The following is a summary of the DNOW Inc. (DNOW) Q1 2024 Earnings Call Transcript:
Financial Performance:
DNOW Inc. reported Q1 2024 total revenue of $563 million, a 1% increase from Q4 2023.
Strong free cash flow generated in Q1 2024 at $80 million, with a revised full-year target of $200 million for 2024.
The company ended Q1 2024 debt-free with cash of $188 million on hand.
There is a continued share repurchase program, with $58 million repurchased as of March 31 under its $80 million authorization.
The 2024 full-year revenue target is set for an increase in the mid-to-high single-digit range compared to 2023, with EBITDA percent of revenue similar to the previous year.
Business Progress:
DNOW's strategy revolves around diversified growth, tapping into the energy evolution and adjacent industrial markets.
Significant progress is being made in their digital initiatives, with digital revenue as a percent of total SIP revenue increasing to 49% in Q1 2024.
The acquisition of Whitco Supply in Q1 2024 has contributed significantly to the revenue increase, leading to a positive impact on future financial performance.
The company showed an international presence with Q1 2024 revenue of $62 million, noting steady activity in Europe, the UK, and Australia.
Rebranding, including a new logo, signifies the company's transformation and growth vision.
Predicted sequential revenue growth in the U.S. and internationally for Q2, while the Canada revenue may decline due to seasonal factors with projected revenue increase from 10% to 15% from Q1 2024.
More details: DNOW Inc IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.