Xerox Releases 4Q, Full-Year Results

Xerox Holdings Corporation announced its 2023 fourth-quarter and full-year results and guidance for 2024.

In the fourth quarter of 2023, Xerox reported revenue of $1.77 billion, down 9.1% year-over-year or down 10.6% in constant currency. GAAP net loss was $58 million, or $0.50 per share, down $179 million or $1.24 per share, year over-year, respectively. This quarter includes an after-tax Re-structuring and related costs, net charge of $78 million, or $0.62 per share, related to the recently announced workforce reduction.

Adjusted net income was $56 million, or $0.43 per share, down $90 million or $0.46 per share, year-over-year, respectively. Adjusted operating margin was 5.4%, down 380 basis points year-over-year. Operating cash flow was $389 million, up $203 million year-over-year, with free cash flow of $379 million, up $211 million year-over-year.

For the fiscal year of 2023, revenue was $6.89 billion, down 3.1% year-over-year, or down 3.3% in constant currency. GAAP net income was $1 million, or $(0.09) per share, up $323 million or $2.06 per share, year-over-year, respectively, including a Q4 after-tax restructuring and related costs, net charge of $78 million, or $0.62 per share, related to the recently announced workforce reduction. 2022 also includes an after-tax non-cash goodwill impairment charge of $395 million, or $2.54 per share.

Adjusted net income was $287 million, or $1.82 per share, up $98 million or $0.70 per share, year-over-year, respectively. Operating cash flow was $686 million, up $527 million year-over-year. Free cash flow was $649 million, up $547 million year-over-year.

“Last year, steps we took to structurally simplify our business impacted revenue but led to 170 ba-sis points of adjusted operating margin expansion and laid the foundation for successful execution of our Reinvention,” said Steve Bandrowczak, CEO at Xerox.

“As we enter 2024, we are focused on stabilizing and strengthening our core Print business, driv-ing enterprise-wide efficiency and productivity gains through our new Global Business Services organization, and further capturing opportunities in Digital and IT Services. We expect balanced execution on these priorities, supported by our new operating model, will yield significant progress towards our three-year adjusted operating income improvement target of $300 million above 2023 levels.”