Core Insights - Whatfix has entered the federal sector by partnering with the US Army to support the Integrated Personnel and Pay System - Army (IPPS-A), which will serve over 1.1 million users including active, reserve, and National Guard members [1][4][5] - The collaboration aims to enhance operational efficiency and support mission-critical functions for the US Army, aligning with federal agencies' priorities for modernization and digital transformation [2][5] - Whatfix's Digital Adoption Platform (DAP) will provide real-time, context-sensitive guidance to users, addressing challenges in user proficiency and adoption of the IPPS-A system [4][7] Company Expansion - Whatfix is committed to expanding its presence in the public sector, reinforcing its role as a trusted partner in transforming large-scale government systems with digital adoption solutions [3][9] - The company recently raised $125 million in a Series E funding round, which will support its expansion into complementary DAP offerings and accelerate its mission in the public sector [9] Technology and Solutions - Whatfix's platform automates workflows and enhances HR process governance, ensuring seamless adoption of the IPPS-A system [7] - The collaboration with Insight Public Sector combines technology, infrastructure, and expertise to provide an integrated training solution for the Army's HR system [6] Industry Recognition - Whatfix is recognized as a leader in the Digital Adoption Platform space, receiving accolades from industry reports by Gartner, Forrester, IDC, and Everest Group [8] - The company has been included in the Deloitte Fast 500 list for four consecutive years, highlighting its rapid growth and impact in the industry [9]

Core Insights - Flexera has announced the winners of its annual Partner of the Year Awards for 2024, recognizing companies for their commitment to delivering high-quality solutions and services that enhance business value and return on investment for customers [1][2]. Group 1: Award Winners - The Partner of the Year award was given to SoftwareOne for its exceptional performance in driving new business growth and maintaining high customer renewal rates, showcasing its strategic approach and commitment to delivering value with Flexera solutions [3]. - Chemtrols Infotech Pvt. Ltd was honored as the Customer Success Partner of the Year for achieving the highest customer retention rate through exceptional service and proactive engagement [4]. - The awards also included recognition for partners excelling in technology intelligence and FinOps practices, highlighting their contributions to optimizing IT spending and maximizing cloud efficiency [5]. Group 2: Regional Winners - The regional winners for Flexera's Partner of the Year awards include Capgemini for North America, Noventiq Solutions for EMEA, and Insight Technology for APAC [7]. - NTT DATA was recognized in North America, while Deloitte received honors in EMEA for their outstanding contributions [7]. Group 3: Flexera's Role - Flexera plays a crucial role in helping organizations understand and maximize the value of their technology investments, saving billions in wasted spend through its Technology Intelligence Platform [8]. - The company provides comprehensive visibility and actionable insights across IT ecosystems, enabling teams to optimize spend, mitigate risks, and identify opportunities for positive business outcomes [8].

Financial Performance - The company generated net sales of $8.7 billion for the year ended December 31, 2024, representing approximately 1% of the total addressable market for enterprise IT spend, which is forecasted to be $4.9 trillion by 2027[25]. - For the year ended December 31, 2024, net sales decreased by 5% to $8.7 billion compared to 2023, with product sales down 8% and service sales up 9%[179]. - Gross profit for 2024 was reported at $1.8 billion, reflecting a 6% increase from 2023, with a record gross margin of 20.3%, up approximately 210 basis points[179]. - Earnings from operations decreased to $388.6 million in 2024, a decline of 7% compared to the prior year, representing 4.5% of net sales[179]. - Net earnings for 2024 were $249.7 million, with diluted net earnings per share at $6.55, down from $281.3 million and $7.55 per share in 2023[179]. - Cash flows from operations for 2024 were $632.8 million, with net repayments of $554.1 million under the ABL facility and $500.0 million in Senior Notes issued[183]. - Interest expense increased by 41% to $67.1 million in 2024, primarily due to the issuance of Senior Notes and higher loan balances[213]. - The effective tax rate decreased to 25.0% in 2024 from 25.6% in 2023, mainly due to additional research and transferable energy tax credit benefits[216]. Sales and Market Distribution - North America accounted for 81% of the company's consolidated net sales in 2024, while EMEA and APAC contributed 16% and 3%, respectively[20]. - The company's product sales (hardware and software) represented approximately 81% of consolidated net sales in 2024, compared to 83% in 2023 and 86% in 2022[47]. - Sales of Microsoft and Cisco Systems products accounted for approximately 18% and 11% of consolidated net sales in 2024, respectively[53]. - In North America, net sales decreased by 4% to $7.1 billion, driven by a 10% decline in hardware sales, partially offset by a 3% increase in software sales and a 7% increase in services[192]. - EMEA net sales decreased by 10% to $1.4 billion, with software sales down 20% and hardware sales down 8%, while services sales increased by 23%[194]. - Net sales in APAC increased by 1% to $233,021 thousand in 2024, with services and software sales rising by 8% and 5%, respectively, while hardware sales decreased by 19%[196]. Strategic Initiatives and Acquisitions - The company completed several strategic acquisitions, including Amdaris in 2023 and Infocenter in 2024, to enhance its capabilities in cloud services and digital transformation[28]. - The company acquired Infocenter in May 2024 to enhance digital transformation capabilities, leveraging their expertise in ServiceNow[179]. - The company aims to drive profitable growth by focusing on high performance, operational excellence, and aligning sales capabilities with client needs[33]. Workforce and Culture - As of December 31, 2024, the company employed 14,324 teammates, with 11,019 in North America, 2,809 in EMEA, and 496 in APAC[63]. - The company has a diverse workforce with over 1,600 active members in eleven teammate resource groups[61]. - The company offers robust leadership training centered around creating clarity, inspiring people, demonstrating thought leadership, and delivering results[61]. - The company maintains strong relationships with teammates and has never experienced a labor-related work stoppage[64]. Risks and Challenges - The company faces aggressive pricing competition in the industry, which is expected to continue, potentially leading to reduced market share and operating margins[93]. - Competitors may have greater resources and quicker responses to market changes, which could adversely affect the company's ability to compete effectively[94]. - Economic conditions, including potential recessions and reduced IT spending, could adversely impact the company's business and financial condition[100]. - Government spending policies and budget cuts may lead to reduced purchases from public sector clients, affecting revenue[101]. - International operations expose the company to various risks, including currency fluctuations and changes in foreign regulations, which could impact profitability[112]. - Disruptions in the supply chain due to manufacturing delays or natural disasters could hinder the company's ability to meet client demands[114]. - The company is subject to risks associated with its IT systems; disruptions could affect service delivery and incur additional expenses[118]. Financial Obligations and Debt - As of December 31, 2024, the company had $864.1 million in total long-term debt and $217.6 million in obligations under inventory financing agreements[136]. - $332.9 million of the outstanding debt is related to Convertible Notes maturing in February 2025, classified as a current liability[136]. - The company issued $500.0 million in senior unsecured notes due 2032 and can borrow an additional $1.8 billion under its senior secured credit facility[136]. - The company’s acquisition strategy may increase outstanding debt and interest expenses, impacting financial condition[139]. - The company has $1.8 billion available under its senior secured credit facility, which may be affected by interest rate fluctuations[139]. - Compliance with financial covenants is crucial to avoid events of default, impacting the company’s ability to operate effectively[140]. Technology and Innovation - The company has a strong emphasis on cybersecurity solutions, which enhance resilience and mitigate risks for clients[39]. - The company’s digital workplace solutions aim to create productive, flexible, and secure work environments for clients[43]. - The company has invested in digital marketing capabilities over the past few years and plans to continue these investments to enhance marketing effectiveness[57]. - The company does not maintain a traditional research and development group but recognizes the importance of intellectual property, protecting it through various legal means[69]. - Rapid technological advancements in areas such as cloud, AI, and IoT require the company to invest in new technologies to maintain a competitive advantage[99]. - The development and use of Gen AI technologies may lead to increased liability exposure and competitive risks due to technical challenges[129]. Performance Metrics and Adjustments - The company’s solutions mix includes approximately 43% product and 57% services in gross profit for 2024, compared to 46% and 54% in 2023[47]. - Adjusted earnings from operations increased by 2% to $502,372 thousand in 2024, with North America's adjusted earnings decreasing by 1% to $421,977 thousand[210]. - The company uses adjusted non-GAAP earnings to evaluate financial performance against budgeted amounts and to assist in forecasting future performance[218]. - Non-GAAP financial measures provide greater transparency and facilitate comparisons to prior periods and competitors' results[218]. - The company believes that non-GAAP measures are useful for investors but should not be considered a substitute for GAAP measures[218].

Financial Data and Key Metrics Changes - Gross profit increased by 1%, driven by a 12% increase in Insight Core Services and modest growth in hardware and cloud, while hardware gross profit grew for the first time in eight quarters [11][12] - Gross margin expanded by 170 basis points to 21.2%, with adjusted diluted earnings per share at $2.66, resulting in full-year earnings per share near the high end of the range provided in October [12][35] - Net revenue for Q4 was $2.1 billion, a decrease of 7%, primarily due to a 10% decline in product revenue, with hardware revenue down 2% and on-prem software down 23% [32][33] - Full-year net revenue was $8.7 billion, a decrease of 5%, but gross profit increased by 6% and gross margin expanded by 210 basis points to 20.3% [39][41] Business Line Data and Key Metrics Changes - Insight Core Services gross profit was $78 million, an increase of 12%, driven by acquisitions [34] - Cloud gross profit was $125 million, an increase of 3%, reflecting the anniversary of the SADA acquisition and a pivot to the mid-market [34] - Hardware gross profit saw mid-single-digit growth in devices, while infrastructure was down mid-single digits [33] Market Data and Key Metrics Changes - Commercial client demand grew over the last three quarters, contrasting with declines in large enterprise and corporate clients in North America [13][30] - The company expects the device refresh cycle to gain momentum in 2025 and 2026, with corporate clients delaying their device refresh cycle [13][30] Company Strategy and Development Direction - The company aims to become the leading solutions integrator by enhancing its offerings in cloud, data, AI, and cyber solutions [53][54] - Strategic collaborations with Microsoft, Google, and AWS were established to strengthen the company's position in cloud, data, AI, and intelligent edge solutions [27] - The company is focusing on transitioning enterprise agreements to CSP agreements to mitigate headwinds from cloud program changes [61][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macroeconomic environment affecting client investment priorities and decision-making [13][36] - The company anticipates hardware gross profit to grow in the mid-single digits, with Insight Core Services expected to grow within a long-term guidance range of 16% to 20% [47][48] - Management expressed optimism about the demand for transformation across various sectors and the potential for growth in 2025 [53][54] Other Important Information - The company completed SG&A actions expected to yield approximately $25 million in annualized reductions [12][30] - Cash flow from operations was strong at over $600 million for the second consecutive year [41][52] - The company has $300 million remaining for its share repurchase program and intends to balance share repurchases with organic and inorganic investments [42][44] Q&A Session Summary Question: Can you elaborate on the cloud program changes and their impact? - Management indicated that the $70 million impact is primarily from enterprise agreements, with plans to transition these to CSP agreements, supported by Microsoft [61][62] Question: What are the drivers of the expected OpEx expansion? - Management clarified that OpEx is expected to grow slightly slower than gross profit, with confidence stemming from $25 million in cost actions and a lower headcount starting point [69][70] Question: What is the outlook for the device refresh cycle? - Management noted that while the refresh cycle was expected to start earlier, it is now anticipated to extend into 2026, with positive signs in pipeline coverage and bookings [76][78] Question: How should we think about the potential impact of tariffs? - Management stated that current tariffs are not expected to significantly impact demand, and guidance reflects minimal impact from existing tariffs [100][101] Question: Are there further opportunities for structural improvements? - Management expressed confidence that there are still opportunities for improvement in profitability and operational efficiency [104][105]

Insight Enterprises, Inc. Fourth Quarter and Full Year 2024 Earnings Conference Call and Webcast Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2025 Insight Direct USA, Inc. All Rights Reserved. 1 Disclosures ◦ Safe harbor statement This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 related to Insight's plans and expectations. Statements that are not historical facts, including those related to our expectations ...

Core Viewpoint - Insight Enterprises reported quarterly earnings of $2.66 per share, exceeding the Zacks Consensus Estimate of $2.53 per share, but down from $2.98 per share a year ago, indicating a 10.7% year-over-year decline in earnings [1][2] Financial Performance - The company posted revenues of $2.07 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.57% and down from $2.24 billion year-over-year, reflecting a 7.6% decline [2] - Over the last four quarters, Insight Enterprises has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance - Insight Enterprises shares have increased approximately 14.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 3.1% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.34 on revenues of $2.21 billion, while for the current fiscal year, the estimate is $10.40 on revenues of $9.06 billion [7] - The estimate revisions trend for Insight Enterprises is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Retail - Mail Order industry, to which Insight Enterprises belongs, is currently ranked in the bottom 1% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

Financial Performance - In Q4 2024, net sales decreased 7% year over year to $2.1 billion, while gross profit increased 1% to $439.6 million, resulting in a gross margin of 21.2%[2][5] - For the full year 2024, net sales decreased 5% year over year to $8.7 billion, with gross profit increasing 6% to $1.8 billion and a gross margin of 20.3%[3][11] - Consolidated net earnings for Q4 2024 were $37.0 million, down 59% year over year, and diluted earnings per share decreased 59% to $0.99[2][5] - Adjusted earnings from operations for Q4 2024 were $129.4 million, a decrease of 13% year over year, while adjusted diluted earnings per share was $2.66, down 11%[2][5] - Adjusted consolidated net earnings for the full year 2024 were $338.2 million, with adjusted diluted earnings per share remaining flat year over year at $9.68[3][11] - Net earnings for Q4 2024 were $37,012, down 59% from $90,608 in Q4 2023[25] - Diluted earnings per share for Q4 2024 were $0.99, a decline of 59% compared to $2.42 in Q4 2023[25] - Net earnings for the twelve months ended December 31, 2024, were $249,691, a decrease of 11.3% compared to $281,309 in 2023[35] - Adjusted diluted earnings per share (EPS) for 2024 were $9.68, compared to $9.69 in 2023, showing a marginal decline of 0.1%[42] Operational Metrics - Cash flow from operations for the full year 2024 was $632.8 million, with Q4 cash flows at $215.1 million[5][11] - Selling and administrative expenses increased by 20% in Q4 2024 to $358,487, compared to $298,206 in Q4 2023[25] - Severance and restructuring expenses for Q4 2024 were $15,967, more than double the $3,136 reported in Q4 2023[25] - The company incurred severance and restructuring expenses of $31.6 million for the twelve months ended December 31, 2024, compared to $6.1 million in 2023[45] - Adjusted non-GAAP EFO as a percentage of net sales for Q4 2024 was 4.6%, up from 3.1% in Q4 2023[43] Market and Sales Trends - North America net sales decreased 5% year over year in Q4 2024, while EMEA and APAC net sales decreased 18% and 6%, respectively[8][11] - Total net sales for Q4 2024 were $2,072,665, a decrease of 7% compared to $2,236,011 in Q4 2023[25] - Total net sales for the three months ended December 31, 2024, were $2,072,665, a decrease of 7.3% compared to $2,236,011 in the same period of 2023[35] Future Outlook - For 2025, the company expects adjusted diluted earnings per share to be between $9.70 and $10.10, with low single-digit gross profit growth anticipated[14] - The company anticipates continued challenges due to inflation and higher interest rates, impacting future financial performance and results of operations[29] - The company is focusing on strategic initiatives to enhance gross profit growth and improve operational efficiency moving forward[29] Balance Sheet and Cash Flow - Total current assets increased to $4,844,622 thousand in 2024 from $4,331,301 thousand in 2023, representing a growth of 11.9%[37] - Long-term accounts receivable increased significantly to $845,943 thousand in 2024 from $412,666 thousand in 2023, marking a growth of 105.5%[37] - Total liabilities rose to $5,677,967 thousand in 2024 from $4,550,617 thousand in 2023, an increase of 24.8%[37] - The company experienced a net cash used in investing activities of $303,278 thousand in 2024, down from $505,201 thousand in 2023, a decrease of 40.0%[39] Earnings and Profitability - The company reported a 210 basis point expansion in gross margin for the full year 2024 compared to the prior year[3][11] - The gross margin for the three months ended December 31, 2024, improved to 21.2%, up from 19.5% in the same period of 2023, reflecting a 170 basis points increase[35] - GAAP consolidated earnings from operations (EFO) for 2024 were $388,584 thousand, down from $419,795 thousand in 2023, a decline of 7.4%[42] - Adjusted non-GAAP EBITDA for the twelve months ended December 31, 2024, was $543,529, an increase from $525,007 in 2023[45] Segment Performance - GAAP Earnings from EMEA segment for Q4 2024 was $7,356, down from $9,899 in Q4 2023, while adjusted non-GAAP EFO increased to $14,626 from $12,125[43] - GAAP Earnings from APAC segment for Q4 2024 was $4,922, compared to $4,585 in Q4 2023, with adjusted non-GAAP EFO rising to $5,573 from $4,803[43]

Financial Data and Key Metrics Changes - In Q3 2024, net revenue was $2.1 billion, a decrease of 8% year-over-year in U.S. dollars and constant currency, driven by an 11% decline in production [28][29] - Gross profit grew mid-single digits, with gross margin expanding significantly to 20.7%, an increase of 270 basis points [27][32] - Adjusted diluted earnings per share were $2.19, down 8% year-over-year, attributed to increased interest expense from higher debt [33][34] - Cash flow from operations was $125 million for the quarter, totaling $418 million year-to-date, with expectations to exceed $500 million for the year [34][36] Business Line Data and Key Metrics Changes - Hardware revenue declined by 13%, while on-prem software revenue decreased by 9%, primarily due to partner consolidation [29][30] - Insight Core Services gross profit increased by 14% to $81 million, and cloud gross profit rose by 33% to $129 million, reflecting strong growth in Infrastructure-as-a-Service and Software-as-a-Service [31][32] - Adjusted SG&A grew by 8% due to acquisitions, but organic adjusted SG&A decreased year-over-year [32] Market Data and Key Metrics Changes - The IT spending environment remains cautious, particularly among large enterprise and corporate clients, impacting overall performance [9][38] - Commercial performance showed growth for two consecutive quarters, indicating potential recovery before enterprise and corporate segments [49] - APAC and EMEA regions performed strongly during the quarter [49] Company Strategy and Development Direction - The company is focused on executing its solutions integrator strategy, enhancing global services capabilities through recent acquisitions [14][15] - A shift towards corporate and mid-market customers is being emphasized, particularly in the SADA services area [13][54] - The company aims to reduce operating expenses by $20 million to $25 million annually, with full benefits expected in 2025 [17][40] Management's Comments on Operating Environment and Future Outlook - Management anticipates a delayed hardware recovery, with expectations for broader market recovery pushed to next year [10][11] - The company remains optimistic about long-term growth despite current challenges, focusing on cloud, data, AI, and security solutions [45][46] - Management expressed confidence in their strategy to become a leading solutions integrator, despite near-term challenges [17][25] Other Important Information - The company received several recognitions, including AWS premier tier service partner and multiple Partner of the Year awards from various technology firms [23] - Glynis Bryan announced her retirement, with James Morgado set to assume the CFO role in January [24][42] Q&A Session Summary Question: Trends between large enterprise customers versus smaller ones - Management noted strong cloud growth and Core Services growth, with commercial performance improving, which typically precedes enterprise recovery [48] Question: Performance of SADA acquisition - Management acknowledged that while SADA is performing well in cash flow, resale expansion has not met expectations due to strategic shifts [54][55] Question: Guidance for the year and gross margin expectations - Management clarified that gross margin is expected to be in the range of 19% to 20%, with Q4 anticipated to be lower due to SADA and product mix issues [63] Question: Impact of on-prem software partner consolidation - Management explained that the consolidation has shifted revenue from product to services, affecting on-prem software sales [65][66] Question: Delayed hardware recovery in North America - Management indicated that both devices and infrastructure categories are falling short of expectations, with a challenging market outlook continuing into early 2025 [72][74]

Insight Enterprises (NSIT) came out with quarterly earnings of $2.19 per share, missing the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $2.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.01%. A quarter ago, it was expected that this information technology provider would post earnings of $2.85 per share when it actually produced earnings of $2.46, delivering a surprise of -13.68%.Over the las ...

EXHIBIT 99.1 FOR IMMEDIATE RELEASE NASDAQ: NSIT INSIGHT ENTERPRISES, INC. REPORTS THIRD QUARTER RESULTS CHANDLER, AZ – October 31, 2024 – Insight Enterprises, Inc. (NASDAQ: NSIT) (the "Company") today reported financial results for the quarter ended September 30, 2024. Highlights include: • Gross profit increased 6% year over year to $432.1 million with gross margin expanding 270 basis points to 20.7% • Insight Core services gross profit grew 14% year over year • Cloud gross profit grew 33% year over year • ...