The following is a summary of the Xerox Holdings Corporation (XRX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Xerox reported Q1 revenue of $1.5 billion, a decrease of 12.4% in actual currency and 13.2% in constant currency.
Adjusted EPS was $0.06, a notable drop of $0.43 compared to last year.
Free cash flow saw an unfavorable shift to negative $89 million, marking a reduction of $159 million from Q1 of the previous year.
Adjusted operating margin stood at 2.2%, lower by 470 basis points year-over-year.
The company maintains a target of achieving a full-year adjusted operating income of at least 7.5% in 2024, largely due to aggressive cost-reduction measures.
It projects free cash flow to be at least $600 million in 2024, aided by a decline in the finance receivable balance.
Business Progress:
Xerox is undergoing considerable structural changes including a company-wide reorganization designed to stimulate revenue, operating margins, and free cash flow.
The firm has instigated a global partner ecosystem to broaden the circulation of its products.
Xerox is working towards simplification across geographies, models, and product offerings.
'Project Reinvention' initiatives are ongoing, which are anticipated to result in a $100 million year-over-year net operating improvement.
Investments focused on higher ROIC projects and acquisitions underpin Xerox's commitment to long-term growth.
Xerox shows great emphasis on debt reduction with a planned payout of the remaining $300 million debt in May.
The company is operationalizing their strategy of Global Business Services (GBS), aimed at improving coordination and operational efficiency.
Xerox continues to invest heavily in sustainability efforts including contributions to climate change transparency and performance.
More details: Xerox IR
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