Financial Data and Key Metrics - Consolidated net sales decreased by 12.3% YoY to $515.2 million, primarily due to a decline in product sales, which was partially offset by strong growth in higher-margin services revenues [9][22] - Gross profit increased by 2.5% YoY to $148 million, driven by strength in services and higher product margins, with gross margins expanding by 410 basis points to 28.7% [10][27] - Operating income decreased by 4.8% to $42.7 million, and net earnings declined by 4.1% to $31.3 million, or $1.17 per diluted share [29][30] - Adjusted EBITDA for the quarter was $52.1 million, down from $53.6 million in the prior year [30] Business Line Performance - Technology business net sales declined by 13.8% YoY to $493.3 million, reflecting lower product sales, particularly in hardware, due to softer demand and a tough comparison with the prior year [22][23] - Service revenues grew by 46% YoY to $104 million, driven by both professional and managed services, with managed services revenue up 28% YoY [12][24] - Financing segment net sales increased to $21.9 million, up from $15.7 million in the prior year, primarily due to higher transactional gains [26] Market and Customer Vertical Performance - Sales in the technology business were broad-based, with telecom, media, and entertainment accounting for 25% of net sales, while technology verticals represented 18% [25] - SLED, healthcare, and financial services accounted for 15%, 13%, and 9% of net sales, respectively, with the remaining 20% spread across other end markets [25] Strategic Initiatives and Industry Competition - The company continues to focus on AI, cloud, networking, data, and security, with the acquisition of Bailiwick enhancing its IT integration services and expanding its footprint in North America [7][14][15] - The AI Ignite program and the launch of the AI experience center with Digital Realty are key initiatives to position the company for AI market opportunities [17][18] - Security gross billings grew by 15.8% in the quarter, now representing 21.4% of trailing 12-month gross billings, reflecting continued customer investment in data security and governance [20] Management Commentary on Operating Environment and Future Outlook - Management noted a shift towards ratable revenue models and netted down revenues, which impacted product sales but contributed to higher gross margins [8][10] - The company expects positive comparisons for sales and earnings in fiscal 2025, with adjusted EBITDA guidance revised to $195 million to $205 million [38] - Economic uncertainty, election impacts, and AI-related sales cycle elongation were cited as headwinds, but the company remains optimistic about long-term growth opportunities in AI and security [41][50] Other Important Information - The company repurchased 250,234 shares during the first half of the fiscal year at a cost of $19.8 million [36] - Cash and cash equivalents declined to $187.5 million, reflecting working capital needs, the Bailiwick acquisition, and share repurchases [34] - Inventory turns improved to 12 days, reducing the cash conversion cycle to 32 days compared to 51 days in the prior year [35] Q&A Session Summary Question: Product demand and macro environment impact [40] - Product sales were softer than expected due to economic uncertainty, delayed enterprise spending, and AI-related decision-making delays [41][42] - Gross to net adjustments for product billings increased by 940 basis points, impacting revenue by approximately $60 million [42] Question: Bailiwick acquisition impact on revenue and margins [43] - Bailiwick is expected to contribute approximately $85 million in revenue in the second half of the fiscal year, with margins in line with the company's existing profile [43][44] - Organic professional services growth was in the 6% to 8% range, with managed services up 28% YoY [45] Question: OpEx impact from Bailiwick acquisition [46] - OpEx is expected to increase in Q3 due to full-quarter headcount and acquisition-related expenses [47] Question: Gross margin outlook [48] - Gross margins are expected to tighten in the second half, with product sales and services both expected to increase [48] Question: Macro assumptions in updated outlook [49] - The company expects hardware challenges in Q3, with potential impacts from elections, tariffs, and interest rates, while AI spending remains a headwind in the near term [50] Question: Early client feedback on Bailiwick acquisition [51] - Internal feedback on Bailiwick has been positive, with excitement about the team, offerings, and customer base [51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ 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: 1-34167 ePlus inc. (Exact name of registrant as specified in its charter) Delaware 54-1817218 (State or other jurisdiction of in ...

Second Quarter Gross Profit And Gross Margin Improved Year Over Year Second Quarter Fiscal Year 2025 •           Net sales decreased 12.3% to $515.2 million; technology business net sales decreased 13.8% to $493.3 million; service revenues increased 46.0% to $103.7 million. •           Technology business gross billings decreased 5.6% to $808.2 million. •           Consolidated gross profit increased 2.5% to $148.0 million. •           Consolidated gross margin was 28.7%, compared with ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2025 totaled $544.5 million, down from $574.2 million in Q1 2024, reflecting a net sales decline of 5.2% year-over-year [9][3] - Product revenue decreased by 8.2% year-over-year, primarily due to lower sales of cloud and networking products [9] - Consolidated net earnings amounted to $27.3 million or $1.02 per diluted share, down from $33.8 million or $1.27 per diluted share in the prior year [13] - Adjusted EBITDA totaled $43.1 million compared to $53.9 million in Q1 2024 [13] Business Line Data and Key Metrics Changes - Service revenues increased by 15.8% year-over-year, with managed services up 28% [4][10] - The finance segment saw revenue growth of 6.4% due to increased portfolio earnings [5] - Professional services revenue rose by 4.8% year-over-year, driven by staff augmentation services [10] Market Data and Key Metrics Changes - The two largest verticals in the technology business are telecom, media, and entertainment (24%) and technology (19%) [10] - Managed services accounted for over 20% of gross billings in the trailing 12 months, with a 9% increase quarter-over-quarter [5] Company Strategy and Development Direction - The company continues to focus on strategic initiatives around AI, cloud security, and related advisory services [3] - Investments are being made in customer-facing personnel in high-demand areas such as AI and security [6] - The company is committed to returning value to shareholders through share repurchase programs while maintaining flexibility for future growth initiatives [8][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a tough year-over-year comparison for Q1 but expressed confidence in achieving full-year guidance of 3% to 6% net sales growth [15][16] - The company believes it is well-positioned to capitalize on customer interest in AI and related services [6][25] - Management noted that gross billings have started to normalize as supply chains stabilize [22] Other Important Information - The company ended the quarter with cash and cash equivalents of $350 million, up from $253 million at the end of Q4 2024 [13][14] - Inventory levels decreased significantly, with a 36% sequential decline, resulting in a three-year low of $89.1 million [14] Q&A Session Summary Question: Insights on the upcoming fiscal second quarter - Management indicated that Q2 is in line with expectations, similar to Q1 in terms of tough comparisons, but remains confident in guidance [16][17] Question: Expectations for operating leverage - Management expects operating leverage to manifest as new hires ramp up and revenues increase, with operating income having jumped 20% sequentially from Q4 to Q1 [18][19] Question: Customer product backlog status - Management believes the customer backlog has normalized, with gross billings showing signs of stabilization [21][22] Question: AI business growth opportunities - Management noted strong interest in the AI Ignite program, with many customers seeking assistance in managing data silos and developing AI strategies [24][25] Question: Impact of CrowdStrike issues - Management reported no negatives from the CrowdStrike issue, with one customer extending their service agreement after receiving assistance [26] Question: Outlook for Q2 and operating expenses - Management indicated that Q2 is expected to be flat year-over-year, with operating expenses likely to remain stable [27][29]

EPlus (PLUS) came out with quarterly earnings of $1.13 per share, missing the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -3.42%. A quarter ago, it was expected that this computer products reseller would post earnings of $1.17 per share when it actually produced earnings of $0.93, delivering a surprise of -20.51%. Over the last four quarters, t ...

First Quarter Fiscal Year 2025 Net sales decreased 5.2% to $544.5 million from last year's first quarter; technology business net sales decreased 5.3% to $535.5 million; services revenues increased 15.8% to $78.2 million. Technology business gross billings decreased 1.0% to $833.7 million. Consolidated gross profit decreased 5.5% to $134.5 million. Consolidated gross margin was 24.7% as compared to last year's 24.8%. Net earnings decreased 19.2% to $27.3 million. Adjusted EBITDA decreased 19.9% to $43.1 mil ...

EPlus (PLUS) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move low ...

For more information about ePlus Storage-as-a-Service powered by NetApp, visit www.eplus.com/STaaS. HERNDON, Va., July 12, 2024 /PRNewswire/ -- ePlus inc. (NASDAQ NGS: PLUS – news) today announced the expansion of its Storage-as-a-Service (STaaS) portfolio by launching ePlus STaaS with NetApp Keystone. As an enhancement to NetApp Keystone Partner program, the ePlus offering combines flexible subscription models for storage consumption via NetApp Keystone with ePlus technical support and customer success res ...

HERNDON, Va., June 27, 2024 /PRNewswire/ -- ePlus inc. (NASDAQ NGS: PLUS – news) today announced that it has been recognized as a Juniper Partner of the Year for 2023 by Juniper Networks, a leader in secure, AI-Native Networks. ePlus was recognized as 2023 Partner of the Year for Cloud Ready Data Center in both Worldwide and Americas categories for its ability to develop modernized data centers and automated cloud-based network solutions integrating Juniper Networks AI-Native technologies. Working together, ...

ePlus Disaster Recovery-as-a-Service (DRaaS) offering, powered by Azure Site Recovery, protects workloads living on-premises, in Azure, or in other clouds HERNDON, Va., June 26, 2024 /PRNewswire/ -- ePlus inc. (NASDAQ NGS: PLUS – news) today announced the launch of Azure Recover, a fully-managed DRaaS solution. Powered by Azure Site Recovery, ePlus Azure Recover helps organizations safeguard their critical services with geographic resilience to provide confident recovery in the event of disaster. The new of ...