Pitney Bowes 2023 Annual Letter
Dear Shareholders,
It has been a year of change and progress at Pitney Bowes. Much like we have throughout our history, we are once again evolving our business and operating philosophy to meet clients’ needs and pursue enhanced value for our shareholders. When I was named Interim Chief Executive Officer in October 2023, I got off to a quick start. I spent the end of last year gathering feedback from investors and core stakeholders to bring focus to our business and seize the opportunity to build on our key assets in mailing and shipping. We made good progress in the final part of the year by identifying efficiencies, reducing costs, and then realizing the tangible benefits through segment and overall profitability.
In Q4, we also began taking actions to simplify our corporate structure and lean into Pitney Bowes long-term strengths. We restructured the senior management team to better support our go-forward goals and rightsized our workforce by identifying nearly 1,000 roles that can be phased out as we make the necessary changes to be successful going forward. We made these initial adjustments to reduce complexity in the organization and to better position us to leverage core assets going forward. For example, our move of the digital shipping API business from Global Ecommerce to SendTech allows us to optimize the team expertise, product development investment and go-to-market efforts. Overall, we grew adjusted EBIT $14 million year-over-year in the quarter.
Our performance in 2023
Our financial results for full-year 2023 reflect the underlying strengths we have built as Pitney Bowes continues to transform.
Full 2023 Financial Results
- Revenue at $3.3 billion
- GAAP EPS was a loss of $2.20 and Adjusted EPS was $0.04
- GAAP EPS includes a loss of $1.91 for non-cash goodwill impairment charges related to the Global Ecommerce segment and $0.26 for restructuring charges
- GAAP cash from operating activities was $79 million and Free Cash Flow was $22 million
- Total debt reduced by $59 million and refinanced our 2024 Notes
Our priorities going forward
Pitney Bowes has started 2024 with positive momentum. I have a responsibility to build on that momentum and shape our future, and I understand the challenges as well as the opportunities that we have in front of us. We will continue to operate with intensity and prioritize actions that support increased operational discipline and, importantly, accelerate our targeted growth path in the shipping market.
To bring our businesses along to their next phases of evolution, Pitney Bowes will continue to rethink how it operates. At the executive level on down, we have four over-arching priorities for our success now and into the future.
- Streamline the organization and reduce cost
- Drive more accountability for results
- Ensure more disciplined capital allocation and a strengthened balance sheet
- Leverage our technology and innovation capabilities in shipping to create client value, which can translate to profitable growth over the long term
These four priorities are focusing our remarkable people on what we must do today to bring the future we are envisioning into being.
Harnessing the power of our team
Through all the changes in our business, one thing has remained constant – the strength of our talent. Our people have always embraced a shared culture of excellence, a focus on innovation, and a commitment to our clients as well as our communities and the world around us. It is what will power us forward.
The next phase of our evolution is not easy and will take relentless hard work. We have demonstrated early wins. I am excited about our future and doing the right things to get us there. Throughout this journey, we remain focused on the value we deliver—to our clients, to our people, to society and, most importantly, to our investors who make this all possible.
Thank you for your continued investment in Pitney Bowes.
Jason Dies
Interim Chief Executive Officer
