Xerox Releases 2024 Q2 Results

Xerox Releases 2024 Q2 Results

Xerox has revealed its financial performance for the second quarter of 2024, demonstrating an overall recovery from the previous quarter.

Total revenue amounted to $1,58 billion, marking a decline of 10% (9.6% in constant currency) from the first quarter of 2023. GAAP figures showed a net income of $18 million, or $0.11 per share, up by $79 million and $0.52 each year-on-year respectively.

As the organizational changes in the first quarter that caused temporary disruption are receiving intended results, Xerox saw returns from this investment and recovery in the overall performance, including operating income margin, free cash flow and revenue trajectory. Propelled by the momentum in orders and sales, Xerox expects a greater return to revenue in the second half of this fiscal year.

Steve Bandrowczak, chief executive officer at Xerox, believes the transformation will benefit Xerox profoundly in the long term. “Q2 results give us confidence Xerox’s new operating model, which is more streamlined and closely aligned to the economic buyers of our products and services, is enabling the operating improvements required to deliver an incremental $300 million of adjusted operating income over 2023 levels and a return to doubledigit adjusted operating income margin by 2026.”

Equipment sales and post-sale revenue were respectively $356 million and $1,222 million, down by 15.2% and 14.9% each. These decreases were primarily driven by backlog reductions in 2023, business structure simplifications, geographic simplification, and lower outsourcing service income.

Due to the incremental reductions in reductions due to geographic simplification, Xerox has lowered its revenue guidance for fiscal year 2024: from a decline of 3%-5% to a decline of 5%-6%. Core business revenue is expected to remain stable, reflecting growing demand for Xerox products and services in the remaining year.

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