TD SYNNEX (US:SNX)2025-06-24 12:03Financial Performance - Revenue for Q2 FY25 was $14.9 billion, a 7.2% increase year over year, exceeding the high end of the outlook[5] - Non-GAAP gross billings reached $21.6 billion, up 12.1% year over year, also above the high end of the outlook[5] - Diluted EPS was $2.21, a 33.1% increase from $1.66 in Q2 FY24, while non-GAAP diluted EPS was $2.99, up 9.5% from $2.73[5] - Operating income increased to $328 million, a 24.3% rise from $263.9 million in Q2 FY24, with a non-GAAP operating income of $414 million, up 6.7%[5] - Cash provided by operations was $573 million, compared to cash used in operations of $115 million in the prior year, with free cash flow of $543 million[5] - Net income for the three months ended May 31, 2025, was $184,921, a 28.8% increase compared to $143,605 in the prior year[28] - Basic earnings per share increased to $2.22 from $1.67, reflecting a 32.9% year-over-year growth[28] - Operating income for the three months ended May 31, 2025, was $328,139, representing a 24.4% increase from $263,948 in the same period of 2024[40] - Non-GAAP operating income for the six months ended May 31, 2025, was $54,020, down from $58,500 in the same period of 2024, reflecting a decrease of 7.5%[42] - Adjusted EBITDA for the six months ended May 31, 2025, was $871,440, slightly up from $868,394 in the same period of 2024[42] Cash Flow and Dividends - The company returned $186 million to stockholders through share repurchases and dividends, compared to $288 million in the previous year[5] - A quarterly cash dividend of $0.44 per common share was announced, representing a 10% increase year over year[10] - The company reported a net cash provided by operating activities of $573.2 million for the three months ended May 31, 2025, compared to a net cash used of $114.7 million in the same period last year[30] - Free cash flow for the three months ended May 31, 2025, was $542,939, a significant recovery from a negative $152,530 in the same period of 2024[46] Regional Performance - The Americas region reported revenue of $9.0 billion, a 5.3% increase, while Europe saw a 10.5% increase to $4.9 billion[8] - Operating income for the Americas segment rose to $252.6 million, a 20.7% increase compared to $209.3 million in Q2 FY24[32] - Revenue in constant currency for the Americas segment was $9.05 billion, reflecting a 5.7% increase from the previous year[34] - Operating income for the Europe segment surged by 46.4% to $50.3 million compared to $34.4 million in Q2 FY24[32] Financial Position - Total current assets as of May 31, 2025, were $21,492,779, slightly up from $21,324,696 as of November 30, 2024[26] - Total liabilities decreased marginally to $22,166,815 from $22,239,045, indicating improved financial stability[26] - The company’s cash and cash equivalents decreased to $767,099 from $1,059,378, highlighting a reduction in liquidity[26] - Total cash and cash equivalents at the end of the period were $767.1 million, down from $1.17 billion at the end of the same period last year[30] Guidance and Outlook - For Q3 FY25, the company expects revenue between $14.7 billion and $15.5 billion, with non-GAAP gross billings projected between $21.0 billion and $22.0 billion[9] - The forecast for non-GAAP net income for the three months ending August 31, 2025, is between $227,000 and $268,000[46] - Non-GAAP gross billings for the three months ending August 31, 2025, are projected to be between $21.0 billion and $22.0 billion[46] - Forward-looking statements indicate that the company expects to navigate various risks and uncertainties, including economic conditions and competitive pressures, in the upcoming quarters[21] Operational Metrics - Management emphasizes the use of non-GAAP financial measures to provide investors with a clearer understanding of operational results and trends[20] - The company's ROIC for the twelve months ended May 31, 2025, improved to 8.8%, up from 7.7% in the previous year[48] - The cash conversion cycle remained stable at 23 days for both the three months ended May 31, 2025, and 2024[50] Cost and Expenses - Adjusted selling, general and administrative expenses as a percentage of revenue was 4.80% for the three months ended May 31, 2025, slightly down from 4.82% in the same period of 2024[38] - Selling, general and administrative expenses as a percentage of gross profit was 68.6% for the three months ended May 31, 2025, compared to 69.0% in the same period of 2024[38] - The company incurred costs related to sales of third-party supplier service contracts totaling $6,701,215 for the three months ended May 31, 2025, compared to $5,356,701 in the same period of 2024[38] Currency Impact - The company experienced a negative impact of $114.6 million from changes in foreign currencies on consolidated revenue for the three months ended May 31, 2025[34] - The impact of changes in foreign currencies on non-GAAP gross billings was a decrease of $153,712 for the three months ended May 31, 2025[36]