Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregated Revenue

The following tables disaggregate our revenue by source and timing of recognition:

	Three Months Ended March 31, 2023
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Business services	$	348,391	$	158,902	$	16,198	$	523,491	$	—	$	523,491
Support services	—		—		105,284		105,284		—		105,284
Financing	—		—		—		—		67,049		67,049
Equipment sales	—		—		19,995		19,995		62,615		82,610
Supplies	—		—		38,835		38,835		—		38,835
Rentals	—		—		—		—		17,269		17,269
Subtotal	348,391		158,902		180,312		687,605		$	146,933	$	834,538
Revenue from leasing transactions and financing	—		—		146,933		146,933
Total revenue	$	348,391	$	158,902	$	327,245	$	834,538
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	77,064	$	77,064
Products/services transferred over time	348,391		158,902		103,248		610,541
Total	$	348,391	$	158,902	$	180,312	$	687,605

	Three Months Ended March 31, 2022
	Global Ecommerce		Presort Services		SendTech Solutions		Revenue from products and services		Revenue from leasing transactions and financing		Total consolidated revenue
Major products/service lines
Business services	$	418,527	$	160,544	$	18,313	$	597,384	$	—	$	597,384
Support services	—		—		110,352		110,352		—		110,352
Financing	—		—		—		—		72,029		72,029
Equipment sales	—		—		21,299		21,299		67,997		89,296
Supplies	—		—		41,061		41,061		—		41,061
Rentals	—		—		—		—		16,820		16,820
Subtotal	418,527		160,544		191,025		770,096		$	156,846	$	926,942
Revenue from leasing transactions and financing	—		—		156,846		156,846
Total revenue	$	418,527	$	160,544	$	347,871	$	926,942
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	78,373	$	78,373
Products/services transferred over time	418,527		160,544		112,652		691,723
Total	$	418,527	$	160,544	$	191,025	$	770,096

Our performance obligations for revenue from products and services are as follows:

Business services includes fulfillment, delivery and return services, cross-border solutions, mail processing services and shipping subscription solutions. Revenue for fulfillment, delivery and return services and cross-border solutions and mail processing services is recognized over time using an output method based on the number of parcels or mail pieces either processed or delivered, depending on the service type, since that measure best depicts the value of goods and services transferred to the client over the contract period. Contract terms for these services initially range from one to five years and contain annual renewal options. Revenue for shipping subscription solutions is recognized ratably over the contract period as the client obtains equal benefit from these services through the period.

Support services includes providing maintenance, professional and subscription services for our equipment and digital mailing and shipping technology solutions. Contract terms range from one to five years, depending on the term of the lease contract for the related equipment. Revenue for maintenance and subscription services is recognized ratably over the contract period and revenue for professional services is recognized when services are provided.

Equipment sales generally includes the sale of mailing and shipping equipment, excluding sales-type leases. We recognize revenue upon delivery for self-install equipment and upon acceptance or installation for other equipment. We provide a warranty that the equipment is free of defects and meets stated specifications. The warranty is not considered a separate performance obligation.

Supplies includes revenue from supplies for our mailing equipment and is recognized upon delivery.

Revenue from leasing transactions and financing includes revenue from sales-type and operating leases, finance income, late fees and investment income, gains and losses at the Pitney Bowes Bank.

Advance Billings from Contracts with Customers

	Balance sheet location	March 31, 2023		December 31, 2022		Increase/ (decrease)
Advance billings, current	Advance billings	$	78,363	$	97,904	$	(19,541)
Advance billings, noncurrent	Other noncurrent liabilities	$	949	$	906	$	43

Advance billings are recorded when cash payments are due in advance of our performance. Revenue is recognized ratably over the contract term. Items in advance billings primarily relate to support services on mailing equipment. Revenue recognized during the period includes $57 million of advance billings at the beginning of the period. Advance billings, current, at March 31, 2023 and December 31, 2022 also includes $8 million and $7 million, respectively, from leasing transactions.

Future Performance Obligations

Future performance obligations include revenue streams bundled with our leasing contracts, primarily maintenance and subscription services. The transaction prices allocated to future performance obligations will be recognized as follows:

	Remainder of 2023		2024		2025-2028		Total
SendTech Solutions	$	193,946	$	220,083	$	293,623	$	707,652

The amounts above do not include revenue for performance obligations under contracts with terms less than 12 months or revenue for performance obligations where revenue is recognized based on the amount billable to the customer.