Insight Enterprises(NSIT) - 2024 Q4 - Annual Results

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]