Xerox Holdings Profile
Xerox Holdings Corporation (Xerox) operates as a workplace technology company.
The company is building and integrating software and hardware for enterprises large and small. As customers seek to manage information and document workflows across digital and physical platforms, the company delivers a seamless, secure, and sustainable experience. Whether inventing the copier, the Ethernet, the laser printer or more, Xerox has long defined the modern work experience and continues to do so with investments in artificial intelligence (AI), augmented reality (AR)-driven service experiences, robotic process automation (RPA) and other technologies that enable Xerox to deliver essential products and services to address productivity challenges of a hybrid workplace and distributed workforce.
Xerox serves customers globally in North America, Central and South America, Brazil, Europe, Eurasia, the Middle East, Africa, and India. This geographic span allows the company to deliver its technology and solutions to customers of all sizes, regardless of complexity or number of customer locations.
Divestitures and Other Strategic Changes
The company divested certain businesses that are non-core to Print, Digital and IT Services, including PARC, Xerox Research Center of Canada (XRCC), and Elem, the company's 3D printing business. The company expanded its partnership with PEAC Solutions, an affiliate of HPS Investment Partners, allowing FITTLE to focus exclusively on financial solutions that support the direct sales of Xerox equipment and services. The company also reduced its presence in certain non-strategic markets with lower levels of profitability, such as paper and certain types of IT hardware.
Strategic Priorities
The company's strategic priorities for 2024 is to strengthen core businesses. The company continues its strategy to diversify and grow other businesses.
Reportable Segments and Geographic Sales Channels
During 2023, the company had two operating and reportable segments - Print and Other and FITTLE.
Print and Other - the design, development and sale of document systems, solutions, and services, as well as associated technology offerings including IT and software products and services.
FITTLE - a financing solutions business for direct channel customer purchases of Xerox equipment and solutions, and lease financing to end-user customers who purchase Xerox equipment and solutions.
The company also employs a matrix organization that includes a product and geographic focus based on alignment with the economic buyers of the company's products and services.
Revenues
The company has a broad and diverse base of customers by both geography and industry, ranging from small and mid-sized clients to printing production companies, governmental entities, educational institutions and Fortune 1000 corporations. The company's business does not depend upon a single customer, or a few customers, the loss of which would have a material adverse effect on the company's business. The company's business spans four primary offering areas: Workplace Solutions, Production Solutions, Xerox Services and FITTLE.
Workplace Solutions is made up of two strategic product groups, Entry and Mid-Range, much of which share common solutions, apps and ConnectKey software. Workplace Solutions revenues include the sale of products (captured primarily as equipment sales) as well as the supplies and associated technical service and financing of those products through FITTLE (captured as post sale revenue).
Entry primarily comprises A4 desktop monochrome and color printers and multifunction printers (MFPs) ranging from small personal devices to office workgroup devices. The company offers its ConnectKey system of digital workflow and applications across a large portion of these devices.
Mid-Range are primarily A3 devices that have more features and can handle higher print volumes and larger paper sizes than entry devices. The company is a leader in this area of the market and offer a wide range of MFPs, digital printing presses and light production devices, as well as solutions that deliver flexibility and advanced features.
Production Solutions (High-End) are designed for customers in the graphic communications, in-plant and production print environments with high-volume printing requirements. The company's broad portfolio of presses and solutions provides black-and white and full-color, on-demand printing of a wide range of applications. The company's xerographic and ink jet presses provide high-speed, high-volume cut-sheet printing, ideal for publishing, and transactional printing, including variable data for personalized content and one-to-one marketing, to the highest quality of color and embellishment requirements. The company's cut-sheet inkjet press enables new applications in true high-definition resolution with high fusion ink, AI Powered image quality and advanced productivity technologies. The company's portfolio spans a variety of print speeds, image quality, feeding, finishing and media options. Production Solutions revenues include the sale of products (captured primarily in equipment sales) as well as, software, supplies and the associated technical service and financing of those products (captured as post sale revenue). FreeFlow is a portfolio of software offerings that brings intelligent workflow automation and integration to the processing of high-end print jobs, from file preparation to final production, helping customers of all sizes address a wide range of business opportunities including automation, personalization, and even electronic publishing.
Xerox Services includes a continuum of solutions and services that help the company's customers optimize their print and communications infrastructure, apply automation and simplification to maximize productivity, and ensure the highest levels of security. Xerox has the capability to support integration and document security on a global scale, which are critical factors for large enterprises. The company's primary offerings in this area are Xerox Managed Print Services (MPS), Xerox Capture & Content Services (CCS) and Xerox Customer Engagement Services (CES) as well as IT Services. CCS and CES encompass a range of Digital Services that leverage the company's software capabilities in Workflow Automation, Personalization and Communication Software, Content Management Solutions, and Digitization Services. The pandemic shifted the company's customers' focus toward secure, efficient, and flexible solutions to operate in a hybrid work environment. As a result, the company enhanced its focus on the development and promotion of offerings to help the company's customers accelerate their digital transformations.
Managed Print Solutions (MPS) utilizes the company's portfolio of security, analytics, cloud, digitization, and ConnectKey technologies to help companies optimize their print infrastructure, secure their print environment, and automate related business processes. The company provides the most comprehensive portfolio of MPS services in the industry and are recognized as an industry leader by major analyst firms, including IDC and Quocirca. The company's MPS offering targets clients ranging from global enterprises to governmental entities and small and mid-sized businesses, including those served via the company's channel partners. This portfolio includes a suite of services to help clients manage hybrid workforces, including cost effective and secure printing devices along with apps and software tools that enable work from anywhere, cloud server-enabled fleet management, security and automation software and remote customer support. Xerox Workflow Central extends the document workflow solutions available through the company's ConnectKey technologies to all devices, including PCs and smartphones, for easier access to workflow solutions in hybrid workplace environments.
Capture & Content Services (CCS) enables content digitization, management, workflow automation, and intelligent document processing and includes offerings, such as Xerox Digital Mailroom, where the company uses scanning and capture technology combined with AI to extract printed and digital information into usable data that is routed into business workflows (such as accounts payable) or into archives, integrating with cloud-based content management systems such as the company's DocuShare software.
Customer Engagement Services (CES) enable the integration of Xerox technology, software, and services to securely design and manage the company's clients' personalization and customization of targeted communications. These services include Xerox Digital Hub and Cloud Print services, a one-stop shop where customers can submit print jobs from anywhere and leverage the company's Web2Print portal with on and off-site printing networks to meet their printing or marketing collateral needs on demand. The company's Customer Communications Management and Campaigns on Demand solutions, such as those provided through the company's acquisition of Go Inspire, help drive personalized and meaningful communications and touchpoints.
IT Services provides small and mid-sized clients with cost efficient and secure solutions, including end user computing devices, network infrastructure, communications technology, and a range of managed IT solutions, such as technology product support, professional engineering, and commercial RPA.
FITTLE is a global financing solutions business and offers lease financing for direct channel customer purchases of Xerox equipment and solutions through bundled lease agreements and lease financing to end-user customers who purchase Xerox equipment and solutions through the company's indirect channels.
In addition to the company's four primary offering areas described above, a small portion of the company's revenues comes from non-core streams including paper sales in the company's developing market countries, and standalone software such as CareAR, DocuShare, and XMPie.
Geographic Information
Overall, approximately 45% of the company's revenue is generated by customers outside the U.S.
Patents, Trademarks and Licenses
In 2023, Xerox and its subsidiaries were awarded 300 U.S. utility and design patents. The company's patent portfolio evolves as new patents are awarded to the company and older patents expire. As of December 31, 2023, Xerox held 6,471 U.S. utility and design patents. These patents expire at various dates up to 20 years or more from their original filing dates.
In the U.S., the company owns 155 trademarks, either registered or applied for. Outside of the U.S., the company owns 3,740 trademarks, either registered or applied for.
Marketing and Distribution
The company goes to market with a client-centric, market-informed, and services-led approach, selling workplace products and services that support the new hybrid workplace and distributed workforce. The company services its clients through its direct sales force or indirectly through distributors, independent agents, dealers, value-added resellers, systems integrators, and e-commerce marketplaces. In addition, the company continues to focus on broadening the company's footprint to sell offerings to the small and mid-sized markets primarily in the U.S., the U.K., and Canada through Xerox Business Solutions (XBS) which is consisted of regional core companies that provide office technology and services, including Managed IT Services, to small and mid-sized markets clients, and through the acquisitions of dealers and IT Services providers internationally.
The company is structured to serve its clients globally through the company's business-unit led operating model and organizational structure which covers direct and indirect routes to market in the Americas (consisted of the U.S. and Canada along with Mexico, Brazil, Central and South America) and EMEA (consisted of Europe, the Middle East, Africa and India).
Competition
The larger competitors in the company's print business include Canon, FUJIFILM Business Innovations Corp., HP Inc., Konica Minolta, and Ricoh.
Customer Financing (FITTLE)
The company finance a large portion of its direct channel customer purchases of Xerox equipment through bundled lease agreements. The company also provides lease financing to end-user customers who purchase Xerox equipment and solutions through the company's indirect channels.
Manufacturing and Supply
The company's manufacturing and distribution facilities are located around the world. The company's largest manufacturing site is in Webster, N.Y., where the company produces the Xerox iGen, Xerox Nuvera, and Xerox Baltoro production printing presses as well as key components and consumables for the company's products, such as toner. The company has manufacturing operations for materials and components in Dundalk, Ireland; Wilsonville, OR; Venray, Netherlands; Ontario, Canada; and Oklahoma City, OK. The company conducts sustainable manufacturing in all of these facilities. In addition, the company works with various manufacturing and distribution partners. This diversification of suppliers brings flexibility and cost efficiency to the company's manufacturing and supply chain, a critical component in the company's strategic initiative to optimize operations for simplicity.
FUJIFILM Business Innovation Corp. (formerly Fuji Xerox Co., Ltd.) is the company's largest partner with whom the company maintains product sourcing agreements for specific products primarily across the company's mid-range and high-end portfolios. The company also acquires products from various third parties to increase the breadth of the company's product portfolio and meet channel requirements. In addition, the company outsources certain specialized manufacturing activities to partners, such as Flex Ltd. and Jabil Inc., which are global contract manufacturers with whom the company has long-standing relationships.
The company's supply chain operations utilize a network of world-class logistics partners who offer warehousing and transportation services. Reverse Logistics is an integral part of the company's sustainability mission, and in the U.S. the company performs these operations at the company's facility in Cincinnati, OH, and globally with a network of various partners.
FUJIFILM Business Innovation Corp. continues to be one of the company's strategic suppliers, and in 2023 the company renewed its multi-year contract with them. This agreement secures the company's ongoing access to the latest advancements in print engine technology and related supplies, reinforcing Xerox's commitment to delivering differentiated solutions to the company's clients and partners.
Research, Development and Engineering
The company's research, development and engineering costs were $229 million for the year ended December 31, 2023.
History
Xerox Holdings Corporation, a New York corporation, was founded in 1903. The company was incorporated in 2019.
