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Dec 31, 2023

Climb Global Solutions Q4 2023 Earnings Report

Climb Global Solutions' Q4 2023 performance demonstrated record levels in net sales, net income, adjusted EBITDA, and EPS, driven by core initiatives and the integration of DataSolutions.

Key Takeaways

Climb Global Solutions reported a strong Q4 2023 with record levels in net sales, net income, adjusted EBITDA, and EPS. Net sales increased by 20% to $106.8 million, net income increased by 10% to $5.2 million, and adjusted EBITDA increased by 24% to $9.2 million. The results were driven by organic growth and the acquisition of DataSolutions.

Net sales increased 20% to $106.8 million.

Adjusted gross billings increased 24% to $397.0 million.

Net income increased 10% to $5.2 million or $1.15 per diluted share.

Adjusted EBITDA increased 24% to $9.2 million.

Total Revenue
$107M
Previous year: $88.9M
+20.1%
EPS
$1.15
Previous year: $1.08
+6.5%
Adjusted EBITDA
$9.2M
Previous year: $7.39M
+24.5%
Adjusted gross billings
$397M
Previous year: $320M
+24.1%
Gross Profit
$21.1M
Previous year: $16.1M
+30.8%
Cash and Equivalents
$36.3M
Previous year: $20.2M
+79.3%
Total Assets
$335M
Previous year: $232M
+44.5%

Climb Global Solutions

Climb Global Solutions

Forward Guidance

Climb Global Solutions will leverage global infrastructure to drive organic growth while executing M&A initiatives to expand geographic footprint, service, and solution offerings. The company is well-positioned to continue driving shareholder value with a robust balance sheet, a growing pipeline of prospective vendors, and a demonstrated track record of accretive M&A.

Positive Outlook

  • Leverage global infrastructure to drive organic growth.
  • Execute M&A initiatives to expand geographic footprint.
  • Expand service and solution offerings.
  • Robust balance sheet.
  • Growing pipeline of prospective vendors.

Challenges Ahead

  • Ability to recognize the anticipated benefits of the acquisition of DataSolutions
  • The continued acceptance of the Company’s distribution channel by vendors and customers
  • The timely availability and acceptance of new products
  • Product mix, market conditions, competitive pricing pressures
  • The successful integration of acquisitions