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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.
Xerox
Xerox
Xerox Revenue by Segment
Revenue by Segment
Print and Other Revenue
CapyFin.comIT Solutions Revenue
CapyFin.comEquipment Sales Revenue
CapyFin.comPost Sale Revenue
CapyFin.com 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
- Evolving return-to-office and hybrid working trends
Revenue & Expenses
Visualization of income flow from segment revenue to net income