The following is a summary of the Converge Technology Solutions Corp. (CTSDF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Converge Technology Solutions delivered gross sales of $4 billion and a gross profit of $700 million in 2023, up by 30.6% and 27.6% respectively from 2022.
The Q4 2023 gross sales grew by 12% year-over-year to $1.08 billion marking a second consecutive billion-dollar quarter.
The company recorded an adjusted EBITDA of $170.3 million in 2023, marking a 19.2% increase from the previous year.
Cash from operating activities reached $229 million in 2023, contributing to a healthier balance sheet with a net debt-to-EBITDA ratio of 1.23.
Fiscal 2024 projections include an expected gross profit between $735 million to $760 million and an adjusted EBITDA of between $185 million to $198 million.
Business Progress:
With 35 acquisitions made, Converge achieved its North American business goals and is now shifting focus to organic growth.
The company reported increased demand for high-performance clusters and AI workloads from larger customers, driving organic growth.
Converge's future acquisition strategy post ERP implementation will focus on analytics and cybersecurity.
The company is planning for expansion into the U.S. with its Portage brand, providing identity and access management solutions especially to the government and municipalities.
Having won 500 new logos in 2023, Converge plans to continue its growth in 2024 with increased focus on AI, consultation-oriented strategies, and expanding its sales force across North America.
Converge has also seen significant growth with its professional services and security services portfolio, along with the creation of an AI and HPC task force to further cater to client needs.
More details: CONVERGE TECHNOLOGY SOLUTIONS CORP IR
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