全錄公司 (XRX) 2024 Q3 法說會逐字稿

Thank you for standing by and welcome to Xerox Holdings Corporation's third-quarter earnings conference call. (Operator Instructions) As a reminder, today's program is being recorded.

感謝您的耐心等待並歡迎參加施樂控股公司第三季財報電話會議。（操作員指示）提醒一下，今天的節目正在錄製中。

And now I'd like to introduce your host for today's program, Mr. David Beckel, Vice President of Investor Relations. Please go ahead, sir.

現在我想介紹一下今天節目的主持人，投資者關係副總裁大衛貝克爾先生。請繼續，先生。

Good morning, everyone. I'm David Beckel, Vice President and Head of Investor Relations at Xerox Holdings Corporation. Welcome to the Xerox Holdings Corporation third-quarter 2024 earnings release conference Call, hosted by Steve Bandrowczak, Chief Executive Officer. He's joined by John Bruno, President and Chief Operating Officer; and Xavier Heiss, Executive Vice President and Chief Financial Officer.

大家早安。我是大衛貝克 (David Beckel)，施樂控股公司副總裁兼投資人關係主管。歡迎參加施樂控股公司 2024 年第三季收益發布電話會議，由執行長 Steve Bandrowczak 主持。總裁兼營運長 John Bruno 也加入了他的行列；以及執行副總裁兼財務長 Xavier Heiss。

At the request of Xerox Holdings Corporation, today's conference call is being recorded. Other recording and/or rebroadcasting of this call are prohibited without the express permission of Xerox. During this call, Xerox executives will refer to slides that are available on the web at www.xerox.com/investor and will make comments that contain forward-looking statements, which, by their nature, address matters that are in the future and uncertain. Actual future financial results may be materially different than those expressed herein.

應施樂控股公司的要求，今天的電話會議正在錄音。未經施樂明確許可，禁止本次通話進行其他錄音和/或轉播。在本次電話會議中，施樂高層將參考 www.xerox.com/investor 網站上提供的幻燈片，並發表包含前瞻性陳述的評論，這些陳述本質上解決的是未來和不確定的問題。未來的實際財務結果可能與本文所述的結果有重大差異。

At this time, I'd like to turn the meeting over to Mr. Bandrowczak.

現在，我想把會議交給 Bandrowczak 先生。

Good morning, and thank you for joining our Q3 2024 earnings call. The benefits of reinvention are driving improved financial results, albeit at a slower pace than expected. Positive proof points from the quarter include a second consecutive period of moderating revenue declines, year-over-year improvements in adjusted operating income and income margin, and more than 100% free cash flow conversion from adjusted operating income.

早安，感謝您參加我們的 2024 年第三季財報電話會議。重塑的好處正在推動財務表現的改善，儘管速度比預期慢。本季的正面證據包括連續第二個時期的收入下降放緩、調整後營業收入和收入利潤率同比改善，以及調整後營業收入的自由現金流轉換率超過 100%。

Further, the pending acquisition of ITsavvy is expected to improve our mix of revenue from complementary value-add businesses with higher underlining rates of revenue growth. Summarizing results for the quarter, revenue of $1.5 billion decreased 7.5% in actual currency and 7.3% in constant currency. Excluding the impact of year-over-year fluctuations in backlog and reductions in non-strategic revenue associated with the reinvention, core business revenue declined low single digits and at a pace consistent with the prior quarter.

此外，即將進行的 ITsavvy 收購預計將改善我們來自互補增值業務的收入組合，並帶來更高的收入成長率。總結本季的業績，營收為 15 億美元，以實際貨幣計算下降 7.5%，以固定匯率計算下降 7.3%。排除積壓訂單同比波動以及與重塑相關的非策略性收入減少的影響，核心業務收入下降了低個位數，下降速度與上一季一致。

Adjusted EPS was $0.25, $0.21 lower year over year due primarily to the one-time sale of non-core business assets in the prior-year quarter. Free cash flow was $107 million, $5 million lower year over year, and adjusted operating margin of 5.2% was higher year over year by 110 basis points, reflecting the benefits of organizational simplification.

調整後每股收益為 0.25 美元，年減 0.21 美元，主要是由於去年同期一次性出售非核心業務資產。自由現金流為 1.07 億美元，年減 500 萬美元，調整後營業利潤率為 5.2%，年增 110 個基點，反映了組織簡化的好處。

The reinvention of Xerox is difficult but necessary. Reinvention is a multi-year journey to sustainably streamline operations while positioning the company to benefit from favorable long-term trends within print, digital, and IT services. Progress has been steady and confirmatory of our original thesis, but the financial proof points of the strategy's success are not unfolding in a linear fashion.

施樂的重塑是困難的，但也是必要的。重塑是一個持續多年的旅程，旨在可持續地簡化運營，同時使公司受益於印刷、數位和 IT 服務領域有利的長期趨勢。進展一直穩定並證實了我們最初的論點，但該策略成功的財務證據並不是以線性方式展開的。

This quarter, print equipment sales fell below expectations due to delays in global launch of two new products and lower-than-expected improvements in sales force productivity. Tactical challenges associated with the timing of Hurricane Helene and increase in competitive activity in certain markets also contributed to the shortfall.

本季度，由於兩種新產品的全球發布延遲以及銷售人員生產力的提高低於預期，列印設備銷售額低於預期。與颶風海倫發生時間相關的戰術挑戰以及某些市場競爭活動的增加也導致了短缺。

We have analyzed the factors that contributed to the product launch delays and are confident those factors will be resolved as we recalibrate global product launch plans. And despite lower productivity improvement than expected in Q3, we are confident ongoing sales efficiency and effectiveness programs will drive productivity sustainably higher in 2025 and beyond.

我們分析了導致產品發布延遲的因素，並相信隨著我們重新調整全球產品發布計劃，這些因素將得到解決。儘管第三季的生產力提升低於預期，但我們相信正在進行的銷售效率和有效性計劃將在 2025 年及以後持續推動生產力的提高。

Shortfalls in equipment sales mask the breadth of reinvention progress made to date, much of which is expected to reveal itself in our annuity revenue streams and a sustainably lower cost base over time. In quarter three, we made progress along each of our strategic priorities in furtherance of our long-term reinvention goals. Starting with a stronger core, a key tenet of reinvention is closer alignment between our organization and the economic buyers of our products and services.

設備銷售的短缺掩蓋了迄今為止所取得的重塑進展的廣度，其中大部分預計將在我們的年金收入流和隨著時間的推移持續降低的成本基礎中顯現出來。第三季度，我們在每項策略優先事項上都取得了進展，以推進我們的長期重塑目標。從更強大的核心開始，重塑的一個關鍵原則是我們的組織與我們產品和服務的經濟買家之間更緊密的結合。

We realized early in our reinvention that a refined sales coverage model and investment in client perception and sales force productivity were required to more efficiently and effectively serve clients' needs in a rapidly evolving print and workplace services landscape. The realignment of our sales organization has not been as smooth as we would like, but we are seeing encouraging signs that a leaner, more focused sales team can deliver improved client outcomes and more efficiently than in the past.

我們在重塑初期就意識到，需要完善的銷售覆蓋模式以及對客戶認知和銷售人員生產力的投資，才能在快速發展的印刷和工作場所服務環境中更有效率、更有效地滿足客戶的需求。我們銷售組織的重組並不像我們希望的那麼順利，但我們看到了令人鼓舞的跡象，表明更精簡、更專注的銷售團隊可以比過去更有效率地交付更好的客戶成果。

While sales productivity fell short of our expectation in Q3, it has improved year to date through a greater end-market focus and a reduction in administrative burden. We expect the cumulative effect of productivity actions taken to date, future scale efficiencies, including additional capacity in our dedicated virtual sales center, and other initiatives designed to foster incremental client interactions will drive sales productivity higher than Q3 levels in Q4 and into 2025.

儘管第三季的銷售生產力未達到我們的預期，但透過更加關注終端市場和減輕管理負擔，今年迄今銷售生產力有所提高。我們預計，迄今為止採取的生產力行動、未來的規模效率（包括我們專用虛擬銷售中心的額外容量）以及旨在促進增量客戶互動的其他舉措的累積效應，將推動第四季度和2025 年的銷售生產力高於第三季的水平。

Net promoter score, a key barometer of clients' perception, has improved 11 points this year in the Americas through increased client engagement and integrated sales and marketing outreach. The increase reflects improved client satisfaction and a brand consideration, which we expect will drive an increase in purchase intent from clients that understand and appreciate our position in the market as a leading provider of print, digital, and IT workflow efficiency solutions.

淨推薦值是客戶認知度的關鍵晴雨表，透過提高客戶參與度以及整合銷售和行銷推廣，今年美洲地區的淨推薦值提高了 11 分。這一成長反映了客戶滿意度和品牌考慮度的提高，我們預計這將推動了解並欣賞我們作為印刷、數位和 IT 工作流程效率解決方案領先提供者的市場地位的客戶的購買意願增加。

We see evidence of the strength of our value proposition with clients, most prominently in our services metrics. In the last 12 months, our revenue retention rate for large client renewals remained above 100%, meaning, on average, clients are buying more print and digital solutions from us when renewing long-term service contracts.

我們看到了我們對客戶的價值主張的強度，最突出的是我們的服務指標。在過去 12 個月中，我們大客戶續約的收入保留率保持在 100% 以上，這意味著客戶在續約長期服務合約時平均會從我們這裡購買更多的印刷和數位解決方案。

Our portfolio of digital and managed IT services continues to resonate strongly with clients. In Q3, digital services new business signings were up double digits, with renewal rates above plan. And digital and managed IT services revenue also grew double digits, reflecting sustained signings growth in the current and prior periods. And the pending acquisition of ITsavvy is expected to drive growth as we leverage an improved, expanded portfolio of IT services to grow penetration with existing clients.

我們的數位化和託管 IT 服務組合繼續引起客戶的強烈共鳴。第三季度，數位服務新業務簽約量成長了兩位數，續約率高於計畫。數位和託管 IT 服務收入也實現了兩位數成長，反映出當前和前期的簽約量持續成長。隨著我們利用改進、擴展的 IT 服務組合來提高現有客戶的滲透率，即將進行的 ITsavvy 收購預計將推動成長。

Moving to cost improvements, operating expense decreased more than $50 million year over year in Q3 and $125 million year to date, reflecting the benefits of strategic actions taken in the prior year, current-year reductions in headcount associated with the structural reorganization of our business, and ongoing operating efficiencies driven by our global business service organization.

在成本改善方面，第三季營運費用年減超過 5,000 萬美元，年初至今減少 1.25 億美元，反映出上一年採取的戰略行動以及本年度與業務結構重組相關的人員減少的好處，以及由我們的全球商業服務組織推動的持續營運效率。

Certain reinvention actions taken this year have resulted in reduction of revenue; for example, the transition from direct to indirect distribution in certain markets, as is the case with geographic simplification. All measures taken to simplify our offerings, as was the case with our decision to exit the manufacturing of certain production equipment. Our intent with these actions is to reduce the level of operating expense that previously supported those activities by a greater amount than the associated reductions in gross profit.

今年採取的某些重塑行動導致收入減少；例如，某些市場從直接分銷到間接分銷的轉變，地理簡化就是這種情況。為簡化我們的產品而採取的所有措施，就像我們決定退出某些生產設備的製造一樣。我們採取這些行動的目的是降低先前支援這些活動的營運費用水平，其幅度大於相關的毛利減少量。

While still early, we are beginning to see the thesis play out in our financial results. At a total company level, adjusted operating income improved this quarter despite a reduction in revenue. We expect this trend to continue in quarter four. In future years, we expect our pipeline of more than $400 million of gross cost savings that have either been actioned but not yet realized in results or have been identified for future implementation to support operating income growth.

雖然還為時過早，但我們已經開始看到這一論點在我們的財務表現中得到體現。從公司整體層面來看，儘管收入減少，但本季調整後的營業收入有所改善。我們預計這一趨勢將在第四季度繼續下去。未來幾年，我們預計將節省超過 4 億美元的總成本，這些成本要么已經採取行動，但尚未取得成果，要么已確定在未來實施，以支持營業收入成長。

Finally, balanced capital allocation. This quarter, we generated more than $100 million of free cash flow, including the benefits of reduction in finance receivables, marking the fourth consecutive quarter of more than 100% free cash flow conversion from adjusted operating income. We continue to make progress sourcing finance receivable funding agreements outside the US, including a recently signed agreement to sell future finance receivable originations in Canada to De Lage Landen Financial Services Canada Inc.

最後，平衡資本配置。本季度，我們產生了超過 1 億美元的自由現金流，其中包括財務應收帳款減少的好處，標誌著調整後營業收入的自由現金流轉換連續第四個季度超過 100%。我們繼續在美國境外尋找應收帳款融資融資協議方面取得進展，包括最近簽署的一項協議，將加拿大的未來應收帳款融資出售給 De Lage Landen Financial Services Canada Inc.。

Balance sheet health improved again this quarter as we reduce our debt balance quarter over quarter. The pending acquisition of ITsavvy will be funded in part with debt but is expected to be leveraged neutral in a little more than a year and deliver a return on capital, well in excess of our weighted average cost of capital.

隨著我們逐季減少債務餘額，資產負債表健康狀況在本季再次改善。即將進行的 ITsavvy 收購將部分透過債務提供資金，但預計將在一年多一點的時間內實現槓桿中性，並帶來資本回報，遠遠超過我們的加權平均資本成本。

I will now hand the call over to John Bruno.

我現在將把電話轉給約翰·布魯諾。

As Steve noted, this quarter equipment sales fell short of expectations for two main reasons. We had higher expectations of global product launches that were impacted by poor product transition planning and execution. Through our postmortem, we're taking deliberate steps to optimize price and marketing programs by specific go-to-market areas to ensure improved demand to supply chain readiness that will complement market-specific launches.

正如史蒂夫指出的那樣，本季設備銷售未達到預期的主要原因有兩個。我們對全球產品發布抱有更高的期望，但由於產品過渡規劃和執行不力而受到影響。透過事後分析，我們正在採取深思熟慮的措施，根據特定的進入市場領域優化價格和行銷計劃，以確保改善對供應鏈準備的需求，從而補充特定市場的發布。

We also had higher expectations of our sales productivity initiatives in Q3, given the improvement we realized in Q2 after the Q1 organizational changes. We were essentially flat quarter on quarter on activity basis, and that was not sufficient to offset the reduction in sales headcount. We have analyzed these points of friction from lead generation, quote to order, and order to install. We've aligned process improvement teams, and we are course correcting these areas of underperformance.

鑑於我們在第一季組織變革後在第二季實現的改進，我們對第三季的銷售生產力計畫也抱有更高的期望。就活動而言，我們季度環比基本持平，但這不足以抵消銷售人員數量的減少。我們分析了從潛在客戶開發、報價到訂單以及訂單到安裝的這些摩擦點。我們已經調整了流程改善團隊，我們正在修正這些表現不佳的領域。

We are seeing a positive impact of that work, albeit more slowly than originally forecasted. While productivity stalled in Q3, we do expect these operational process improvements to drive sales productivity higher in Q4 and into 2025. We make no excuses for our underperformance in equipment sales, and these operational misses overshadow broader strategic improvements elsewhere.

我們看到了這項工作的正面影響，儘管比最初預測的要慢。雖然生產力在第三季陷入停滯，但我們確實預計這些營運流程的改善將在第四季和 2025 年提高銷售生產力。我們不會為設備銷售表現不佳找任何藉口，這些營運失誤掩蓋了其他方面更廣泛的策略改善。

On balance, I'd like to highlight other strategic areas of reinvention where we are seeing the forecasted results of our efforts. Starting with geographic simplification, this quarter, we transitioned two additional countries, Hungary and Bulgaria, from a direct to an indirect distribution model. We also signed an agreement to sell our paper business in EMEA to a leading global paper supplier, Antalis.

總的來說，我想強調其他策略領域的重塑，我們在這些領域中看到了我們努力的預測結果。從地理簡化開始，本季度，我們將另外兩個國家（匈牙利和保加利亞）從直接分銷模式轉變為間接分銷模式。我們還簽署了一項協議，將我們在 EMEA 的紙張業務出售給全球領先的紙張供應商 Antalis。

These transactions and others expected in quarter four allow us to provide partners in EMEA with the products and services clients demand most and with greater operating efficiency.

這些交易和其他預計在第四季度進行的交易使我們能夠為歐洲、中東和非洲地區的合作夥伴提供客戶最需要的產品和服務，並提高營運效率。

Moving to offering simplification, with the recent launches of our A4300 series and refreshes of our A3 AltaLink and PrimeLink products, we are streamlining our offerings in the office and light production categories. For example, the updated 300 series printers share a common engine with our 400 series reducing spare parts SKUs by 20%.

轉向提供簡化，隨著最近推出的 A4300 系列以及 A3 AltaLink 和 PrimeLink 產品的更新，我們正在簡化我們在辦公室和輕型生產類別中的產品。例如，更新後的 300 系列印表機與我們的 400 系列共用一個引擎，使備件 SKU 減少了 20%。

Software enhancements included with the updated AltaLink products eliminate the need for physical installation kits and simplify the installation process. And our new PrimeLink machines offer a wider range of engine speeds, features, and capabilities, improving competitiveness and marketability. The consolidated configurations and enhanced capabilities of these respective products make them more competitive, and improved order and inventory management, as well as marketing efficiency.

更新後的 AltaLink 產品中包含的軟體增強功能消除了對實體安裝套件的需求並簡化了安裝過程。我們的新型 PrimeLink 機器提供更廣泛的引擎速度、特性和功能，從而提高競爭力和適銷性。這些產品的整合配置和增強功能使它們更具競爭力，並改善了訂單和庫存管理以及行銷效率。

Additionally, we continue to refine our production print equipment portfolio. We've engaged with leading print engine manufacturers to broaden our production print ecosystem. And this quarter, we announced our planned collaboration with Taktiful Software to integrate their digital embellishment technology for our clients. We anticipate revealing more partnerships within the production print segment in the coming year as we invest in a platform featuring services-led and software-enabled products.

此外，我們繼續完善我們的生產列印設備組合。我們與領先的列印引擎製造商合作，以擴大我們的生產列印生態系統。本季度，我們宣布計劃與 Taktiful Software 合作，為我們的客戶整合他們的數位裝飾技術。隨著我們投資一個以服務為主導和軟體支援的產品平台，我們預計在來年將在生產印刷領域建立更多合作夥伴關係。

For example, our pipeline includes cloud-hosted versions of FreeFlow Core to include an AI framework for workflow automation, application expansions into adjacencies like packaging and labels, as well as SaaS-based offerings. And finally, operating model simplification. Our global business service organization, or GBS, is performing as intended and finding ways to leverage a simpler operating model to drive long-term enterprise-wide efficiencies.

例如，我們的管道包括 FreeFlow Core 的雲端託管版本，其中包括用於工作流程自動化的 AI 框架、包裝和標籤等鄰接的應用程式擴充以及基於 SaaS 的產品。最後，營運模式簡化。我們的全球商業服務組織（GBS）正在按預期運作，並尋找方法利用更簡單的營運模式來推動整個企業的長期效率。

A key driver for long-term reinvention savings will be the optimization of our technology and support infrastructure. Last quarter, we signed agreements with multiple technology partners to transform our operations with technology-led process improvements. And building on that announcement, this quarter, GBS restructured an agreement with a key business process outsourcing partner, creating a mutually beneficial incentive structure to save costs through operating efficiencies.

長期改造節省的關鍵驅動力將是優化我們的技術和支援基礎設施。上季度，我們與多個技術合作夥伴簽署了協議，透過技術主導的流程改善來改變我們的營運。在此公告的基礎上，本季度，GBS 重組了與一家關鍵業務流程外包合作夥伴的協議，創建了互惠互利的激勵結構，透過提高營運效率來節省成本。

This new service structure is expected to yield a double-digit improvement in contracted rates and will serve as a blueprint for driving sustainable organizational savings. Collectively, these savings are expected to drive more than $700 million of cumulative gross reinvention savings over the next few years, putting us on a path to achieve double-digit adjusted operating income margins over the course of our reinvention. We will continue to exercise balanced execution in the implementation of these initiatives to minimize operational disruption.

這種新的服務結構預計將使合約費率實現兩位數的提高，並將成為推動永續組織節約的藍圖。總的來說，這些節省預計將在未來幾年內帶動超過 7 億美元的累積改造總節省，使我們在改造過程中走上實現兩位數調整後營業利潤率的道路。我們將繼續在實施這些措施時保持平衡執行，以最大程度地減少營運中斷。

And finally, revenue mix. Beyond cost reduction, an equally important tenet of our reinvention is an improved revenue mix that enables better client outcomes. To that end, two weeks ago, we announced the acquisition of ITsavvy. The acquisition of ITsavvy expands our portfolio of IT service offerings and our addressable market coverage.

最後是收入組合。除了降低成本之外，我們重塑的一個同樣重要的宗旨是改善收入組合，從而實現更好的客戶成果。為此，兩週前，我們宣布收購 ITsavvy。收購 ITsavvy 擴大了我們的 IT 服務產品組合和潛在市場覆蓋範圍。

With ITsavvy, we acquired an accomplished management team with a demonstrated ability to deliver positive results through its suite of lifecycle deployment and managed services across IT infrastructure pillars of cloud hosting, network and security, collaboration, and the hybrid workplace. We expect to leverage this platform and improve scale to drive increased penetration of IT services across a client base who increasingly look to Xerox to provide these types of solutions.

透過ITsavvy，我們獲得了一支經驗豐富的管理團隊，該團隊已證明有能力透過其跨雲端託管、網路和安全、協作以及混合工作場所等IT 基礎設施支柱的生命週期部署和託管服務套件提供積極成果。我們希望利用該平台並擴大規模，以提高 IT 服務在客戶群中的滲透率，這些客戶群越來越希望 Xerox 提供此類解決方案。

The acquisition will be funded with cash on hand and a combination of seller notes. We expect to quickly realize more than $15 million of cost synergies as we consolidate IT service operations and adopt ITsavvy's operating platform. Along with revenue synergies from expanded client penetration, we expect an enhanced IT services offering.

此次收購將由現有現金和賣方票據相結合的方式提供資金。隨著我們整合 IT 服務營運並採用 ITsavvy 的營運平台，我們預計將快速實現超過 1500 萬美元的成本綜效。除了客戶滲透率擴大所帶來的收入綜效之外，我們也期望 IT 服務產品得到增強。

This will improve client satisfaction and stability in our core print business, as clients are able to realize more value from a services partner that can be a one-stop shop for their most critical print and IT infrastructure needs. The acquisition is expected to be immediately accretive to earnings per share and free cash flow, and we look forward to welcoming the ITsavvy team to Xerox at the end of this year.

這將提高我們核心列印業務的客戶滿意度和穩定性，因為客戶能夠從服務合作夥伴那裡實現更多價值，為他們最關鍵的列印和 IT 基礎設施需求提供一站式服務。此次收購預計將立即增加每股盈餘和自由現金流，我們期待在今年底歡迎 ITsavvy 團隊加入施樂。

I'll now hand the call over to Xavier.

我現在將把電話轉給澤維爾。

Thank you, John, and good morning, everyone. In Q3, total revenue declined 7.5% in actual currency and 7.3% in constant currency on a year-over-year basis. As Steve described, equipment revenue this quarter fell short of expectations. However, the trajectory of post-sales revenue improved, as expected, reflecting growth in digital and managed IT services.

謝謝約翰，大家早安。第三季度，總收入以實際貨幣計算年減 7.5%，以固定匯率計算年減 7.3%。正如史蒂夫所描述的，本季的設備收入未達預期。然而，售後收入的軌跡如預期有所改善，反映了數位和託管 IT 服務的成長。

Turning to profitability, gross margin was flat year over year as higher freight costs, unfavorable equipment mix on lower print volumes were offset by the beneficial impact of reinvention savings on favorable currency effect. Adjusted operating margin of 5.2% was 110 basis points higher year over year due principally to reinvention-related cost reduction on lower incentive compensation expense, partially offset by the effect of lower revenue on gross profit.

就獲利能力而言，毛利率與去年同期持平，原因是貨運成本上升、印刷量下降帶來的不利設備組合被再發明節省對有利貨幣效應的有利影響所抵消。調整後營業利潤率為 5.2%，年成長 110 個基點，主要是由於激勵補償費用降低導致與再發明相關的成本降低，但收入下降對毛利的影響部分抵消了這一影響。

Total operating expenses in Q3 declined $53 million year over year, or more than 10%, reflecting headcount on other non-labor expense reduction associated with recent reinvention action. Adjusted other expenses net were $55 million higher year over year due to an increase in non-finance interest expense reflecting higher interest rate on a lower portion of debt allocated to our financing business. The increase also reflects a gain on the sales of non-core business assets recorded in the prior year.

第三季的總營運費用年減 5,300 萬美元，降幅超過 10%，反映出與近期重塑行動相關的其他非勞動力費用減少的員工人數。調整後其他費用淨額年增 5,500 萬美元，原因是非金融利息費用增加，反映出分配給我們融資業務的較低部分債務的利率較高。這一增長也反映了上一年記錄的非核心業務資產銷售的收益。

Adjusted tax rate of 27.7% compared to 7.2% in the same quarter last year. The increase in rate reflects non-recurring tax benefits associated with uncertain tax position on the establishment of a valuation allowance against the current year of deferred tax asset. Adjusted EPS of $0.25 was $0.21 lower than the prior year, as the benefits of higher adjusted operating income on a lower share count were more than offset by higher non-financing interest expense, a higher tax rate, on the prior-year gain on sales of non-core business assets.

調整後稅率為27.7%，去年同期為7.2%。稅率的增加反映了與本年度遞延所得稅資產建立估價備抵的不確定稅務狀況相關的非經常性稅收優惠。調整後每股收益為 0.25 美元，比上年減少 0.21 美元，因為股票數量減少帶來的調整後營業收入增加帶來的好處被上年銷售收益的非融資利息支出增加、稅率提高所抵消非核心業務資產。

GAAP loss per share of $9.71 included an after-tax non-cash goodwill impairment charge of approximately $1 billion, or $8.16 per share, on a charge to tax expense related to the establishment of a valuation allowance of $161 million, or $1.29. Regarding the goodwill impairment, it was determined, following a sustained period in which our market value fell below book value, that the fair value of our print and other segment has fallen below carrying value. The valuation allowance was established against deferred tax assets that are not expected to be realized in certain international jurisdictions.

GAAP 每股虧損 9.71 美元，其中包括約 10 億美元的稅後非現金商譽減損費用，即每股 8.16 美元，以及與建立 1.61 億美元的估值備抵相關的稅收費用，即 1.29 美元。關於商譽減損，在我們的市場價值持續低於帳面價值的一段時間內，我們確定印刷和其他部門的公允價值已低於帳面價值。估價備抵是針對預計在某些國際司法管轄區不會實現的遞延稅資產而設立的。

Let me now review revenue and cash flow in more detail. Starting with revenue, Q3 equipment sales of $339 million declined around 12% in actual and constant currency. The effect of backlog fluctuations in the current and prior year on reinvention action accounted for around 400 basis points of the decline. The remainder of the decline mainly reflects the delayed global launch of two new products, lower-than-expected improvements in sales force productivity, delays in the timing of installation associated with Hurricane Helene, unfavorable mix on large production equipment sales in the prior year.

現在讓我更詳細地回顧一下收入和現金流。從營收開始，第三季設備銷售額為 3.39 億美元，以實際和固定匯率計算下降了約 12%。今年和前一年的積壓波動對再發明行動的影響導致了約 400 個基點的下降。其餘的下降主要反映了兩種新產品的全球發布延遲、銷售人員生產力的提高低於預期、颶風海倫導致的安裝時間延遲以及上一年大型生產設備銷售的不利組合。

Total equipment activity increased 17% year over year due largely to entry-level equipment. Entry revenue declined despite higher installation due to an increase in the mix of low-end black-and-white multifunction printers. Mid-range installations were slightly lower year over year, but revenue declined faster than installations due to unfavorable A3 product family mix.

設備活動總量年增 17%，這主要歸功於入門級設備。儘管由於低階黑白多功能印表機組合的增加，安裝量有所增加，但入門級收入仍下降。中檔安裝量較去年同期略有下降，但由於 A3 產品系列組合不利，收入下降速度快於安裝量。

High-end revenue decline reflects the ongoing evolution of our production print portfolio on offering rationalization action taken this year. Post-sales revenue of $1.2 billion declined mainly 6% in actual and constant currency, a roughly 200 basis points sequential improvement. Excluding a reduction of non-strategic, lower-margin paper on IT endpoint device placement on the effect of other reinvention actions, post-sales revenue declined 2% in actual currency, reflecting lower activity, partially offset by double-digit growth in digital and managed IT services revenue, as well as higher services pricing.

高端收入的下降反映了我們今年採取的生產印刷產品組合在提供合理化行動方面的持續演變。以實際和固定匯率計算，售後收入為 12 億美元，主要下降 6%，季增約 200 個基點。不包括由於其他重塑行動的影響而減少的有關IT 端點設備佈局的非戰略性、利潤率較低的文件，售後收入以實際貨幣計算下降了2%，反映出活動減少，但部分被數字和數位化業務的兩位數成長所抵銷。

Consistent with past quarter, I will provide additional commentary to help clarify underlying trends in our core businesses, which include the effect of backlog fluctuations on reinvention action. For Q3, lower sales of non-strategic paper, IT endpoint device, and decline in finance revenue, reflecting the change in our finance receivable strategy, contributed around 200 basis points to the decline.

與上個季度一致，我將提供額外的評論，以幫助闡明我們核心業務的基本趨勢，其中包括積壓波動對重塑行動的影響。第三季度，非策略性票據、IT 端點設備銷售的下降以及財務收入的下降（反映了我們財務應收帳款策略的變化）導致了約 200 個基點的下降。

Other strategic actions taken to simplify our business and improve profitability, including geographic and offering simplification, contributed around 200 basis points to the decline. Finally, the effect of equipment backlog fluctuations in the current and prior-year quarters contributed less than 100 basis points to the year-over-year decline in total revenue. When these impacts are removed, total revenue declined low single digits in actual currency consistent with the prior quarter.

為簡化業務和提高獲利能力而採取的其他策略行動，包括地理和產品簡化，導致下降了約 200 個基點。最後，本季和去年同期設備積壓波動的影響對總營收年減的影響不到100個基點。當這些影響消除後，以實際貨幣計算的總收入與上一季一致下降了低個位數。

Let's now review cash flow. Free cash flow was $107 million, lower by $5 million year over year. Operating cash flow was $116 million, $8 million lower than the prior-year quarter due to lower contribution from working capital on higher pensions payment, partially offset by higher adjusted operating income on cash from finance receivable. Investing activities were a use of cash of $7 million compared to a source of cash of $25 million in the prior year, largely reflecting a prior year's sales of non-core business assets.

現在讓我們回顧一下現金流。自由現金流為 1.07 億美元，年減 500 萬美元。營運現金流為 1.16 億美元，比去年同期減少 800 萬美元，因為退休金支付增加帶來的營運資金貢獻減少，但應收財務現金調整後營運收入的增加部分抵消了這一影響。投資活動使用現金 700 萬美元，而前一年的現金來源為 2,500 萬美元，主要反映了上一年非核心業務資產的銷售。

Financing activities consumed $74 million this quarter, reflecting $42 million of net debt repayment on dividends of $36 million. Turning to segments, in Q3, XFS revenue was down around 10% year over year due to lower finance income on other fee revenue associated with the decline in our finance receivable balance, partially offset by higher commission from the sales of finance receivable assets in line with our forward-flow strategy.

本季融資活動消​​耗了 7,400 萬美元，反映出 4,200 萬美元的淨債務償還和 3,600 萬美元的股息。轉向細分市場，第三季度，XFS 收入年減約10%，原因是我們的財務應收帳款餘額下降導致其他費用收入的財務收入下降，但部分被銷售應收融資資產的佣金增加所抵消。

XFS finance receivable balance declined roughly 3% sequentially and 23% year over year in actual currency, mainly due to XFS change in strategy to return its focus to captive-only financing solutions. Q3 XFS segment profit increased by $9 million as a reduction in bad debt expense on lower operating expenses more than offset reductions in gross profit associated with lower revenue. Print-on-order revenue fell roughly 7%, and segment profit increased by around 5% for the reasons previously mentioned.

XFS 財務應收帳款餘額以實際貨幣計算，季減約 3%，年減 23%，主要是由於 XFS 改變策略，將重點重新轉向自保融資解決方案。第三季 XFS 部門利潤增加了 900 萬美元，因為營運費用下降導致的壞帳費用減少，足以抵銷收入下降帶來的毛利減少。由於前面提到的原因，按單印刷收入下降了約 7%，部門利潤增加了約 5%。

Focusing on capital structure, we ended Q3 with $590 million of cash, cash equivalents, and restricted cash. Around $2 billion of the remaining $3.3 billion of outstanding debt support our finance assets, with the remaining debt of $1.3 billion attributable to the non-financing business. I now provide an update on reinvention savings. For 2024, we expect to realize close to $200 million of incremental gross cost savings.

重點關注資本結構，第三季結束時，我們擁有 5.9 億美元的現金、現金等價物和限制性現金。剩餘的 33 億美元未償債務中約 20 億美元支持我們的金融資產，其餘 13 億美元的債務歸因於非金融業務。我現在提供有關重塑儲蓄的最新資訊。到 2024 年，我們預計將實現近 2 億美元的總增量成本節省。

Since the prior quarter, we have operationalized an additional $20 million of savings, much of which will be realized in 2025. We maintain a pipeline of more than $400 million of gross cost savings that are expected to be realized by 2026 with around $125 million related to actions already implemented or expected to be implemented in the near term.

自上一季以來，我們已額外節省了 2000 萬美元，其中大部分將在 2025 年實現。我們維持超過 4 億美元的總成本節約計劃，預計到 2026 年實現，其中約 1.25 億美元與已實施或預計近期實施的行動相關。

Finally, I will address guidance for the remainder of the year and comment on expectations for 2025. All 2024 commentaries exclude the effect of the pending acquisition of IT savings. For revenue, We now expect a decline of around 10% in constant currency versus a decline of 5% to 6% in constant currency previously. Around 75 basis points of the decrease in guidance is attributable to incremental effects associated with intentional reduction in non-strategic revenue. The remainder of the decline reflects the delayed launch of two new products on lower-than-expected self-force productivity improvements.

最後，我將闡述今年剩餘時間的指導意見並評論 2025 年的預期。所有 2024 年評論均排除了即將進行的 IT 節約收購的影響。對於收入，我們現在預計以固定匯率計算將下降 10% 左右，而先前以固定匯率計算下降 5% 至 6%。指導值下降約 75 個基點是由於有意減少非策略性收入所帶來的增量效應。其餘的下降反映了兩款新產品的延遲推出，原因是自力生產率的提高低於預期。

Full-year revenue guidance now includes around 625 basis points of effect from non-recurring headwinds associated with backlog fluctuations in the prior year on current years, reduction in non-strategic revenue on other reinvention actions. For the year, the roughly 4% of expected year-over-year decline in core business revenue indicates a mid-single-digit decline in normalized equipment sales on a low to mid-single-digit decline in normalized post-sales revenue.

全年收入指引目前包括約 625 個基點的影響，這些因素與上一年積壓波動相關的非經常性不利因素以及其他重塑行動的非戰略收入減少有關。今年，核心業務收入預計將年減約 4%，這表明標準化設備銷售將出現中個位數下降，而標準化售後收入將出現低至中個位數下降。

We expect a return to revenue growth in 2025, supported by the inclusion of revenue associated with the pending acquisition of IT savings, new product launches, improved sales productivity, and growth in digital and IT services. Inorganic revenue benefits from ITsavvy are expected to more than offset reduction in revenue associated with ongoing reinvention action, as the impact of strategic reduction in revenue are expected to be lower in 2025 than they were in 2024.

我們預計 2025 年收入將恢復成長，這得益於與即將收購的 IT 節省、新產品發布、銷售生產力提高以及數位和 IT 服務成長相關的收入。ITsavvy 帶來的無機收入收益預計將遠遠抵消與持續重塑行動相關的收入減少，因為策略性收入減少的影響預計在 2025 年將低於 2024 年。

For full-year adjusted operating income margin, we now expect a margin of around 5% versus our prior outlook of at least 6.5%, reflecting the effect of gross profit decline associated with a reduction in our equipment revenue outlook, and to a lesser extent, delays in the implementation of certain cost-reduction initiatives to 2025.

對於全年調整後營業利潤率，我們現在預期利潤率為 5% 左右，而先前的預期至少為 6.5%，反映了與我們設備收入前景下調相關的毛利下降的影響，但影響程度較小，將某些成本削減措施的實施推遲到2025 年。

Due to lower-than-expected revenue in 2024, we no longer expect to grow adjusted operating income $300 million above 2023 level by 2026. However, we continue to expect growth in adjusted operating income on a return to double-digit adjusted operating income margin over the course of our reinvention. In 2025, we expect growth in adjusted operating income on margin supported by a return to revenue growth on the benefit of additional growth cost savings associated with cost reduction action implemented in 2024 or expected to be implemented in 2025.

由於 2024 年營收低於預期，我們不再預期到 2026 年調整後營業收入將比 2023 年水準增加 3 億美元。然而，我們仍然預期，在我們的重塑過程中，調整後的營業收入將恢復兩位數的調整後營業收入利潤率。到 2025 年，我們預計調整後營業利潤的成長將受到收入成長回歸的支持，而這得益於與 2024 年實施或預計於 2025 年實施的成本削減行動相關的額外成長成本節省。

Finally, full-year free cash flow guidance was reduced from at least $550 million to a range of $450 million to $500 million, reflecting the previously noted reduction in adjusted operating income guidance. In summary, 2024 has presented unexpected challenges. However, in Q3, we grew adjusted operating income on margin year over year despite a reduction in revenue, a trend we expect to continue as we implement further reinvention action aimed at simplifying our organization on driving closer alignment to the economic buyers of our products and services.

最後，全年自由現金流指引從至少 5.5 億美元減少至 4.5 億至 5 億美元範圍，反映了先前提到的調整後營業收入指引的減少。總而言之，2024 年帶來了意想不到的挑戰。然而，在第三季度，儘管收入減少，但我們調整後的營業利潤仍同比增長，隨著我們實施進一步的重塑行動，旨在簡化我們的組織，以推動與我們產品的經濟買家更緊密地結合，我們預計這一趨勢將繼續下去。

We'll now open the line for Q&A.

我們現在將開通問答熱線。

Ananda Baruah, Loop Capital.

阿南達·巴魯阿（Ananda Baruah），Loop Capital。

Yes. Hey, guys, good morning. And thanks for taking the question. I guess two, if I could, on the product. The first is on the product delay and on the sales productivity dynamics that you guys talked to, and you did give a lot of good context around it. I guess the question is, can you -- if you mentioned, I missed it. Specifically on the product delay, what was it that you guys saw as occurring?

是的。嘿，夥計們，早安。感謝您提出問題。如果可以的話，我想在產品上有兩個。第一個是關於產品延遲和你們談到的銷售生產力動態，你們確實提供了很多關於它的良好背景。我想問題是，如果你提到的話，我錯過了。特別是在產品延遲方面，你們認為發生了什麼事？

And I guess, sort of in that context, what did you learn that can have -- that can sort of have sort of these dynamics not pop up again? And then I guess also on the sales productivity, any greater specificity around -- what actually occurred that surprised you guys that sort of led to the diminished sales productivity? And then I just have a quick follow up as well. Thanks.

我想，在這種情況下，你學到了什麼可以讓這些動態不再出現？然後我想在銷售生產力方面，是否有任何更大的特殊性——到底發生了什麼事讓你們感到驚訝，導致了銷售生產力的下降？然後我也進行了快速跟進。謝謝。

Hey, Ananda, it's Steve. Thank you for the question. And I'll turn it over to John in a minute for some specifics, but I just want to remind you, look, the reinvention is a multi-year journey. And inside that multi-year journey, the ultimate strategy is to get to sustainable revenue growth and get to double-digit operating income.

嘿，阿南達，我是史蒂夫。謝謝你的提問。我稍後會將其交給約翰了解一些細節，但我只是想提醒您，看，重塑是一個多年的旅程。在這段多年的旅程中，最終的策略是實現可持續的收入成長並實現兩位數的營業收入。

As part of that, we've made some progress in each of the areas. You think about what we're trying to do in our revenue mix. ITsavvy gives us a great platform for seeing IT services growth over the next couple of years. We also saw good impact of operating expense reduction quarter over quarter and year over year. My point is that inside of reinvention, we have multiple workstreams, some of which will exceed, some of which will be set back, but we will ultimately get to our end goal.

作為其中的一部分，我們在每個領域都取得了一些進展。你想一下我們在收入組合方面想做什麼。ITsavvy 為我們提供了一個絕佳的平台，讓我們能夠看到 IT 服務在未來幾年的成長。我們也看到了營運費用季度環比和同比下降的良好影響。我的觀點是，在重塑過程中，我們有多個工作流程，其中一些會超出，有些會倒退，但我們最終會實現最終目標。

Specifically to the product launch and to revenue in terms of productivity, we made very large organizational changes at the end of Q1, very specifically realigned almost 6,500 new jobs in terms of new alignment, and we had a very large reduction in our workforce, which is basically the premise of what caused the reduction. We saw quarter-over-quarter productivity improvement from Q1 to Q2 and from Q2 to Q3.

具體到產品發布和生產力方面的收入，我們在第一季末進行了非常大的組織變革，非常具體地重新調整了近 6,500 個新職位，並且我們大幅削減了員工隊伍，這基本上是造成減少的前提。從第一季到第二季以及從第二季到第三季度，我們看到生產力逐季有所提高。

John, other color you want to give?

約翰，你想給其他顏色嗎？

Sure. Ananda, let me go start with the product transition issue first. It's a forecasting issue more than anything else. When we look at carried inventory of predecessor products, the timing of the release of new products, and the forecasting of that mix. There's a lot of intricacies between the demand to supply signaling. We had higher expectations that we were going to flush through the older product and then the timing of the release of the new product, not only to our direct business, but also into the channels.

當然。阿南達，讓我先從產品過渡問題開始。這首先是一個預測問題。當我們查看前代產品的庫存、新產品的發佈時間以及該組合的預測。需求與供應訊號之間存在著許多複雜性。我們對淘汰舊產品以及新產品的發佈時間抱有更高的期望，不僅對我們的直接業務，而且對通路也如此。

As that started to get subsequently through the quarter, we would have a decision to make. And the decision, clearly, what we don't want to do is leave a lot of working capital and inventory behind. We want to sell through and make those transitions. That is a skill and something that we typically do as a company better than we perform. And a lot of that is attributed to the points that Steve has made.

當這個季度開始出現這種情況時，我們將做出決定。顯然，我們不想做的決定是留下大量的營運資金和庫存。我們希望完成銷售並實現這些轉變。這是一項技能，也是我們作為一家公司通常做得比我們表現得更好的事情。這在很大程度上要歸功於史蒂夫提出的觀點。

We just did not have a really good sense of the timing of each of those issues. And it left us with a little bit of time towards the end of the quarter to actually make the effective change. At the start of the quarter, we were more bullish that in the last six weeks, we would have a higher ramp than we actually received. And so that really comes down to the transition period between the demand to supply signaling.

我們只是沒有很好地了解每個問題的發生時間。這讓我們在本季末有一點時間來實際做出有效的改變。在本季度初，我們更加樂觀地認為，在過去六週內，我們將獲得比實際收到的更高的成長。因此，這實際上取決於需求訊號與供應訊號之間的過渡期。

And then I think Steve addressed the issue on sales force productivity. Coming out of -- we look at it from a quarter-bearing sales headcount perspective. And we were down double digits in the number of sellers year on year coming into the year. And we've settled that down with new territory assignments, new remapping, new account coverage and all of that. And as all of these things come in, that really also comes down to the forecast and the timing and the knowledge of your clients.

然後我認為史蒂夫解決了銷售人員生產力問題。我們從季度銷售人員的角度來看待它。今年以來，我們的賣家數量比去年同期下降了兩位數。我們已經透過新的區域分配、新的重新映射、新的客戶覆蓋範圍等等解決了這個問題。隨著所有這些事情的出現，這實際上也取決於客戶的預測、時間表和知識。

And a lot of that, we saw, which was a more aggressive view of where we thought equipment sales revenue would be at the start of the quarter. And then as the quarter continues to progress, we were taking a lot more of our upside and replacing it with some of the forecast at the beginning of the year, which is a good thing on balance. But when you're as close to the pin as we are, you just need a few misses here and there. And it's the difference between tens of millions of dollars and nothing more on that when you really come down to it on a quarterly basis.

我們看到，其中許多是我們對本季初設備銷售收入預期的更積極的看法。然後，隨著本季的繼續進展，我們獲得了更多的上行空間，並用年初的一些預測取代了它，總的來說，這是一件好事。但當你像我們一樣接近旗桿時，你只需要偶爾錯失一些。當你真正按季度計算時，這只是數千萬美元之間的區別，僅此而已。

So really, what gives me the confidence is, is when I look at that, we had -- we did not have a good Q1, as you know. In Q2, we had a much better productivity basis from an activity level. When I looked at Q3, I had expectations that Q3 was going to build off of Q2, and it was essentially flat over Q2.

所以說真的，給我信心的是，當我看到這一點時，我們沒有一個好的第一季度，正如你所知。在第二季度，從活動水準來看，我們的生產力基礎要好得多。當我查看第三季時，我預計第三季將在第二季的基礎上發展，並且與第二季基本持平。

And so we dissected the programs necessarily to what caused that flatness. We certainly didn't go down, but it kind of gives me confidence that we've stabilized. So now it's all about the incremental activities that we're doing around the sales force, demand generation, and all the forecasting accuracy that gives us the confidence that we're moving forward.

因此，我們對程序進行了必要的剖析，找出造成這種平坦度的原因。我們當然沒有下降，但這讓我有信心我們已經穩定下來。因此，現在的重點是我們圍繞銷售人員、需求生成以及所有讓我們對前進充滿信心的預測準確性所做的增量活動。

Yes, Anand, I also would like to --

是的，阿南德，我也願意--

Yes, we're all jumping on this one.

是的，我們都在跳這個。

Yes. Sorry. Just also to [introduce] one point, so you know that our revenue is made of [ESA], which is roughly 25% of the total revenue. 75% is coming from post-sales. So when you look at it during this year, the ESA revenue trajectory from a growth point of view, quarter over quarter, sequential growth, the trajectory has improved, despite the challenges that, generally, Steve articulated in Q3. It was still an improvement versus what we have seen in Q1 and Q2.

是的。對不起。我還要[介紹]一點，所以你知道我們的收入是由 [ESA] 組成的，大約佔總收入的 25%。 75%來自售後。因此，當你從今年的成長角度來看，歐空局的收入軌跡，季度環比，環比增長，軌跡有所改善，儘管史蒂夫在第三季度普遍闡述了挑戰。與我們在第一季和第二季看到的情況相比，這仍然是一個進步。

On the post-sales revenue, we are also pleased to see that the post-sales revenue stream, despite and related to all the reinvestment activities that we are driving, is improving quarter over quarter. So the key message behind this is that the reinvention play is at play currently. And we are delivering, specifically on the post-sales line. The nature of the equipment revenue is that it could be cyclical. And here we have an example, and we face it during quarters.

在售後收入方面，我們也很高興地看到，儘管我們正在推動所有再投資活動，但售後收入流仍在逐季改善。因此，這背後的關鍵訊息是，重塑遊戲目前正在發揮作用。我們正在交付，特別是在售後線上。設備收入的本質是它可能是週期性的。這裡我們有一個例子，我們在季度中會遇到它。

That's all super useful context, and I really appreciate it. So just a quick follow up to that, and then I'll see you on the floor. Any sense of sort of macro or the general market demand backdrop? Was it a bit softer? And if that was also a contributor to the sort of, John, the flattening, Q over Q, and sort of efficiency progression -- sales efficiency progression?

這些都是非常有用的背景，我真的很感激。請快速跟進一下，然後我們到場見。對宏觀或整體市場需求背景有何了解？是不是軟了一點？如果這也是某種約翰、扁平化、Q 超過 Q 以及某種效率進步的貢獻者——銷售效率進步？

Yes, no, I would say minimal. Most of it is just execution issues.

是的，不，我會說最少。大多數只是執行問題。

About the same. I'd love to blame the macro. It's about the same.

差不多。我很想怪罪宏觀。差不多吧。

Got it. Thanks, guys.

知道了。謝謝，夥計們。

Erik Woodring, Morgan Stanley.

艾瑞克‧伍德林，摩根士丹利。

Great. Thanks so much for taking my questions this morning. I have two, if I may. Maybe just to start, Steve, if we step back, you guys are doing a lot, right? You're exiting businesses, you're changing the delivery model in several regions, you're reducing headcount, you're launching new products, you're acquiring new businesses, and this is all happening at the same time while your end markets do face demand headwinds.

偉大的。非常感謝您今天早上回答我的問題。如果可以的話，我有兩個。也許只是開始，史蒂夫，如果我們退後一步，你們做了很多事情，對嗎？你正在退出業務，你正在改變幾個地區的交付模式，你正在減少員工數量，你正在推出新產品，你正在收購新業務，而這一切都是在你的終端市場同時發生的確實面臨需求逆風。

That's tough, and I credit you for taking all these actions. But as I think about your preliminary comments on 2025, you're setting an expectation for revenue growth, operating income growth, and margin expansion. And I'm just wondering why you think that is the right expectation to set today, given everything that's happened in the background, and obviously given some of the challenges that you run into this year, which some you could theoretically face next year as you continue to go through this reinvention.

這很難，我相信你採取了所有這些行動。但當我思考您對 2025 年的初步評論時，您正在設定收入成長、營業收入成長和利潤率擴張的預期。我只是想知道為什麼你認為今天設定的期望是正確的，考慮到背景中發生的一切，並且顯然考慮到你今年遇到的一些挑戰，理論上你明年可能會面臨一些挑戰繼續經歷這個重塑。

So just -- maybe the question is, amidst all of these changes and moving pieces, what gives you the confidence to say we can get back to growth and margin expansion next year? And then I have a follow up, please.

所以，也許問題是，在所有這些變化和變化中，是什麼讓您有信心說我們明年可以恢復成長和利潤率擴張？然後我有一個後續行動，請。

So thanks for the question. I got to give you a couple of things. First of all, it's the management team that's done it over and over through the history of our careers. We've got pattern recognition that the things that we've put in place, we can see the future; things you can't see internally that we see around the program execution, around the signs of what we're building and how we're executing.

謝謝你的提問。我必須給你幾件事。首先，是管理團隊在我們的職業生涯中一次又一次地做到了這一點。我們已經有了模式識別，我們已經採取的措施，我們可以預見未來；你在內部看不到的東西，我們在程式執行、我們正在建立的東西以及我們如何執行的跡象周圍看到。

So overall, if you think about the reinvention, very similar to [owning it], by the way, where we had 10, 11 workstreams. You see seven or eight, they're going to exceed; three or four, they're going to under-exceed expectations. But overall, you deliver the end results. And so what we're seeing is the strategical things that we're doing.

所以總的來說，如果你考慮重塑，非常類似於[擁有它]，順便說一句，我們有 10、11 個工作流程。你看到七、八個，他們會超過；三到四個，他們將低於預期。但總的來說，你交付了最終結果。所以我們看到的是我們正在做的戰略性事情。

Go back to what we did with our free cash flow, what we did with PARC. All these things are very specific to set up the strategic long-term revenue growth and get us to the operating income that we desire. As we look at each of the workstreams, we're seeing it on the expense line, the cost coming out. You see it definitively. You see on the acquisition, working that in the background to be able to acquire ITsavvy.

回到我們對自由現金流所做的事情，我們對 PARC 所做的事情。所有這些都是非常具體的，旨在建立策略性的長期收入成長並讓我們獲得我們想要的營業收入。當我們查看每個工作流程時，我們會在費用線上看到它，成本就會出來。你肯定會看到它。您可以在收購中看到，在後台進行工作，以便能夠獲得 ITsavvy。

You see what we're doing in terms of dramatically changing our sales coverage and what's that doing in terms of building new pipeline, building new customers. And so I'm confident that what we're doing is working. It's not linear and it's not straight.

您將看到我們在大幅改變銷售範圍方面所做的事情，以及在建立新管道、建立新客戶方面所做的事情。所以我相信我們正在做的事情是有效的。它不是線性的，也不是直的。

That's the challenge with trying to do this, taking a three-year program and then looking at it in an isolated quarter. But I can see the long-term returns over the next couple of years and what we're trying to do, the evidence and the things that we're trying to do, and more importantly, the pattern recognition of everything we've done across our careers that says we're on the right track.

這就是嘗試做到這一點的挑戰，制定一個為期三年的計劃，然後在孤立的季度進行研究。但我可以看到未來幾年的長期回報以及我們正在嘗試做的事情，證據和我們正在嘗試做的事情，更重要的是，我們所做的一切的模式識別在我們的職業生涯中，這表明我們走在正確的軌道上。

Okay, super. Thank you, Steve. And then maybe just as a quick follow up or just point of clarification, so you guys have adjusted EBITDA margins close to 9%. I believe that just with the disclosures that you provided on ITsavvy, EBITDA margins are around 7%, so you guys talked about this asset being dilute, excuse me, accretive immediately.

好吧，超級。謝謝你，史蒂夫。然後也許只是作為一個快速跟進或澄清點，所以你們已經將 EBITDA 利潤率調整為接近 9%。我相信，根據您在 ITsavvy 上提供的披露信息，EBITDA 利潤率約為 7%，所以你們談到這項資產會被稀釋，對不起，會立即增值。

Can you just help us understand some of the math that you're getting to that accretion in terms of either revenue synergies? I know you alluded to some cost synergies, but if you could just kind of in totality help us understand the assumptions around this being accretive, that would be super helpful. Thank you.

您能否幫助我們了解您在收入綜效方面所獲得的成長的一些數學知識？我知道您提到了一些成本協同效應，但如果您能從整體上幫助我們理解有關這種增值的假設，那將非常有幫助。謝謝。

Erik, I will give you some insight on the ITsavvy, the size of the acquisitions, the revenue, and also the expected synergy here. If you remember in the press release, we mentioned it in the earnings call as well. This is a company which is around [$450 million] in revenue, LTM, and around $30 million in EBITDA, as they are currently here. We're expecting to deliver around $15 million of synergy here.

Erik，我將向您介紹一些有關 IT 知識、收購規模、收入以及預期協同效應的見解。如果您還記得在新聞稿中，我們也在財報電話會議中提到過這一點。該公司目前的 LTM 營收約為 [4.5 億美元]，EBITDA 約為 3,000 萬美元。我們預計將在這裡帶來約 1500 萬美元的協同效應。

So when you include this year, then you will see what type of EBITDA they can bring on the EBITDA margin versus the revenue, which would be above 9% here. So it will become accretive immediately versus our current number.

因此，當您考慮今年的情況時，您會看到他們可以為 EBITDA 利潤率與收入帶來哪種類型的 EBITDA，這裡的 EBITDA 利潤率將高於 9%。因此，與我們目前的數字相比，它將立即增加。

They are also -- from a pure free cash flow point of view, they will be accretive to us there. And obviously, EPS will follow directly here. So a point I want to flag there, from a gross margin point of view, so business model is different, less gross margin, but also less OpEx. So at the end of the day, EBITDA is a metric to look at bottom line. This is what we will see, and it will drive an improvement in our financial that we will capture immediately, so starting as soon as this transaction is closed, which we are expecting to happen quite soon.

從純粹的自由現金流的角度來看，它們也會為我們帶來增值。顯然，每股收益將直接跟隨這裡。所以我想從毛利率的角度指出一點，所以商業模式是不同的，毛利率較低，但營運支出也較少。因此，歸根究底，EBITDA 是衡量利潤的指標。這就是我們將看到的情況，它將推動我們的財務狀況得到改善，我們將立即捕捉到這一點，因此，一旦這筆交易結束，我們就開始，我們預計這將很快發生。

And Xavier, maybe just one final point of clarification. As we incorporate ITsavvy into the model, is that -- I assume it flows through services, maintenance, and rentals line, just as we think about our model. I just want to make sure we're kind of incorporating that correctly. Thanks.

澤維爾，也許只是最後一點澄清。當我們將 ITsavvy 納入模型時，我認為它會流經服務、維護和租賃線，就像我們思考我們的模型一樣。我只是想確保我們正確地整合了它。謝謝。

Yes, we will distribute it in the same way we do it today. So there is an element of hardware, which is going in a different line, but the bulk of the revenue here. David on the team -- the IR team can help you with this one on how we will do the pro forma, but it is very similar to the way we will do it.

是的，我們將以與今天相同的方式分發它。所以有一個硬體元素，它屬於不同的產品線，但這裡的大部分收入。David 團隊成員 - IR 團隊可以幫助您了解我們將如何進行準備考試，但這與我們的方式非常相似。

As you know it as well, next year, we are planning to have a segment reporting, and this is an important point because at the end of the day, ITsavvy is just a proof point that our reimbursement strategy is at play. With ITsavvy, this IT and digital services here for the total company will become 15%.

如您所知，明年我們計劃進行細分報告，這是很重要的一點，因為歸根結底，ITsavvy 只是我們的報銷策略發揮作用的一個證明。憑藉 ITsavvy，這方面的 IT 和數位服務占公司總量的比例將變為 15%。

So we will move -- we'll jump by 5%. Currently, this is 10%. We have an additional 5%. And remember, the trajectories that we have guided for is that during the re-invention program, we want to achieve 20% of revenue, which are not print related. And this is literally a first step in this direction, significant step here.

所以我們會採取行動——我們會跳躍 5%。目前，這一比例為 10%。我們還有額外的 5%。請記住，我們指導的軌跡是，在再發明計畫期間，我們希望實現 20% 的收入，這與印刷品無關。這其實是朝這個方向邁出的第一步，也是重要的一步。

Awesome. Thank you so much.

驚人的。太感謝了。

(Operator Instructions) As it appears that we don't have any further questions in the queue at this time, I'd like to hand the program back to Steve Bandrowczak for any further remarks.

（操作員說明）由於目前隊列中似乎沒有任何其他問題，因此我想將程式交還給 Steve Bandrowczak 以供進一步評論。

Thank you. Recapping today's call, equipment sales fell short of our expectation this quarter and for the year, but we are confident we have identified and addressed the factors that contributed to these shortfalls. We expected an improved equipment revenue trajectory and the pending acquisition of ITsavvy to drive a return to revenue growth in 2025.

謝謝。回顧今天的電話會議，本季和全年的設備銷售未達到我們的預期，但我們相信我們已經確定並解決了導致這些不足的因素。我們預計設備收入軌跡的改善以及即將收購 ITsavvy 將推動 2025 年營收恢復成長。

This quarter reminds us no single performance indicator or quarterly results defines our reinvention. Consistent progress in operating efficiencies, client perception, services signings, and expected sales force productivity gains gives us confidence we are on the path to enabling long-term profitable growth through reinvention. Thank you very much for attending this call.

本季提醒我們，沒有任何單一績效指標或季度業績可以定義我們的重塑。營運效率、客戶認知、服務簽約和預期銷售人員生產力提高的持續進步讓我們有信心走上透過重塑實現長期獲利成長的道路。非常感謝您參加本次電話會議。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。