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Mar 31, 2023
CDW Q1 2023 Earnings Report
CDW's Q1 2023 earnings were pressured by IT demand contraction, while record first-quarter profit margins reinforced the durability of the company's strategy.
Key Takeaways
CDW Corporation reported a 14.2% decrease in net sales, totaling $5,103.1 million for the first quarter of 2023, compared to $5,949.1 million in the first quarter of 2022. Despite the revenue decline, the company achieved record first-quarter margins, driven by higher product margins and a favorable mix of netted-down revenue. The company remains confident in its ability to deliver profitability, margins, and cash flow.
Total Net sales decreased by 14.2% compared to Q1 2022, amounting to $5,103 million.
Gross profit margin increased to 21.3% compared to 18.6% in Q1 2022.
Operating income decreased by 8.2% to $355 million.
Non-GAAP operating income margin was 8.5% versus 7.8% for the first quarter of 2022.
CDW
CDW
CDW Revenue by Segment
Revenue by Segment
Corporate Revenue
CapyFin.comSmall Business Revenue
CapyFin.comPublic Revenue
CapyFin.comOther (UK & Canada) Revenue
CapyFin.com Forward Guidance
CDW is well-positioned to attain its target of exceeding US IT market growth by 200 to 300 basis points on a constant currency basis.
Positive Outlook
- Stronger engagement with customers and partners.
- Laser focus on meeting the needs of more than 250,000 customers around the globe.
- Remaining the partner of choice for more than 1,000 leading and emerging technology brands.
- Resilient business model.
- Financial discipline.
Challenges Ahead
- Economic uncertainty built during the quarter.
- Deeper than expected demand contraction.
- Lower business volume.
- Unfavorable translation of the British pound and Canadian dollar to US dollar.
- Increased payroll expenses as a result of higher coworker count.
Revenue & Expenses
Visualization of income flow from segment revenue to net income