Q4 2024 TD Synnex Corp Earnings Call Transcript
Key Points
- TD Synnex Corp (SNX) reported a 10% year-over-year revenue growth and a 7% increase in gross billings for Q4.
- The company generated $513 million in free cash flow in Q4, meeting its target of $1 billion for the full fiscal year 2024.
- Strong performance was noted in the cloud, cybersecurity, and data and analytics portfolios, all of which grew by double digits across geographic segments.
- Hyve, the hyperscale infrastructure business, showed double-digit revenue growth, reflecting improved end-to-end capabilities.
- The company returned 72% of its free cash flow to shareholders through buybacks and dividends during fiscal year 2024.
- Despite strong growth, TD Synnex Corp (SNX) experienced declining margins, with a 25 basis point decline in gross profit year over year.
- Hyve's tough year-over-year comparison impacted growth and operating margins, with elevated margins from cost recoveries not repeating this year.
- Interest expenses were higher than expected due to increased average borrowings throughout the quarter.
- The macroeconomic and political instability in Europe is creating uncertainty in the market, potentially impacting future growth.
- The company anticipates a continued margin headwind in Q1 fiscal 2025 due to the previous year's elevated margins in Hyve.
Good morning. My name is Julien, and I will be your conference operator today. I would like to welcome everyone to the TD SYNNEX fourth quarter and full year fiscal 2024 earnings call. Today's call is being recorded. (Operator Instructions)
At this time, for opening remarks, I would like to pass the call over to Jack Huddleston, Head of Investor Relations at TD SYNNEX. Jack, you may begin.
Thank you. Good morning, everyone, and thank you for joining us for today's call. With me today are Patrick Zammit, CEO; and Marshall Witt, CFO.
Before we continue, let me remind you that today's discussion contains forward-looking statements within the meaning of the federal securities laws, including predictions, estimates, projections or other statements about future events, including statements about our strategy, demand, plans and positioning growth, cash flow, capital allocation and stockholder return, as well as our expectations for future fiscal periods.
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