Pitney Bowes Provides Additional Detail on Financial Outlook
Pitney Bowes provided supplemental guidance details, projecting Q4 2024 revenue between $505-515 million, compared to $526 million in Q4 2023. The company expects SendTech to experience minor revenue softness in coming quarters due to IMI technology migration and reduced equipment sales, with stabilization anticipated by early 2026. Following the Global Ecommerce exit, most of that segment is now reported as discontinued operations. The company aims to reduce and refinance high-cost debt to decrease interest payments and free up capital for other initiatives. Long-term growth opportunities include SendTech's expansion in ecommerce shipping and Presort's roll-up acquisitions.
Pitney Bowes ha fornito dettagli di orientamento supplementari, prevedendo ricavi per il Q4 2024 tra 505-515 milioni di dollari, rispetto ai 526 milioni di dollari nel Q4 2023. L'azienda si aspetta che SendTech sperimenti una leggera diminuzione dei ricavi nei prossimi trimestri a causa della migrazione della tecnologia IMI e della riduzione delle vendite di attrezzature, con una stabilizzazione prevista entro la prima metà del 2026. Dopo l'uscita dal settore Global Ecommerce, la maggior parte di quel segmento è ora riportata come operazioni discontinue. L'azienda mira a ridurre e rifinanziare il debito ad alto costo per diminuire i pagamenti degli interessi e liberare capitale per altre iniziative. Le opportunità di crescita a lungo termine includono l'espansione di SendTech nel settore della spedizione ecommerce e le acquisizioni di roll-up di Presort.
Pitney Bowes proporcionó detalles de orientación complementaria, proyectando ingresos para el Q4 de 2024 entre 505-515 millones de dólares, en comparación con 526 millones de dólares en el Q4 de 2023. La compañía espera que SendTech experimente una leve suavidad en los ingresos en los próximos trimestres debido a la migración de la tecnología IMI y a la reducción de las ventas de equipos, con una estabilización anticipada para principios de 2026. Tras la salida de Global Ecommerce, la mayor parte de ese segmento ahora se informa como operaciones discontinuas. La empresa tiene como objetivo reducir y refinanciar deudas de alto costo para disminuir los pagos de intereses y liberar capital para otras iniciativas. Las oportunidades de crecimiento a largo plazo incluyen la expansión de SendTech en el envío de ecommerce y las adquisiciones de consolidación de Presort.
피트니 보우스는 추가 지침 세부사항을 제공하며 2024년 4분기 수익을 5억 5백만에서 5억 1천5백만 달러로 예상하고 있으며, 이는 2023년 4분기 5억 2천6백만 달러와 비교됩니다. 회사는 SendTech가 IMI 기술 이전 및 장비 판매 감소로 인해 향후 몇 분기 동안 소폭의 수익 감소를 경험할 것으로 예상하며, 2026년 초에는 안정화될 것으로 보입니다. 글로벌 전자상거래에서의 철수 이후, 해당 세그먼트의 대부분은 현재 중단된 운영으로 보고되고 있습니다. 회사는 고비용 부채를 줄이고 재융자하여 이자 지불을 감소시키고 다른 이니셔티브를 위한 자본을 확보하는 것을 목표로 하고 있습니다. 장기 성장 기회에는 SendTech의 전자상거래 배송 확장과 Presort의 인수 합병이 포함됩니다.
Pitney Bowes a fourni des détails supplémentaires d'orientation, projetant un chiffre d'affaires pour le T4 2024 entre 505-515 millions de dollars, par rapport à 526 millions de dollars au T4 2023. L'entreprise s'attend à ce que SendTech connaisse une légère faiblesse des revenus dans les trimestres à venir en raison de la migration de la technologie IMI et de la réduction des ventes d'équipements, avec une stabilisation prévue d'ici début 2026. Suite à la sortie du marché du Global Ecommerce, la plupart de ce segment est désormais rapportée comme des opérations discontinuées. L'entreprise vise à réduire et à refinancer sa dette à coût élevé pour diminuer les paiements d'intérêts et libérer du capital pour d'autres initiatives. Les opportunités de croissance à long terme incluent l'expansion de SendTech dans la livraison de commerce électronique et les acquisitions de regroupement de Presort.
Pitney Bowes hat ergänzende Leitlinien bereitgestellt und erwartet für das 4. Quartal 2024 Einnahmen zwischen 505-515 Millionen Dollar, verglichen mit 526 Millionen Dollar im 4. Quartal 2023. Das Unternehmen geht davon aus, dass SendTech in den kommenden Quartalen nur geringfügige Umsatzrückgänge aufgrund der Migration der IMI-Technologie und des reduzierten Verkaufs von Geräten erleben wird, wobei eine Stabilisierung bis Anfang 2026 erwartet wird. Nach dem Ausstieg aus dem Global Ecommerce wird der Großteil dieses Segments nun als aufgegebene Betriebe ausgewiesen. Das Unternehmen zielt darauf ab, hochverzinsliche Schulden zu reduzieren und umzuschulden, um die Zinszahlungen zu senken und Kapital für andere Initiativen freizusetzen. Langfristige Wachstumschancen umfassen die Expansion von SendTech im Bereich des E-Commerce-Versands und die Akquisitionen von Presort.
- Full-year Adjusted EBIT expected to increase to $355-360 million
- Profitable continuing operations from former Global Ecommerce segment generated $18.7M in Q3 2024
- Strategic debt reduction and refinancing efforts to lower interest costs
- Q4 2024 revenue guidance of $505-515M represents decline from $526M in Q4 2023
- SendTech segment experiencing continued revenue softness
- Reduction in equipment sales affecting revenue
Insights
The Q4 2024 revenue guidance of
SendTech's expected revenue softness and the need for IMI technology migration presents near-term headwinds. However, the projected
The strategic pivot away from Global Ecommerce reflects a fundamental business model transformation. The focus on SendTech's expansion into ecommerce shipping and Presort's roll-up acquisition strategy suggests a more focused growth approach targeting profitable market segments. The projected revenue stabilization by 2026 indicates a realistic timeline for business transformation.
The company's strong presence among Fortune 500 clients (
Expects Q4 2024 Revenue of
Q4 2024 Revenue Outlook Detail
The Company announced updated guidance on November 7, 2024, including a full-year revenue decline in a low-single-digit range and a full-year Adjusted EBIT increase to
Because of the Global Ecommerce exit process, a majority of that segment is now reported as discontinued operations in the Company’s Condensed Consolidated Financial Statements. Prior periods have been recast to conform to the current period’s presentation. The remaining portion of the Global Ecommerce segment that did not qualify for discontinued operations treatment is now reported in an "Other" category. This category comprises (a) a profitable continuing operation which generated third quarter 2024 revenue of approximately
Long-Term Revenue Considerations
Although the Company has not provided guidance for fiscal year 2025, it disclosed on November 7, 2024 that it expects SendTech to continue experiencing minor revenue softness in the coming quarters, largely in-line with the softness experienced in the third quarter of 2024, due to factors that include the required product migration to new IMI technology and a reduction in equipment sales. The Company expects SendTech’s revenue to flatten out by the start of fiscal year 2026, and it has identified long-term opportunities for enterprise-wide revenue growth due to SendTech’s expansion in the ecommerce shipping category and Presort’s ability to increase roll-up acquisitions.
Debt Reduction and Refinancing Progress
The Company also disclosed on November 7, 2024 that it is evaluating options for reducing and refinancing debt. Through focusing on paying off and refinancing high-cost debt, the Company expects to reduce interest payments and free up capital for other value-enhancing initiatives. Leadership expects to have an update in the near term on this item.
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The Company has also made available on its investor relations website a detailed file showing prior financials on a recast basis adjusted for the GEC exit.
About Pitney Bowes
Pitney Bowes (NYSE: PBI) is a technology-driven company that provides SaaS shipping solutions, mailing innovation, and financial services to clients around the world – including more than 90 percent of the Fortune 500. Small businesses to large enterprises, and government entities rely on Pitney Bowes to reduce the complexity of sending mail and parcels. For the latest news, corporate announcements, and financial results, visit www.pitneybowes.com/us/newsroom. For additional information, visit Pitney Bowes at www.pitneybowes.com.
Use of Non-GAAP Measures
Pitney Bowes’ financial results are reported in accordance with generally accepted accounting principles (GAAP). Pitney Bowes also discloses certain non-GAAP measures, such as adjusted earnings before interest and taxes (Adjusted EBIT). Adjusted EBIT excludes the impact of restructuring charges, goodwill and asset impairment charges, foreign currency gains and losses on intercompany loans, certain costs associated with the Ecommerce Restructuring, gains and losses related to acquisitions and dispositions, gains and losses on debt redemptions and other unusual items that we believe are not indicative to our core business operations. We have not provided a reconciliation of our future expectations as to Adjusted EBIT as such reconciliation is not available without unreasonable efforts.
Forward-Looking Statements
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 guidance, future events or conditions, and expected cost savings, elimination of future losses, and anticipated deleveraging in connection with Pitney Bowes’ announced strategic initiatives. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors which could cause future financial performance to differ materially from expectations include, without limitation, declining physical mail volumes; changes in postal regulations or the operations and financial health of posts in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20241111885971/en/
Alex Brown
investorrelations@pb.com
OR
Longacre Square Partners
Joe Germani
jgermani@longacresquare.com
Source: Pitney Bowes Inc.
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