Slide 1: Fourth Quarter and FY 2024 Earnings
Pitney Bowes Fourth Quarter and FY 2024 Earnings February 11, 2025 Pitney Bowes | Fourth Quarter and FY 2024 Earnings
Slide 2: Forward-Looking Statements and Financial Presentation
Forward-Looking Statements and Financial Presentation This document contains “forward-looking statements” about the Company’s expected or potential future business and financial performance. Forward-looking statements include, but are not limited to, statements about future revenue and earnings guid
Slide 3: Use of Non-GAAP Measures
Use of Non-GAAP Measures Adjusted Segment EBIT Adjusted Segment EBIT is the primary measure of profitability and operational performance at the segment level. Adjusted Segment EBIT includes segment revenues and related costs and expenses attributable to the segment, but excludes interest, taxes, res
Slide 4: Business Overview and Financial Results
Business Overview and Financial Results 4 Pitney Bowes | Fourth Quarter and FY 2024 Earnings
Slide 5: Business Overview
Business Overview Company Overview Financial Overview ▪ Operates through two leading business segments, both with durable, high-margin revenue streams and $2.027B $290M growth avenues, as well as a financial services FY24 Revenue FY24 Free Cash Flow 1 business ▪ Has undergone strategic transformatio
Slide 6: Fourth Quarter – Overview
Fourth Quarter – Overview ▪ Revenue was $516 million, down 2% year-over-year ▪ GAAP EPS was a loss of $0.21, including a non-cash pension settlement charge of $0.37 per share and GEC exit costs of $0.12 per share ▪ Adjusted EPS was $0.32, an improvement of $0.12 or 60% over the prior year period ▪ G
Slide 7: FY2024 – Overview
FY2024 – Overview ▪ Revenue was $2.027 billion, down 3% year-over-year ▪ GAAP EPS was a loss of $1.12, including a loss of $1.68 per share from discontinued operations tied to the Global Ecommerce (“GEC”) sale ▪ Adjusted EPS was $0.82, an improvement of $0.21 or 34% over the prior year ▪ GAAP net lo
Slide 8: Fourth Quarter – Results vs. Prior Year
Fourth Quarter – Results vs. Prior Year $ millions Gross SG&A as % of R&D as a % of Adj EBIT (2%) Growth Y/Y Margin Revenue Revenue Margin Q4 2024: 56.7% Q4 2024: 32.8% Q4 2024: 1.8% Q4 2024: 22.2% Q4 2023: 54.1% Q4 2023: 36.6% Q4 2023: 1.5% Q4 2023: 16.4% $516 $526 $293 $285 $193 $169 $114 $86 $9 $
Slide 9: Full Year 2024 – Results vs. Prior Year
Full Year 2024– Results vs. Prior Year $ millions Gross SG&A as % of R&D as a % of Adj EBIT (3%) Growth Y/Y Margin Revenue Revenue Margin 2024: 55.6% 2024: 35.1% 2024: 1.6% 2024: 19.0% 2023: 52.6% 2023: 36.8% 2023: 1.4% 2023: 14.8% $2,027 $2,079 $1,126 $1,094 $711 $765 $385 $308 $32 $29 Revenue Gros
Slide 10: Fourth Quarter and FY2024 – SendTech Solutions
Fourth Quarter and FY2024 – SendTech Solutions SendTech Solutions offers physical and digital shipping and mailing technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify
Slide 11: Fourth Quarter and FY2024 – Presort Services
Fourth Quarter and FY2024 – Presort Services Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter. % Change % Change ($ millions) Q4 2024 Q4 2023 Reported FY2024 FY2
Slide 12: Strategic Initiatives and Progress
Strategic Initiatives and Progress 12 Pitney Bowes | Fourth Quarter and FY 2024 Earnings
Slide 13: 2024 Strategic Initiatives
2024 Strategic Initiatives Global Ecommerce “GEC” Exit Cost Rationalization Cash Optimization Balance Sheet Deleveraging 13 Pitney Bowes | Fourth Quarter and FY 2024 Earnings
Slide 14: 2024 Strategic Initiatives: Progress Today
2024 Strategic Initiatives: Progress Today Global Ecommerce “GEC” Exit Cash Optimization The Company is reducing cash held for working capital purposes through the GEC The Company is revising its target for one-time costs from the wind-down from $150 exit and internal cash forecasting million to app
Slide 15: 2024 Strategic Initiatives: Impact for Shareholders
2024 Strategic Initiatives: Impact for Shareholders Global Ecommerce “GEC” Exit Cash Optimization ▪ Removes money-losing division and allows the ▪ Less cash needed to be held as working capital Company to focus on core, cash generating segments ▪ Unlocks substantial amount of cash to be deployed mor
Slide 16: Guidance and Outlook
Guidance and Outlook 16 Pitney Bowes | Fourth Quarter and FY 2024 Earnings
Slide 17: FY2025 Guidance
FY2025 Guidance Guidance Pitney Bowes provided the following guidance for total revenue, Adjusted EBIT, Adjusted EPS and free cash flow: ▪ The Company expects to generate full year revenue of $1.95 billion to $2.0 billion ▪ The Company also expects to generate full year Adjusted EBIT of $450 million
Slide 18: Capital Allocation Framework
Capital Allocation Framework ▪ Pitney Bowes is committed to significantly increasing the amount of capital that it consistently returns to shareholders ▪ Pitney Bowes believes that share repurchases currently represent the most efficient way to return capital to shareholders. To that end, the Pitney
Slide 19: Market Color
Market Color Tailwinds ▪ SendTech: In Q4 2024, the Company drove significant growth in its subscription base and ended the year with almost 200,000 paid subscribers ▪ This resulted in a 33% year-over-year improvement in SaaS subscription revenue in the quarter ▪ Presort: The Company expects to conti
Slide 20: Appendix
Appendix 20 Pitney Bowes | Fourth Quarter and FY 2024 Earnings
Slide 21: Fourth Quarter 2024 – Debt Profile
Fourth Quarter 2024 – Debt Profile Total debt consisted of the following: Feb 2025 ($ Millions) Interest Rate (Post Refinancing) 12/31/2024 12/31/2023 Term loan due March 2026 SOFR + 2.25% - $ 235,000 $ 285,500 Notes due March 2027 6.875% 380,000 380,000 380,000 Notes due March 2028 SOFR + 6.9% - 96
Slide 22: Appendix: Consolidated Statement of Operations
Appendix: Financial Information Pitney Bowes Inc. Consolidated Statement of Operations (Unaudited, in thousands, except per share amounts) Three months ended December 31 Year ended December 31 2024 2023 2024 2023 Revenue: Business services $ 234,652 $ 218,931 $ 886,041 $ 857,646 Support services 93,
Slide 23: Appendix: Consolidated Balance Sheets
Appendix: Financial Information Pitney Bowes Inc. Consolidated Balance Sheets (Unaudited, in thousands) Assets December 31, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 469,726 $ 600,054 Short-term investments 16,374 22,166 Accounts and other receivables, net 159,951 200,242 Sh
Slide 24: Appendix: Business Segment Revenue
Appendix: Financial Information Pitney Bowes Inc. Business Segment Revenue (Unaudited, in thousands) Three months ended December 31 Year ended December 31 2024 2023 % Change 2024 2023 % Change Sending Technology Solutions $ 319,511 $ 337,512 (5%) $ 1,279,866 $ 1,327,873 (4%) Presort Services 179,555
Slide 25: Appendix: Adjusted Segment EBIT & EBITDA
Appendix: Financial Information Pitney Bowes Inc. Adjusted Segment EBIT & EBITDA (Unaudited, in thousands) Three months ended December 31 2024 2023 % change Adjusted Segment Adjusted Segment Adjusted Segment Adjusted Segment Adjusted Segment EBIT (1) D&A EBITDA EBIT (1) D&A EBITDA Adjusted Segment E
Slide 26: Appendix: Reconciliation of Reported to Adjusted Results
Appendix: Financial Information Pitney Bowes Inc. Reconciliation of Reported Consolidated Results to Adjusted Results (Unaudited, in thousands, except per share amounts) Three months ended December 31 Year ended December 31 2024 2023 2024 2023 Reconciliation of reported net loss to adjusted EBIT and
Slide 27: Thank You
Thank You 27 Pitney Bowes | Fourth Quarter and FY 2024 Earnings