Financial Performance - Total net sales for the three months ended March 31, 2025, were $2,103,556, a decrease of 11.6% compared to $2,379,485 in the same period of 2024[20] - Gross profit for the three months ended March 31, 2025, was $406,477, down 7.7% from $440,928 in the prior year[20] - Net earnings for the three months ended March 31, 2025, were $7,514, a significant decline of 88.8% compared to $67,027 in the same period of 2024[20] - Basic net earnings per share decreased to $0.24 for the three months ended March 31, 2025, from $2.06 in the same period of 2024[20] - Adjusted earnings from operations for Q1 2025 were $102,352,000, down from $121,750,000 in Q1 2024, reflecting a decline of 15.9%[86] - Earnings from operations decreased 40% year-over-year to $60.1 million, primarily due to a decrease in gross profit and increased selling and administrative expenses[98] - Net earnings for the first quarter of 2025 were $7.5 million, a significant decrease from $67.0 million in the first quarter of 2024, resulting in diluted earnings per share of $0.22, down 87% year-over-year[98] Assets and Liabilities - Total current assets increased to $5,390,136 as of March 31, 2025, compared to $4,844,622 as of December 31, 2024, reflecting a growth of 11.3%[18] - Total liabilities increased to $6,331,629 as of March 31, 2025, from $5,677,967 as of December 31, 2024, representing a rise of 11.5%[18] - Long-term debt increased to $961,172,000 as of March 31, 2025, from $531,233,000 at the end of 2024, reflecting a significant rise of approximately 81%[45] - Total current liabilities rose to $4,385,800 as of March 31, 2025, up from $4,122,202 as of December 31, 2024, indicating an increase of 6.4%[18] Cash Flow and Financing - Cash provided by operating activities in Q1 2025 was $78,050 thousand, down from $247,179 thousand in Q1 2024, reflecting a significant decline[27] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $324,091 thousand, down from $381,141 thousand at the end of Q1 2024[27] - The company reported a net cash used in financing activities of $15,473 thousand in Q1 2025, compared to $125,267 thousand in Q1 2024, showing improved cash management[27] - The company had net borrowings under its ABL facility of $423.8 million in Q1 2025, compared to net repayments of $42.2 million in Q1 2024[144] Revenue Breakdown - Revenue for the three months ended March 31, 2025, totaled $2,103,556,000, with North America contributing $1,700,643,000[81] - Hardware sales accounted for $1,141,516,000 of total revenue, while software and services contributed $566,284,000 and $395,756,000, respectively[81] - Net sales in North America decreased 11% to $1.7 billion, driven by a 33% decrease in software sales and a 7% decrease in services sales, partially offset by a 2% increase in hardware sales[110] - EMEA net sales decreased 17% to $342.8 million, with software sales down 32% and hardware sales down 5%, while services sales increased by 3%[112] - APAC net sales decreased 3% to $60.1 million, with hardware sales down 13% and services sales down 5%, but software sales increased by 2%[113] Operational Expenses - Operating expenses for the three months ended March 31, 2025, were $339,173, slightly up from $337,434 in the same period of 2024[20] - Significant selling and administrative expenses for Q1 2025 were $295,278,000, compared to $311,135,000 in Q1 2024, reflecting a reduction of 5.1%[86] - Total costs of goods sold for Q1 2025 were $1,697,079,000, compared to $1,938,557,000 in Q1 2024, marking a decrease of 12.4%[86] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 60.5%, significantly higher than the federal statutory rate of 21.0%[62] - As of March 31, 2025, the company had approximately $12,029,000 of unrecognized tax benefits, with $1,614,000 related to accrued interest[63] Strategic Initiatives - The company anticipates that gross margin expansion could continue into future periods as it focuses on selling solutions and increasing services net sales[12] - The company expects to incur additional acquisition expenses as part of its acquisition strategy and plans to use excess cash for strategic acquisitions[12] - The acquisition of Infocenter was completed on May 1, 2024, for a total purchase price of $265,000,000, enhancing the company's service offerings[89] Market Conditions - Inflation has contributed to sustained high interest rates, which are expected to remain above historical levels throughout most of 2025[102] - The company is actively monitoring the global macroeconomic environment, including supply chain impacts and demand fluctuations due to tariffs[102]

Shares of Insight Enterprises have returned -6.4% over the past month versus the Zacks S&P 500 composite's -0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's und ...

Insight Enterprises (NSIT) came out with quarterly earnings of $2.06 per share, beating the Zacks Consensus Estimate of $2.03 per share. This compares to earnings of $2.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.48%. A quarter ago, it was expected that this information technology provider would post earnings of $2.53 per share when it actually produced earnings of $2.66, delivering a surprise of 5.14%.Over the last f ...

Insight Enterprises (NSIT) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Speaker0 I will now hand over to your host, Ryan Miasato, to begin. Ryan, please go ahead. Speaker1 Welcome everyone and thank you for joining the Insight Enterprises earnings conference call. Today, we will be discussing the company's operating results for the quarter ended 03/31/2025. I'm Ryan Miasato, Investor Relations Director of Insight and joining me is Joyce Mullen, President and Chief Executive Officer and James Murgado, Chie ...

Insight Enterprises, Inc. Disclosures ◦ Safe harbor statement This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 related to Insight's plans and expectations. Statements that are not historical facts, including those related to our expectations about future financial results and the assumptions related thereto, our expectations regarding future expected trends in the IT market and our opportunities for growth, are forward-looking ...

EXHIBIT 99.1 FOR IMMEDIATE RELEASE NASDAQ: NSIT | | | - MORE - | | | | --- | --- | --- | --- | --- | | Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | • Gross profit decreased 8% year to year to $406.5 million while gross margin expanded 80 basis points to 19.3% • Cloud gross profit decreased 3% year to year • Insight Core services gross profit decreased 4% year to year • Consolidated net earnings decreased 89% year to year to $7.5 million • Adju ...

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Insight Enterprises due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Insight Enterprises is expected to report quarterly earnings of $2.03 per share, reflecting a decline of 14.4% year-over-year, and revenues are projected to be $2.16 billion, down 9.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.86% higher in the last 30 days, indicating a slight reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Insight Enterprises is lower than the consensus estimate, resulting in an Earnings ESP of -3.20%, indicating bearish sentiment among analysts [10][11]. Historical Performance - In the last reported quarter, Insight Enterprises exceeded the expected earnings of $2.53 per share by delivering $2.66, resulting in a surprise of +5.14%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Overall Assessment - Insight Enterprises does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Core Insights - Whatfix has entered the federal sector by partnering with the US Army to support the Integrated Personnel and Pay System - Army (IPPS-A), which will serve over 1.1 million users including active, reserve, and National Guard members [1][4][5] - The collaboration aims to enhance operational efficiency and support mission-critical functions for the US Army, aligning with federal agencies' priorities for modernization and digital transformation [2][5] - Whatfix's Digital Adoption Platform (DAP) will provide real-time, context-sensitive guidance to users, addressing challenges in user proficiency and adoption of the IPPS-A system [4][7] Company Expansion - Whatfix is committed to expanding its presence in the public sector, reinforcing its role as a trusted partner in transforming large-scale government systems with digital adoption solutions [3][9] - The company recently raised $125 million in a Series E funding round, which will support its expansion into complementary DAP offerings and accelerate its mission in the public sector [9] Technology and Solutions - Whatfix's platform automates workflows and enhances HR process governance, ensuring seamless adoption of the IPPS-A system [7] - The collaboration with Insight Public Sector combines technology, infrastructure, and expertise to provide an integrated training solution for the Army's HR system [6] Industry Recognition - Whatfix is recognized as a leader in the Digital Adoption Platform space, receiving accolades from industry reports by Gartner, Forrester, IDC, and Everest Group [8] - The company has been included in the Deloitte Fast 500 list for four consecutive years, highlighting its rapid growth and impact in the industry [9]

Core Insights - Flexera has announced the winners of its annual Partner of the Year Awards for 2024, recognizing companies for their commitment to delivering high-quality solutions and services that enhance business value and return on investment for customers [1][2]. Group 1: Award Winners - The Partner of the Year award was given to SoftwareOne for its exceptional performance in driving new business growth and maintaining high customer renewal rates, showcasing its strategic approach and commitment to delivering value with Flexera solutions [3]. - Chemtrols Infotech Pvt. Ltd was honored as the Customer Success Partner of the Year for achieving the highest customer retention rate through exceptional service and proactive engagement [4]. - The awards also included recognition for partners excelling in technology intelligence and FinOps practices, highlighting their contributions to optimizing IT spending and maximizing cloud efficiency [5]. Group 2: Regional Winners - The regional winners for Flexera's Partner of the Year awards include Capgemini for North America, Noventiq Solutions for EMEA, and Insight Technology for APAC [7]. - NTT DATA was recognized in North America, while Deloitte received honors in EMEA for their outstanding contributions [7]. Group 3: Flexera's Role - Flexera plays a crucial role in helping organizations understand and maximize the value of their technology investments, saving billions in wasted spend through its Technology Intelligence Platform [8]. - The company provides comprehensive visibility and actionable insights across IT ecosystems, enabling teams to optimize spend, mitigate risks, and identify opportunities for positive business outcomes [8].

Financial Performance - The company generated net sales of $8.7 billion for the year ended December 31, 2024, representing approximately 1% of the total addressable market for enterprise IT spend, which is forecasted to be $4.9 trillion by 2027[25]. - For the year ended December 31, 2024, net sales decreased by 5% to $8.7 billion compared to 2023, with product sales down 8% and service sales up 9%[179]. - Gross profit for 2024 was reported at $1.8 billion, reflecting a 6% increase from 2023, with a record gross margin of 20.3%, up approximately 210 basis points[179]. - Earnings from operations decreased to $388.6 million in 2024, a decline of 7% compared to the prior year, representing 4.5% of net sales[179]. - Net earnings for 2024 were $249.7 million, with diluted net earnings per share at $6.55, down from $281.3 million and $7.55 per share in 2023[179]. - Cash flows from operations for 2024 were $632.8 million, with net repayments of $554.1 million under the ABL facility and $500.0 million in Senior Notes issued[183]. - Interest expense increased by 41% to $67.1 million in 2024, primarily due to the issuance of Senior Notes and higher loan balances[213]. - The effective tax rate decreased to 25.0% in 2024 from 25.6% in 2023, mainly due to additional research and transferable energy tax credit benefits[216]. Sales and Market Distribution - North America accounted for 81% of the company's consolidated net sales in 2024, while EMEA and APAC contributed 16% and 3%, respectively[20]. - The company's product sales (hardware and software) represented approximately 81% of consolidated net sales in 2024, compared to 83% in 2023 and 86% in 2022[47]. - Sales of Microsoft and Cisco Systems products accounted for approximately 18% and 11% of consolidated net sales in 2024, respectively[53]. - In North America, net sales decreased by 4% to $7.1 billion, driven by a 10% decline in hardware sales, partially offset by a 3% increase in software sales and a 7% increase in services[192]. - EMEA net sales decreased by 10% to $1.4 billion, with software sales down 20% and hardware sales down 8%, while services sales increased by 23%[194]. - Net sales in APAC increased by 1% to $233,021 thousand in 2024, with services and software sales rising by 8% and 5%, respectively, while hardware sales decreased by 19%[196]. Strategic Initiatives and Acquisitions - The company completed several strategic acquisitions, including Amdaris in 2023 and Infocenter in 2024, to enhance its capabilities in cloud services and digital transformation[28]. - The company acquired Infocenter in May 2024 to enhance digital transformation capabilities, leveraging their expertise in ServiceNow[179]. - The company aims to drive profitable growth by focusing on high performance, operational excellence, and aligning sales capabilities with client needs[33]. Workforce and Culture - As of December 31, 2024, the company employed 14,324 teammates, with 11,019 in North America, 2,809 in EMEA, and 496 in APAC[63]. - The company has a diverse workforce with over 1,600 active members in eleven teammate resource groups[61]. - The company offers robust leadership training centered around creating clarity, inspiring people, demonstrating thought leadership, and delivering results[61]. - The company maintains strong relationships with teammates and has never experienced a labor-related work stoppage[64]. Risks and Challenges - The company faces aggressive pricing competition in the industry, which is expected to continue, potentially leading to reduced market share and operating margins[93]. - Competitors may have greater resources and quicker responses to market changes, which could adversely affect the company's ability to compete effectively[94]. - Economic conditions, including potential recessions and reduced IT spending, could adversely impact the company's business and financial condition[100]. - Government spending policies and budget cuts may lead to reduced purchases from public sector clients, affecting revenue[101]. - International operations expose the company to various risks, including currency fluctuations and changes in foreign regulations, which could impact profitability[112]. - Disruptions in the supply chain due to manufacturing delays or natural disasters could hinder the company's ability to meet client demands[114]. - The company is subject to risks associated with its IT systems; disruptions could affect service delivery and incur additional expenses[118]. Financial Obligations and Debt - As of December 31, 2024, the company had $864.1 million in total long-term debt and $217.6 million in obligations under inventory financing agreements[136]. - $332.9 million of the outstanding debt is related to Convertible Notes maturing in February 2025, classified as a current liability[136]. - The company issued $500.0 million in senior unsecured notes due 2032 and can borrow an additional $1.8 billion under its senior secured credit facility[136]. - The company’s acquisition strategy may increase outstanding debt and interest expenses, impacting financial condition[139]. - The company has $1.8 billion available under its senior secured credit facility, which may be affected by interest rate fluctuations[139]. - Compliance with financial covenants is crucial to avoid events of default, impacting the company’s ability to operate effectively[140]. Technology and Innovation - The company has a strong emphasis on cybersecurity solutions, which enhance resilience and mitigate risks for clients[39]. - The company’s digital workplace solutions aim to create productive, flexible, and secure work environments for clients[43]. - The company has invested in digital marketing capabilities over the past few years and plans to continue these investments to enhance marketing effectiveness[57]. - The company does not maintain a traditional research and development group but recognizes the importance of intellectual property, protecting it through various legal means[69]. - Rapid technological advancements in areas such as cloud, AI, and IoT require the company to invest in new technologies to maintain a competitive advantage[99]. - The development and use of Gen AI technologies may lead to increased liability exposure and competitive risks due to technical challenges[129]. Performance Metrics and Adjustments - The company’s solutions mix includes approximately 43% product and 57% services in gross profit for 2024, compared to 46% and 54% in 2023[47]. - Adjusted earnings from operations increased by 2% to $502,372 thousand in 2024, with North America's adjusted earnings decreasing by 1% to $421,977 thousand[210]. - The company uses adjusted non-GAAP earnings to evaluate financial performance against budgeted amounts and to assist in forecasting future performance[218]. - Non-GAAP financial measures provide greater transparency and facilitate comparisons to prior periods and competitors' results[218]. - The company believes that non-GAAP measures are useful for investors but should not be considered a substitute for GAAP measures[218].