Xerox Holdings Corporation (NASDAQ:XRX) Q1 2023 Earnings Call Transcript

Xavier Heiss: Yes, Shannon, just to build from a pure financial on a P&L hydraulic there. So we focus obviously on gross margin expansion. Pricing is a driver and we are also, as Steve mentioned, attacking any cost of goods sold opportunities that we have. We have some headwinds with raw material increase and some material increase there. But if you notice it, our gross margin is still expanding. This is not related specifically to one-off type of item. It is structurally done with what Steve mentioned. The order ratio that we are monitoring constantly is a ratio of OpEx, so RD&E plus SAG versus total revenue. And if you notice this year-over-year, this is a ratio that we are pushing to improve. If you exclude also the benefit and, in some cases, the impact of bad debt, just looking at selling on G&A plus RD&E, all these metrics, this is a focus of the management team to drive them down and to make the cost base flexible.

Shannon Cross: Thank you. That was very helpful.

Operator: Thank you. This does conclude the question-and-answer session of today’s program. I’d now like to hand the program over to Steve Bandrowczak for any further remarks.

Steve Bandrowczak: Yes. Thank you for listening to our earnings conference call this morning. Demand for our products and services remains resilient amid a challenging macroeconomic background, and we are making progress in our efforts to improve profitability. Our performance is the credit to our hard-working team, who have embraced our strategy, strategic priorities by developing customer success while focusing on profitability. I thank you for attending today’s call.

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