Xerox faces 2023 revenue decline, achieves key financial targets, and focuses on strategic growth in digital solutions.
Xerox Holdings Corporation announced its fourth quarter and full-year results for 2023. The company saw a decrease in revenue but achieved its targets for adjusted operating margin and free cash flow.
The fourth quarter revenue dropped by 9.1% to $1.77 billion (€1.62 billion), with a GAAP net loss of $58 million (€53.3 million).
Full-year revenue was down by 3.1% to $6.89 billion (€6.33 billion), with a marginal GAAP net income.
Xerox attributes these results to its structural simplification and focus on core Print business and Digital and IT Services.
“Last year, steps we took to structurally simplify our business impacted revenue but led to 170 basis points of adjusted operating margin expansion and laid the foundation for successful execution of our Reinvention,” said Steve Bandrowczak, Chief Executive Officer at Xerox. “As we enter 2024, we are focused on stabilizing and strengthening our core Print business, driving 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 (€275.5 million) above 2023 levels.
For 2024, the company expects revenue decline but improved adjusted operating income margins and significant free cash flow growth.
