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 • ...

Financial Performance - Total net sales for Q2 2024 were $2,161,662, a decrease of 8.0% compared to $2,349,596 in Q2 2023[11] - Gross profit increased to $453,365 in Q2 2024, up 4.6% from $433,190 in Q2 2023[11] - Net earnings for Q2 2024 were $87,444, representing a 4.0% increase from $80,482 in Q2 2023[11] - Earnings from operations rose to $131,073 in Q2 2024, compared to $118,611 in Q2 2023, marking an increase of 10.3%[11] - The company reported a gross margin improvement, with gross profit as a percentage of total net sales increasing to 20.9% in Q2 2024 from 18.4% in Q2 2023[11] - Services net sales increased by 7.7% to $435,227 in Q2 2024, compared to $403,987 in Q2 2023[11] - Net earnings for the quarter ending June 30, 2024, were reported at $87,444, compared to $80,482 for the same period in 2023, representing an increase of 8.4% year-over-year[15] - Net earnings for the second quarter of 2024 reached $154,471,000, an increase from $130,454,000 in the same period of 2023, representing a growth of approximately 18.4%[17] Cash Flow and Liquidity - Net cash provided by operating activities was $292,964,000 for the six months ended June 30, 2024, compared to $187,960,000 for the same period in 2023, indicating a significant increase of about 55.7%[17] - Cash and cash equivalents at the end of the period on June 30, 2024 was $258,350,000, down from $270,785,000 at the beginning of the period[140] - The company reported a decrease in cash, cash equivalents, and restricted cash of $12,435,000 for the period, ending with a total of $258,350,000[17] - Operating activities generated $293.0 million in cash for the six months ended June 30, 2024, up from $188.0 million in the same period of 2023, reflecting a 56% increase[141] Equity and Stock Repurchases - As of June 30, 2024, total stockholders' equity increased to $1,847,545, up from $1,755,491 at March 31, 2024, reflecting a growth of approximately 5.2%[15] - The company repurchased treasury stock worth $99,980 during the quarter, impacting total stockholders' equity[15] - The company repurchased 187,357 shares of common stock for a total cost of $35,000,000 during the six months ended June 30, 2024, at an average price of $186.81 per share[50] - The company repurchased 720,175 shares for $99,980,000 at an average price of $138.83 per share during Q2 2023, while no shares were repurchased in Q2 2024[9][10] Debt and Financing - The company’s long-term debt as of June 30, 2024, totaled $995,072,000, with a long-term debt portion of $663,075,000 after accounting for the current portion[35] - The company issued $500,000,000 of 6.625% Senior Notes due 2032, with net proceeds used to repay a portion of outstanding borrowings under the ABL facility[36] - Borrowings on the ABL revolving credit facility amounted to $2,451,966,000, while repayments totaled $2,872,410,000 during the financing activities[17] - The company has a maximum borrowing amount under the ABL facility of $1,800,000,000, with $171,283,000 outstanding as of June 30, 2024[35] Segment Performance - The company is organized into three operating segments: North America, EMEA, and APAC, focusing on hardware, software, and services including cloud solutions[19] - For the three months ended June 30, 2024, total revenue was $2,161,662,000, with North America contributing $1,732,357,000, EMEA $368,873,000, and APAC $60,432,000[60] - Net sales in North America decreased by 9%, or $164.8 million, for the three months ended June 30, 2024, primarily due to lower hardware and software sales[104] - Net sales in EMEA decreased 6%, or $22.9 million, for the three months ended June 30, 2024, compared to the same period in 2023, with software and hardware sales decreasing by 15% and 5%, respectively[108] - In APAC, net sales were relatively flat for the three months ended June 30, 2024, with a slight increase of 1% year over year, driven by a 12% increase in services net sales[110] Operational Efficiency and Future Outlook - The company expects to continue facing supply constraints but believes they have normalized back to near historic levels[5] - Future capital expenditures are projected to increase as the company continues to evolve its IT systems and expand its cloud business[5] - The company aims to enhance operational efficiency through shared services and infrastructure to realize economies of scale[66] - The company expects continued higher interest rates due to inflation, which may impact financial condition and liquidity into the second half of 2024[97] Tax and Compliance - The effective tax rate is expected to return to more typical levels in the foreseeable future[5] - Effective tax rates for the three and six months ended June 30, 2024 were 25.5% and 24.8%, respectively, compared to 26.3% and 25.7% for the same periods in 2023[6][7] - As of June 30, 2024, the company had approximately $11,720,000 of unrecognized tax benefits, down from $13,947,000 as of December 31, 2023[7] Acquisitions - The acquisition of Infocenter.io Corporation was completed for a cash purchase price of $265,000,000, with an estimated fair value of earnout payments of $24,200,000 based on EBITDA performance through April 2026[75] - The acquisition of SADA Systems, LLC was finalized for a cash purchase price of $399,762,000, with an additional earnout potential of up to $390,000,000 based on performance through 2026[79] - Amdaris Group Limited was acquired for a preliminary cash purchase price of approximately $82,875,000, with an earnout range of $0 to $54,391,000 through 2026[88]

Core Insights - Insight Enterprises reported $2.16 billion in revenue for the quarter ended June 2024, reflecting an 8% year-over-year decline [1] - The EPS for the same period was $2.46, down from $2.56 a year ago, with a consensus EPS estimate of $2.85, resulting in a surprise of -13.68% [1] Revenue Performance - Net Sales- Services amounted to $435.23 million, compared to the estimated $478.30 million, showing a year-over-year increase of 7.7% [3] - Net Sales- Products were reported at $1.73 billion, below the average estimate of $1.96 billion, indicating a year-over-year decline of 11.3% [4] Profitability Metrics - Gross profit from Products was $190.17 million, slightly below the average estimate of $195.18 million [5] - Gross profit from Services was reported at $263.20 million, compared to the estimated $298.77 million [6] Stock Performance - Shares of Insight Enterprises have returned +12.5% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [6] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [6]

Have you looked into how Insight Enterprises (NSIT) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this information technology provider, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Inve ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 0-25092 INSIGHT ENTERPRISES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdict ...