Q3 2024 TD Synnex Corp Earnings Call Transcript
Key Points
- TD Synnex Corp (SNX) reported a 9% year-over-year increase in gross billings, reaching $20.3 billion, which exceeded the high end of their guidance range.
- The company saw significant growth across both endpoint and advanced solutions, indicating a recovery in the IT market.
- Free cash flow for the quarter was approximately $339 million, demonstrating strong working capital management.
- TD Synnex Corp (SNX) returned $91 million to stockholders in Q3 through share repurchases and dividend payments.
- The company has a strong balance sheet with $854 million in cash and cash equivalents and a net leverage ratio of 1.8 times, within their target range.
- Non-GAAP gross profit margin declined by 1% year over year, primarily due to tough comparisons in Hyve and business mix.
- Non-GAAP operating income was down 1% year over year, reflecting margin pressures.
- The company experienced a 27.6% reduction from gross billings to net revenue, driven by the mix of software and as-a-service offerings.
- North American market growth was flat, which impacted overall performance as this region typically enjoys better operating margins.
- The pace of recovery in the PC market was slower than expected, with growth in low single digits rather than the anticipated mid- to high single digits.
Good morning. My name is Audrey, and I will be your conference operator today. I would like to welcome everyone to the TD SYNNEX third-quarter fiscal 2024 earnings call.
Today's call is being recorded, and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.
At this time, for opening remarks, I would like to pass the call over to David Jordan, CFO of the Americas and Head of Investor Relations at TD SYNNEX. David, you may begin.
Thank you. Good morning, everyone, and thank you for joining us for today's call. With me today is 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
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