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Jun 30, 2023

CDW Q2 2023 Earnings Report

CDW's financial performance reflected strong margins and execution, reinforcing the durability of its strategy.

Key Takeaways

CDW Corporation reported a decrease in net sales by 8.5% to $5,626.1 million, but an increase in gross profit by 1.1% to $1,181.5 million for the second quarter of 2023. Despite a decrease in operating and net income, non-GAAP operating income and non-GAAP net income increased, showcasing the company's financial discipline amid economic uncertainty.

Net sales decreased by 8.5% compared to the second quarter of 2022, mainly driven by declines in the Corporate and Small Business segments and in the UK and Canada.

Gross profit increased by 1.1% with gross profit margin rising to 21.0% due to higher product margin and a higher mix of netted down revenue.

Operating income decreased by 5.3%, while non-GAAP operating income increased by 2.6%.

Net income per diluted share decreased by 5.5%, but non-GAAP net income per diluted share increased by 3.2%.

Total Revenue
$5.63B
Previous year: $6.15B
-8.5%
EPS
$2.56
Previous year: $2.49
+2.8%
Non-GAAP operating income margin
9.4%
Previous year: 8.4%
+11.9%
Gross Profit
$1.18B
Previous year: $1.17B
+1.1%
Cash and Equivalents
$204M
Previous year: $542M
-62.4%
Free Cash Flow
$189M
Previous year: $358M
-47.3%
Total Assets
$13B
Previous year: $13.7B
-4.9%

CDW

CDW

CDW Revenue by Segment

Forward Guidance

CDW remains 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

  • Continue 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 as the IT market continues to evolve.

Revenue & Expenses

Visualization of income flow from segment revenue to net income