Climb Global Solutions, Inc. (NASDAQ:CLMB) Q4 2024 Earnings Conference Call March 6, 2025 8:30 AM ET Company Participants Aaron D'Souza - Investor Relations Dale Foster - Chief Executive Officer Matt Sullivan - Chief Financial Officer Conference Call Participants Vincent Colicchio - Barrington Research Operator Good morning, everyone, and thank you for participating in today's conference call to discuss Climb Global Solutions' Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024. J ...

Financial Performance - FY 2024 net income increased 51% to $18.6 million, or $4.06 per share; adjusted net income rose 64% to $24.0 million, or $5.26 per share[1] - Q4 2024 net sales increased 51% to $161.8 million compared to $106.8 million in Q4 2023, driven by organic growth and the acquisition of DSS[8] - Climb reported a 33% increase in Q4 2024 net income to $7.0 million, impacted by a $2.5 million charge related to acquisition contingent consideration[11] - Net sales for the year ended December 31, 2024, reached $465,607 million, a 32.3% increase from $352,013 million in 2023[26] - Gross profit for the year ended December 31, 2024, was $91,080 million, up 41.8% from $64,247 million in 2023[26] - Adjusted EBITDA for the year ended December 31, 2024, was $39,621 million, a 60.8% increase compared to $24,620 million in 2023[27] - Net income for the year ended December 31, 2024, was $18,610 million, representing a 51.0% increase from $12,323 million in 2023[28] - Total gross billings for the year ended December 31, 2024, amounted to $1,785,302 million, a 41.5% increase from $1,260,382 million in 2023[29] - Adjusted net income for the year ended December 31, 2024, was $23,961 million, up 64.5% from $14,591 million in 2023[28] - Income per common share - diluted for the year ended December 31, 2024, was $4.06, compared to $2.72 in 2023, reflecting a 49.0% increase[26] - Distribution gross billings for the year ended December 31, 2024, were $1,695,538 million, a 43.9% increase from $1,176,866 million in 2023[29] - The company reported a provision for income taxes of $6,408 million for the year ended December 31, 2024, compared to $4,458 million in 2023[27] Operational Highlights - Q4 2024 adjusted EBITDA increased 75% to $16.1 million, with an effective margin of 51.5%, up 780 basis points from 43.7% in Q4 2023[12] - Gross billings for FY 2024 increased 42% to $1.8 billion, with distribution segment gross billings up 44% to $1.7 billion[6] - SG&A expenses in Q4 2024 were $17.1 million, with SG&A as a percentage of gross billings decreasing to 2.8%[10] Strategic Initiatives - The company evaluated over 120 vendors and signed agreements with 13, emphasizing a focus on innovative technologies[4] - The company plans to continue evaluating M&A opportunities to enhance service offerings and expand geographic footprint[5] Dividend Information - Climb's Board of Directors declared a quarterly dividend of $0.17 per share, payable on March 21, 2025[7] - Dividends paid per common share remained stable at $0.68 for both years ended December 31, 2024, and 2023[26] Cash Position - Cash and cash equivalents decreased to $29.8 million as of December 31, 2024, primarily due to the acquisition of DSS[13]

FY 2024 Net Income up 51% to $18.6 Million or $4.06 per share; Adjusted Net Income up 64% to $24.0 Million or $5.26 per share; Adjusted EBITDA up 61% to $39.6 Million Q4 & FY 2024 Net Sales, Gross Profit, Net Income, EPS and Adjusted EBITDA Increase to Record Levels EATONTOWN, N.J., March 05, 2025 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb” or the “Company”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendor ...

Core Insights - Climb Global Solutions, Inc. (CLMB) is set to report its fourth-quarter 2024 results on March 5, after market open [1] - The company has a strong earnings surprise history, beating the Zacks Consensus Estimate in three of the last four quarters with an average earnings surprise of 51.1% [2] Revenue Expectations - The Zacks Consensus Estimate for CLMB's revenues in Q4 2024 is $114.4 million, reflecting a 7.1% year-over-year increase, driven by core initiatives and the integration of Douglas Stewart Software and DataSolutions Ireland [3] - Organic growth in the U.S. and Europe is expected to be supported by strong relationships with existing partners and new vendor signings [4] Earnings Projections - The consensus estimate for CLMB's earnings in Q4 2024 is $1.12 per share, indicating a 2.6% year-over-year decrease, attributed to increased selling, general, and administrative expenses [4] - The current Earnings ESP for CLMB is 0.00%, and it holds a Zacks Rank of 3 (Hold), suggesting that the model does not predict an earnings beat this time [5][6] Peer Comparisons - TransUnion (TRU) reported adjusted earnings of 97 cents per share, surpassing the consensus by 1% and showing a 21.3% year-over-year increase, with total revenues of $1 billion, exceeding expectations by 8.7% [7] - Insperity, Inc. (NSP) posted adjusted earnings of 5 cents per share, exceeding the consensus estimate by over 100%, despite a 93.3% year-over-year decrease, with revenues of $1.6 billion beating estimates by 1% [8]

Core Viewpoint - Climb Global Solutions, Inc. will host a conference call on March 6, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1][2]. Group 1: Conference Call Details - The conference call is scheduled for Thursday, March 6, 2025, at 8:30 a.m. Eastern time [2]. - Interested parties can submit questions via email prior to the call [2]. - The call will be accessible through a toll-free number and an international dial-in number [2]. Group 2: Company Overview - Climb Global Solutions, Inc. is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies [4]. - The company operates across the US, Canada, and Europe through various business units, including Climb Channel Solutions, Grey Matter, and Climb Global Services [4]. - Climb provides IT distribution and solutions for sectors such as Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM [4].

EATONTOWN, N.J., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb”, the “Company”, “we”, or “our”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, today announced the appointment of John McCarthy as the new Chairman of the Board of Directors (the “Board”), effective January 28, 2025. Mr. McCarthy’s appointment follows the resignation of Jeff Geygan from the Board, which will become effective Feb ...

Leadership Promotions - Kim Stevens promoted to Chief Marketing Officer (CMO) after serving as Vice President of Worldwide Marketing, recognized for her groundbreaking marketing strategies and ability to align marketing with company goals [1][2] - Charles Bass transitions to Chief Alliances Officer (CAO) after four years as CMO, focusing on fostering high-impact partnerships and expanding strategic alliances [1][3] - Both promotions reflect the company's commitment to innovation, agility, and empowering talent to drive growth [4] Company Momentum and Strategy - The company enters 2025 with strong momentum, supported by over 12 internal promotions announced during the recent Sales Kickoff event themed "Run With Us" [2] - The leadership changes aim to strengthen the company's position in the ever-evolving technology landscape by aligning marketing strategies and expanding partnerships [3][4] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & Application Lifecycle [5] - The company differentiates itself through its commitment to transforming distribution by providing emerging and established IT technologies, flexible financing, real-time quoting, and exceptional service to partners worldwide [5] - Climb Channel Solutions is a wholly owned subsidiary of Climb Global Solutions, Inc (NASDAQ: CLMB) [1][5]

Executive Leadership Transition - Matthew Sullivan, the current Chief Accounting Officer, has been appointed as the new Chief Financial Officer (CFO) of Climb Global Solutions, effective January 10, 2025 [5] - Andrew Clark, the retiring CFO, will remain with the company as an advisor until April 15, 2025 to ensure a smooth transition [5] - Matthew Sullivan joined Climb in 2019 as Vice President, Corporate Controller and has since risen to Chief Accounting Officer, overseeing global financial functions [1] - Sullivan played a key role in advancing Climb's growth strategy and driving financial diligence for five accretive acquisitions since 2020 [1] Matthew Sullivan's Background and Expertise - Prior to joining Climb, Sullivan held finance roles at Jackson Hewitt Tax Service and BDO USA, LLP, managing complex audit and financial operations [1] - Sullivan is a Certified Public Accountant and holds a bachelor's degree in accounting from Kutztown University of Pennsylvania [1] - CEO Dale Foster praised Sullivan's extensive financial expertise, exceptional leadership, and deep knowledge of the business, making him uniquely qualified for the CFO role [1] - Over the past five years, Sullivan has been instrumental in enhancing financial operations, advancing strategic initiatives, and supporting growth through five accretive acquisitions [1] Company Overview - Climb Global Solutions is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies [3] - The company operates across the US, Canada, and Europe through multiple business units, including Climb Channel Solutions, Grey Matter, and Climb Global Services [3] - Climb provides IT distribution and solutions for companies in Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries [3] Leadership Transition Impact - CEO Dale Foster expressed confidence that Sullivan's experience and vision will help Climb continue to deliver unmatched value to customers, partners, and shareholders [1] - Andrew Clark stated that he is proud of the work accomplished to strengthen Climb's financial foundation and execute on the strategic vision [1] - Clark expressed confidence in Climb's proven track record of success and talented leadership team to achieve new heights [1]

If achieving profit is a company’s goal, then having healthy cash flow is essential to its existence, development and success. This is because cash offers strength, vitality and flexibility to make investment decisions as well as the fuel to run its growth engine.In this regard, stocks like Photronics, Inc. (PLAB) , DXP Enterprises, Inc. (DXPE) , Climb Global Solutions, Inc. (CLMB) and GeoPark Limited (GPRK) are worth buying.Investors are naturally drawn to profit-generating companies, but even a profitable ...

EATONTOWN, N.J., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Climb Channel Solutions, an international specialty technology distributor and wholly owned subsidiary of Climb Global Solutions, Inc. (NASDAQ: CLMB) yesterday announced a new partnership with Scality, a global leader in cyber-resilient storage software for the AI era. This strategic collaboration aims to expand Scality's reach across North America, enabling organizations to access scalable, secure, and high-performance storage solutions for their growing d ...