Revenue

9 Months Ended

Sep. 30, 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 September 30, 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	$	313,161	$	152,451	$	18,375	$	483,987	$	—	$	483,987
Support services	—		—		101,855		101,855		—		101,855
Financing	—		—		—		—		68,572		68,572
Equipment sales	—		—		18,353		18,353		58,352		76,705
Supplies	—		—		35,695		35,695		—		35,695
Rentals	—		—		—		—		16,937		16,937
Subtotal	313,161		152,451		174,278		639,890		$	143,861	$	783,751
Revenue from leasing transactions and financing	—		—		143,861		143,861
Total revenue	$	313,161	$	152,451	$	318,139	$	783,751
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	71,634	$	71,634
Products/services transferred over time	313,161		152,451		102,644		568,256
Total	$	313,161	$	152,451	$	174,278	$	639,890

	Three Months Ended September 30, 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	$	354,326	$	144,824	$	19,255	$	518,405	$	—	$	518,405
Support services	—		—		107,642		107,642		—		107,642
Financing	—		—		—		—		67,757		67,757
Equipment sales	—		—		20,389		20,389		63,139		83,528
Supplies	—		—		37,455		37,455		—		37,455
Rentals	—		—		—		—		16,127		16,127
Subtotal	354,326		144,824		184,741		683,891		$	147,023	$	830,914
Revenue from leasing transactions and financing	—		—		147,023		147,023
Total revenue	$	354,326	$	144,824	$	331,764	$	830,914
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	76,667	$	76,667
Products/services transferred over time	354,326		144,824		108,074		607,224
Total	$	354,326	$	144,824	$	184,741	$	683,891

	Nine Months Ended September 30, 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	$	974,306	$	454,460	$	52,209	$	1,480,975	$	—	$	1,480,975
Support services	—		—		310,454		310,454		—		310,454
Financing	—		—		—		—		202,323		202,323
Equipment sales	—		—		57,408		57,408		181,358		238,766
Supplies	—		—		111,035		111,035		—		111,035
Rentals	—		—		—		—		51,217		51,217
Subtotal	974,306		454,460		531,106		1,959,872		$	434,898	$	2,394,770
Revenue from leasing transactions and financing	—		—		434,898		434,898
Total revenue	$	974,306	$	454,460	$	966,004	$	2,394,770
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	222,193	$	222,193
Products/services transferred over time	974,306		454,460		308,913		1,737,679
Total	$	974,306	$	454,460	$	531,106	$	1,959,872

	Nine Months Ended September 30, 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	$	1,166,623	$	444,302	$	56,342	$	1,667,267	$	—	$	1,667,267
Support services	—		—		325,619		325,619		—		325,619
Financing	—		—		—		—		207,084		207,084
Equipment sales	—		—		63,088		63,088		199,722		262,810
Supplies	—		—		116,761		116,761		—		116,761
Rentals	—		—		—		—		49,810		49,810
Subtotal	1,166,623		444,302		561,810		2,172,735		$	456,616	$	2,629,351
Revenue from leasing transactions and financing	—		—		456,616		456,616
Total revenue	$	1,166,623	$	444,302	$	1,018,426	$	2,629,351
Timing of revenue recognition from products and services
Products/services transferred at a point in time	$	—	$	—	$	231,194	$	231,194
Products/services transferred over time	1,166,623		444,302		330,616		1,941,541
Total	$	1,166,623	$	444,302	$	561,810	$	2,172,735

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	September 30, 2023		December 31, 2022		Increase/ (decrease)
Advance billings, current	Advance billings	$	80,405	$	97,904	$	(17,499)
Advance billings, noncurrent	Other noncurrent liabilities	$	1,858	$	906	$	952

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 $81 million of advance billings at the beginning of the period. Advance billings, current, at both September 30, 2023 and December 31, 2022 also includes $7 million, 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	$	65,822	$	236,924	$	395,164	$	697,910

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.