Xerox Holdings Corporation (NASDAQ:XRX) Q3 2023 Earnings Conference Call October 24, 2023 8:00 AM ET
Company Participants
David Beckel - Vice President and Head, Investor Relations
Steve Bandrowczak - Chief Executive Officer
Xavier Heiss - Executive Vice President and Chief Financial Officer
Conference Call Participants
Ananda Baruah - Loop Capital
Maya Neuman - Morgan Stanley
Samik Chatterjee - JPMorgan
Operator
Welcome to the Xerox Holdings Corporation Third Quarter 2023 Earnings Release Conference Call. After the presentation, there will be a question-and-answer session. [Operator Instructions] At this time, I would like to turn the meeting over to Mr. David Beckel, Vice President of Investor Relations. Please go ahead, sir.
David Beckel
Good morning, everyone. I am David Beckel, Vice President and Head of Investor Relations at Xerox Holdings Corporation. Welcome to the Xerox Holdings Corporation third quarter 2023 earnings release conference call hosted by Steve Bandrowczak, Chief Executive Officer. He is joined by Xavier Heiss, Executive Vice President and Chief Financial Officer.
At the request of Xerox Holdings Corporation, today’s conference call is being recorded. Other recording and/or rebroadcasting of this call are prohibited without the expressed permission of Xerox. During this call, Xerox executives will refer to slides that are available on the web at www.xerox.com/investor and will make comments that contain forward-looking statements, which, by their nature, address matters that are in the future and uncertain. Actual future financial results may be materially different than those expressed herein.
At this time, I’d like to turn the meeting over to Mr. Bandrowczak.
Steve Bandrowczak
Good morning and thank you for joining our Q3 2023 earnings call. Before I get to this quarter’s results, I would like to start today’s call by acknowledging the tragic events unfolding in the Middle East. Our thoughts and prayers are with the victims and their families, which include our local employees, clients and partners. We are all hoping for a peaceful resolution.
In Q3, the successful execution of our strategic priorities resulted in another quarter of growth in adjusted operating income, EPS and free cash flow. Summarizing results for the quarter, revenue of $1.65 billion declined 5.7% in actual currency and 7.4% in constant currency. Adjusted EPS was $0.46, $0.27 higher year-over-year. Free cash flow was $112 million compared to a use of $18 million in the prior year quarter and adjusted operating margin of 4.1% was higher year-over-year by 40 basis points.
While I am never pleased to report a decline in revenue, this quarter’s top line results were largely anticipated. The decline in revenue reflects a relatively stable demand environment for our products and services, offset by declines in certain cyclical low-margin post-sale revenue categories as well as declines in revenues associated with strategic actions put in place to simplify our business.