Pitney-Bowes (PBI) Provides Additional Detail on Financial Outlook

Pitney Bowes Inc. (NYSE: PBI), a technology-driven company that provides SaaS shipping solutions, mailing innovation, and financial services to clients around the world, today provided supplemental detail around guidance for the fourth quarter of 2024, long-term revenue considerations, and debt reduction and refinancing efforts.

Q4 2024 Revenue Outlook Detail

The Company announced updated guidance on November 7, 2024, including a full-year revenue decline in a low-single-digit range and a full-year Adjusted EBIT increase to $355 million to $360 million. For additional clarity, the Company’s revenue outlook for the fourth quarter of fiscal year 2024 is in the range of $505 million to $515 million. The Company reported comparable revenue for the fourth quarter of fiscal year 2023 of $526 million.

Because of the Global Ecommerce exit process, a majority of that segment is now reported as discontinued operations in the Company’s Condensed Consolidated Financial Statements. Prior periods have been recast to conform to the current period’s presentation. The remaining portion of the Global Ecommerce segment that did not qualify for discontinued operations treatment is now reported in an "Other" category. This category comprises (a) a profitable continuing operation which generated third quarter 2024 revenue of approximately $18.7 million and (b) unprofitable operations that the Company is currently exiting, which collectively contributed $1.6 million to third quarter 2024 revenue.

Long-Term Revenue Considerations

Although the Company has not provided guidance for fiscal year 2025, it disclosed on November 7, 2024 that it expects SendTech to continue experiencing minor revenue softness in the coming quarters, largely in-line with the softness experienced in the third quarter of 2024, due to factors that include the required product migration to new IMI technology and a reduction in equipment sales. The Company expects SendTech’s revenue to flatten out by the start of fiscal year 2026, and it has identified long-term opportunities for enterprise-wide revenue growth due to SendTech’s expansion in the ecommerce shipping category and Presort’s ability to increase roll-up acquisitions.

Debt Reduction and Refinancing Progress

The Company also disclosed on November 7, 2024 that it is evaluating options for reducing and refinancing debt. Through focusing on paying off and refinancing high-cost debt, the Company expects to reduce interest payments and free up capital for other value-enhancing initiatives. Leadership expects to have an update in the near term on this item.

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The Company has also made available on its investor relations website a detailed file showing prior financials on a recast basis adjusted for the GEC exit.

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