Xerox Holdings(XRX)2025-01-28 11:35Financial Performance - Q4 2024 revenue was 502 million and a gross margin of 31.1%[5] - Full-year 2024 revenue totaled 1.32 billion, or 49 million, or 56 million, or 1.540 billion, a decline of 8.7% year-over-year[9] - Full-year 2024 adjusted operating income was 1,613 million, a decrease of 8.6% from 24 million, compared to a net loss of 1,344 million, compared to a comprehensive loss of 1,058 million for the year 2024[18] - Fourth quarter 2024 reported net loss was 8.17, primarily due to a 6.221 billion, a decrease of 9.6% compared to 104 million, with an adjusted operating margin of 6.4%[1] - Adjusted gross profit for Q4 2024 was 1.216 billion in pre-tax losses for the full year 2024, resulting in an effective tax rate of -8.6%[2] Cash Flow and Projections - Free cash flow for 2025 is projected to be between 400 million[12] - Q4 2024 operating cash flow was 38 million year-over-year[6] - Free cash flow for Q4 2024 was 379 million in Q4 2023[1] - The company expects FY 2025 adjusted operating income to be approximately 6.350 billion[1] - FY 2025 guidance includes an adjusted operating margin of at least 5.0%[1] - The company anticipates adjusted operating income margin to be at least 5.0% in 2025, reflecting incremental gross cost savings[25] Acquisitions and Strategic Initiatives - The pending acquisition of Lexmark is expected to close in the second half of 2025, which is not included in the 2025 guidance[11] - The company closed the acquisition of ITsavvy and plans to acquire Lexmark, aiming to enhance core operations and achieve revenue stability[24] - The company plans to continue focusing on strategic actions and initiatives to drive future growth and operational efficiency[51] Operational Metrics - Equipment sales decreased by 14.2% to 1.2 billion year-over-year[28] - Total equipment installations increased by approximately 19.0% year-over-year, driven by growth in entry-level and mid-range equipment[24] - The decline in post-sale revenue was attributed to lower managed print service revenue and intentional reductions in non-strategic revenue[24] Expenses and Liabilities - Research, development, and engineering expenses for the year 2024 were 229 million in 2023[18] - Total assets decreased to 10,008 million a year earlier[22] - Total liabilities decreased to 7,236 million a year earlier[22] - The company incurred restructuring and related costs of 167 million[61] Shareholder Information - Basic loss per share for Q4 2024 was (0.20), compared to 0.25 for both Q4 2024 and Q4 2023, with an annual total of $1.00 for both years[76] Segment Information - Xerox operates through two reportable segments: Print and Other, and Xerox Financial Services (XFS), which are aligned with the company's business management strategy[78] - The Print and Other segment includes sales of document systems, supplies, and managed services, catering to a diverse customer base from small businesses to large enterprises[79] - The XFS segment provides global leasing solutions, primarily generating revenue from financing income on sales-type leases and leasing fees[80] - The product offerings in the Print segment are categorized into Entry, Mid-Range, and High-End devices, targeting different market needs[81] Non-GAAP Measures and Adjustments - The company highlighted the importance of non-GAAP measures to better understand business trends and performance[48] - Transaction and related costs associated with M&A activities were noted as significant, impacting overall financial results[54] - The impact of foreign currency translation was adjusted to provide a clearer view of revenue trends, referred to as "constant currency"[58]