Industry Overview - The Zacks Technology Services Industry is currently in the top 26% of over 240 Zacks industries, with several stocks achieving a Zacks Rank 1 (Strong Buy) status [1] Company: Climb Global Solutions (CLMB) - Climb Global Solutions specializes in emerging and disruptive technologies, providing IT distribution and solutions [2] - The company serves value-added resellers, with notable clients including CDW Corporation, a leading provider of integrated IT solutions [3] - Climb Global Solutions has demonstrated strong operating efficiency, making it one of the stock market's top performers, trading at a forward earnings multiple of 21.2X [3] Company: Dave Inc (DAVE) - Dave Inc operates a growing fintech platform, gaining popularity with its flagship 0% interest loan service called ExtraCash, which allows users to access small cash advances without interest [4] - The company is forecasted to experience double-digit growth in both top and bottom lines for fiscal 2025 and FY26, with EPS estimates increasing significantly over the last 60 days [5] - Since going public in 2022 through a SPAC, DAVE has rebounded and increased over 1,000% in the last two years, currently trading at 12.5X forward earnings and approaching an optimal level of less than 2X forward sales [7] Investment Outlook - Climb Global Solutions and Dave Inc are highlighted as appealing technology services companies for investment, particularly as potential buy-the-dip targets amid recent market volatility [9]

Investors interested in Technology Services stocks are likely familiar with Climb Global Solutions (CLMB) and Veralto (VLTO) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our S ...

Financial Performance - Net sales increased by 32%, or $113.6 million, to $465.6 million for the year ended December 31, 2024, compared to $352.0 million for the same period in 2023[143] - Gross profit rose by 42%, or $26.9 million, to $91.1 million for the year ended December 31, 2024, compared to $64.2 million for the same period in 2023[143] - Net income increased by 51%, or $6.3 million, to $18.6 million for the year ended December 31, 2024, compared to $12.3 million for the same period in 2023[143] - Income per diluted share increased by 49%, or $1.34, to $4.06 for the year ended December 31, 2024, compared to $2.72 for the same period in 2023[143] - Adjusted EBITDA for the year ended December 31, 2024, was $39.6 million, up from $24.6 million in 2023, representing a 61% increase[171] - Effective margin for adjusted EBITDA increased to 43.5% in 2024 from 38.3% in 2023, a rise of 520 basis points[173] Expenses - Selling, general and administrative expenses increased by 27%, or $12.2 million, to $56.5 million for the year ended December 31, 2024, compared to $44.3 million for the same period in 2023[143] - Acquisition-related costs were $2.3 million for the year ended December 31, 2024, compared to $0.6 million for the same period in 2023[143] - Amortization and depreciation expense increased by $1.5 million to $4.3 million for the year ended December 31, 2024, compared to $2.8 million for the same period in 2023[143] - SG&A expenses for the year ended December 31, 2024, increased 27%, or $12.2 million, to $56.5 million compared to $44.3 million for the same period in the prior year[189] - Customer rebates and discounts for the year ended December 31, 2024, were $19.7 million compared to $12.8 million for the same period in the prior year[187] Segment Performance - The Distribution segment's gross profit for the year ended December 31, 2024, increased 47%, or $24.9 million, to $78.3 million compared to $53.4 million for the same period in 2023[185] - Net sales in the Distribution segment for the year ended December 31, 2024, increased 36%, or $116.6 million, to $441.9 million compared to $325.3 million for the same period in the prior year[180] - Gross billings for the year ended December 31, 2024, increased 42%, or $524.9 million, to $1,785.3 million compared to $1,260.4 million for the same period in 2023[179] Cash Flow and Investments - Net cash provided by operating activities for the year ended December 31, 2024 was $33.7 million, consisting of net income adjusted for non-cash items of $30.6 million[196] - Net cash used in investing activities during the year ended December 31, 2024 was $26.4 million, including $20.9 million for DSS and Data Solutions acquisitions[197] - Net cash used in financing activities during the year ended December 31, 2024 was $13.0 million, including $4.2 million in net repayments of borrowings[198] - Cash and cash equivalents decreased by $6.5 million to $29.8 million at December 31, 2024, from $36.3 million at December 31, 2023[195] Tax and Other Considerations - Provision for income taxes for the year ended December 31, 2024 was $6.4 million, or 25.6% of income before taxes, compared to $4.5 million, or 26.6% in the prior year[194] - Foreign currency transaction loss for the year ended December 31, 2024 was $0.3 million, a decrease from $0.6 million in the prior year[192] - Change in fair value of acquisition contingent consideration for the year ended December 31, 2024 was $3.6 million, with no amounts recognized in the prior year[193] Company Overview - The company has subsidiaries in the United States, Canada, Netherlands, United Kingdom, and Ireland, contributing to its global sales[133] - The company’s sales are influenced by external factors such as levels of IT spending and customer demand for products distributed[134] - The company has historically returned value to investors through quarterly dividends and share repurchases, with total dividends paid of $3.0 million for the year ended December 31, 2024[139] - As of December 31, 2024, the company held 683,198 shares of Common Stock in treasury at an average cost of $19.52 per share[200] - The company anticipates an increase in working capital needs as it invests in business growth, relying on cash and unused borrowings under its Credit Agreement for the next 12 months[205] - The company had no off-balance sheet arrangements as of December 31, 2024[207]

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].

Company Leadership Changes - Climb Global Solutions, Inc. appointed John McCarthy as the new Chairman of the Board of Directors effective January 28, 2025, following the resignation of Jeff Geygan, which will take effect on February 28, 2025 [1][3] - The Board will be reduced to six members, with five being independent under Nasdaq listing standards [1] Background of New Chairman - John McCarthy has over 30 years of executive technology leadership experience and has been a director at Climb since June 2019, currently serving as Chair of the Compensation Committee [2] - Prior to joining Climb, McCarthy was the President and CEO of Mainline Information Systems and held senior roles at companies such as EMC and StorageApps [2] Company Overview - Climb Global Solutions is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies, operating across the US, Canada, and Europe [4] - The company provides IT distribution and solutions in various sectors, including Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM [4]

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]