Q1 2024 CDW Corp Earnings Call Transcript
Key Points
- CDW Corp (CDW) maintained a strong engagement level with customers, helping them implement mission-critical projects and develop multiyear plans.
- Despite a challenging market, CDW Corp (CDW) achieved a record first quarter gross margin and excellent cash flow, highlighting the durability of its profitability and strategic integrity.
- CDW Corp (CDW) is actively investing in capabilities to deliver full stack solutions and services, ensuring they meet customer needs for cost optimization, data protection, and workforce productivity.
- The company's unique customer end markets often act in a countercyclical way, providing stability amidst varying macroeconomic conditions.
- CDW Corp (CDW) is well-positioned to support customers in AI adoption, offering consulting services and leveraging deep vertical expertise to tailor solutions.
- CDW Corp (CDW)'s first quarter results fell below expectations with a 2% decrease in gross profit and a 7% decline in non-GAAP operating income.
- Heightened macro uncertainty and complex tech landscape changes have led to cautious customer behavior, impacting capital investment decisions and elongating sales cycles.
- The federal budget stalemate resulted in a pause in CDW Corp (CDW)'s federal channel, affecting sales and gross profit negatively.
- Several hardware categories, including servers and NetComm, are undergoing transitions and absorbing capacity, which has led to declines.
- Education segment sales declined by 10%, with higher education institutions focusing on cost optimization and hardware categories experiencing declines.
Welcome to the CDW First Quarter 2024 Earnings Call. My name is Carla and I'll be coordinating your call today.
(Operator Instructions)
I will now hand you over to your host, Steve O'Brien, of Investor Relations to begin. Steve, please go ahead.
' -
Thank you, Carla. Good morning, everyone. Joining me today to review our first quarter 2024 results are Chris Leahy, our Chair and Chief Executive Officer; and Al Miralles, our Chief Financial Officer. Our first quarter earnings release was distributed this morning and is available on our website, investor.cdw.com, along with supplemental slides that you can use to follow along during the call.
I'd like to remind you that certain comments made in the presentation are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Those statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Additional information concerning these risks
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