Q2 2024 CDW Corp Earnings Call Transcript
Key Points
- CDW Corp (CDW) delivered strong profitability and cash flow, driven by strategic investments in cloud, security, and services.
- Gross margin increased by 80 basis points year-over-year to 21.8%, indicating improved profitability.
- Client devices saw a second consecutive quarter of growth, with both year-over-year and sequential sales increases.
- State and local government sales increased mid-single digits, driven by security and AI-powered solutions.
- The company maintained a strong solutions pipeline, reflecting robust customer engagement and future growth potential.
- Net sales declined by 3.6% year-over-year, reflecting a challenging demand environment.
- Federal sales decreased by 6%, impacted by delayed fiscal 2024 budget authorization and funding releases.
- UK sales declined by high teens in US dollars due to worsening economic conditions and political volatility.
- Small business net sales declined by 3%, with ongoing postponement of infrastructure investments.
- International operations, including the UK and Canada, saw a combined decline of 13% in sales.
My name is Carly, and I'll be the coordinator for today. (Operator Instructions).
I'll now hand over to Steve O'Brien, Investor Relations to begin.
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Thank you, Carly. Good morning, everyone. Joining me today to review our second quarter 2024 results are Chris Leahy, our Chair and Chief Executive Officer and Al Miralles, our Chief Financial Officer. Our earnings release was distributed this morning and is available on our website, investor.cdw.com, along with supplemental slides that you can use to follow along during the call.
I'd like to remind you that certain comments made in this presentation are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Those statements are subject to a number of risks and uncertainties that could cause actual results to differ materially.
Additional information concerning these risks and uncertainties is contained in the earnings release and Form 8-K we furnished to the SEC today
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