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Mar 31, 2024
Xerox Q1 2024 Earnings Report
Xerox's first quarter results were released, showing the implementation of comprehensive changes to the operating model and progress towards Reinvention targets despite a challenging quarter.
Key Takeaways
Xerox's Q1 2024 revenue was $1.50 billion, a 12.4% decrease year-over-year, or 13.2% in constant currency. The company reported a GAAP net loss of $(113) million, or $(0.94) per share, and an adjusted net income of $11 million, or $0.06 per share. The results were impacted by Project Reinvention-related charges.
Revenue decreased by 12.4% year-over-year, or 13.2% in constant currency, reaching $1.50 billion.
GAAP net loss was $(113) million, or $(0.94) per share, impacted by Project Reinvention charges.
Adjusted net income was $11 million, or $0.06 per share, a decline year-over-year.
The company implemented comprehensive operating model changes to align with buyer needs and improve efficiency.
Revenue by Segment
Forward Guidance
Xerox expects a revenue decline of 3% to 5% in constant currency for 2024. Adjusted operating margin is expected to be at least 7.5%, and free cash flow is projected to be at least $600 million.
Positive Outlook
- Stable Print demand
- Growth in Digital and IT Services
- Neutral macroeconomic conditions
- Margin guidance implies adjusted operating income margin improvement of more than 190 basis points
- Adjusted operating income improvement of more than $100 million, year-over-year
Challenges Ahead
- Around 200 basis points of headwind from prior-year backlog reduction
- Around 200 basis points from the deemphasis of certain non-strategic revenue, including lower sales of paper
- Global macroeconomic conditions, including inflation, slower growth or recession
- Delays or disruptions in the global supply chain, higher interest rates, and wars and other conflicts
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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