Pitney Bowes Reports $2.03 Billion Revenue, Significant Turnaround in Net Income for Fiscal Year 2024

Pitney Bowes Inc. reported a total revenue of $2.03 billion for the fiscal year ending December 31, 2024, a decrease of 3% from $2.08 billion in 2023. The company's loss from continuing operations before income taxes was $52.3 million, compared to a loss of $43.9 million in the previous year. However, the company saw a significant turnaround in net income from continuing operations, which reached $102.5 million, compared to a loss of $61.3 million in 2023. The overall net loss for the year was $203.6 million, a 47% improvement from the $385.6 million loss reported in 2023.

The company underwent significant strategic changes during the year, including the wind-down of its Global Ecommerce segment, which was largely completed by the end of 2024. This restructuring involved the sale of 81% of the voting interests in DRF Logistics, LLC, which owned a majority of the segment's net assets. Following this transaction, the Ecommerce Debtors filed for Chapter 11 bankruptcy, leading to a reclassification of certain revenues and expenses as discontinued operations. The restructuring resulted in a loss of $306.1 million from discontinued operations, slightly less than the $324.4 million loss in 2023.

Operationally, Pitney Bowes reported a decline in customer engagement metrics, with a notable decrease in equipment sales and support services revenue, which fell by 11% and 9%, respectively. The company attributed these declines to a shift towards lease extensions rather than new equipment purchases, as well as a reduction in the meter population. Conversely, business services revenue increased by 31%, driven by growth in shipping subscriptions and digital delivery services. The company also reported a total employee headcount of approximately 7,200, with a significant reduction of about 2,800 positions as part of its cost rationalization initiatives.

Looking ahead, Pitney Bowes anticipates continued challenges in its mailing-related revenues due to lower meter populations and a higher mix of lease extensions. However, the company expects growth in its shipping offerings, particularly in its Software as a Service (SaaS) solutions. The Presort Services segment is projected to see revenue and margin improvements due to higher revenue-per-piece and lower costs, driven by investments in automation and technology. The company remains focused on executing its strategic initiatives to enhance profitability and stabilize cash flows in the coming fiscal year.