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Mar 31, 2020
Insight Enterprises Q1 2020 Earnings Report
Insight Enterprises' financial performance increased due to the acquisition of PCM, Inc. and effective responses to the COVID-19 pandemic.
Key Takeaways
Insight Enterprises reported strong Q1 2020 results, with a 27% increase in net sales driven by the acquisition of PCM, Inc. Gross profit increased by 31%, and the company successfully deployed its workforce to work-from-home while supporting clients during the COVID-19 pandemic. The company withdrew its 2020 financial guidance due to the economic uncertainty caused by COVID-19.
Net sales increased 27% year over year to $2.14 billion, primarily due to the acquisition of PCM.
Gross profit increased 31% year over year to $325.3 million, with gross margin expanding 50 basis points.
Earnings from operations decreased 7% to $52.9 million, impacted by increased amortization and acquisition-related expenses.
Adjusted diluted earnings per share of $1.30 increased 11% year over year.
Insight Enterprises
Insight Enterprises
Insight Enterprises Revenue by Segment
Insight Enterprises Revenue by Geographic Location
Revenue by Segment
Hardware Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPAC Revenue
CapyFin.com Forward Guidance
Insight Enterprises withdrew its 2020 financial guidance for net sales and Adjusted diluted earnings per share due to the high level of economic uncertainty and disruption caused by COVID-19. Demand for products and services is anticipated to decrease significantly in the short term as business and consumer activity declines globally.
Challenges Ahead
- High level of economic uncertainty due to COVID-19.
- Disruption caused by COVID-19.
- Anticipate demand for our products and services will decrease significantly in the short term.
- Business activity declines globally.
- Consumer activity declines globally.