Pitney Bowes Inc. has recently released its 10-K report, providing detailed insights into the company's financial performance and strategic initiatives. The company operates as a technology-driven entity, offering SaaS shipping solutions, mailing innovation, and financial services to a diverse client base, including small businesses, large enterprises, and government entities worldwide. Pitney Bowes Inc. operates through three segments: Global Ecommerce, Presort Services, and SendTech Solutions. The Global Ecommerce segment provides domestic parcel services, cross-border solutions, and digital delivery services, while the Presort Services segment offers mail sortation services. The SendTech Solutions segment provides physical and digital mailing and shipping technology solutions, along with financing alternatives.
In the 10-K report, Pitney Bowes Inc. highlighted its strategic transformation over the past year, focusing on four key initiatives: the Ecommerce Restructuring, cost rationalization, cash optimization, and balance sheet deleveraging. The company entered into a series of transactions designed to facilitate an orderly wind-down of a majority of its Global Ecommerce reporting segment, with an affiliate of Hilco subscribing for 81% of the voting interests in the subsidiary, DRF Logistics, LLC. This led to the Ecommerce Debtors filing for Chapter 11 bankruptcy cases and conducting an orderly wind-down. As a result of the Ecommerce Restructuring, certain revenues, expenses, assets, and liabilities are now reported as discontinued operations in the company's Consolidated Financial Statements.
The 10-K report also provided a detailed overview of the company's financial results. In 2024, Pitney Bowes Inc. reported total revenue of $2.03 billion, representing a 3% decrease from the previous year. The company's total costs and expenses decreased by $44 million compared to the prior year period. Notably, the company reported a net income from continuing operations of $103 million in 2024, a significant improvement from the net loss of $61 million in 2023.
Furthermore, the report highlighted segment results, with a focus on the SendTech Solutions segment. The segment's revenue decreased by $48 million in 2024 compared to 2023, primarily due to declines in support services and equipment sales. However, the segment's gross margin percentage increased to 66.8% from 65.8% compared to the prior year, driven by improvements in business services gross margin and cost reductions in response to lower revenues.
As a result of these announcements, the company's shares have moved -2.6% on the market, and are now trading at a price of $10.35. For more information, read the company's full 10-K submission here.
