Pitney Bowes Inc. at a Glance

Uppers

  • Strong salaries and benefits package
  • Opportunity for advancement
  • Lots of job openings

Downers

  • Work schedules can be hectic
  • Demand for company's main product line falling thanks to new technologies
  • Managers sometimes fail to recognize good work

The Bottom Line

  • Pitney Bowes offers positions in a wide range of fields, but some employees fear how it will respond to a changing business environment.

About Pitney Bowes Inc.

Known as the world's largest producer of postage meters (1.2 million installed around the world), Pitney Bowes Inc. has moved into other areas of communication. For sure, sending mail and packages is a big part of its business with services like pre-sort, label printing, and logistics among its offerings. But Pitney Bowes has integrated digital capabilities with its physical mail services and expanded into other digital areas. The company offers software-as-a-service and cloud-based services for ecommerce that facilitate cross-border shipping, enabling its clients to provide their customers with the complete cost of the transaction at checkout. About three-quarters of Pitney Bowes' sales are to customers in the US.

Operations

Pitney Bowes operates in three business segments: Small & Medium Business Solutions; Enterprise Business Solutions; and Digital Commerce Solutions. Small & Medium Business Solutions (mail finishing, mail creation, shipping equipment, and software) includes North America Mailing and International Mailing. It accounts for more than 50% of the company's sales.

Enterprise Business Solutions, which accounts for 25% of sales, includes Production Mail (the sale, support, and other professional services of the company's high-speed, production mail systems, and sorting and production print equipment) and Presort Services. The company's smallest business segment, Digital Commerce Solutions, accounts for close to 25% of revenue. That segment offers Software-as-a-Service and on-demand applications for mailing, customer engagement, and geocoding and location intelligence software.

Pitney Bowes handles some of its own manufacturing, but most of it is done by third-party suppliers. The company also outsources the hosting of its software-as-a-service offerings.

Geographic Reach

Pitney Bowes' primary manufacturing and assembly facility is in Danbury, Connecticut, and its principal research and development facilities are in Danbury, and Noida and Pune, India. The US accounts for about 75% of the company's revenue.

Sales and Marketing

Pitney Bowes sells products and services to a variety of business, governmental, institutional, and other organizations though its sales force, direct mailings, outbound telemarketing, independent dealers and distributors, and over the internet. The company counts 90% of companies listed in the Fortune 500 as customers, although small and medium businesses account for about half of revenue.

Financial Performance

Pitney Bowes added an eighth year to its consecutive run of revenue declines in 2016 as revenue dipped 5% to $3.4 billion from 2015. Sales fell in each of its business areas but for business services (its biggest segment), which had a 3% increase for the year from 10% growth in its Ecommerce business. Otherwise, sales were off as fewer customers bought less equipment and fewer services. Equipment sales fell 3% in 2016, in part, due to a new business platform that experienced problems early in the year. Geographically, sales were lower in the US and internationally.

Pitney Bowes reported net income of $93 million in 2016, a 77% drop from 2015. The company took a goodwill impairment charge related to its Software Solutions unit that, combined with lower revenue and higher restructuring and asset impairment charges, resulted in the decrease.

Cash flow from operations fell to $491 million in 2016 from about $515 million in 2015 because of the timing of payments of accounts payable, higher employee-related payments, higher inventory purchases, and lower collections of accounts receivable.

Strategy

For nearly 100 years Pitney Bowes was a postage company, selling businesses postage meters and other products and services that moved mail. The company still moves mail: It processes about 15 billion pieces of mail a year through its operating centers in the US. But in the face of increased use of email and overnight services like FedEx, Pitney Bowes has restyled itself as a technology company, complete with digitization and cloud-based services.

Leading its technology charge is Commerce Cloud, an encompassing offering with analytics, logistics, application programming interfaces, payment management, and other functions, introduced in 2016. The company's Global Ecommerce business, which delivered about $400 million in revenue in 2016, helps retailers as well as sellers on eBay to get goods to customers. Commerce Cloud also includes the company's SendPro family of offerings that provide customers with the capability to send packages through multiple carriers from the same hardware device or software application that they use to send letters.

To operate more efficiently, Pitney Bowes is installing an enterprise business platform that it projects would save more than $1 billion over the next 10 years as well as improve customer experience and enable deployment of some digital products and services. So far, the company has cut expenses by about $300 million, reduced its Days Sales Outstanding, and slashed inventory by half.

Mergers and Acquisitions

Pitney Bowes has made several acquisitions in recent years to bolster its ecommerce capabilities and diversify its offerings.

In 2017 the company bought Newgistics Inc., a provider of parcel delivery, returns, fulfillment, and digital commerce services for retailers and ecommerce companies, for $475 million. The deal speeds up Pitney Bowes' expansion into the parcels market in the US and enhances its domestic ecommerce and presort offerings.

In 2016 Pitney Bowes bought Enroute Systems, a cloud-based, software-as-a-service enterprise retail and fulfillment company, for $14 million. This deal adds to the capabilities of Pitney Bowes in global e-commerce offerings for companies in the retail supply chain.

In 2015 the company acquired Borderfree, a provider of cross-border e-commerce tools and services platform, for $381 million. The purchase expanded Pitney Bowes' cross-border e-commerce capabilities.

The 2015 acquisition of Zip Mail Services brought the company a provider of intermediary services between customers and the US Postal Service. The price was $6 million.

With Real Time Content, another $6 million deal, will enable clients to provide personalized interactive video communications to their customers for $6 million.

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases

Pitney Bowes Inc.

3001 Summer St
Stamford, CT 06905-4321
Phone: 1 (203) 356-5000
Fax: 1 (203) 351-6727

Stats

  • Employer Type: Public
  • Stock Symbol: PBI
  • Stock Exchange: NYSE
  • President and CEO: Marc B. Lautenbach
  • EVP and COO: Michael Monahan
  • Chairman: Michael I. Roth
  • 2016 Employees: 14,200

Major Office Locations

  • Stamford, CT

Other Locations

  • Anchorage, AK
  • Birmingham, AL
  • Phoenix, AZ
  • Brisbane, CA
  • Commerce, CA
  • Compton, CA
  • Corona, CA
  • Eureka, CA
  • Fullerton, CA
  • Lake Forest, CA
  • Los Angeles, CA
  • Pleasanton, CA
  • Boulder, CO
  • Englewood, CO
  • Danbury, CT
  • Hartford, CT
  • Naugatuck, CT
  • Shelton, CT
  • Windsor, CT
  • Washington, DC
  • Fort Myers, FL
  • Jacksonville, FL
  • Miami Lakes, FL
  • Miramar, FL
  • Orlando, FL
  • Tallahassee, FL
  • Tampa, FL
  • Atlanta, GA
  • Peachtree City, GA
  • Smyrna, GA
  • Union City, GA
  • Cedar Rapids, IA
  • Urbandale, IA
  • Chicago, IL
  • Elk Grove Village, IL
  • Itasca, IL
  • Lisle, IL
  • Naperville, IL
  • Schaumburg, IL
  • Indianapolis, IN
  • Whitestown, IN
  • Shawnee Mission, KS
  • Topeka, KS
  • Erlanger, KY
  • Hebron, KY
  • Lexington, KY
  • Louisville, KY
  • Baton Rouge, LA
  • New Orleans, LA
  • Shreveport, LA
  • Boston, MA
  • Lanham, MD
  • Portland, ME
  • Davisburg, MI
  • Madison Heights, MI
  • Romulus, MI
  • South Lyon, MI
  • Minneapolis, MN
  • Kansas City, MO
  • Jackson, MS
  • Ridgeland, MS
  • Charlotte, NC
  • Lincoln, NE
  • Keene, NH
  • Delran, NJ
  • Elizabeth, NJ
  • Newark, NJ
  • Warren, NJ
  • Las Vegas, NV
  • Jericho, NY
  • Lake Grove, NY
  • New York, NY
  • Rochester, NY
  • Troy, NY
  • Brecksville, OH
  • Marietta, OH
  • Painesville, OH
  • West Chester, OH
  • Portland, OR
  • Harrisburg, PA
  • Levittown, PA
  • Mountville, PA
  • Philadelphia, PA
  • Pittsburgh, PA
  • Reading, PA
  • East Providence, RI
  • Columbia, SC
  • Duncan, SC
  • Sioux Falls, SD
  • Austin, TX
  • El Paso, TX
  • Fort Worth, TX
  • Grand Prairie, TX
  • Irving, TX
  • Keller, TX
  • Stafford, TX
  • Layton, UT
  • Ashland, VA
  • Norfolk, VA
  • Roanoke, VA
  • Vienna, VA
  • Kent, WA
  • Spokane, WA
  • Milwaukee, WI
  • Neenah, WI
  • Sao Paulo, Brazil
  • Ajax, Canada
  • Brampton, Canada
  • Burlington, Canada
  • Burnaby, Canada
  • Calgary, Canada
  • Charlottetown, Canada
  • Chatham, Canada
  • Edmonton, Canada
  • Fort Frances, Canada
  • Fredericton, Canada
  • Kamloops, Canada
  • Kelowna, Canada
  • Keswick, Canada
  • Kingston, Canada
  • London, Canada
  • Mississauga, Canada
  • Moncton, Canada
  • North York, Canada
  • Oakville, Canada
  • Ottawa, Canada
  • Pickering, Canada
  • Prince George, Canada
  • Québec, Canada
  • Regina, Canada
  • Saint John, Canada
  • Saskatoon, Canada
  • St Catharines, Canada
  • St. John'S, Canada
  • Sydney, Canada
  • Sylvan Lake, Canada
  • Thunder Bay, Canada
  • Toronto, Canada
  • Vancouver, Canada
  • Victoria, Canada
  • Winnipeg, Canada
  • London, England
  • München, Germany
  • Noida, India
  • Agrate Brianza, Italy
  • Roma, Italy
  • Usmate Velate, Italy
  • Chiyoda-Ku, Japan
  • Fukuoka, Japan
  • Kawasaki, Japan
  • Nagoya, Japan
  • Osaka, Japan
  • Sendai, Japan
  • Shibuya-Ku, Japan
- Show Less + Show More