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Sep 30, 2024

Climb Global Solutions Q3 2024 Earnings Report

Reported record third quarter results with net income and adjusted net income up more than 2x and adjusted EBITDA up 96%.

Key Takeaways

Climb Global Solutions reported a strong third quarter with net sales up 52% to $119.3 million, adjusted gross billings up 65% to $465.2 million, and adjusted EBITDA up 96% to $9.9 million. The company's performance was driven by organic growth and the integration of DSS and DataSolutions.

Net sales increased 52% to $119.3 million.

Adjusted gross billings increased 65% to $465.2 million.

Net income increased more than 2x to $5.5 million, or $1.19 per diluted share.

Adjusted EBITDA increased 96% to $9.9 million.

Total Revenue
$119M
Previous year: $78.5M
+52.1%
EPS
$1.55
Previous year: $0.52
+198.1%
Adjusted EBITDA
$9.9M
Previous year: $5.06M
+95.6%
Adjusted gross billings
$465M
Previous year: $282M
+65.0%
Gross Profit
$24.3M
Previous year: $14.3M
+70.2%
Cash and Equivalents
$22.1M
Previous year: $49.8M
-55.6%
Free Cash Flow
-$4.81M
Previous year: $7.31M
-165.7%
Total Assets
$372M
Previous year: $232M
+60.1%

Climb Global Solutions

Climb Global Solutions

Forward Guidance

The company will continue to leverage its global infrastructure to foster organic growth while actively evaluating M&A targets that complement its geographic footprint, expand its service and solution offerings and, most importantly, align with its high-performance culture. They expect to unlock additional synergies from acquisitions and further improve operating leverage as they execute across their global platform. They believe that these initiatives, coupled with a proven track record of accretive M&A, will enable them to close out 2024 on a strong note and achieve another year of record results.

Positive Outlook

  • Leveraging global infrastructure to foster organic growth.
  • Actively evaluating M&A targets.
  • Expanding service and solution offerings.
  • Aligning with a high-performance culture.
  • Unlocking additional synergies from acquisitions.

Challenges Ahead

  • Risk of not recognizing anticipated benefits of acquisitions.
  • Continued acceptance of the Company’s distribution channel by vendors and customers.
  • Timely availability and acceptance of new products.
  • Competitive pricing pressures.
  • Successful integration of acquisitions.