Insight Enterprises, Inc. (NASDAQ:NSIT) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Company Participants Glynis Bryan - CFO Joyce Mullen - President and CEO Conference Call Participants Joe Cardoso - JPMorgan Matt Sheerin - Stifel Catherine Huntley - Raymond James Anthony Lebiedzinski - Sidoti Vincent Colicchio - Barrington Research Operator Good morning or good afternoon all and welcome to the Insight Enterprises Second Quarter 2022 Operating Results Call. My name is Adam and I'll be your op ...

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PART I - Financial Information [Item 1 – Financial Statements](index=6&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements) Presents unaudited consolidated financial statements for Q2 2022, highlighting the Hanu acquisition and ABL credit facility amendment Consolidated Balance Sheet Highlights (unaudited) | Balance Sheet Item | June 30, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $4,401,004 | $3,568,311 | | **Total Assets** | $5,604,323 | $4,689,080 | | **Total Current Liabilities** | $2,968,915 | $2,515,257 | | **Total Liabilities** | $3,991,226 | $3,179,853 | | **Total Stockholders' Equity** | $1,613,097 | $1,509,227 | Consolidated Statement of Operations Highlights (unaudited) | Income Statement Item | Three Months Ended June 30, 2022 (in thousands) | Three Months Ended June 30, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Net Sales** | $2,743,377 | $2,229,501 | | **Gross Profit** | $437,889 | $366,683 | | **Earnings from Operations** | $129,556 | $88,469 | | **Net Earnings** | $89,184 | $58,561 | | **Diluted EPS** | $2.42 | $1.58 | Consolidated Statement of Cash Flows Highlights (unaudited) | Cash Flow Item | Six Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | | :--- | :--- | :--- | | **Net Cash (Used in) Provided by Operating Activities** | $(441,997) | $5,187 | | **Net Cash (Used in) Provided by Investing Activities** | $(114,154) | $10,374 | | **Net Cash Provided by (Used in) Financing Activities** | $598,418 | $(35,482) | - Effective June 1, 2022, the company acquired Hanu Software Solutions for a net cash purchase price of approximately **$68.2 million** to strengthen its cloud solution service capabilities[86](index=86&type=chunk) - On July 22, 2022, subsequent to the quarter end, the company amended its ABL credit facility, increasing the borrowing capacity from **$1.2 billion to $1.8 billion** and extending the maturity to July 2027[89](index=89&type=chunk) [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes Q2 2022 financial performance, noting 23% sales growth, gross margin contraction, increased earnings from operations, and working capital impact on cash flow [Quarterly Overview](index=27&type=section&id=Quarterly%20Overview) Q2 2022 saw 23% net sales growth and 46% earnings from operations increase, despite supply constraints Q2 2022 Financial Highlights (YoY) | Metric | Q2 2022 | Change vs. Q2 2021 | Constant Currency Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $2.7 billion | +23% | +26% | | **Gross Profit** | $437.9 million | +19% | +21% | | **Gross Margin** | 16.0% | -40 bps | N/A | | **Earnings from Operations** | $129.6 million | +46% | +51% | | **Net Earnings** | $89.2 million | +52% | N/A | | **Diluted EPS** | $2.42 | +53% | +59% | - The company notes that prolonged supply constraints resulted in elevated backlog at the end of the quarter and could impact results into the second half of 2022 and 2023[97](index=97&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Details Q2 2022 sales growth across segments, gross margin contraction, and effective selling and administrative expense management Net Sales by Segment (Q2 2022 vs Q2 2021) | Segment | Q2 2022 Net Sales (in thousands) | Q2 2021 Net Sales (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **North America** | $2,247,444 | $1,759,629 | 28% | | **EMEA** | $426,331 | $417,374 | 2% | | **APAC** | $69,602 | $52,498 | 33% | | **Consolidated** | **$2,743,377** | **$2,229,501** | **23%** | - North America's **28% sales growth** was driven by a **33% increase in hardware sales**, reflecting elevated backlog starting to clear[108](index=108&type=chunk)[109](index=109&type=chunk) - Consolidated gross margin contracted by **40 basis points to 16.0%** in Q2 2022, primarily due to an increased mix of lower-margin hardware sales[93](index=93&type=chunk)[117](index=117&type=chunk) - Selling and administrative expenses increased **10% YoY** but decreased as a percentage of net sales by **120 basis points**, indicating effective cost management relative to sales growth[122](index=122&type=chunk)[123](index=123&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses Q2 2022 operating cash flow decline due to working capital, increased cash conversion cycle, and ABL facility utilization - Cash flow used in operating activities was **$442.0 million** for the first six months of 2022, a significant decrease from the **$5.2 million** provided in the prior year period, primarily driven by working capital investments to support hardware sales growth[137](index=137&type=chunk)[142](index=142&type=chunk) - The cash conversion cycle increased by **15 days to 48 days** in Q2 2022 compared to Q2 2021, mainly due to a **14-day decrease in Days Purchases Outstanding (DPOs)** from changes in partner payment terms[141](index=141&type=chunk)[143](index=143&type=chunk) - Net borrowings under the ABL facility were **$667.5 million** in the first half of 2022 to fund working capital needs[139](index=139&type=chunk) - Capital expenditures for the full year 2022 are expected to be between **$65.0 million and $70.0 million**[144](index=144&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Reports no material changes to market risks since 2021, noting the $473 million Convertible Senior Notes' exposure to interest rate fluctuations - There have been no material changes in the company's reported market risks from the year-end 2021 report[155](index=155&type=chunk) - The fair market value of the company's fixed-rate Convertible Senior Notes was **$473 million** as of June 30, 2022, which is subject to interest rate risk[156](index=156&type=chunk) [Item 4 – Controls and Procedures](index=42&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) CEO and CFO confirm effective disclosure controls and procedures as of June 30, 2022, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[157](index=157&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[158](index=158&type=chunk) PART II - Other Information [Item 1 – Legal Proceedings](index=43&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is involved in various legal proceedings but does not anticipate a material adverse effect on its financial condition or operations - The company is not involved in any pending legal proceedings that it believes would reasonably be expected to have a material adverse effect on its business, financial condition, or results of operations[76](index=76&type=chunk)[160](index=160&type=chunk) [Item 1A – Risk Factors](index=43&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) Highlights risks from adverse macroeconomic conditions, geopolitical instability, supply chain disruptions, and currency fluctuations impacting international operations - A prolonged global economic slowdown, including the possibility of recession, increasing inflation, and rising interest rates, could cause clients to delay or forgo IT investments, adversely affecting business results[162](index=162&type=chunk)[164](index=164&type=chunk) - Geopolitical turmoil, specifically the Russian invasion of Ukraine, poses risks of market disruption, supply chain issues, and adverse economic conditions, particularly for European operations[164](index=164&type=chunk)[169](index=169&type=chunk) - International operations are exposed to currency fluctuations, and the recent strength of the U.S. dollar has adversely impacted reported results from EMEA and APAC[169](index=169&type=chunk)[171](index=171&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales or stock repurchases occurred in Q2 2022, with $75 million remaining for repurchases and no intent to pay cash dividends - No shares of common stock were repurchased during the three months ended June 30, 2022[173](index=173&type=chunk) - As of June 30, 2022, approximately **$75 million** remained available for future repurchases under the company's share repurchase plan[173](index=173&type=chunk) - The company has never paid a cash dividend and does not intend to pay any in the foreseeable future[172](index=172&type=chunk) [Item 6 – Exhibits](index=46&type=section&id=Item%206%20%E2%80%93%20Exhibits) Lists all exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL data - The report includes certifications from the CEO and CFO as required by the Sarbanes-Oxley Act, along with Inline XBRL filings[179](index=179&type=chunk)

Insight. Insight Enterprises, Inc. Company Overview Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 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 statements about future trends in the IT market and our opportunities for grow ...

Insight Enterprises, Inc. (NASDAQ:NSIT) Q1 2022 Earnings Conference Call May 5, 2022 9:00 AM ET Company Participants Glynis Bryan - Chief Financial Officer Joyce Mullen - President & Chief Executive Officer Conference Call Participants Matt Sheerin - Stifel Anthony Lebiedzinski - Sidoti & Company Adam Tindle - Raymond James Vincent Colicchio - Barrington Research Operator Good day and thank you for standing by. Welcome to the Insight Enterprises First Quarter 2022 Earnings Conference Call. [Operator Instruc ...

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, 2022 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 ...

Insight. Insight Enterprises, Inc. Company Overview Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 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 statements about future trends in the IT market and our opportunities for grow ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021 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) (Stat ...

Financial Data and Key Metrics Changes - In Q4 2021, net sales reached $2.6 billion, a 12% increase year-over-year in both constant currency and U.S. dollars, marking record net sales for the company [27] - Gross profit for the quarter was $385 million, also up 12% year-over-year, with a gross margin of 15% [27] - For the full year 2021, annual net sales totaled $9.4 billion, a 13% increase year-over-year, with gross profit of $1.4 billion, up 11% from 2020 [29] Business Line Data and Key Metrics Changes - Services revenue grew 13% year-over-year, contributing to 49% of consolidated gross profit, compared to 48% in 2020 [29] - Cloud gross profit increased by 21% in 2021, driven by SaaS and Infrastructure-as-a-Service, with a combined growth rate of 35% year-over-year [29] - Adjusted earnings from operations for Q4 were $103 million, up 12% year-over-year, while adjusted diluted earnings per share were $2.03, a 15% increase [28] Market Data and Key Metrics Changes - North America net sales in Q4 were $2.1 billion, a record and up 13% year-over-year, driven by a 19% increase in hardware net sales [32] - APAC region saw net sales of $54 million and gross profit of $14 million in Q4, increasing 19% and 22% year-over-year in constant currency [34] - The effective tax rate for 2021 was 20%, down from 24.4% in 2020, influenced by tax benefits from the Cares Act [35] Company Strategy and Development Direction - The company aims to enhance client loyalty, lead with innovative services, drive profitable growth, and champion people and culture [22][24] - Focus on digital transformation solutions is emphasized, with a strong market demand for services related to modern workplace, infrastructure, and cybersecurity [8][10] - The company is exploring acquisitions to build technical capabilities and fill geographic gaps, despite a competitive market for M&A [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit net sales growth for 2022, with expectations of strong hardware growth in the first half of the year [39] - The company anticipates improved growth in services, which will contribute to margin expansion and better SG&A leverage [48] - Supply chain constraints are acknowledged, particularly in the infrastructure space, with expectations for gradual improvement [52] Other Important Information - The company reported a cash balance of $104 million at year-end, with $362 million in outstanding debt, indicating a strong liquidity position [38] - The company has $75 million remaining under its share repurchase authorization, reflecting ongoing commitment to returning value to shareholders [37] - Recognition for workplace culture and diversity was highlighted, with the company ranking on Forbes' best employers list [21] Q&A Session Summary Question: Outlook for the year and backlog impact - Management is comfortable with guidance, expecting to grow faster than the market, with strong hardware growth anticipated in the first half [46][48] Question: Gross margin expectations - Gross margin expansion is expected due to an increased mix of services, despite slower hardware growth [49][50] Question: Supply chain issues and backlog - Supply chain improvements are noted, but challenges remain in the infrastructure space, particularly networking [52] Question: Price increases due to component shortages - Price increases were observed and generally passed on to clients, with customers accepting these due to supply chain clarity [57] Question: Talent attraction and retention - The company is successfully retaining talent, with a slight uptick in attrition but still below market levels [63] Question: Performance across vertical markets - The company does not focus on specific verticals but anticipates a hybrid work environment will drive demand for infrastructure upgrades [66] Question: Services expected to be strong in the second half - Growth is expected across the entire services portfolio, particularly in modern workplace and infrastructure solutions [72] Question: Hardware opportunities in the first half - Devices and networking gear are identified as significant opportunities, with a record backlog in these areas [74]

Insight. Insight Enterprises, Inc Company Overview Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2021 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 statements about future trends in the IT market and our opportunities for growt ...