Pitney Bowes Discusses Business Strategy at the Bank of America Leveraged Finance Conference
STAMFORD, Conn., November 29, 2022 - Pitney Bowes Inc. (NYSE: PBI), a global shipping and mailing company that provides technology, logistics, and financial services, outlined their business strategy today at the Bank of America Securities 2022 Leveraged Finance Conference. Jason Dies, Executive Vice President, Pitney Bowes Sending Technology Solutions (SendTech), Gregg Zegras, Executive Vice President, Pitney Bowes Global Ecommerce, and Ned Zachar, Vice President, Investor Relations spoke at the conference.
Jason Dies spoke about new possibilities in growing markets for the legacy Sending Technology Solutions business. He defined a durable and profitable business model, with shipping expected to be roughly a third of segment revenue by 2026.
“SendTech is a predictable and durable cash generation engine on the mailing side and we have a growth opportunity we can take advantage of on the shipping side as well,” said Dies. “We aspire to and will become a growth business overall when you put those two addressable markets together.”
Gregg Zegras highlighted how the Global Ecommerce Business is well positioned to pursue a large and rapidly growing market opportunity. He spoke about the work the team has done to build the network, improve service levels and customer satisfaction, and increase volumes and margins.
“Off a strong Black Friday and Cyber Monday, we expect 2022 exit-rate volumes to be on the high end of 195 to 200 million in our Domestic Parcel network and Domestic Parcel gross margin improvement of up to 400 basis points in 2023,” said Zegras. “Long-term, we expect the Global Ecommerce business to achieve 6 to 8 percent EBIT margins in 2026 based on our current product mix and Capex levels to be approximately 20 percent of EBITDA.”
“We have seen consistent service levels in the low to mid 90 percent. This bodes well for the future of our business. These service levels allow us to go out and win new business and retain the customers we have,” added Zegras.
Ned Zachar added, “SendTech and Presort have leading market positions and are finding new ways to grow despite some natural headwinds and are much more durable businesses than people may have thought. In Global Ecommerce, EBITDA should be higher than Capex in 2023.”
A replay of the audio webcast, transcript and slides can be accessed at www.pb.com/investorrelations.
Today’s presentation underscored the Global Ecommerce strategy outlined in September at the Deutsche Bank 30th Annual Leveraged Finance Conference.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global shipping and mailing company that provides technology, logistics, and financial services to more than 90 percent of the Fortune 500. Small business, retail, enterprise, and government clients around the world rely on Pitney Bowes to remove the complexity of sending mail and parcels. For the latest news, corporate announcements and financial results visit https://www.pitneybowes.com/us/newsroom.html. For additional information visit Pitney Bowes at www.pitneybowes.com.