Core Insights - Unframe has successfully raised $50 million in funding and is now focusing on expanding its presence in North America and EMEA through a partnership with Climb Channel Solutions [1][2] Company Overview - Unframe is an all-in-one enterprise AI platform based in Cupertino, California, designed to enable businesses to implement unique AI use cases rapidly, typically within hours rather than months [7] - The platform is already utilized by Fortune 500 companies and is characterized by its ability to integrate securely with various systems without requiring fine-tuning or data sharing [2][3] Partnership Details - The new global distribution agreement with Climb will allow resellers and enterprises to access Unframe's platform, facilitating the delivery of advanced AI solutions at scale [1][2] - Climb's extensive global partner network will enhance the accessibility of Unframe's technology, which is aimed at solving specific AI challenges for businesses [3] Strategic Focus - The partnership aims to combine Climb's global reach and channel expertise with Unframe's capability to deliver enterprise-grade AI solutions quickly and efficiently [3] - Both companies emphasize a shared commitment to making enterprise AI faster, safer, and more accessible, thereby empowering organizations to unlock AI's full potential across various teams and workflows [4]

Core Insights - Climb Channel Solutions has partnered with Thales to enhance its cybersecurity offerings, now including the complete Thales Cyber Security Product suite [1][2][4] - The partnership aims to empower resellers by providing a comprehensive security solution that includes Application Security, Data Protection, and Identity and Access Management [2][4][5] - The launch of the Thales and Imperva Accelerate Partner Program is expected to facilitate growth for partners in the cybersecurity business by simplifying interactions and providing synchronized benefits [3][4] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, and Cloud solutions [6] - The company emphasizes a people-first approach to empower Value-Added Resellers (VARs) and Managed Service Providers (MSPs) to grow and scale their businesses [6]

Core Insights - Climb Channel Solutions awarded Freshworks the Strategic Partner of the Year award, highlighting the success of their partnership and commitment to growth and value creation through the channel [1][5] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & Application Lifecycle [6] - Freshworks has established itself as a significant player in the customer experience and employee experience software markets, showcasing its ability to innovate and empower partners [3] Partnership Highlights - The award was presented by Carlos Rodriguez from Climb to Chase Bertrand from Freshworks, emphasizing the collaborative efforts between the two companies [2] - Freshworks has expanded its IT service management product portfolio through the acquisition of Device42, indicating its growth strategy [3] Leadership Statements - Laura Padilla from Freshworks expressed gratitude for the partnership, emphasizing the shared commitment to improving IT department efficiency with user-friendly software solutions [4] - Dale Foster, CEO of Climb Channel Solutions, praised Freshworks as an agile and committed partner, reinforcing the mutual trust and growth achieved through their collaboration [5]

Market Overview - Stocks experienced a surge in morning trading as Wall Street reacted positively to the potential for the Trump administration to initiate tariff negotiations with China [1] - The ongoing tariff updates are expected to increase market volatility and could lead to further selling in the short term [1] - The Nasdaq index fell 23% from its highs, dipping below 2021 peaks and testing its long-term 200-week moving average [2] Investment Strategy - Investors are encouraged to look for stocks with improving earnings outlooks, specifically those with a Zacks Rank 1 (Strong Buy) [3] - A focus on Return on Equity (ROE) is emphasized, as it indicates a company's ability to generate profits from shareholder equity [4][5] - Companies with a Zacks Rank 1 have historically shown an average annual return of over 25% per year over the last 30 years [5] Stock Screening Criteria - Stocks must have a price greater than or equal to $5 to avoid volatility and speculation [6] - A Price/Sales Ratio of 1 or below is preferred, indicating better value for investors [7] - Companies should have a Strong Buy rating from brokers, with a ROE of at least 10% [8][9] Featured Company: Climb Global Solutions, Inc. (CLMB) - CLMB is a global IT distribution and solutions company focusing on emerging technologies, particularly in cloud-based and data center software [9] - The company has averaged 18% revenue growth over the past five years, with a projected 32% growth in 2024 [10] - CLMB reported a 64% adjusted earnings growth last year, with a 19% increase in FY25 consensus estimates following its early March earnings release [11] - The company's ROE stands at 28.54%, significantly higher than the industry average and the median ROE of 10% across the Zacks Universe [12] - CLMB shares have increased by 620% over the last five years, outperforming the tech sector's 100% growth [12]

Core Insights - Climb Channel Solutions has announced a partnership with Darktrace to distribute AI-powered cybersecurity products across North America [1][2]. Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, and Cloud technologies [4]. - Climb Channel Solutions is a wholly owned subsidiary of Climb Global Solutions, Inc. (NASDAQ:CLMB) [5]. Darktrace Overview - Darktrace is a leader in AI for cybersecurity, providing a platform that protects organizations from unknown threats by learning unique patterns in real-time [2]. - The Darktrace ActiveAI Security Platform™ offers proactive cyber resilience, including real-time threat detection and autonomous response across various digital environments [2]. Partnership Details - The partnership aims to enhance cybersecurity for resellers and their clients by integrating Darktrace's solutions into Climb's portfolio [3]. - This collaboration is expected to expand the reach of Darktrace's solutions in North America, helping organizations improve their cyber resilience [3].

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]

Financial Data and Key Metrics Changes - Gross billings increased 52% to $605 million compared to $397 million in the year-ago quarter [20] - Net sales in Q4 2024 increased 51% to $161.8 million from $106.8 million, driven by organic growth and contributions from the acquisition of DSS [21] - Gross profit rose 48% to $31.2 million compared to $21.1 million, with gross profit as a percentage of gross billings at 5.2%, down from 5.3% [22] - Net income increased 33% to $7 million or $1.52 per diluted share, compared to $5.2 million or $1.15 per diluted share for the same period in 2023 [23] - Adjusted net income increased 87% to $10.3 million or $2.26 per diluted share [24] - Adjusted EBITDA increased 75% to $16.1 million, with an effective margin of 51.5%, up from 43.7% [24][25] Business Line Data and Key Metrics Changes - Distribution segment gross billings increased 57% to $582 million, while Solutions segment gross billings decreased 9% to $23 million [20] Market Data and Key Metrics Changes - Security continues to lead growth, making up between 55% and 65% of the portfolio, with new investments flowing into vendors for AI enhancements [38] Company Strategy and Development Direction - The company focuses on organic growth by deepening relationships with existing vendors and signing new emerging vendors [8] - Plans to continue evaluating M&A opportunities to enhance service offerings and expand geographic footprint [17][27] - The implementation of a new ERP system aims to streamline processes and enhance data accessibility [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, highlighting a solid foundation for organic growth and improved operating leverage [17] - The exit of Citrix from the channel is viewed as an opportunity to diversify offerings [17] - The company is well-positioned to deliver growth and enhance profitability in 2025 [28] Other Important Information - Cash and cash equivalents were $29.8 million as of December 31, 2024, down from $36.3 million a year earlier, primarily due to the acquisition of DSS [26] - A quarterly dividend of $0.17 per share was declared, payable on March 21, 2025 [27] Q&A Session Summary Question: Did you have any large unexpected deals in the quarter? - Management confirmed a large VAST deal at the end of Q4 contributed positively to the results, alongside strong growth across all divisions [35][36] Question: Did security continue to lead growth amongst your segments? - Yes, security remains a significant portion of the portfolio, with new investments enhancing vendor products [38] Question: How did DSS perform versus your expectations? - DSS performed well year-over-year, although Q4 is not their largest quarter due to their focus on the education market [40] Question: Of the number of vendors added for the year, were all of them productive? - All 13 signed vendors are performing, but management continues to push for better performance from those that were onboarded earlier [42][44]

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]