business perspective, the revenue we generate this really, really, really falls through to the bottom line. As I wrap up here, talking about the DRB, hopefully, you've learned a little about the industry, but also about how we drive the growth of the industry. We're a clear leader. We think we're really well positioned. There are so many vectors that we can play with and grow and drive solutions for and again, we're constantly innovating in that regard. The consumer data thought leadership has just been a differentiator for us in the business. We have products in the areas that we need to have products and solutions to accelerate, really move to recurring really, really quickly over the next few years. And we think we're playing in the right -- on the right games and the right vectors. And lastly, I just want to mention, we have a tremendous team of people at DRB. We are very passionate about customers. We define our culture with 3 simple words: humble, hungry, smart. Humble means you want your customer, you put your customer first. You want your team to be first. Hungry means you want your customer and your team to win. We have a culture of winning in that regard. And finally, we want you to be smart. Smart when you're dealing with people, when you're coming up with solutions for your customers when you're solving problems. So Humble, Hungry, Smart is what we hire for. It's what we recognize, it's what we bonus and reward for -- and it's an exciting group of people. And hopefully, you've gotten a taste for our passion for this really fast-growing industry and the solutions we can bring to bear to help them grow. With that, I'll turn it over to Mark.

Thank you, Dan. When you can see this presentation and you can really understand what we have with DRB, there's a tremendous amount of momentum here, and they participate in a strong market. And not only that, you can see why DRB is making an immediate difference. It exemplifies this playbook importance of focusing on attractive markets and company characteristics to add value. And so it's a great example of how -- not only we've done M&A, how we'll continue to do that in the future. I am excited about the depth of experience here. It includes the predictive analytics, the behavioral economics that leads to business insights that makes us provide a unique advantage to our customers. And you know what, they are a pioneer in their industry. So it's no wonder why they are a market share leader. When you think about this, too, this company has invested wisely for growth, and you see that paying off. Let's turn to the last chart. So I hope you see now that we have a really great runway of attractive growth opportunities within our retail solutions portfolio. And quite frankly, we are so much more than a gas pump company. We are building momentum from our important progress with our profitable growth initiatives and our team's exceptional execution supports our expectations for total -- revenue growth of mid-single digits, margin expansion and free cash flow into our next year. DRB exemplifies our commitment to this disciplined deployment of capital, driving accelerated growth and creating value as we continue our transformation. And it's an important first step in diversifying our portfolio towards these longer-term growth drivers and attractive markets. Think about it to this team of integrated solutions, no question plays through. We enjoy a meaningfully organic and inorganic expansion set of opportunities, and we anticipate deploying $2 billion of M&A capacity over the next 2 to 3 years. This means that we're very active in our cultivation. We've got healthy pipelines, including a range of deals, which include sizes of deals and both near and adjacencies like DRB as well as strategic targets. So today, I hope you've gained a better sense of the key market trends that [indiscernible] including retailer sophistication, the economy of convenience and our ability to successfully execute on digital transformation. We have a better understanding of how we can add value. And hopefully, you have a better understanding on how our leading positions enable us to capture strategic opportunities for growth. This includes infrastructure build-out, transitioning car park towards electrification and important trends in sustainability. We're leaning into all of these areas, and I hope you view them as opportunities like we do. The age of mobility is changing more in the next 10 years than all of our lifetime, and we're well positioned to take advantage of these growth opportunities. In closing, we know that our work continues and that today, we hopefully gained a little bit more confidence in you in our ability to grow. We have a more focused, higher quality industrial technology company, and we're focused on smart, sustainable solutions for mobility infrastructure. So with that, I'll turn the call back over to Lisa, and we'll have your questions.

Thanks, Mark. That concludes our formal comments. David, we are now ready for questions.

[Operator Instructions] We'll take our first question from Julian Mitchell with Barclays.

So I just -- I guess I wanted to sort of follow up on a couple of things. Firstly, one was just when we're looking at Slide 6, I suppose, on that sort of highlighted piece of retail solutions, which is -- it looks like it's about $400 million or $500 million of sales, then you have, I think, about a mid-teens sort of market share overall. Maybe help us understand how does that piece split out is it comprised of that, the sort of oval on Slide 7? And any sense of what the biggest pieces inside the retail solutions number are? And then more broadly, payments in general is a sector that's undergoing a lot of change. There's a lot of growth pockets in there, some very highly valued public companies involved in that payments world. So I'm just trying to understand sort of how ambitious Vontier is taking a step back looking at the overall payments market? And if you think that those changes in the payments world are an opportunity for you or maybe more of a threat as you see sort of broader payments companies try and muscle in into the convenience retail market.

Julian, this is Aaron. I'll start with the question. Thanks for that -- so let me go first to the first part of that question, which is the split out from what you saw on Slide 6 on Retail Solutions. So it is very much tracking to what I talked about in the 3 pillars that's later around payment, pause in our site automation. Biggest part of it is payment. And then equal parts of that are basically pause in site automation. So that's how it splits out. And to the second part of your question, around payment and the evolution of payment, you're exactly correct. It's obviously a big market, a wide market where we're really trying to intersect, as I think Dan mentioned is around payment enablement with the customer, and there's some areas there where we can help facilitate between the merchants -- in between the merchants and the actual processing on the site -- so that's really what we talk about when we say enablement, and I'll perhaps leave it at that.

And then just a quick follow-up, sort of, I guess, a firm-wide question. Just looking at the numbers mentioned for 2022 on Slide 28. The revenue growth for next year sort of implying, I guess, flattish organic sales for Vontier in aggregate. Maybe parse out sort of anything around price versus volume expectations within that or anything about sort of GVR versus DRB, for example?

Julian, it's Dave. Obviously, when we talked recently publicly about EMV and EMV being in 2022, a impact to the top line, similar to what we saw in 2021, but ex EMV growing kind of mid-single digits on a core basis. And of course, then we would see some benefit from DRB that's not included in core, which gets us to that total growth of mid-single digits. Probably more to come when we report the fourth. But given the way this year has progressed and what we carry into next year, we definitely see a pricing environment probably still in that low single-digit percentage range, not too dissimilar than what we saw this year, and that will, of course, be partially dependent on the inflationary environment as we work dynamically to work through that.

We'll take our next question from Steve Tusa with JPMorgan.

Thanks a lot for the info, really useful, great detail. On the DRB, the difference between the kind of customer retention and the net dollar retention, can you maybe just talk about, just bridge some of that for us? What are the main differences? I mean the 110%-plus is a pretty good number. Just curious as to maybe bridging the gap there.

Sure. Well, let's cover the 98%. We don't really lose customers. A lot of times, someone will close because of the real estate, things like that. There's typically good business reasons involved for some of the very loss that we do see from a site perspective, but we're very, very sticky. And then the add-on modules are the really biggest things that close that window. So somebody -- think of the products as progressive. As they get busier, they need more things to manage their business. So for instance, if they get started, they're doing really well. and then they want to add a product that manages capacity. We call it no pile-ups. That's another $500 a month. So there's just various products that bolt on its progressive as we help the customers grow. So it's a virtuous cycle, if you will, taking care of our own gross retention by helping the customer grow.

And can you like find staff to services to provide every year to drive that kind of growth? I mean how long -- how much of a track record kind of have you had on that kind of metric?

Well, great question, Steve. For the last 3 years, we've been really aggressive. We actually see the next 3 to 4 years as a ton of room for growth for a couple of things. Again, I'll mention the virtuous cycle. The addition of us bringing consumers to them is just a key growth that a lot of customers are picking up on. So that's going to take somebody from the 100% to 110%. And then that drives more capacity in any workflow solutions. So the reality is there's actually a very small percentage of our customers that have, call it, even 80% of our solutions. So we have an enormous amount of white space. I mean again, only 20% of our customers even have 80% of our product suite. So it's just a fantastic growth over the next several years.

And we'll take our next question from Andy Kaplowitz with Citigroup.

So given, for instance, the complexity of C-Stores continues to increase and your roll out of Passport into HDRs, as you mentioned. What's that mean for GVR's ability to get up to the level of recurring revenue under subscription-based services. I think you said, Mark, 20% recurring for the enterprise, where do you think that could go over time?

Yes, Andy, I said mid-20s. So I think the opportunity here is pretty significant for us. I don't think we've really given more guidance on this in the 5-year outlook. But there's no question that this path for us is a really strong lever and a driver here. So we're going to add pretty significantly to that. You can see here how much of a strong focus we have on this as part of our workflow solutions. It's exactly what we mean by moving up the technology stack. And that's what drops to the bottom line is these sticky recurring revenue models. So it's definitely going to be more of a significant portion and the fact that it's 25% today's pretty good recurring revenue. But at the same time, tremendous runway for growth, which we're hopefully showing from these examples today. And so we look forward to keep you updated on it.

And then maybe a follow-up for Dan to the previous question. I think when Vontier announced DRB talked about high single-digit growth over the long term for you guys. You talked about the market growing mid-single digits, but also the white space that you have really on the SaaS side. So how does being part of Vontier help you sort of to achieve those higher growth rates over time?

Andy, thanks for the question. A couple of reasons. First of all, Vontier has a really nice balance sheet that we're interested in. We do develop things, and we also can do things to grow inorganically. Additionally, I think the technology share between Aaron's group and my group on the C-Store side is incredibly powerful, both making company -- our customers is much more efficient, but much more powerful to the consumer. So for us, that piece was really a no-brainer for us to slide in.

Yes, I'll [indiscernible] I think we see other opportunities working with our other opcos as well. Some other leverage points here on both what we talked about, the consumer workflow as well as the customer productivity workflow solutions across other operating companies, whether it be the future of repair with Matco and how we're working on that as well as what Aaron mentioned in his prepared remarks around electric charging. I mean if you think about that, that also has a consumer experience as well as you can add productivity workflow solutions here. So there's a lot of themes that come out of these capabilities that are inherent in the DRB business and that can be leveraged across the business as well.

We'll take our next question from William Crowley with Gates Capital.

I just had a question related to your payment solutions and self-checkout -- software. Obviously, this is pretty focused on C-Stores, but I wanted to see if this opportunity exists outside of the C-Store space and whether that was ever considered?

Yes. Thanks for the question. This is Aaron. Our focus here really is on the C-Store space with the core technology. That's where we've deployed it. That's where we're going to continue to focus in the core market. It does have potentially applicability outside it. But we just see a lot of white space, both in North America and in high-growth markets that's the runway in front of us. I think as you look at our overall capabilities for we see expansion outside of C-Stores, we looked at some of the investments and activities we've made around EV charging and where we see that's really helping us to diversify GVR outside the core vertical .

I'll take our next question from Andrew Obin with Bank of America.

This is David Ridley-Lane on for Andrew Obin. So it sounds like DRB has a license to SaaS transition with the site watch to Patheon transition. Could you -- maybe talk about the P&L effect and when you would expect to hit, say, 50% of the current installed base?

So great question, David. What we're really excited from a P&L impact, this is like what I'll call a relatively classic SaaS play as the leadership team at DRB has brought multiple products through. So we're excited about that. Certainly, the gross margins will just continue to go up as we switch to recurring. So again, the P&L impact will be as you would expect it to be. From the conversion perspective, the models we've built out and the things that we look at are actually a very conservative growth trajectory that we think we can beat with absolutely no problem. So we're being conservative. We've got a great -- the advantage is we've got a great product out there that customers are happy with. We're bolting things on. We're driving more recurring revenue now. So as we roll out over the next few years, we have a trajectory that we think makes sense, but we let the customer drive that so we can manage pricing and economics that make it just very reliable from a forecasting perspective.

And then am I right in thinking it's still very early days for adding these software solutions in high-growth markets on the GVR side. And maybe wasn't in the slides, what's kind of the average uplift from an emerging market side taking Passport plus hardware versus hardware alone?

Listen, David, I think the -- there is no question at trend where you go from a fueling kiosk that's typical in a high-growth market, and you build on to that, the view that this can be a modern convenience retailer and incorporating site automation. And so in terms of that content and how that actually works, Aaron, why don't you take it?

Yes. No. Thanks, Mark. That's a good segue. When we think about just the share of wallet expansion from traditional fuel hardware to now the Passport offering, you can think about a site anywhere as a onetime fee of a few thousand dollars up to maybe $15,000 to install. And then the service contract for us can be a few thousand dollars a year per site. So you can -- and that's the recurring revenue side of this. And we look to very high attach rates with that service contract. So that should dimensionalize for you kind of the size of the opportunity.

Yes. I just want to add on to that secular drivers here are our player are really to try to provide security of payment because that's a big issue that's happening where there's a lot of theft occurring. -- as well as making sure if you think you're going to pump a liter or a gallon of gas, you actually get it. So -- provided into the today's solution that Aaron spoke about. But then if you start layering on to it, some of these consumer-based economics and some of these more loyalty-based programs, productivity-based themes that are currently being rolled out in developed markets hasn't even really begun in high-growth markets. So there's a long runway of opportunity here.

David, this is Lisa. I'd add on to that's not just dollar -- like top line, we're also talking margin lift here, too. We've talked openly about all of the runway for profitable growth in high-growth markets. And the site automation solutions that Aaron shared with you today and that we're already #1 in position in high-growth market. The path that we're on, also provides a very important margin uplift. We said our high-growth market margin profile it's over 1,000 basis points lower than what we have in developed market -- so very similar to the journey that Aaron shared with North America. I mean, decades ago, we were a single-digit margin -- operating margin profile in that market. We worked folks up the technology stack. We became the leader with point of sale, and that's why we enjoy the margin profile we do in North America because of moving our customers up the technology stack. That's very much our playbook for high growth market as well.

We'll take our next question from John Walsh with Crédit Suisse.

A question, I guess, referencing maybe Slide 7 and Slide 12. Wanted to know if you could put some dollar values around -- What is the typical retrofit or going into one of these retail fueling stations with your kind of broader indoor offering? And then maybe even taking it a step back and saying, if an existing retail fueler wanted to come up the curve and take everything today what's the dollar opportunity of that? Just trying to do some -- thinking about some of that total addressable market opportunity as you increase your penetration rates.

Yes. Thanks, John. This is Aaron. I'll take that one. So we think through -- and I will refer to your point back to [indiscernible] and maybe the workflow solutions inside the bubble, that I spoke to. So you think first of the point-of-sale, probably as the beachhead of where most retailers would start, you think of that as maybe an upgrade per site being in the order of anywhere between $10,000 to $15,000 just in broad numbers. And then as you go around that, you can think of each of these services added on, again, whether that's first time and then recurring service fees of a few hundred dollars to a few thousand dollars a year. And that just depends on the complexity of what the customer wants. And then where one of the questions that Mark referred to was our attachment rate on recurring services and maintenance contracts comes with all of this. So that's where you get an accelerator here as well. And then you add that on to the rest of our solution stack where you can easily multiply the numbers I just gave based on the full portfolio that we have.

We'll take our next question from Andrew Buscaglia with Berenberg.

So I wanted to ask on -- you gave a lot of good details on DRB. And I wanted to kind of dig into like where these synergies lie. Is it more -- is it basic I guess, cost savings? Or is there an R&D synergy? It seems like GVR and DRB have such similar offerings. I wonder if you guys can have some savings and come up with some pretty innovative solutions that help both companies from like a revenue perspective?

Yes. There's no question that there are some engines for growth here. It can be leveraged. We spoke a lot about data analytics and the capability engine around data analytics. There's a tremendous capability that DRB has in Boise, which is a great burgeoning area for tech towing growth. We've got almost 60 employees there focused on this. There's no question that there's greater leverage that can be applied across the businesses and not just in retail solutions because if you see some of the other opcos. And so we've actually incorporated into something called the Vontier data and analytics hub that I spoke about on the last earnings call. And this is all part of that where we can create greater leverage on these important themes. You think about it on the -- moving up the tech stack, that's exactly what we're talking about is creating greater leverage here. The other thing is there's some channel leverage. Now keep in mind, we absolutely consider DRB a growth business, but there is about 25% overlap in the channel between DRB and a GVR. And so we're going to take advantage of that leverage, too, because they sell to the same customers. But a lot of the growth opportunities are in DRB stand-alone as well. So we're going to obviously push that hard as well. Thanks for the question.

Yes. That was interesting. And I was hoping, going back to DRB with on Slide 24, you talk about this site conversion, existing sites and new sites. With the existing site conversion, I'm actually surprised I thought -- I would think that would be kind of higher because isn't the kind of the narrative that if you don't adopt a technology right now, you might get driven out of business I wonder like what -- I guess, can you talk about that dynamic going out? Because it just seems like post-COVID there's this kind of urgency you need this technology or you're not going to survive.

Very good question. I'll answer it in 2 simple parts. First of all, the solution that it's replacing does have some contactless and frictionless capabilities. So the COVID push doesn't push it faster. It's really the other greater ability to manage data, some of these things that we've been talking about. And the reason existing sites might actually go kind of a little bit slower adoption, as many of them are multi-site and doing the data conversion is something that they'll postpone and do it all at once. And so there's a lot more planning around those. Whereas if you're a person who's building a brand-new site, it's your first site, it's just obvious to go with this new solution. So it's really logistics, planning and project management, I think that will drive that.

[Operator Instructions] We'll take our next question from Rob Mason with Baird.

A lot of good questions already. I guess I just noticed in the -- at the beginning of the slides, and this is with respect to GVR overall. I guess you spoke to a $12 billion market opportunity. If I think back over the last 1.5 years, since Vontier has been speaking as an independent entity, that's the number that stepped up from -- if I have my numbers correct, maybe $7 billion, then it was $10 billion, and now it's $12 billion I'm sure vehicle wash factors into that. But I'm just curious if -- assuming I have my numbers correct, where have those step-ups occurred in your view of the market and where you're seeing the incremental opportunity?

Yes. Thanks, Rob. This is Aaron. I'll take that one. So you're exactly correct. We have stepped those up as we just see our focus expanding. Most of that is coming from what we talked about or a combination is coming from this, call it, $3 billion we see in convenience retail workflows. We think that's a growing market. But a large part of it is coming from EV charging as we see EV charging infrastructure as it relates to our core business being an exciting place for us to play. And that's been part of the step-up here over the last 3 years.

Yes. Rob, I'd love to jump in on that aspect too because when you think about what's going on in the EV charging market, if you don't mind, I'd like to take this opportunity just to kind of bring to light our excitement about this space. Obviously, folks read a lot about electric vehicles, electrification of the car park. And as everyone knows, we're in early innings. And as we all know, too, there's got to be a lot of solutions for that EV charging build-out. And there's no question in my mind that we have a really legitimate area to play here. We've had 2 minority investments where we've learned a lot by having front row seats, one in Tritium. And out of that, we've learned that we want to source hardware. We don't need to own hardware, but we love providing solutions to customers, and we love the network management space. We have a minority investment in drives. And we think that, that is a very key value proposition that can provide a lot of profitable growth. We actually launched the product offering called EVerse this past year, what drives working with GVR to provide the network solution opportunities for customers that want to build out their electric charging networks, and it also includes customer apps. So a lot of the same kind of workflow themes that you're hearing read through, we think apply to the EV charging network where we -- and this is a really growthy space where it's profitable in its workflow solution already same type themes you're hearing here apply in the EV charging space. So we're really excited about that as well. So hopefully, that now gives you a little more sense of what we're talking about for expansion of the market opportunity.

That's very helpful, Mark. And just maybe one question along those lines, though, is as we go forward, I guess, with charging, there's some question of how dwell time at a location would change versus traditional fueling. How are your C-Store customers contemplating that? Do you have solutions to help them think about that to the extent that it is some traffic migration to other venues around that dwell time, larger shopping venues or what have you?

Yes. Thanks, Rob. I'll start here. I think in the C-Store, what we see in terms of the application of the technology is going to be primarily DCFC or fast charging. And where you see that technology going is getting eventually to dwell times that are on the order of minutes that are top off, they may not be full charges, kind of part of the convenience element. -- that we're talking about here between transit points, whether that's your home or whether that's where you go to work. So you really see that as the technology that's playing. And as Mark alluded to, we think the ownership of that customer and the customer data and how the network is managed is really the important and almost lucrative part of this market, and that gives us the opportunity to expand beyond the C-Store vertical to follow that customer wherever they charge, whether that's at the home or the work or the convenience store. And I think that's as Mark alluded to, what we find particularly appealing about workflow solutions like what drives offers.

Yes. I want to jump on that too, Rob, because I think that what you're talking about in dwell time in electrification is a little bit of the chicken of the egg. I mean you obviously need the EV charging infrastructure to become more efficient. But at the same time, we absolutely hear from our customers in the convenience store format that they are looking to work to solve that problem. And the formats are changing for convenience store. Take a look at that picture again that Aaron showed on that Circle K. If you look at some of the footprint that's going in that includes this, they include a lot of different venues available inside that convenience store to also take advantage of dwell time because they know, okay, first of all, they know about clean restrooms already. But there's other type things there, fast food or fresh food or even more sophisticated food offerings as well as services. So they're incorporating a lot more into that site to make sure that people, when they are charging their vehicle and they are going to happen to spend more time, particularly in the next few years that they can also take advantage of that venue. So it's kind of all of these things work together and are clearly the high-value problems that our customers have, and they're asking us to help provide them with solutions.

And there are no further questions at this time. I'll turn the program back to Mark Morelli for any closing comments.

Yes. Thank you for that. I appreciate you joining us today and learning more about our Retail Solutions business. And hopefully, you can see from our presentations and from our dialogue with the Q&A, that there are really excellent examples here of us moving up the technology stack, of us leveraging this data analytics capability and these business insights into more valuable propositions going forward. And I hope you walk away with informed appreciation of this runway for growth, the quality of the portfolio that's available to us and the evolution opportunities. Our technology leadership and history of transformation does position us very well for unprecedented market evolution and growth. So have a happy and safe holiday, and thank you for joining us today. Bye now.

This does conclude today's program. Thank you for your participation, and you may now disconnect.