Q1 2025 ePlus inc Earnings Call Transcript
Key Points
- ePlus Inc (PLUS) reported a 15.8% increase in service revenues, with managed services up 28% year-over-year.
- The company experienced strong growth in managed services bookings, up approximately 70% year-over-year, indicating a stable recurring revenue stream.
- Security remains a strong area for ePlus Inc (PLUS), contributing over 20% of gross billings and showing a 9% increase quarter-over-quarter.
- The finance segment performed well, with a 6.4% increase in revenue and a 24.3% increase in adjusted EBITDA.
- ePlus Inc (PLUS) ended the quarter with a strong cash position of $350 million, up from $253 million, providing financial flexibility for future growth initiatives.
- Net sales declined by 5.2% for the first quarter of fiscal year 2025 compared to the previous year, primarily due to lower product sales in the technology business.
- Product revenue decreased by 8.2% year-over-year, mainly due to lower sales of cloud and networking products.
- Higher SG&A expenses were reported, primarily due to increased headcount from organic hires and the PEAK acquisition.
- Consolidated operating income and earnings before taxes decreased compared to the prior year, due to lower gross profit in the technology business and increased operating expenses.
- Consolidated net earnings and non-GAAP diluted earnings per share decreased compared to the previous year, reflecting the challenges in the technology business.
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. 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 Form 10-K, quarterly reports on Form 10
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