Xerox Releases First-Quarter 2024 Results

NORWALK, Conn., April 23, 2024 — Xerox Holdings Corporation today announced its 2024 first-quarter results.

“This quarter, Xerox orchestrated one of its most intense periods of structural change in recent history, continuing the hard work required to reposition our business for long-term, sustainable growth. We implemented comprehensive and strategic operating model changes to align our organization more closely with our buyers’ needs and improve efficiency,” said Steve Bandrowczak, chief executive officer at Xerox. “While results were below our expectations in Q1, I have full confidence we have the right team and the right strategy to execute Xerox’s Reinvention and deliver on our adjusted operating income targets.”

Financial Summary
Q1 2024

  • Revenue of $1.50 billion, down 12.4 percent, or 13.2 percent in constant currency.
  • GAAP net loss of $(113) million, or $(0.94) per share, a decrease of $184 million or $1.37 per
    share, year-over-year, respectively. This quarter includes after-tax Project Reinvention related
    charges of $100 million, or $0.80 per share.
  • Adjusted net income of $11 million, or $0.06 per share, declined by $71 million or $0.43 per share,
    year-over-year, respectively.
  • Adjusted operating margin of 2.2 percent, 470 basis points lower year-over-year.
  • Operating cash flow of $(79) million, lower by $157 million year-over-year.
  • Free cash flow of $(89) million, lower by $159 million year-over-year.

First-Quarter Key Financial Results

First-Quarter Segment Results

2024 Guidance

  • Revenue: decline of 3% to 5% in constant currency
  • Adjusted Operating Margin: at least 7.5%
  • Free cash flow: at least $600 million

Guidance assumes stable Print demand, growth in Digital and IT Services and neutral macroeconomic conditions. The guided year-over-year decline in revenue is attributable to the following: around 200 basis points of headwind from prior-year backlog reduction and around 200 basis points from the deemphasis of certain non-strategic revenue, including lower sales of paper. Margin guidance implies adjusted operating income margin improvement of more than 190 basis points, and adjusted operating income improvement of more than $100 million, year-over-year. The company maintains its three-year target of $300 million of incremental adjusted1 operating income above 2023 levels and a return to double-digit adjusted1 operating income margin by 2026.

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