Xerox Revenue Down 22% Since 2019

Xerox released their end of year earnings for 2021 and the results tell you everything you need to know about What’s Happenin’ with the venerable office equipment vendor.

Highlights from today’s earnings release:

YoY 3 months ended Dec.31 2020 vs 2021

Sales Revenue down 15.5%
Services/Maintenance/Rentals Revenue down 7.9%
Equipment Sales Revenue down 24.7%
Entry Level Equipment (A4) Revenue up 8.6%
Mid-range Equipment (A3) Revenue down 30.7%
High-end Equipment (production) Revenue down 27.7%

2019 VS 2021 (full year comparison)

Sales down 20%
Services, Maintenance and Rentals down 24.3%
Sales Gross Profit down 36.3
Entry-Level Equipment (A4) up $65 million
Mid-Level Equipment (A3) down $432 million
High-level Equipment (production) down $117 million

Xerox’s Effort Fading?

This hardware company hasn’t had a press release for a new device since June 2019. To find their last A3 announcement, you’ll have to go back to 2018.

It’s almost February and the only news they’ve issued this year is today’s earnings release.

Xerox hasn’t had an industry analyst briefing in nearly 3 years. This is a company that used to fly analysts from all over the world to Rochester or NYC to see the latest technology. Now, they don’t even bother with Zoom meetings.

From the last dozen events we’ve attended, it appears they have stopped participating in channel events and their reseller community is beyond frustrated for reasons ranging from support issues to lack of product – a problem some of their competitors are also experiencing at the moment.

Scary Facts from 2019 to 2021

Xerox total equipment revenue was down $581 million
Xerox Holdings total revenue was down over $2 billion (2019: $9.06b, 2021: $7.04b)
Production sales are down 27.8%
A3 (copiers/MFPs) sales are down 30.8%

CEO Compensation Increases

Clearly, this is not the same Xerox that your parents and grandparents worked for. Incidentally, many of them (some in their 80s and 90s) just received word that Xerox is eliminating their health benefits.

This move comes on the heels of Xerox CEO John Visentin receiving over $18 million in compensation in 2020 – during arguably the worst financial slide Xerox ever had with the near shutdown of the US and global economies.

Xerox experienced their largest YoY drop in revenue ever (22.5%) from 2019 to 2020. Their revenue slid by over $2 billion during that period and their CEO received over $18m in pay, including a $5 million increase over his comp in 2019.

Since Visentin took over as CEO in May 2018, he has earned $54.7 million in compensation (2018 – 2020). During this same period, Xerox has cut 23.8% of their workforce and reduced revenue by 27%, down $2.6 billion since he took over.

It will be interesting to see what the compensation for the Xerox CEO position is for 2021 when it’s reported in April.