TD SYNNEX (SNX) - 2025 Q1 - Quarterly Results

Revenue Performance - Revenue for Q1 FY25 was $14.5 billion, a 4.0$14,531.7 million, an increase of 4.0% from $13,975.3 million in Q1 FY24[34] - TD SYNNEX reported revenue of$14,531.7 million for the three months ended February 28, 2025, an increase of 4% compared to $13,975.3 million for the same period in 2024[28] - The Americas region generated$8.4 billion in revenue, a 6.2% increase from the prior fiscal first quarter[7] - The Europe region reported revenue of $5.1 billion, a 0.4$1.0 billion, a 5.2% increase compared to the prior fiscal first quarter[11] Earnings and Income - Diluted EPS for Q1 FY25 was $1.98, a 2.6$1.93 in Q1 FY24[4] - The company's net income for the same period was $167.5 million, slightly down from$172.1 million year-over-year[28] - Non-GAAP net income for the three months ended February 28, 2025, was $237,371 thousand, a decrease of 10.8$266,223 thousand for the same period in 2024[44] - Non-GAAP diluted EPS for the three months ended February 28, 2025, was $2.80, down 6.4$2.99 in the prior year[44] Operating Performance - Operating income was $304.5 million, a slight increase of 0.6$302.6 million in the prior year[3] - Operating income for the trailing fiscal four quarters was $1,196,098 thousand, an increase of 10.5$1,082,442 thousand in the previous year[48] - Non-GAAP operating income for the consolidated entity was $398.8 million, a decrease from$424.6 million in the prior year[40] - Non-GAAP operating margin for consolidated operations was 2.74%, down from 3.04% in Q1 FY24[40] Cash Flow and Liquidity - Cash used in operations was $748 million, compared to cash provided by operations of$385 million in the prior fiscal first quarter[7] - Free cash flow was negative at $(748.0) million for the three months ended February 28, 2025, compared to positive cash flow of$384.7 million for the same period in 2024[30] - Free cash flow for the three months ended February 28, 2025, was $(789,522) thousand, compared to$343,621 thousand in the same period last year[46] - The cash conversion cycle increased to 27 days for the three months ended February 28, 2025, compared to 21 days in the same period last year[50] Forecast and Guidance - For Q2 FY25, the company expects revenue between $13.9 billion and$14.7 billion, with non-GAAP gross billings projected at $19.7 billion to$20.7 billion[8] - The forecast for non-GAAP net income for the three months ending May 31, 2025, ranges from $205 million to$247 million[46] - The forecasted non-GAAP gross billings for the three months ending May 31, 2025, is expected to be between $19.7 billion and$20.7 billion[46] Asset and Liability Management - Total current assets decreased to $19,958.9 million as of February 28, 2025, from$21,324.7 million as of November 30, 2024[26] - Total liabilities decreased to $20,745.7 million as of February 28, 2025, from$22,239.0 million as of November 30, 2024[26] - The company’s cash and cash equivalents decreased to $541.9 million as of February 28, 2025, from$1,059.4 million as of November 30, 2024[26] Segment Performance - Operating income for the Americas segment increased by 21.3% to $193.7 million, compared to$159.7 million in Q1 FY24[32] - Revenue in the Americas was $8,389.3 million, reflecting a 6.2$7,903.1 million in Q1 FY24[32] - Europe segment revenue slightly increased by 0.4% to $5,137.8 million, while operating income decreased by 20.7$85.9 million[32] - Asia-Pacific and Japan revenue grew by 5.2% to $1,004.6 million, but operating income fell by 28.3$24.8 million[32] Other Financial Metrics - Non-GAAP gross billings reached $20.7 billion, up 7.5$20,718.2 million, up 7.5% from $19,266.7 million in the previous year[36] - Adjusted selling, general and administrative expenses as a percentage of revenue decreased to 4.77$283.7 million to consolidated revenue[34] - Days inventory outstanding increased to 56 days for the three months ended February 28, 2025, compared to 50 days in the prior year[50] Management Insights - TD SYNNEX management emphasizes the importance of non-GAAP financial measures for understanding operational results and trends[20] - The company incurred acquisition, integration, and restructuring costs of $1.1 million for the three months ended February 28, 2025, down from$31.6 million in the prior year[28] - Share-based compensation expense for the three months ended February 28, 2025, was $21.9 million, compared to$17.5 million for the same period in 2024[30] - Return on Invested Capital (ROIC) improved to 8.4% for the three months ended February 28, 2025, compared to 7.5% in the prior year[48]