Business
Xerox Delivers Growth in Profitability and Cash Flow; Announces Reinvention to Drive Sustainable Profit Improvement and Revenue Growth
Financial Summary Q3 2023 Revenue of $1.65 billion, down 5.7 percent, or 7.4 percent in constant currency. GAAP net income of $49 million, or $0.28 per
About this update from Xerox Holdings Corporation
[{"type":"text","content":"\nFinancial Summary\nQ3 2023\n\n\n\nRevenue of $1.65 billion, down 5.7 percent, or 7.4 percent in constant currency.\n\n\n\nGAAP net income of $49 million, or $0.28 per share, up $432 million or $2.76 per share, year-over-year, respectively.\n\n\n\nAdjusted net income of $77 million, or $0.46 per share, up $44 million or $0.27 per share, year-over-year, respectively.\n\n\n\nAdjusted operating margin of 4.1 percent, up 40 basis points year-over-year.\n\n\n\nOperating cash flow of $124 million, up $132 million year-over-year.\n\n\n\nFree cash flow of $112 million, up $130 million year-over-year.\n\n\n\nAnnounces Reinvention, expected to deliver improvement in adjusted operating income of at least $300 million by 2026.\n\n\n\n NORWALK, Conn.--(BUSINESS WIRE)--\nXerox Holdings Corporation (NASDAQ: XRX) today announced its 2023 third-quarter results.\n\n\n“Growth in adjusted profit, EPS and free cash flow reflects solid execution of our strategic priorities amid a challenging macro backdrop,” said Steve Bandrowczak, chief executive officer at Xerox. “As we continue simplifying and focusing our operations, Reinvention will reposition our business to enable sustainable profit improvement and revenue growth through the expansion of services that best serve our clients’ needs.”\n\n\nThird-Quarter Key Financial Results\n\n\n\n\n(in millions, except per share data)\n\n\n\n\n\n\nQ3 2023\n\n\n\n\n\n\nQ3 2022\n\n\n\n\n\n\nB/(W)\n\n\n\n\nYOY\n\n\n\n\n\n\n% Change\n\n\n\n\nB/(W) YOY\n\n\n\n\n\n\n\n\nRevenue\n\n\n\n\n\n\n$1,652\n\n\n\n\n\n\n$1,751\n\n\n\n\n\n\n$(99)\n\n\n\n\n\n\n(5.7)% AC\n(7.4)% CC(1)\n\n\n\n\n\n\n\n\nGross Margin\n\n\n\n\n\n\n32.4%\n\n\n\n\n\n\n31.8%\n\n\n\n\n\n\n60 bps\n\n\n\n\n\n\n \n\n\n\n\n\n\n\n\nRD&E %\n\n\n\n\n\n\n3.1%\n\n\n\n\n\n\n4.2%\n\n\n\n\n\n\n110 bps\n\n\n\n\n\n\n \n\n\n\n\n\n\n\n\nSAG %\n\n\n\n\n\n\n25.2%\n\n\n\n\n\n\n23.9%\n\n\n\n\n\n\n(130) bps\n\n\n\n\n\n\n \n\n\n\n\n\n\n\n\nPre-Tax Income (Loss)(2)\n\n\n\n\n\n\n$63\n\n\n\n\n\n\n$(380)\n\n\n\n\n\n\n$443\n\n\n\n\n\n\nNM\n\n\n\n\n\n\n\n\nPre-Tax Income (Loss) Margin(2)\n\n\n\n\n\n\n3.8%\n\n\n\n\n\n\n(21.7)%\n\n\n\n\n\n\nNM\n\n\n\n\n\n\n \n\n\n\n\n\n\n\n\nOperating Income - Adjusted (1)\n\n\n\n\n\n\n$68\n\n\n\n\n\n\n$65\n\n\n\n\n\n\n$3\n\n\n\n\n\n\n4.6%\n\n\n\n\n\n\n\n\nOperating Income Margin - Adjusted (1)\n\n\n\n\n\n\n4.1%\n\n\n\n\n\n\n3.7%\n\n\n\n\n\n\n40 bp...