The following is a summary of the CDW Corporation (CDW) Q1 2024 Earnings Call Transcript:
Financial Performance:
CDW Corporation reported gross profit of $1.1 billion in Q1 2024, down 2% from the previous year.
Non-GAAP operating income was $404 million, a decrease of 7%, and non-GAAP net income per share was $1.92, down 6%.
The company's net sales totaled $4.9 billion, a 4.5% decrease compared to the same period in the previous year.
Despite a marginal decrease in net sales, CDW's gross margin increased to 21.8%.
Business Progress:
CDW focuses on strategic AI services and optimization efforts which resulted in a 6% increase in their 'netted down' revenues category, demonstrating 35.1% of their gross revenue.
Customers' demands in areas like cloud, security and SaaS solutions are strong.
CDW promises its strong position in the market due to its ability to customize solutions based on customers' needs, infiltrating AI and cloud adoption.
CDW expects customer activity to stabilize and possibly increase over the coming quarters, forecasting low single-digit gross profit growth for 2024 and a gross margin similar to the full year of 2023.
CDW maintains optimism about leveraging AI business owing to their deep vertical expertise.
Clients express growing attention to supply chain issues and evolving interest in AI PCs.
CDW sees a continuous durability of revenue despite the changes in gross margins and gross profit.
More details: CDW Corp IR
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