Q4 2024 ePlus inc Earnings Call Transcript
Key Points
- ePlus Inc (PLUS) reported a 12.7% increase in net sales for the fourth quarter, driven by strong demand for networking equipment and cloud products.
- The company's services business saw a 14.8% increase in revenue for the quarter, with managed services growing by 22%.
- ePlus Inc (PLUS) ended the year with over $250 million in cash, providing resources for strategic acquisitions and investments.
- The company added over 300 new customers during the year, indicating successful market penetration and customer acquisition.
- ePlus Inc (PLUS) announced a new share buyback plan of up to 1.25 million shares, reflecting confidence in its financial stability and commitment to shareholder returns.
- Gross margin and operating income were below expectations for the quarter, primarily due to lower product margins and higher operating expenses.
- Consolidated net income declined in the quarter, impacted by lower product margins and increased headcount expenses.
- The financing segment saw a decline in revenues for the year, despite a strong fourth quarter performance.
- Operating expenses grew by 12.7% due to increases in salaries, benefits, and acquisition-related amortization expenses.
- The effective tax rate increased to 29.5% in the fourth quarter, compared to 22.4% in the same period last year, impacting net earnings.
Good day, ladies and gentlemen, welcome to the ePlus earnings results conference call. As a reminder, this conference call is being recorded. I would like to introduce your host for today's conference Mr. Kley Parkhurst, General Counsel. Sir, you may begin.
Thank you for joining us today. On the call is Mark Marron, CEO and President; Darren Raiguel, COO and President of ePlus Technology; Elaine Marion, CFO; and Erica Stoecker, General Counsel.
I want to take a moment to remind you that the statements we make this afternoon that are not historical facts may be deemed to be forward-looking statements and are based on management's current plans, estimates, and projections. Actual and anticipated future results may vary materially due to certain risks and uncertainties detailed in the earnings release we issued this afternoon and our periodic filings with the Securities and Exchange Commission, including our most recent annual report on 10-K, quarterly reports on Form 10-Q, and
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