Pitney Bowes 2019 Investor Day: Transformation Through Changing Mix Toward Growth Markets, Data and Global E-Commerce Offerings

Executive Summary

The Coresight Research team attended Pitney Bowes’ 2019 investor day on May 29, 2019, in New York City.

• Management characterized the company’s journey as a transformation, rather than a turnaround, and anticipates shifting the product mix toward growth markets.
• The company is fueling growth by simplifying its product portfolio around the SendPro platform, which features an IoT-connected, open architecture that has created an ecosystem of developers and partners in the US and internationally. An app for SendPro enables customers to use Deliv for same-day shipping, in addition to standard features that enable the customer to find the best deal among multiple shippers.
• Pitney Bowes is leveraging its data capabilities, in customer information, location intelligence, customer engagement and data, which could be a $6 billion segment within a $23-35 billion market opportunity.
• Global e-commerce is fueling the company’s return to growth, with above-industry growth rates, processing more than 125 million physical parcels and touching more than 400 million parcels digitally, adding more than $1 billion of revenue in more than six years.
• Profitability is expected to be flat or improve in the SMB (small and medium business) unit in 2021, and the global e-commerce unit is expected to turn profitable in 2020.