Q3 2024 Softchoice Corp Earnings Call Transcript
Key Points
- Softchoice Corp (TSX:SFTC) reported industry-leading double-digit organic growth in Q3 2024, driven by strong performance in software and cloud services.
- The company achieved a 10% increase in gross profit in constant currency, with significant contributions from software, cloud, and services offerings.
- Softchoice Corp (TSX:SFTC) expanded its customer base by more than 4% in Q3, with a 5% increase over the last 12 months, supported by a 43% increase in account executives over the past three years.
- The launch of the S+ Hub, a centralized subscription software management tool, has been well-received, with over 1,000 customers actively using it to optimize their software spend.
- The company has seen significant growth in its Microsoft CSP revenue, which increased by more than 50% in 2023 and is expected to grow by approximately 25% in 2024.
- Adjusted EBITDA growth was modest at 2% in Q3 2024, partially offset by higher variable compensation and growth investments.
- Adjusted EPS on a diluted basis decreased to 18 cents from 27 cents in Q3 2023, impacted by higher taxes and financial expenses.
- The company anticipates Q4 seasonality to be lower than average, around 26% of full-year gross profit, due to earlier large orders and potential currency drag.
- Despite strong growth in software and cloud, hardware sales remain a smaller portion of the business and are expected to stabilize only in late 2025.
- Cash flow from operations has been pressured by a $20 million increase in cash taxes, impacting free cash flow.
Good morning. My name is Ivo and I'll be your conference operator today. At this time. I would like to welcome everyone to the Soft choice Q3,2024 earnings conference call. Should, should you need operator assistance during the call? Please press star zero for the operator. I would now like to turn the conference over to Mr Tim Foran Investor Relations. Please go ahead.
Thank you and good morning, everyone. Welcome to soft choices. Q3,2024 conference call for the period ended, September 30th 2024. Reminder for the purpose of the recording. Today is Friday, November 8th 2024.
The company will make forward-looking statements on 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 undertakes no obligation to update these statements except as required by law. You can read about these risks and uncertainties in our earnings press release today as well as in our filings with canadian
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