Insight Enterprises, Inc. Reports Third Quarter Financial Results

Insight Enterprises, Inc. (NASDAQ: NSIT) released its financial results for the quarter ending September 30, 2024. The company reported several highlights for the period:

– Gross profit increased by 6% year-over-year to $432.1 million, with a gross margin expanding by 270 basis points to 20.7%.
– Insight Core services gross profit exhibited a growth of 14% year-over-year, while cloud gross profit surged by 33% during the same period.
– Consolidated net earnings decreased by 3% to $58.2 million year-over-year, with adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) remaining flat at $128.8 million year-over-year.
– Diluted earnings per share decreased by 6% year-over-year to $1.52, and adjusted diluted earnings per share dropped by 8% year-over-year to $2.19.

The company noted that the third quarter of 2024 saw a decrease in net sales by 8% year-over-year to $2.1 billion, while gross profit increased by 6% to $432.1 million. Earnings from operations grew by 1% over the prior year period to reach $92.9 million.

Joyce Mullen, President and CEO of Insight Enterprises, expressed optimism about the company’s long-term health. Yet, she acknowledged that the third quarter did not meet expectations, citing a cautious information technology spending environment anticipated in the near term. Mullen highlighted the execution of the solutions integrator strategy, emphasizing robust cloud growth and solid Insight Core Services results driven by acquisitions.

In terms of regional performance, North America saw a decrease in net sales by 8% to $1.7 billion, with product net sales dropping by 11% and services net sales increasing by 9% year-over-year. Net sales in EMEA decreased by 12% to $312.6 million, while APAC experienced a 15% net sales growth to $58.7 million year-over-year.

Insight Enterprises anticipates adjusted diluted earnings per share to range between $9.40 and $9.70 for the full year 2024. The company aims to achieve mid single-digit gross profit growth, with gross margin expected to be in the 19% to 20% range.

The financial report indicated an effective tax rate of 22.5% for the third quarter, capital expenditures

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Insight Enterprises’s 8K filing here.

Insight Enterprises Company Profile

Insight Enterprises, Inc, together with its subsidiaries, provides information technology, hardware, software, and services in the United States and internationally. The company offers modern platforms/infrastructure that manages and supports cloud and data platforms, modern networks, and edge technologies; cybersecurity solutions automates and connects modern platform securely; data and artificial intelligence modernizes data platforms and architectures, and build data analytics and AI solutions; modern workplace and apps; and intelligent edge solutions that gathers and utilizes data for real-time decision making.