PBI - Earnings call transcript Q1 2024

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Operator

Good morning, and welcome to the Pitney Bowes First Quarter 2024 Earnings Conference Call. [Operator Instructions] Today's call is also being recorded.

If you have any objections, please disconnect your lines at this time. I would now like to introduce participants on today's conference call; Mr. Jason Dies, Interim Chief Executive Officer; Mr. John Witek, Interim Chief Financial Officer; and Mr. Investor Global President, Vice Landler, Relations Strategy. and Philip Mr. call safe harbor will now a the begin Landler overview. with

Philip Landler

in joining morning. Good I'm this statements for Global future business Phil Investor are and morning. Included about us financial our President, Relations Landler, and Thank Strategy. today's forward-looking presentation performance. Vice you

our uncertainties uncertainties earnings could our Investor about information our Relations. projections. actual involve Form by can found and to our results XXXX and in be statements clicking release, report at website SEC Forward-looking reports that be annual risks press More with these and on www.pb.com filed on cause that and materially from XX-K risks different located are other the

statements as developments. result information in or new a keep we undertake mind, any forward-looking Please of not do obligation update to

are For reconciliations can you in the tables our non-GAAP presentation release attached GAAP in the find our in or measures that to included release. measures discussed materials, to appropriate the press press

slide a a provided also presentation historical have spreadsheet segment on website. and We our information with

revenue prepared an as constant such a basis. in and currency our on be items comparisons EBITDA, cash basis. will flow Other adjusted EPS free on EBIT, Finally, remarks,

like Interim over the turn Jason Dies. CEO, And call I'd now to to

Jason Dies

overview to your changes thank our joining and addressing call Board our the you Bowes. I'd Directors results. Good of morning, like start QX recent and the of ongoing providing call for interest and investment to Pitney first high-level a in today the before by

our cash high-margin value of achieving Board to the increasing simplifying and structure, our As renewing the efforts you many strategic priorities year, of efficiencies, segments. focus focused generating on last endorsed know, our the maximize in on GEC corporate

appropriate to out directors us. working Board the and on and to time I of the result progress to accelerate in management the with transformation. forward mission, This from an annual will on for ahead path and phase in them of key felt several the that this confidence Board. meeting the team the is a of team year's clarity more retire Given rest the ahead our this look to streamlined next priorities Pitney Bowes' opportunities carry

thank experiences transformation. our have leadership, during counsel for their for as been insights skills, company of Their this reposition invaluable to retiring exciting Board like and period guidance an the also I'd members future. and we

results million moving growing quarter, Now, accountability priorities revenue. on changes and in a prior our when across over parts than past more The is $XX reflect relatively these strengthened of we've implementing by with evident to performance on This multiple months. changes flat been first the EBIT compared the our enterprise-wide quarter in the from represents year. past that to of few business impact improvement the focus, XX%

also continued to on our restructuring efforts. We cost and make reduction progress

results the on growth SendTech flow to we see in Presort by to Services and additional EBIT program from momentum the for EBIT the a cost with result, areas. At cost the strong increase million million execution a and $XX to savings exceed capacity opportunities announced strong to Presort maintaining build and segment this disciplined expect create year last now revenue level, high-margin $XX As recorded investment we target. focus record and We on quarter. margins. achieved cash expanded in

we excellent increased growth see shipping. our client SendTech had EBIT, long-term will solid accelerating on and capabilities in expanding where to this potential. value growth capitalize to resources create investments shift with in segment. capabilities in our continue continue will meaningful profitable SendTech to We operational another and shipping margins towards support quarter

value we the The since and continue accelerate Ecommerce expense, steps results, to maximize domestic and the segment. improve to for best performance Global progress XX% operating parcel timeframe. in pre-COVID necessary to take delivering this grew volumes reduced continues as challenging market team a the our while efforts network

ahead strategic organization and to increase improve operational Looking continue accountability, look execution. ways we priorities, at further streamline the our into XXXX and to

the firm additional help outside us to us identify simplify create reduce an on couple will These increase these build ways seen complement to both engaged efforts, quarters. we continue To of will you've have business the cost efficiency. and remove opportunities. capacity to implement productivity to We over and and for further capitalize to last improvements on savings growth that complexity recently the attractive

footprint Our to one targeted particularly clients. significant opportunities, growth can in our assets of shipping represents these where in verticals, for drive SendTech play enterprise we leverage meaningful and

shipping in and in leveraging relationships national invest with network are Services, our office extensive to Similarly, specialized footprint, differentiated targeted areas. can existing vertical solutions value. excellence growth the our transportation we We and develop Presort we'll continue drive to in operational and segment, leverage

In our closing, and against objectives. progress making significant strategic financial we're

a XX% As with in QX have that on in EBIT and the grew built reminder, growth XX% another first quarter. we

for opportunities continued progress results we've give build more significant half move detail. delivering next the phase in through the to of see as on that look the quarter a of and of great our dedication it year. The over to I'd in their John hard discuss like our in first to months X work turn the now, over to we opportunities our in our teams to also made transformation. And strong we all QX and I'd their like We past the second confidence forward, momentum ahead thank me as especially future.

John Witek

Thanks, good morning, Jason, and everyone.

$XXX for and at by segments. million was strong $X.XX a driven improvement and improved versus performance Jason versus especially revenue the tax quarter, year, reducing in the reduction solid cost we As SendTech as prior expense. of flat are the with drove past EBIT actions down up $XX higher year-over-year. the by first actions in to interest of highlighted, EBIT million quarter showing year significant loss the costs. X% bottom results, up improving in prior and performance financial These X line, over each EBIT our on Consolidated quarter, offset was $XX operational from execution across quarters was with progress XX% and million Presort. EPS

was cash in an due of $XX receivables tax prior related improvement to lower primarily several rate adjustments. flow finance lower medical in state use was the our due tax million, adjustments items, unfavorable foreign a to million quarter, taxation and valuation effective to Free operations including U.S. pension the of was allowance Our $XX payments. year versus and and CapEx, of changes which retiree high

Before I talk to I about results, want enterprise efforts. segment reduction to get our cost our

assuming was area CFO Jason XXXX. As key mentioned, interim prior an role. our this in is this directly priorities one of I to oversaw This

plan now, we million $XX $XX progress and to continued on high million of our end to the We the in restructuring the to exceed quarter, expect range.

offering, moved to GEC delivery leverage value. capabilities January previously services and effective to in to our we to which Turning was the our digital segments, XXXX, SendTech better client go-to-market X, create our

to this change. results found can segment Relations conform within We have prior recast Investor be Recast the Financial Reporting results our period website. with quarterly section financial of

and base year-over-year, from quarter, due Revenue our tempered XX% base; impacted Shipping of revenue. revenue product primarily and and basis of our Revenue million, grew decline declined of a services strong from quarter product equipment recast overall XX% end revenue. as year-over-year, a lower One, installed solid factors. results. to in-period two, product from $XXX strong our total Lower migration. Also, overall than including in Mailing the secular an comprises current couple grew execution than revenue base shipping the building meter primarily growth related momentum last the in rates X% its negatively offerings, grew another our declined cost growth. X% expected life decrease to near related as digital reductions in-period came phase more $XXX more professional mix million from a offset X% in with continued SaaS SendTech of recurring in shipping. to while EBIT extensions of subscriptions from subscriptions. with we cancellation X% a and revenue. Growth uptick lease the placements segment on now tail new and cycle

lower shift sales, term. this a offset financing revenue higher partially As by reminder, margin the lease spread equipment in over results

we our migration We base on total new the year half we IMI of of and the the lines our XX% technology. our installed quarter, with migrated increase the the total end new to about the second of expect these headwinds quarter near of X% ended to as in process. In product the base

reminder, by further along required of lines in to our end compliant are and their and process the are be product IMI As migration a mid-volume this low- year.

to Our high-volume XXXX products until early be are and stages compliant. have in the

services we benefited signed as flat, prior deals $X in-period quarter, billion revenue in the SendTech, of were financial XXXX $X.X and finance of and This about relatively net of million portion X from year. of versus the quarter. $X million remained the declining a Inside large quarter implemented this receivables fourth result

that initiative participating and overall. to receivables, of will continue also the our our for where select captive good in make progress is program the previously financing an lease We announced bank be enterprise bank the on

profit of gross Shifting flat to XX%, and streams profitability, as mix reduction million to supply from we streams. business year-over-year. in result shipping revenue grew initiatives transportation $X higher-margin was which and revenue chain X%, cost of a we or a our decline, continue Gross primarily Financing resulted costs. despite in offerings. higher had expenses grew our drove and service SendTech revenue subscription as SaaS to margins digital volume-based improvements revenue operating revenue decline from benefit in Simplification X% XXXX, a segment favorable lower made and product

EBIT. quarter the and offering. achieved piece continued had highest drove Next, million, excellent quality is quarterly product segment's moving to year-over-year. revenue X% the and Revenue $XXX testament Higher a Presort Presort The was to great its our of Services. revenue up high another growth. per ever performance

Sorted volume pieces. X.X to declined X% billion

with drove benefit, would in Higher EBIT from million million the a point achieved EBIT in quarter. along Even in booked still margin. did per $X EBIT a a a benefit expansion basis prior XXX improvement unit both in in and without adjustment revenue labor revenue Year-over-year to Turning X% EBIT. costs, transportation Presort XX% in $XX and period was piece, improvement revenue this margins. one-time quarter. improvement nearly record this have and productivity

fed an bring at hour in XX automation meaningful labor XX continue productivity Investments to the step-ups improving in productivity. all-time for reaching high bar sites We continue of our raise us. per labor with to equipment pieces on and

realizing across are analytics through in and We better efficiencies investments standardization labor network. our also process

our outsourced contract lanes. On to continue and both our fleet optimize the transportation in-sourced side, we

and Global million, was to with declining domestic cross-border X% revenue XX%. Segment parcel Turning Ecommerce. growing $XXX

quarter. than EBITDA $XX of was EBIT cross-border expenses. decline headwind lower prior the and were which a and operating lap gross XX% $X next offset million were year. will in partially respectively, million million and loss a $XX driven our $X reduction and by in million, Year-over-year by profit We worse

two, we levels parcel Domestic piece. piece; continued per to the growth; Turning parcel continue domestic trends: add X cost and to Service is in a processed space and to very parcels One, per in attract better see revenue We million lower competitive, specifically, costs. volume us XX three, quarter, year. which XX% market. fixed volume volumes growth offset prior remain the soft over helping

with performed market processed has put delivered declined network continues than and volume during XX% of Our Revenue return it downward X within as best to days. overall pressure quarter on piece more our XX% X X than the volume price. days in the per less to consistently overcapacity

Our fewer client and volume piece weight shifts and with revenue with lighter delivery consistent product mix and shifted towards market lower are per returns. trends. Both also larger shorter zone

Moving to costs.

continue from prior steady technology progress efficiency in make and investments driving to We systems. in

than quarter, revenue leverage certain transportation of from declined Transportation regional of the significantly results. utilization the rollout by yielded and our higher Unit as productivity and volumes. improved model improvements unit lower increased in costs. lanes per costs offset more driven improvements in-sourcing piece XX%, However, in

first labor also versus in volumes. fixed from our improved Total last network seeing are prior unit year of made year-over-year productivity, year. higher and from fixed We the Despite which half year-over-year. investments in automation higher XX% costs, absolute higher improved better were costs costs

segments, To front the We on the good in reduction half deliver the and was of improvement. made cost significant a a our of in especially opportunities bottom-line first progress up, each We our exited initiatives are quarter us, in helped trajectory year. wrap our of quarter strong. second this about and optimistic

for line questions. you, With please and that, operator, the thank open

Operator

the [Operator of from Company. line first comes question Sidoti & Your Anthony Instructions] from Lebiedzinski

Anthony Lebiedzinski

see improvement and nice EBIT to the Presort Presort, certainly especially. as So SendTech, far in as

in there. I So guess start as guys some acquisitions could you also far on that I the in segment. have done have side, done well as Presort segment know and that maybe we

this wondering Just sustain whether your acquisitions to looking strong ability additional your confidence you're perhaps Presort. and performance what's for and level in

Jason Dies

is This Jason. sure. that. Yes, Anthony, I'll take

a The tremendous appreciate out and bottom-line I past I as years, quarter. done few has Presort. the on topline runway. That think, years. So of I've on and plenty they've had a job they've still certainly That previous team comments a the But few said both had calls, call of fantastic fantastic driving team, growth.

the the additional the and market, the tremendous think you a from we've dynamics about If about done volumes mail. in of you market headwinds despite think first-class bringing job in overall

have as We traditionally acquisition out, around that to in to opportunities taking outsource also additional share now also additional both but look additional offerings as well, that have growth but opportunities. in before, by not who from from who additional mail, opportunities, We've space focused things you clients additional in the certainly marketing on in pull that only past. volumes point like in-sourced work bringing it, from

both And acquisitions XX the probably drive team number deliver volumes fed has I had out again, is think years. able hour, the XX% which hours. I'd can continued been I head in were think in were the opportunity line, certainly network. that up the pieces because continue look growth, about productivity XX is focuses We I labor off we at. the team on. think key call we that, been on in done labor to the They to we metrics that we've productivity has XX that, but that It's out XX one And mentioned improved XXX,XXX of top able top bottom-line on across comments. both quarter, about sites something to outstanding. John secondly, the his take topline per in that and my past take the just of in have space to to we

So if into because metrics we can volumes very going they kind we good additional you about accretive on business, be feel it, in trying very be are of look the bring all that in that very and at to aggressive quickly. to

Anthony Lebiedzinski

that that about and of sounded, and optimistic not for whether And it. more optimism the I the both Got about driving quarter? you the I second for there is just year. being Jason, just square to half John guess, take then, optimistic or less opportunity Are you, away. read -- wanted And that What's something into term? to second to the you to near

Jason Dies

half. we confidence don't it on year. the I think majorly to read should you progress second I quarter the throughout versus as see Look, second in Yes. the continue certainly our opportunities

I cost of that of take and and a restructuring, think this bake look were is at that's kind I the to next round making of to bit comment time John as improvements we going in. little

that will now, in the the second So start you'll see work as of improvements doing we're in half. to that the more half you than first

you point to I think, shipping look of And see the in half back they continue then as view, I year I as SendTech think segment increase. I from that their think a certainly, will business. opportunity of the And will grow has think benefit business Presort

to is we're a cost take statement on. necessarily that, third going that this on not the around takeout particularly a to it's of time. going party working next That round the bit with So of timing the but be in little

comment. So too read into much, fair a I it's but wouldn't

Anthony Lebiedzinski

Okay. Got you.

terms I the still That quarter, know cross-border business is GEC, more last to Board in letter a days shareholder money. Directors admittedly headwinds. that of the believe, couple ago. was I you're then There And lost lapping sent said, being this the Okay. of of a the

this term, a and wondering how this Just about that. have guys And response segment? do longer think we near if term to you

Jason Dies

can. I've best Yes. the given a we of to focused I've Look, I as answer be in is we maximizing mean What on are it's that value said tremendously not different going past. business certainly than the

months really think past a that over of business few few good team the has years. and over with I past the job the value done creating

business. color on of a in The bit kind and that back give about market there's facing. a I'll overcapacity. just at kind we're it. Clearly, think of of step on of that going You clearly little what's couple headwinds is

heard our of that multiple competitors. You from

look the You that. always said, if heard we tremendous as doing of that on very as business, That's important, pressure That being good talked and about they X about we're kind factors we've it the piece. talked volumes. from per you about talk USPS volumes that for their rate always on creating at

We and grow by of provide. can clients a provide a bring into continue volumes which we to recognition the of our network, and the clients we value value testament clients is to

on performance. is Secondly cost improving

again, would make We banner the strides that has X up quarters. that continue team or taken to the really there. over I say And the on last X

one improvement. And is This on some per just just out quarter, which the piece a price really third we said, the that's market, not to solid take I going the variable is then with tough the which which and to and is market-wide, think John kind is rate us, XX% were down mentioned, and OpEx, I point the clearly stable a stabilize. at in time of to

an do That the and doing perspective, long-term from look we're at said, for you we we're short-term that things what doing if to internal need success. both

We are to into driving network cover volumes our fixed costs. more the

We piece, are make that improvement better on in if returns per a that piece. And you'll you comes like we so continuing forward mix focus more generally working go our see rate on and on right, the reductions, per year. throughout things cost about rate which think we're effective, our to focusing more as at to business,

on to other forward. value control the we to we're Externally, make the at make opportunities better. going themselves we we're in can and what the this maximize business that things looking internally, that So like of sure focused market present business partnerships

Anthony Lebiedzinski

Got guess it then on I to John. last maybe it. pass others. And before I Yes. question for

the we here How balance the quarter. the do of the for rate was rate in tax first the think tax about So year? higher

John Witek

Yes.

quarter of the -- income, and was a due the some unfavorable disallowances was the The deductions. permanent tax really the the couple for between tax on on tax to really tax-only and U.S. thanks really foreign tax in mix foreign income U.S. things, of permanent affected rate items, So question. by

take there's look what we at So aligned an to And now. better that. would expect a opportunity that's right

Operator

[Operator from we'll Matt Instructions] Baird. line Next, go of Swope to the

Matthew Swope

Jason, CFO is for all now We've an as have you've on but on done fantastic time. well. with remind impending And and gone feels the a us Board a job -- in little and changes vote. in Can long that the air like it's permanent gone interim interim role, and about up the CEO got positions? on an Board vote management It the in then you you something when maybe more could the more a next comfortable both Board side? is feel with and terms CFO the of help here, it's the us

Jason Dies

I'll Yes, parts. X in take that

So we do X. have shareholder meeting our on annual May Monday,

changes new the So this new undergone be Board mean, the I change is had the that a the before going doubt back time helping effective has Board. past The through the mandate we they've year Even will tell significant I year, create the the we forward. Look, of right? iteration that. would take I proxy and the effect. strategic over Board see to say constitution will to there's about when at or what over Board that. you no has been ago, very direction working us been

back against look you need strategic how months, X progress done we If there's our to from been on clarity we need to the X what to get Board the objectives. past over absolute and

to with PB Board forward. Board there's been personally kind priorities And we we progress what business from go have of and think what hesitation need So need on all. to how don't perspective, a for we the issue the don't dynamics I any as at are the I any do,

for and them able Board effectively coming of new look level them despite them the a tremendous many have working of do sure progress that stability off the X, to a So May there's as comfort and and respect be to I we'll and think board. I been forward on Board members know so from together to work goals. around been with bit, for have our with

today And been we're in CEO that have same search, that in for the had to the a we of obviously, while. On spot no we've on updates, announce. kind

give of execute internal say are and on me mandate quarter over the We -- that decisions couple want to I as strategic continues we this the set this of the to before. me that were past additional quarter about the the role. that on the I Board external place as Board a candidates the similar on priorities I for very point make talked will considering to I've soup made in And is with a business quarters. we've supported that nuts they've to progressed active last

the better do over over to So as we've And especially months, made of we we improving base. the about I and very a forward execution on cost remain what look lot our last year. optimistic continue of progress X second half the driving

Matthew Swope

get And next little some to Jason. would helpful, May shareholder a of meeting could the that assume all more right out post happen those? it something be That's before week, is permanent on to

Jason Dies

to may going or may that not do. I'm preannounce anything Board not the Look, or prejudge

that You and a can we understand that the place time to person for around make, the that taking in Bowes Pitney effort for sure, take make and CEO, decisions making are the Board to and a can right decision forward. have sure particular, in need important I most respect a CFO, they the them

Matthew Swope

both As guys numbers both on decline highlight meters mentioned in both under you base you in in fair good just both in secular And sort and think of in businesses decline pressure. do SendTech volumes -- average volumes are the how enough. we But really postage of meter an in model comments, the continued Presort, the your That's those you forward, and in things, in both. SendTech then and in obviously, Can some in about Presort? then Presort? reduction secular

Jason Dies

any in we've take what headwinds the in them Yes. not from the changed X at Look, would a one businesses seen. And time. market of say either business, have I substantively I'll

of been first-class pretty good to head, think it's memory is, a in X% few grow decline past the on the again, know, Presort couple we've quarters, And revenue, market So you steady. top in serves. The past letters, as as you of the able the Off that been is news if decline about years to been I've Presort not but well X% my in little just as continue range countercyclical. business. it's the to said,

down, As our to volumes from parties those go goes volumes other opportunity up. first-class in-source

so to do those continue we've as forward bring continue do to going do Presort a it has to ahead growth. and we productive the demonstrated, accretive opportunity way like volumes make to very volumes drives quickly of can And I very and And both that that it that, in. can topline bottom-line in

new couple past on I is in years. now down On over the to no SendTech the again, the done our say portfolio, What from we've side, of will the One that the either. the mail fronts of is change a line. trajectory with on on side X way top the SendTech refreshed bottom is job product the all which line the of tremendous

been to years, to to deliver bringing I'll ways just value into by into value market point. on thing clients you to is new finding gives couple the that. keep past interesting the of with products. The tremendous the adjacent on We shipping, able going us key products space we've make been And outrun particularly new And which able that's Over on headwinds forward. market. that's the just the those remind an SendTech we've shift opportunity and

shipping we have a reputation think its in that allowed to move Pitney about very space that's perspective, aggressively. space, has and office office space and mailing bread Bowes butter enterprise you into and brand from traditionally If relationships the that where had us

XX%. we at space, if side revenue we to SaaS XX% about grew quarter. XXX first think our the our shipping you think And the do companies, able actually been this past grew revenue on SaaS our the about you covers large If look we've business in Fortune what clients, SaaS so enterprise in quarter, under

a shipping $XXX the of grow going X It's by to that revenue able offsetting begin continue that products. part an mailing parts. One is demonstrated we're of that natural So we can, shipping growth new go to $XXX business have our going we've a is that and the decline and been we've you best do year to tremendous portfolio somewhere that story space, as as growing value really into as this about new we forward stem to as and think you Mailing business, going second, is job adjacent of forward. north the to as that portfolio. decline part million, to introducing of now be leverage to success And million in

Matthew Swope

a On that revenue past GEC, for things Can That's you talked the one of talk about the have guys now? per then great. in about that weight being me. you down And driving where per piece and just last sits the piece. one trend lower

Jason Dies

Yes. I'm some think necessarily volumes hole. get not of But the going parsing mean types into that's are to correct. I Look, I to because down degree, you going a rabbit

I places, things If tend a the at impacts which affected Alibaba, in come per much increased types like has market at a those whole weight, you think from hard as by in market volumes per rate lower now piece the look have been of perspective. market the whole, business. That a Asia as to that's this about the tell There's prosecute always you in mix opportunities as coming to a you there. you go you from as will improvements right out and China very is Temu, definitely particular. Those What is volumes go piece. said, try the to after there's rate overcapacity -- that always with opportunities

parcel pressure rate continue until per USPS that piece. million to see going that about on I I a a across a begins country. that there's XX entire day think bit, number said And normalize overcapacity think to little a you're to had the the

Operator

question Research. comes Will of the Your Brunemann next Northcoast from from line

Will Brunemann

stabilize? Ecommerce. have environment are in side So I for on that was what Global And going follow-up. seeing seeing to And X you the ask you competition pricing current about guys then I you're

Jason Dies

times. would in rates tell pricing this the about that competition win will is to quarters. past I Look, again, market it robust. we've about say I they've talked our a stems be overcapacity Yes. few very And piece the tend remains from what you, few over what been

into competing been there, to resonating. fixed new that across think it everyone network the new a fact bring to we for fighting have That try to it think said, client I and put proposition that's the their in volumes out value at volumes costs. dogfight able the effectively. And constantly offset if clients we in that fact network seeks a the is you will board So demonstrates and their fill we've that that as GEC, look you're we're packages for and

Will Brunemann

Awesome.

then side, seeing term? margin And quarter I think well the wanted Presort the that are answers margins performed guys my you really guys, to long you ask this question. sustainable so also business I as on those

Jason Dies

not think no, EBIT mean We've that's demonstrated any those we that the ability But to in margin in that do the it you look is It business Yes. improvements have I'm from improvement I first will Look, has would we think continue has say labor I and to pressures their to That -- we're continue that And the opportunity has overperform forward. and in saw think that a the the business, been over team headwinds. said, like ability to It fair just I way I has drive it business inflationary headwinds. this, suppliers. against to continue Presort EBIT very say question. time. you improvement overperforming quarter. headwinds. that the to that can I going expect we as sure at and at pace rate drive effective

Operator

the CreditSights. Your from line from Sakon Peter comes next question of

Peter Sakon

about similar improvements the Can to you we pleased items largest improvement what should are? expect And talk year? the the throughout was of rest in corporate I the see overhead.

Jason Dies

out I've the through we effective, the to what going announced tell corporate not over have and going unit that on get speed to it our we restructuring that, business. we're on we our is things more about continue costs the more us on to quarters, second were cut driving the bring for into a successful focus that is and allocation -- take we as talk effective about specific that I both one they continue leaders last areas that that and for to make of We my previous very we We're said I talked overhead. last to pay goal go out more to the did in the this want cost they to get What and as find year. are and they said Yes. to did is think business, wherever out program efficient, it going again, simplify is will out. we half control said we we're is, to My I business, of goal forma this and John more to quarter, our take of pro is this, say you I Look, we cost the business business. corporate I'm believe, to year. We that what so on that. in on could cost overperforming that of going take

business X,XXX want are in previously. as we year we've corporate got the through of perspective, of I again, heads and opportunity to as party that delivering that the we're clients cost out from of take You value mentioned John for the and But think chunks significant announced shareholders about well. unit the who for think a look important. to can for third that's go we a over leaders rest based I and to they going see that what program of business on as continue be arbiters delivering the in, the to out

John Witek

it, not Yes. It's do our internal you for And value think cost it, about what complement clients just how to do, and what both on about do out. taking just deliver that, Jason, world. the we the it it's for we we we redefining you as said I what around touched

Jason Dies

business out. a why and into will how and the SaaS. digital the needs And scale, Yes. be I to take if different, business forward, about leaders going are will Look, and the think thinking business you of think about you different that very so certainly, that's the I right? about we size If be integral say moving to we unit want cost

Peter Sakon

quarter shut And that off? throughout SendTech, if elaborate? Or you show noncompliant rest first the of Is year? later of can the folks, will talk Can in something that about is it year tending the you it this something to the be you're expecting to you like in headwinds will, up we'll XXXX? the see

Jason Dies

Yes.

good a Peter. that's question, So

pieces low It the public year. middle every of range top from primarily. take that move the a to forced So the to line everyone industry time. product just that's on really have very standard that to That's additional it. mandated and a meters step some this a of has is migration there has other back been We've IMI. called let remind and that USPS the us client security for me The you a mailing the in for has set migrate the as just clients end technology IBI by

from who overall migrate that from to it's That's our through in before to first IBI an they perspective, I category. be think about migrated up clients have portfolio of XX% to about XX% quarter. XXXX we're up off. Overall, have to

the look of to the middle on line, bottom of up XX%, under the If about the which the is quarter-over-quarter. we're line, points up you covers, X

very to progress clients new making on good are we moving that So technology.

very where the that we look forced the technology. very with to of not made see bottom get that clients line, but quarters what I'm of new tend time migrated will a number do cancellation rate end to we've we're population the a I the migration off do be, X you rates. But are do us to additional force been progress. the think to that get if I clear and to going We reach those position. that At the we have of to good at cancellation great I of think already of of any to go, this XX% as cut day, machines speculate in out will increased

the how And plays we're that going have X over next out to quarters. see so to

Peter Sakon

Difficulty] revenue. on Follow-up [Technical

the What What XX% quarter, referring it [indiscernible]? number said mentioned I the Difficulty] [indiscernible]. is You grew and [Technical think to? that is that you're in you

Jason Dies

Peter, you broke up.

your said revenue think the our in of space and I I it, let kind SaaS is just XX%. restate XX% in grew enterprise question, me grew SendTech revenue our SaaS

comprises think question was I what that? your

Peter Sakon

amount. What No. is My amount? dollar the the question was

Jason Dies

that. sorry, more one I'm time. didn't it I Say get

Peter Sakon

to for get I'm dollar to is context feel trying $XX to $XX is I impact to what a get that the trying million? your up as the better amount? million, financials. said this I'm is growing XX%

Jason Dies

X% revenue say about if SaaS in what for And that on revenue, not of grew component look it the is revenue amounts Yes. specific going of dollar shipping you quarter. shipping Listen, to I into us. XX% get will the makes overall at the shipping up total I'm our products.

Operator

And at Dies this time, I'd there the like Mr. additional turn are back for questions. no any to now call remarks. to further

Jason Dies

Thank Greg. appreciate Yes. it. you, I

strategic objectives. are So you've significant very with very against Again, call financial close I'm this. saying think just the that happy making over X we our progress quarters. the I the look, seen by and I'll performance past

against both and think X progress business I both cost data real now -- priorities. we our have points of of

forward. for First quarter I to look start as think, a was, us year the good we

see next As said, John the throughout to the remainder we look both against forward we the and we're forward talking as to look you that progress all I strength priorities. continued I about of year, transformation continued making call on our and

joining. you thank So very much for

Operator

conference that and and your Ladies for participation TeleConference. you for Thank gentlemen, does for AT&T conclude your today. using

disconnect. now may You

Pitney Bowes (PBI) 2 May 242024 Q1 Earnings call transcript