Financial Data and Key Metrics Changes - In Q4 2024, the company achieved a year-over-year top-line growth of nearly 3.5% on an FX-neutral basis, with net sales of 13.34billion,up2.548.0 billion, roughly flat versus 2023, and up 0.3% on an FX-neutral basis [25] - Non-GAAP net income for Q4 was 113.1million,comparedto220.9 million in the same period last year, with non-GAAP diluted EPS at 0.92[41][42]BusinessLineDataandKeyMetricsChanges−Clientandendpointsolutionssawgrowthbothyear−over−yearandquarter−over−quarter,whileAdvancedSolutionswasimpactedbyslownessinnetworking[7][9]−AdvancedSolutionsexperiencedsolidmomentuminserverandstorage,butnetworkingremainedsoft[32]−Thecompanyrecordedrestructuringcostsequaling8basispointsofnetsalesin2024,reflectingeffortstoenhanceorganizationalefficiency[28]MarketDataandKeyMetricsChanges−NorthAmericanetsaleswere4.767 billion, up 3.0% in US dollars, driven by strength across all lines of business [35] - EMEA net sales were down 1.5% year-over-year, primarily due to weakness in advanced solutions [36] - Asia Pacific net sales were 3.60billion,up7.80.074 per share in Q1 2025 [45] - The board approved a one-year share repurchase plan for up to 75millionofcommonstock[45]−Thecompanyhasrepaid483 million of its term loan balance in 2024, with a total repayment of $1.56 billion since early 2022 [46] Q&A Session Summary Question: What is driving the momentum in large enterprise sales? - Management indicated that growth in large enterprise sales was observed across all regions, not just North America, with a notable refresh cycle in notebooks and desktops [55][56] Question: What gives confidence for top-line growth in 2025? - Management cited strong momentum in endpoint solutions and signs of recovery in networking, along with positive indicators from large vendors [64][65] Question: Are there any one-time costs affecting Q1 profitability guidance? - Management clarified that the guidance reflects margin factors, particularly competitive pressures in India, rather than notable one-time costs [67][69] Question: How is the company addressing the competitive pricing environment in India? - Management emphasized a focus on quality of revenue and selective participation in deals that meet profitability expectations [101][106] Question: What is the outlook for the SMB market? - Management noted that the SMB market was down but expected a recovery as advanced solutions and networking improve [114][115] Question: What is the status of the public sector business? - Management indicated that public sector sales were down globally but expected a return to growth as conditions stabilize [123][124] Question: How is working capital expected to be managed in Q1? - Management highlighted a seasonal pattern in working capital, with a focus on collections from Q4 sales and maintaining free cash flow [125][128]
