CDW (CDW) - 2023 Q2 - Quarterly Report

Financial Performance - Net sales for Q2 2023 were $5.626 billion, a decrease from$ 6.146 billion in Q2 2022[160][167] - Gross profit margin improved to 21.0% in Q2 2023, up from 19.0% in Q2 2022[160] - Operating income was $435.3 million, representing 7.3% of net sales in Q2 2023[160] - Net income was$ 279.3 million, representing 4.7% of net sales in Q2 2023[160] - Total net sales for the six months ended June 30, 2022, were $12,094.9 million, with hardware contributing$ 9,404.0 million (77.9%), software $1,719.4 million (14.2%), and services$ 907.1 million (7.5%)[174][175] Segment Performance - Corporate segment sales declined to $2.245 billion in Q2 2023 from$ 2.661 billion in Q2 2022[167][169] - Public segment sales increased to $2.295 billion in Q2 2023 from$ 2.243 billion in Q2 2022[167][169] - Small Business segment sales decreased to $396.2 million in Q2 2023 from$ 500.0 million in Q2 2022[167][169] - Corporate sales in the United States amounted to $5,272.2 million, while the Rest of World corporate sales were$ 16.1 million[174] - Government channel sales were $1,153.4 million, Education channel sales were$ 1,944.1 million, and Healthcare channel sales were $1,178.5 million in 2022[174] Product Sales - Hardware sales accounted for$ 4.280 billion of total net sales in Q2 2023[167] - Notebooks/Mobile Devices accounted for 28.7% of total net sales in 2022, generating $3,477.4 million, a decrease from 2023 where it accounted for 22.2% with$ 2,385.5 million[175] - Netcomm Products saw a significant increase in net sales from $1,191.6 million (9.9%) in 2022 to$ 1,660.9 million (15.5%) in 2023[175] - Data Storage and Servers contributed $1,247.3 million (10.3%) to total net sales in 2022, slightly decreasing to$ 1,078.0 million (10.0%) in 2023[175] - Software sales decreased from $1,719.4 million (14.2%) in 2022 to$ 1,808.8 million (16.9%) in 2023, showing a shift in product mix[175] - Services sales remained relatively stable, with $907.1 million (7.5%) in 2022 and$ 895.3 million (8.3%) in 2023[175] - Other sales, including delivery charges, were $64.4 million (0.4%) in 2022 and decreased to$ 56.6 million (0.5%) in 2023[175] Geographic Sales - US sales represented 87.2% of total net sales at $4.904 billion in Q2 2023[167] Revenue Recognition - Revenue recognition at a point in time where CDW is principal accounted for$ 10,765.7 million, while revenue transferred over time where CDW is principal was $660.0 million[174] Services Revenue - Services revenue grew to$ 453.2 million in Q2 2023, up from $469.7 million in Q2 2022[167][169]