The following is a summary of the Xerox Holdings (XRX) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 2024 reported revenue of $1.5 billion, a decrease of 7.5% in actual currency and 7.3% in constant currency.

• Adjusted EPS was $0.25, $0.21 lower year-over-year, influenced by a one-time sale of non-core business assets in the previous year.

• Free cash flow was $107 million, reflecting a $5 million decrease from the previous year.

• Adjusted operating margin increased to 5.2%, up by 110 basis points year-over-year.

Business Progress:

• Xerox's reinvention strategy includes improving the sales model, focusing on digital and IT services, and pursuing acquisition opportunities such as ITsavvy to boost revenues.

• Implementation of operational efficiencies and strategic realignment of Xerox's portfolio, including transitioning to indirect distribution models in certain markets and refining its production print equipment portfolio.

Opportunities:

• Acquisition of ITsavvy to expand and enhance the IT services offering, expected to be accretive to both earnings and cash flow.

• Plans to increase penetration of digital and managed IT services, leveraging favorable client renewal rates and new business signings.

Risks:

• Xerox faced setbacks in Q3 with product launch delays and less than expected sales force productivity improvements impacting equipment sales.

• Execution challenges in strategic initiatives and project delays impacted planned revenue trajectories.

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