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Dec 31, 2023

CDW Q4 2023 Earnings Report

CDW reported Q4 2023 earnings, with strong margins reinforcing the power of its business model and strategy.

Key Takeaways

CDW's Q4 2023 net sales were $5,019 million, a decrease of 7.7 percent compared to Q4 2022. Net income increased by 3.1 percent to $296 million, and non-GAAP net income per diluted share increased by 2.8 percent to $2.57.

Net sales decreased by 7.7% compared to the fourth quarter of 2022, totaling $5,019 million.

Gross profit margin increased to 23.0% compared to 21.7% in the fourth quarter of 2022.

Net income increased by 3.1% to $296 million.

Non-GAAP net income per diluted share increased by 2.8% to $2.57.

Total Revenue
$5.02B
Previous year: $5.44B
-7.7%
EPS
$2.57
Previous year: $2.5
+2.8%
Non-GAAP operating income margin
10.3%
Gross Profit
$1.15B
Previous year: $1.18B
-2.3%
Cash and Equivalents
$589M
Previous year: $315M
+86.8%
Free Cash Flow
$503M
Previous year: $211M
+138.1%
Total Assets
$13.3B
Previous year: $13.1B
+1.2%

CDW

CDW

CDW Revenue by Segment

Forward Guidance

Looking ahead to 2024, CDW remains well-positioned to continue its track record of outpacing the US IT market growth by 200 to 300 basis points on a constant currency basis.

Positive Outlook

  • Well-positioned to continue outpacing the US IT market growth.
  • Laser focus on meeting customer needs.
  • Remaining the partner of choice for leading and emerging technology brands.
  • Continued execution excellence.
  • Disciplined approach to capital allocation.

Challenges Ahead

  • Ongoing economic uncertainty.
  • Reduction or delays in customer hardware spend.
  • Decline in Net sales was driven by all operating segments.
  • Potential impacts of adverse change in government spending policies.
  • Fluctuations in CDW's operating results

Revenue & Expenses

Visualization of income flow from segment revenue to net income