The company has released its fourth quarter and full year results, reporting “2022 was a challenging year as revenue and profitability was impacted by an uncertain and unpredictable macroeconomic environment”.
Despite these challenges, fourth quarter 2022 revenue grew for the first time since the second quarter of 2021. Revenue was $1.94 billion (€1.78 billion), up 9.2% year-over-year. For the full year revenue was $7.11 billion (€6.53 billion), up 1% year-over-year.
“Resilient demand and improvements in supply chain conditions drove solid Q4 growth in revenue and profits,” said Steve Bandrowczak, Chief Executive Officer at Xerox. “Our employees and partners worked hard to deliver the highest level of revenue since the start of the pandemic, and I am proud of the focus and dedication which led to these results. As macroeconomic uncertainty extends through this year, we will continue working alongside our clients to develop and deploy essential workplace solutions and services, positioning Xerox for long-term growth in profitability.”
Equipment sales revenue of $554 million (€509 million) in fourth quarter 2022 increased 44.3% as compared to the prior year. Xerox explained that the equipment sales revenue growth was driven by better availability of product across all categories and regions, particularly for higher margin A3 devices in the Americas region. The sequential growth in equipment sales revenue mirrored the decline in equipment backlog, revealing strong order activity amid an uncertain macroeconomic backdrop.
Equipment sales revenue outpaced installations this quarter. Installation growth was strongest for mid-range products and colour A4 multifunction machines. Post-sale revenue declined 0.4% year-over-year.
Total Revenue is expected to be flat to down low-single-digits in 2023.
