Pitney Bowes (PBI) 28 Apr 222022 Q1 Earnings call transcript

Good morning, and welcome to the Pitney Bowes First Quarter Earnings 2022 Results Conference Call.

Your lines have been placed in a listen-only mode during the conference call until the question-and-answer segment. Today's call is also being recorded.

If you have any objections, please disconnect your lines at this time. I would now like to introduce your participants for today's conference call. Mr. Chief Ms. and President Lautenbach, Executive Officer; Marc Ana and Mr. Vice President Financial Officer; and Chief Chadwick, Executive Ned President, Zachar, Vice Investor Relations. Mr. Zachar with will the call safe harbor now overview. begin the

and Relations Good this manage everyone morning my usual appreciate to morning. the I'd Ned your This this morning, welcome and Zachar includes call harbor very everybody. like to covering the for information. program customary duties We Investor the Pitney participation. Bowes. is of I safe much Part

just a statements for Today's So presentation future forward-looking please me bear include moment. about business will with and expected our financial performance.

and that materially risks involve statements to projections. results cause be Forward-looking from our uncertainties could actual different

to with on website Relations. release, topics, or XX-K we Please undertake for provide attached information Relations the and by to new Form www.pb.com the updates obligation statements tables the For our see our that do result be of are forward-looking to filed reconciliations found accounting and Investor to developments. release report these located on SEC our our also in more not at Investor clicking on can that any our XXXX keep website. GAAP and as earnings press on annual mind Also, press information reports measures, in please non-GAAP a other

our provided call. that we points presentation summarizes discuss on a today's during we website Additionally, slide many will of the

turn of Chief over Executive by begin our discussion Chief like is morning to floor followed this will Officer, our provide Marc will going to President presentation be now Officer, I'd the format results. Financial is a and Marc. Lautenbach, opening Our will Chadwick, yours. to Marc remarks. familiar. with financial the Ana be He deeper who our

morning, everyone. the appreciate Ned, call. and joining Thanks, everyone good I

strong base really expect is for in EBITDA business, quarter the most businesses year for Case this of Presort working year good first are growth. is EBIT a numbers. billion overlook want shipping Our GEC is business The in and talking other sure I that headline having another and Financial SendTech not minutes line EPS we satisfaction. are Presort has a that, Presort experienced core point, 'XX. margins and to I improvement carries make strong do and to global about that on. had e-commerce that continue top margin. we've the grown was line SendTech In strong few trends GEC Growth the traditional year-over-year. continued, grew business, the businesses. in trend Services in within SendTech built last customer business XX% great a on people and our aggregate, and EBIT and performance XX% our top the businesses. in a is want clients very initiatives incredibly good, we get spend I the and the SendTech solid our The quarter are This with quarter, positive impact been I full resonating but very the and growth, $X our there dynamic to the upfront tremendous interest for and know revenue,

First are opportunities, terrific Class and Mail decline, Office Mail, we are but hitting continues the Shipping small business and to Marketing lending ball.

the very and products offerings are in new Our doing well market.

these line won't be the It's and XX our GEC has been last the As continue, how we for business continues profitable chain to be gross year. a improvement, margins basis improved. expect points been expect the economics and stabilize dynamics turbulent our was business the disruption year-over-year to GEC of while overestimate related levels improved In the this hasn't e-commerce GEC hard the supply XXX and to service EBITDA market weighing, and logistics Again, gradually improve. first COVID EBITDA dynamics straight the months. to unit and profitable. quarter, we and over

to the strong industry where - with dynamics growth outpace sector capacity an like is coupled We e-commerce really long-run logistics, in demand. market continue unlikely to

including plays signed the business our is relationship to the coupled is in the Of really USPS note, Xth. Integral our market any to positive, To United good parcel President April all, questions mandate reform model environment is mail I Our first USPS, the integrated run of less like signed capability, are while brand strong and And business post marketing bill in extent model well to and works. this final turning how continue very puts the start. that with on viability six long-term quarter mile with really President States Service, our to positioned. sortation day we The reform rest. in GEC a legislation the its All combination. a there the the a are and about delivery questions those network. Postal Biden poster was the macroeconomic

to through financial walk Let details. call me Ana to the our turn now over

and positive I adjusted other will comparisons flow get basis speak revenue currency primary Unless e-commerce more financial started solid the we a here From on takeaway improvements. especially XXXX Marc. on otherwise energizing and such started an EBITDA, It's EBIT, a revenues, to global and you, standpoint, have in sheet better as noted, that items on cash with constant margins, basis. Thank a EPS note. improved balance XXXX quarter, is a to

X% point, First, year, with margin a financial Gross statement I'll company is X% to improvement income which million the was $XXX increase. starting the was revenue through million, data for the the period compared take for high-level year-over-year. statement. $XXX for million you $XXX last quarter a the Total same

total of to million million, EBIT points prior margin up $XX XX was X.X%. to from improved XX driven points in XXXX. basis the which Interest XX.X%, reductions than EBIT quarter and million, debt expense total $XX As outstanding. were X% moved $XX higher XX%. by XX down in basis margin million EBITDA gross first was year, and $XX to was both a Total points EBITDA of basis Total margin increased percent revenues,

levels non-recurring items, to $X.XX which and Our At $X.XX, quarter. by Adjusted GAAP quarter, tax in end rate in of handful EPS the driven was release. EPS outstanding $X.XX, were than of XX% are normal was the detailed was a million. the approximately $XXX shares better press diluted the and year last returned more

I'll XXXX. of to year. more to as healthy to use while we was which of from $X we cash operations that free say move flow capital, Turning GAAP free a for continue to have million, normalize but expect that the shortly, a by largely to through million, flow. $XX levels driven cash adjusted topic generate in flow on cash of working repeat was we expect use cash changes I'll

we dividends made and in million in restructuring $X payments. During paid $X million the quarter,

was As million, are the last for down in be lower period $XX million expected signaled year. in from call, our we in And quarter, last capital CapEx XXXX. the same expenditures $XX to

during we We also manage count. overall quarter, repurchase spent as a share share over on the $XX million little

our at undrawn. short-term Liquidity with sheet. Looking our $XXX balance cash million approximately revolver investments excellent and remains of and remains $XXX million,

We to and end debt continue debt the $X.X was levels. redeemed maturity year billion progress compared make ago. end at We of at the billion during XXXX our quarter, quarter $X.X last the the of $X.X reducing year in to billion a and total

morning. results our were release is quarter our first outlined segment. presentation, which slide press segment and website by in to at Investor look The posted this Let's following information Relations

to GEC. ago. to year, X% year million quarter, $X increased better revenue is which in shift pieces start first new volume was was by XXXX. was down XXXX. $XX million in for in segment resulted transportation approach X% additions XX% driven which incurred increase largely Presort $XXX partially last new a the costs, the revenues cost decline The by labor methodology was Also, refined for and from in continue offset billion was A XX.X% piece. quarter expenses our Total of of Let Presort and compared decline compared with each margins to XX.X% The Class transportation Presort. driven actual within Marketing million than EBIT sortation me X.X and costs. will per Mail X% a better for represents were for year. balance customer quarter allocation EBIT volumes prior to the in million of margin we First $XX a compared by Mail. increased

transportation our portfolio Presort the capability Marketing yet costs. quarter, which to we though Mail terrific not product that has second in rising in taking Las team to process Mail expect Class labor was and across several facility, happen the XXXX. to In First addition, The the Vegas and the of running steps new attack at scale half is

sorters, We are new more more robotics. automation, additional conveyors including adding and

believe versus to to also return transportation is higher in mid-teen the We levels, mix term. labor medium all which to the margins wider temporary use the of we effort in of expect employees vendors, attainable variety and

Marketing increased cost the about growth per good continue above Mail and driven feel referenced the better and for We of revenue piece by very to prospects Presort, mix measures.

costs. of X% segment $XXX primarily and revenues the XXXX. was from $XXX in Moving freight compared quarter, period decrease first was same EBIT to to SendTech. and million reported SendTech margins was basis down million quarter points from finance margin year. down by million higher last $XXX EBIT XXX XX.X%, The the in revenues lower driven high-margin

XX% and equipment we increased implementing million up increased to services and shipping which costs. $XX of are revenues. sales, we products in bright were revenues, spots increases offset said which and surcharges with segment quarter, to exceed now include price value-added last Key generally the XX% As X% combination and

In a functionality, integrates XXX and Pro, with terms mailing solution differentiator platform. of powerful operational think on launched significant advanced SaaS PitneyShip in sending built the which is is next-generation design the shipping cloud-based marketplace. new we highlights, we a which shipping It

in excellent continue we SendPro was XXXX. Mailstation, addition, which In launched for demand to see our April

by over and finance we from at assets continued the $X grew improvement of at portfolio quality. Total shipped stand XX,XXX $X.X up are billion. million encouraged XX,XXX quarter in year-end. the in In now have approximately GFS, actually and stabilization devices, receivables We

is on of time translate While will Portfolio percentage write-offs it naturally improvement as a evidenced basis. lower growth. by into year-over-year to expand, assets revenue have a quality take and assets some to delinquencies begun

the in because quarter $XX was to for compared $XX now last revenue a $XX.X global challenging us primarily $XX sales million, trends. we as from from in the moved second, to were offset and affected teens, the million of of Cross-border in parcel international increased quarter somewhat in year. from did fulfillment well, parcel. the domestic broad e-commerce X% revenue volumes US to e-commerce. versus was was the quarter. the more a comparisons up per XXXX, became also to million the parcel pandemic fourth here's Domestic revenue global stronger in turn month-to-month we parcels Within through million. were margin $XX digital a me and the a spill-over why. ago and more actually in Strength lower quarter And In million weaker of increase up mid e-commerce the revenues. e-commerce, by cross-border quarter peak Let in difficult trends the year Domestic considerably was level in parcels down March. market The X% due were year dollar increased US Gross context, figure and $XX and a $XXX fourth solid was quarter. record It ago. million million quarter. by

basis As period a of much improvement an quarter of X.X%, loss points segment positive per labor revenues, XXXX. the loss year's approximately X.X%, per million. million improvement XXX Margin $X of to a the in of parcel. EBIT year-over-year. basis a both from of XX% parcel XXX year. compared margin quarter, compared margin percent lower to EBITDA and improvement better last ago, in improvement than was cost for million margin an was year last a was better a of negative $XX almost a was an $X first quarter EBIT driven million X%. million by of was same largely of points the $XX EBITDA was the loss $XX revenue gross

reasons last long-term seven EBITDA, out me seen And tangible a Despite Let segment. Year-over-year encouraged have are nine the early revenues grown progress for of These global out of quarters. e-commerce investors XXXX. point now the year-over-year for our segment. trends with we quarters. all couple have faced to since seven be we of improvement our last have for global the e-commerce of six challenges in the

contributing our network automation, a progress. positive and very are that efforts Our having all optimization investments service systems levels. labor on in impact robotics, And transportation ongoing are management to

me shift Let the to now outlook.

to low for to As growth and maintaining guidance, XXXX. revenue full it pertains we EBIT year our are mid single-digit expectations

as We adjusted cash generate levels expect to similar XXXX. of free compared flow to

we labor, see I transportation the As actions surcharges. transportation we think can namely are pressure through and and where in taking quarter, continue to fuel offset about though effects, second to we cost these

combination who for with increase usually more We add. in will are value pricing appropriate, also customers

ongoing issues, not and we proactively to that to we supply the are note continue these immune I'll Lastly, challenges. manage chain

updates In again, further progresses. businesses. in of which produced three the the with in aggregate, very for year segments We am quarter, all quarter. will performance is the financial in impressive top SendTech the provide as closing, gains line I Presort mature pleased and

profitability Importantly, expect. margins the model Thanks questions. long-term that confidence Operator, gives the we global will me progress capital-efficient generate all in e-commerce line for please open the for business that listening. our

Instructions] [Operator Loop will Capital. ahead. come go And question with first from Baruah our Please Ananda

Yeah. the question. guys. Thanks morning, Good Ana. Yes, taking Marc, for just

guess, for guidance like, to in into if sort you SendTech of incremental global the well? - based slowing guess macro are context, follow-up. with you start how you a then the the Just e-commerce maintaining has guidance for well, of e-commerce, have of – I as as of that of I you then, the And that that the in global maintain sort progression quick the that perspective I seeing thoughts you also to How in love sort SendTech what's your saw And the that much that the year? well, can that?

Great.

me GEC a let see So I the bit. little start can and unlayer if performance

rates. To principally due So of headwinds That circumstance, as our our about the phased currency exclusively currents the to as the different in week, reported macroeconomic earlier through cross-border in your running not always, competitors business. was there's quarter. although business, one point

pricing What a cost, So hurt. from to our of would of that thing similarly on terms touch a was Labor helped first see pricing a look incurred. in domestic unit we caught to that so a And you a at unit if a economic was parcel perspective, economics. help. costs that that that I help was dynamic would the a basis, [ph] cover year-on-year business. say is had was help remedial up was you

- what ran dynamics that's principal those that were the the So quarter. through

through warehouse, a in have going transportation, improved we As forward. our team our capabilities important now for, warehouse, the set we of candidly, balance working several capacity to last in the the year, our capability been has leadership years that we've and terms economics the our of look on of both the the that drive team,

incremental warehouse the we've capacity, So at if if you capacity. or transportation you at look look capacity the got significant

So volume adding without can add costs. we incremental

of at look So the of if marginal for economics they're domestic economics. very parcel business the volume, marginal you incremental favorable the in terms

So the incremental key, is therefore, volume.

work, in from we some that stuff we clients run completed network the incremental feedback we've So servicing improve we done drive very across off lanes, built of have our had clear that how will which certain volume. of other will which terms

quarter price was different last little of bit bit labor the in forward first are say different of first I'd So to a the price. going forward. than a the little but the first dynamics dynamics, quarter quarter the pretty quarter, going than was by driven fourth similar year,

the the volume. value much cost but the incremental unit driven to continue to economics, by We more improve, expect of

lot recurring flow. and global that's know, e-commerce. a SendTech, as So it's a On of you cash of reoccurring revenue lot got

pretty So SendTech much business. but of on the sales. is of in quarterly of the function what supplies weighs volume well, of for mean, degree thing I that's really a in margin as that's to non-recurring one equipment terms that a kind performance That's

sales that seen paying pandemic recession steady. I of volume are great gets most SendTech of that mean we've and little got hurt, in recently in the we terms susceptibility going XXXX. of that's on that So the pretty what's in bit recession. I seen We've close a to if macroeconomics. say has would to attention equipment

a keep down So that in it's on to economic chugging of through cycles. with a business tends not lot - variability

structured that is and business because against fairly business is So of it's downturns. way the model the insulated

or our it's opportunity, recession. then that cash is of reliable whether of we what even at if customers. growth because you little appreciation have all had Presort less very not huge market than do So recession, seen it base But opportunity if a with SendTech of flow. nonetheless, bit opportunity look we a kind clear know. that that we slightly is line aggregate, path market a in a a growing margin down sight that huge and revenue with And of just a with a with to for up from slightly very has and volume GEC

times margin I a So particularly I little like in bit a that I to it's And think It's business strong market appreciation. where looking general. uncertainty clear answered growth clearly. this model there's think a bill very because model business seems be powerful with the of in for think we very

that you that there's Marc. volume. from going that say volume your of that to mentioned for regard about something something some Or how you're to - context. sight sight customers of Is to you that? that Thanks to would remarks, characterize of some allowing when degree line to commitments? GEC about through Is sort say

sense. The of have have, for accurate. been year, They're until aggregate clients weren't. way last underneath certain agreements, a contracts contract without them. not aside putting just of we those But we're the saw the where XX%, the year, is commitments and what agreements book you in and Typically, would terms marketplace, they again those contractual fourth pretty of know, quarter reliable, have the I in XX% seeing it volume works not fourth in up that you volume they in say, us agreements this quarter

know, been a positive actually volume contractual has realized. you to we commitment their So it's pretty what not but direction per correlated se,

- you would characterize the - And helpful. you the one last various for how just would then That's here? through for priorities move What as me. you year so

or Bowes GEC? Pitney priorities for for Priorities

year as For make you Pitney through Bowes, here... the

Yeah.

through business level. run of a kind me at let So

and operating it volumes continued is global increased efficiency. For e-commerce,

hit it growth ball SendTech, has the For incentive. continued to on the

XX%. So as remarks, mean, or shipping our and I Ana mentioned prepared grew I SendTech mentioned in

So is million, real starting that's to be absolute XX% off terms. $XXX million the in $XXX of business growth

SendTech [ph] needs ball turn continue hit GFS. So Similarly the to in on in to growth the

operational of about the in well combination capital, hit opportunities, talked and of excellence. ball. growth That's the or it's are really Ana leasing. lending continued as really some Presort, terrific starting So of assets equipment working terms years' Those got similarly three the both been growing. of to four around as They've worth Inside work.

- the their first in So the was margins growth terrific.

expect some last year. based another up. quarter have continue go margins dynamics Their that opportunity on of for to or the We two growth an to

So more they're view. balanced slightly

really Excellent. That's helpful.

Okay. Thanks so much, guys. Appreciate it.

Your next the comes Northcoast Kartik Research. line of from with go Mehta ahead. question Please

inflationary Hey, Pitney from talked good bit that you about afternoon Ana. morning, apologize know is Marc, I a wondering of just pressures. – the having. good I impact I'm little some

you positive of negatives look what from overall, some for inflation an Pitney? If are the perspective,

know, hard price we've are I is say It's able positive relatively to say, any been What you this well in environment. to way. in inflations will manage

transportation, headwind able as businesses, well in the look both has businesses, as to So Presort, if say to respective e-commerce. both been inflation you the we've a at price would been I that. - you net global labor know, for

got So got but they've would front that's them. some had little I affects with it's They've more say a luck of - they've subtle, them more as thing. transportation positive a SendTech, opportunities in pricing. bit well.

is, you can life real So kind it fact able it in I real can yes, a absolutely of life is, to been inflation price life of question I answer businesses? positive per And don't price see we our for of - we've look at negative a down you but I to domestic your examples. se. do or and on they for - percent, as were the mean on net, but results volume close to the up price. was revenue to check eight Tuesday. was their Tuesday, their is think, they nine, have UPS' double-digit, I announced think a I whenever you or couple pointed mean if volumes It's numbers,

business mature, industry party, now. a pricing client that but that's mean I I historically for about from a to pretty - marketplace it's it in been not pretty now disciplined is side So a have from long I perspective. that time an make talk continues be another to And point a

customers, others. our Some customers I price a conversations pretty market mean around get constructive markets, similar around it, some things is more you constructive business. in conversations we price. have than This where have

global [ph] talked global breakeven e-commerce you've positive maybe producing EBIT Or a you would And you look I just a you look and in revenue when business? how when and that is e-commerce. could as as on parcels as start or just of maybe past, at think about to know can break way all? the at then the on at e-commerce follow-up, even kind to parcels changed global

Yeah.

it So has changed.

world. the different surprisingly, not of in things So lots that pandemic changed has

profitability, the I on would thing, can plan finishing say So predicated parcels. would But million that XX% was X% we're the first get XXX off we the to say long-term I plan. ultimate long-term

is I think likely more a today probably $XXX million figures, parcels.

did you million a first referenced, So we in amount. up were XX We Ana know, crazy XXX but the year. that we're up year. at think our not parcels the quarter, this parcels last at million XX we

we'll think think XXX might be year. - handle that the first be this two thing mean be over will some threshold. I just I other, I

As a year. couple perspective, profitability, and it I say EBIT would I'll of EBITDA be again, profitable and this say things. From this relates said, an I what will to

to would gets given to maturity environment plan some EBIT profitable low plans ways, high what I acknowledge, that this are I'd as that curve but mean we it's the in given characterize - it's risk. a - where risk say have candidly, We probability, and you'd a our in I have logical. year. higher that - them internal

say that. I'd on for it's there of lot internal do got is but external not betting We're table plan. money logical, the on lot to a risk, of our profitable. while But we've guidance got they've getting it's internal them plan. not has them an EBIT there money been a high So And –

real about profitable. enthused So business they money opportunity. they're running hard as the business, gets that. for building and They're make that this can about They're enthused

things be unit kind is changed in from ultimate has - XX terribly unit minimum hour still the the on might close or that. gone not surprising not over little $XX transportation to terms wages gone $X.XX have or double XX% XX of if frame, but our a have of an which time from - In bit, it's it's is profitability, wage a

underlying kind say So on plan of changed. the it's has you. I'd the changed edges. But that it's not surprising If helps that

that does Appreciate Marc. No, help. the Thank answers, you.

Thank you.

Our from next line Jeff Please with go comes of Harlib question the Barclays. ahead.

Hi. Good morning.

with to headed of e-commerce, want So I understand where we're term. kind near just

last e-commerce the think helpful. you talked on in positive half. On talked some more the would of very call, in the wise. call, are details the that negative cost about a like some Just more near weakness the your in adjusted managed pricing I what this But more $X that very you in challenging of in seems back e-commerce on versus And and be industry EBITDA. in term? well first And XQ seeing you pressures conditions volume-wise? about million recently, that It XQ? you what in are should see some e-commerce you there was turn EBITDA And

bit. first market. UPS in down let kind So as of and we flat dynamics, with to a announced start volume similar the me the was What saw quarter, little

not factor market tremendous the the always tremendous down to kind of or or us What offering. day So opportunity up statement. general a sure to reminded got X% the have I've me other whether that's you've team is us, of reason front I in X%. X% the share, X.X% got X% when is or believe of in that dramatically. I'm that's relevant We've said and market going we've any in the going market don't front most right addressable got change assuming is market of

market bit choppy little the a think I so be to continue And a from perspective. volume will

As good a earlier so with still the positive, to others well, flat net pricing as performance and revenue you question I fairly said said volumes. even get can have is

It's to I'm In I'm for going to with year to hard terms say EBITDA did year. of stick probably kind going I unfolds, of not that. on the volumes. call how get terms kinds how period. quarter-by-quarter. we're into customers the the of the conversations But having I what's going do in incremental XX-day a we're in like terms with quarter starting of in of profitable

economics assuming the volume of with and terms fruition unit So think I more from the year. bodes well onboarding getting existing these customers, come that first customers hold in for second, new and customers, to conversations

free to that good will be you had the give cash Okay. comparable I pretty lower, but of be CapEx 'XX. items? with some working key you And know the puts Can last expect some performance then some flow on you capital takes of said cash with you just flow and year.

bit. Ana. a take is you This that I'll Sure. through little

up had We have had receivables, the our the also from mentioned. two working in key actually growing we finance a slower where capital flow receivables. for are of that, drivers most quarter, reduction we ended of significant some a cash perspective And that as our finance which we

for stabilization, free into hurt very on the good, that means initially which future, which cash it's more votes seeing something we're a So profits flow.

So through flow. seasonality year, the as look in there's cash our we free

and that we expect to is quarter lower, First always normalize.

highlights of working significant, historically mentioned day that specifically continue dynamics in been have sales rate has around improvement to well. focused optimizing that, to and that push building. broad good We optimization. very a that We're network very feel key to in as going that and commitment additional focused the capacity. And probably mention. focused beyond the on that, in on improvement you capital One of the the point Chicago dynamics key have receivables an to of had a will we Those is slowdown for do we'll But outstanding are about we very building on is we not the CapEx. going be but are be we levelize to have out as those

on not surprisingly. build well, that, very Just Ana, said

asked was dynamics I So GEC. the about within

of the dynamics is in now the the incremental changed need that post-COVID thinks going we overall that the diminish nodes that's capital is to also important. network, put to require team will less which which One behind they're business,

When does got One has at with EBITDA a be is positive? that of minus it's key e-commerce. number point do been businesses, this to respective I global we CapEx good chance think turn metrics positive year. inflection a that the which look for

so much. Thanks Okay.

you. closing now Thank to additional I queue. Lautenbach are Marc And remarks. the no will Instructions] [Operator for turn there it questions back in

I'd and the operator, like Thanks, to for thank everyone call. joining

I Let ask me the I appropriately say, okay, I my the points. they And of team, And just couple quarter. what for making highlights? by three. close a are are pointed the what headlines often think,

overall First been recreate of reasons EBIT forward a That's important EPS for into is that of last to business. successful to the all turn really XX work for years the the it speaks and this and we've business. going trajectory revenue, doing because growth. kinds the And business to just candidly,

growth in year. for revenue, for and that continued in prospects the quarter So full EBIT with EPS the

so think I if growing that Global too for and it moment, And to we tremendously look are, you Services, will Presort, continue is margins. SendTech, That Financial to as or of kind billion a at we got combination of. expect it franchise continue. as and of off it's well gets build XX% business Secondly, overlooked EBIT that grow. a the the to is And $X often that it is strong

of fog lift. e-commerce. is I the COVID is around would point The say all global that starting to third

supply affect totally does own it supply not our SendTech. So our behind us, of you COVID and while, with affects customers it know, chain and chain

clearer. COVID You of can for forward begin to see global fog e-commerce has the path and become the much lifting

view of fly. We economic clear have the where a

are between top significant had on. And the with mentioned, clear But million sure. compelling. for opportunity. about a is to We've you'll marginal line volume and have that, do parcels bringing the we as meaningful of the where really XXX grow continue conversations as today clients we that I We and economics market view

very view clear with how value. proposition, incremental incremental this at a remind EBIT that $XXX million That's to of in really way from close than strong the in EBIT are. of of a business, that you global long-term I'll billion the zero is marketplace. $XXX higher this at margins completion pretty EBIT from particularly and plan e-commerce we of incremental works from and our X% where will million tremendous a have going be that creates it set everyone forward a think just eye $X we So

we've to problematic, We lot But is is business sure, dynamics COVID lot choppy. get So to touch well. said, questions that continue a the positive. work all but that no of policies, environment going the as China, are will didn't of very do got on very, being in be but this a to a for pass China

much. Thank now. fruits show time tremendous today, in for enough the work years, So see beginning particularly you very you to and They've to for done the Bowes Pitney work couple of up your team. marketplace. last the of over the thanks the you're that Thank team,

May gentlemen, Thank replay will you. a.m. XX be conference this Eastern available today XX. for Ladies through after and

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