Q3 2024 CDW Corp Earnings Call Transcript
Key Points
- CDW Corp (CDW) reported strong growth in cloud solutions, with gross profit from cloud increasing by double digits.
- The company experienced high single-digit growth in client device sales, driven by customer preference for higher-end devices.
- Healthcare was a bright spot, delivering top-line growth of 3% and strong double-digit growth in services and cloud spend.
- CDW Corp (CDW) maintained its gross margin at 21.8%, consistent with full-year 2023 levels, despite challenging market conditions.
- The company is focusing on expanding its capabilities in high-growth areas like cloud and software services to increase recurring revenue streams.
- CDW Corp (CDW) faced a 3.5% decline in net sales on an average daily sales basis, reflecting challenging market conditions.
- The company experienced significant double-digit declines in NetCom, storage, and server sales, impacting overall performance.
- Government sales declined by 12%, with both state and local and federal government performance below seasonal expectations.
- CDW Corp (CDW) noted increased competition and pricing intensity across all end markets, affecting sales and profitability.
- The company anticipates a low single-digit gross profit decline for the full year 2024, with non-GAAP earnings per share expected to be down mid-single digits year-over-year.
(Operator Instructions)
Good morning all and thank you for joining us for the CDW Q3 2024 earnings call.
My name is Carly, and I'll be co-ordinating your call today.
(Operator Instructions)
I'd now like to hand over to your host, Steven O'Brien, Vice President of Investor Relations to begin.
Steven floor is yours.
Thank you, currently.
Good morning, everyone.
Joining me today to review our third quarter 2024 results are Chris Corley, our Chair and Chief Executive Officer, and Al Miralles, our Chief Financial Officer. Our earnings release was distributed this morning and is available on our website, investor.cdw.com, along with supply rental slides that you can use all along during the call, I'd like to remind you that certain comments made in this 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
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