Pitney Bowes Inc. (NYSE:PBI) Q3 2019 Earnings Conference Call Transcript

Nov 05, 2019 • 08:00 am ET

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Pitney Bowes Inc. (NYSE:PBI) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to the Pitney Bowes' Third Quarter Earnings Conference Call. [Operator Instructions]. If you have any objections, please disconnect your lines at this time. I would now like to introduce participants on today's Conference call, Mr. Marc Lautenbach, President and Chief Executive Officer, Mr. Stan Sutula Executive Vice President and Chief Financial Officer and Mr. Adam David, Vice President, Investor Relations. Mr. David will now begin the call with the Safe Harbor overview.

Executive
Adam David

Good morning. Included in this presentation are forward-looking statements about our expected future business and financial performance. Forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from our projections. More information about these risks and uncertainties can be found in our earnings press release, our 2018 Form 10-K annual report and other reports filed with the SEC that are located on our website at www.pb.com and by clicking on Investor Relations.

Please keep in mind that we do not undertake any obligation to update any forward-looking statements as a result of new information or developments. Also for non-GAAP measures used in the press release or discussed in this presentation, you can find reconciliations to the appropriate GAAP measures in the tables attached to our press release and also on our Investor Relations website. Additionally, we have provided slides that summarize many of the points we will discuss during the call. These slides can also be found on our Investor Relations website.

Now, our President and Chief Executive Officer, Marc Lautenbach will start with a few opening remarks. Mark?

Executive
Marc B. Lautenbach

Thank you, Adam. And thank you all for joining the call. We delivered a solid quarter, and one of the best quarters for revenue growth in a very long time. At an enterprise level revenue this quarter grew 6% when adjusted for currency and market exits, which was driven by 20% growth in our Global E-commerce business and an improved performance in our global SMB organization, which you will see from our earnings press release, we have renamed, Sending Technology Solutions or SendTech for short .

While we do not expect 6% revenue growth every quarter, the third quarter performance is clear evidence that the steps we have taken and continue to take to transform our company are paying off. Shipping was the key driver for the quarter. Our domestic parcel services grew its delivery and return volumes 27% in the quarter to 29 million packages processed. Shipping products comprised 38% of our total revenue in the third quarter.

To put this in perspective, shipping revenue was 20% of our overall revenue two short years ago. Importantly, we continued to bring in new clients in the quarter and of course we continue to make the required investments to build out our network, to accommodate the significant growth. As I mentioned before, you need to invest in front of this growth

Executive
Adam David

We're also making the necessary investments to ensure we can handle what we expect to be a very successful peak season,