In This Article:
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Gross Billings: Increased 34% to $474.6 million compared to $355.3 million in the prior year quarter.
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Distribution Segment Gross Billings: Increased 36% to $453.6 million.
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Solution Segment Gross Billings: Increased 2% to $21 million.
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Net Sales: Increased 49% to $138 million compared to $92.4 million.
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Gross Profit: Increased 37% to $23.4 million compared to $17 million.
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Gross Profit Margin: Increased to 4.9% from 4.8% in the prior year quarter.
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SG&A Expenses: $16.8 million compared to $12.5 million, with DSS accounting for $1.1 million of the increase.
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Net Income: Increased 35% to $3.7 million or $0.81 per diluted share compared to $2.7 million or $0.60 per diluted share.
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Income Tax Expense: Decreased 37% to $600,000 with an effective tax rate of 13.3%.
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Adjusted Net Income: Increased 39% to $3.9 million or $0.86 per diluted share.
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Adjusted EBITDA: Increased 38% to $7.6 million compared to $5.5 million.
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Adjusted EBITDA Margin: Increased to 32.7% from 32.5%.
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Cash and Cash Equivalents: $32.5 million as of March 31, 2025.
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Outstanding Debt: $600,000 with no borrowings under the $50 million revolving credit facility.
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Quarterly Dividend: $0.17 per share declared, payable on May 16, 2025.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Climb Global Solutions Inc (NASDAQ:CLMB) reported a 34% increase in gross billings for Q1 2025, reaching $474.6 million compared to the previous year.
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Net sales increased by 49% to $138 million, driven by organic growth and contributions from the acquisition of DSS.
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The company signed a significant contract with Darktrace, a cybersecurity firm, which has already generated a $30 million pipeline in potential gross bills.
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Climb Global Solutions Inc (NASDAQ:CLMB) is making progress with its new ERP system, improving efficiency and transactional speed across global operations.
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The company declared a quarterly dividend of $0.17 per share, reflecting confidence in its financial health and commitment to returning value to shareholders.
Negative Points
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SG&A expenses increased to $16.8 million from $12.5 million, with DSS accounting for $1.1 million of the increase.
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The company faces challenges in filling the gap left by the loss of Citrix as a vendor, although mitigations are underway.
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Despite growth, the company acknowledges that some vendor relationships, like with Darktrace, take a long time to develop and execute.
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The economic environment remains uncertain, and while tariffs have not significantly impacted the company yet, they remain a potential risk.
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The integration of acquired companies into the ERP system has been a complex process, though it is now largely complete.