Q2 2024 Softchoice Corp Earnings Call Transcript
Key Points
- Softchoice Corp (SFTCF) reported a 13% increase in gross profit in constant currency, driven by a 19% increase in software and cloud and an 11% increase in services.
- The company achieved a 19% increase in adjusted EBITDA in constant currency, with margin expanding by approximately 150 basis points.
- Operating cash flow increased by 9% to $58 million in Q2, enabling a reduction in net leverage to two turns from 2.6 turns three months ago.
- Softchoice Corp (SFTCF) was ranked number nine for large employers and number one amongst TSX listed companies on this year's Best Workplaces in Canada list by Great Place to Work.
- The company recorded its best second quarter of net customer growth since before the pandemic, with customer growth exceeding 5% year over year.
- The company noted that the economic news continues to be uncertain, which could impact future growth.
- There was a decline in net income per share on a diluted basis to $0.2 compared with $0.23 in Q2 2023, primarily due to the impact of unrealized FX recorded net finance costs and higher interest expense.
- The gross sales figure can be impacted by changes in how vendors compensate partners, which may reduce the reported gross sales figure.
- The company acknowledged that the sales cycle has become longer and involves more scrutiny over purchases, which could impact the speed of closing deals.
- Softchoice Corp (SFTCF) faces potential challenges in maintaining its growth rate due to the economic environment and the need for continuous investment in growth areas.
Good morning. My name is Julie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Software's Q2 2024 earnings conference call, all lines have been placed on mute to prevent any background noise. So the speakers' remarks there will be a question and answer session. If you'd like to ask a question during this time, separate press star then the number one on your telephone. If you'd like to which are your question, please press star followed by queue. I would now like to turn the conference over to Mr. Tim Foran, Investor Relations. Go ahead.
Thank you, Julie, and good morning, everyone. Welcome to soft choices Q2 2024 conference call. For the period ended June 30th, 2020. For a reminder that for the purpose of the recording Today is Friday, August ninth, 2024 company will make forward-looking statements in our call today that are based on assumptions and therefore, subject to risks and uncertainties that could cause the actual results to differ materially from those projected Company
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