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Mar 31, 2024

Climb Global Solutions Q1 2024 Earnings Report

Net sales increased by 9% year-over-year reaching $92.4 million, while adjusted gross billings rose by 16% to $355.3 million.

Key Takeaways

Climb Global Solutions reported a 9% increase in net sales to $92.4 million and a 16% increase in adjusted gross billings to $355.3 million. Net income was $2.7 million, or $0.60 per diluted share, while adjusted EBITDA was $5.5 million. The company experienced softer volumes across select key vendors, but expects growth in the back half of the year.

Net sales increased 9% year-over-year to $92.4 million.

Adjusted gross billings increased 16% year-over-year to $355.3 million.

Net income was $2.7 million, or $0.60 per diluted share.

Adjusted EBITDA was $5.5 million.

Total Revenue
$92.4M
Previous year: $85M
+8.7%
EPS
$0.6
Previous year: $0.74
-18.9%
Adjusted EBITDA
$5.54M
Previous year: $5.66M
-2.1%
Adjusted gross billings
$355M
Previous year: $307M
+15.8%
Gross Profit
$17M
Previous year: $15.2M
+11.9%
Cash and Equivalents
$43.6M
Previous year: $61.7M
-29.4%
Total Assets
$298M
Previous year: $247M
+21.0%

Climb Global Solutions

Climb Global Solutions

Forward Guidance

Climb Global Solutions anticipates continued organic growth, integration of DataSolutions, ERP implementation benefits, and active M&A to drive adjusted EBITDA growth exceeding the increase in adjusted gross billings.

Positive Outlook

  • Driving organic growth with current vendors.
  • Adding new, cutting-edge technologies.
  • Uncovering cost synergies and cross-selling with DataSolutions.
  • ERP implementation to drive operating efficiencies.
  • Active M&A to enhance offerings and expand presence.

Challenges Ahead

  • Softer volumes across select key vendors due to timing of sales cycles.
  • Key vendor from DataSolutions acquisition affected bottom line in Q1.
  • Increased SG&A expenses related to DataSolutions.
  • Key vendor sales cycles impacted adjusted EBITDA.
  • Effective margin decreased due to increased SG&A and sales cycles.