Q3 2024 Xerox Holdings Corp Earnings Call Transcript
Key Points
- Xerox Holdings Corp (XRX) reported a second consecutive period of moderating revenue declines, indicating some stabilization in their financial performance.
- The company achieved more than 100% free cash flow conversion from adjusted operating income, showcasing strong cash management.
- Xerox Holdings Corp (XRX) saw double-digit growth in digital and managed IT services revenue, reflecting successful expansion in these areas.
- The pending acquisition of ITsavvy is expected to enhance Xerox's portfolio and drive growth in IT services, potentially increasing revenue streams.
- Operating expenses decreased by more than $50 million year over year, demonstrating effective cost management and organizational simplification.
- Total revenue declined by 7.5% year over year, with equipment sales falling short of expectations due to product launch delays and lower sales force productivity.
- Adjusted EPS decreased by $0.21 year over year, primarily due to the one-time sale of non-core business assets in the prior-year quarter.
- The company recorded a GAAP loss per share of $9.71, including a significant non-cash goodwill impairment charge.
- Xerox Holdings Corp (XRX) reduced its full-year revenue guidance, now expecting a decline of around 10% in constant currency.
- The company's adjusted operating income margin guidance was lowered to around 5%, reflecting challenges in achieving expected revenue and cost reduction targets.
Thank you for standing by and welcome to Xerox Holdings Corporation's third-quarter earnings conference call. (Operator Instructions) As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Mr. David Beckel, Vice President of Investor Relations. Please go ahead, sir.
Good morning, everyone. I'm David Beckel, Vice President and Head of Investor Relations at Xerox Holdings Corporation. Welcome to the Xerox Holdings Corporation third-quarter 2024 earnings release conference Call, hosted by Steve Bandrowczak, Chief Executive Officer. He's joined by John Bruno, President and Chief Operating Officer; and Xavier Heiss, Executive Vice President and Chief Financial Officer.
At the request of Xerox Holdings Corporation, today's conference call is being recorded. Other recording and/or rebroadcasting of this call are prohibited without the express permission of Xerox. During this call, Xerox executives will refer to slides that are available on the web at
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