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• Gross Profit: Increased by 1%, driven by a 12% increase in Insight core services.

• Gross Margin: Expanded by 170 basis points to 21.2%.

• Adjusted Diluted Earnings Per Share: $2.66 for Q4, with full-year earnings near the high end of the range.

• Cash Flow from Operations: $215 million for Q4, with over $600 million for the full year.

• Net Revenue: $2.1 billion for Q4, a decrease of 7% year-over-year.

• Hardware Revenue: Declined by 2% in Q4.

• On-Prem Software Revenue: Decreased by 23% in Q4.

• Cloud Gross Profit: $125 million in Q4, an increase of 3%.

• Adjusted EBITDA: $141 million for Q4, a decrease of 11%.

• Adjusted EBITDA Margin: Contracted by 30 basis points to 6.8%.

• Full-Year Net Revenue: $8.7 billion, a decrease of 5% year-over-year.

• Full-Year Gross Margin: Expanded by 210 basis points to 20.3%.

• Full-Year Adjusted Diluted Earnings Per Share: $9.68, flat compared to the previous year.

• Share Repurchases: $200 million spent in 2024, with $300 million remaining in the program.

• Total Debt: $864 million at the end of Q4, down from $941 million a year ago.

• Warning! GuruFocus has detected 5 Warning Sign with NSIT.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Insight Enterprises Inc (NASDAQ:NSIT) reported a 1% increase in gross profit, driven by a 12% rise in core services and modest growth in hardware and cloud.

• The company achieved a gross margin expansion of 170 basis points to 21.2%, with adjusted diluted earnings per share reaching $2.66.

• Cash flow from operations was strong at $215 million, with expectations of $25 million in annualized cost reductions from recent actions.

• Insight Enterprises Inc (NASDAQ:NSIT) saw double-digit growth in cloud gross profit, reflecting increased demand for SaaS and infrastructure as a service.

• The company received numerous awards and recognitions from partners, including Microsoft, Google, Cisco, and others, highlighting its strong industry position.

Negative Points

• Net revenue decreased by 7% to $2.1 billion, primarily due to a 10% decline in product sales from large enterprise and corporate clients in North America.

• Hardware revenue declined by 2%, and on-prem software was down 23%, impacted by partner consolidation.

• Adjusted EBITDA decreased by 11%, with a margin contraction of 30 basis points to 6.8%, due to higher SG&A expenses and increased interest expenses.

• The company faced challenges from partner program changes, requiring a pivot in its cloud business strategy.

• Insight Enterprises Inc (NASDAQ:NSIT) anticipates subdued demand from large enterprise and corporate clients, particularly in the first half of 2025.