Research Question: Will Pitney Bowes’ postage meter machines continue to be a staple at small, medium and large businesses or will it fall victim to increasing competition from Neopost and digital offerings?
Companies: Pitney Bowes (PBI), Neopost SA (NEO)
Initial research by Blueshift indicates Pitney Bowes products helping improve retention rates for its postage meter business, though increasing competition and uncertainties in the global economy loom large.
- Pitney Bowes, whose North American mailing business represents roughly 1/3 of its revenue, experienced improved retention rates in its meter base both sequentially and year to year in Q2 due in part to products like pbWebConnect and placement products such as Connect+. Additionally, Q2 marked the eighth consecutive quarter of improving margins in PBI’s core mailing business.
- According to PBI, the company plans to expand its e-commerce and direct mail opportunities in Mail Services, hoping to utilize its physical communication strength to expand its digital and hybrid communication offerings.
- The global economy, particularly in Europe, is hampering the rest of the year forecast for PBI, and forced the company to lower guidance on its latest earnings call.
- Despite being a clear market leader in electronic stamps and labeling, Pitney Bowes’ pbSmartPostage business faces increasing competition from Stamps.com and DYMO Endicia. Additionally, Neopost, the world’s number-two supplier of mailroom solutions, recently redeployed its sales force, and expects the change to improve company sales for the remainder of the year.
To gain further insight into Pitney Bowes’ postage meter machine business, Blueshift will gather data from sources in the following silos: mail room managers of small, medium, and large sized business in the U.S., suppliers, and industry specialists.
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