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Jun 30, 2023

ePlus Q1 2024 Earnings Report

Net sales and EPS increased, driven by cloud and networking gains and recent acquisitions.

Key Takeaways

ePlus reported a strong first quarter with a 25.3% increase in net sales to $574.2 million and a 51.2% increase in EPS to $1.27. The growth was driven by gains in cloud and networking, contributions from recent acquisitions, and some easing of supply chain constraints.

Net sales increased by 25.3% to $574.2 million year-over-year.

Technology business net sales increased by 26.0% to $565.7 million.

Net earnings increased by 51.5% to $33.8 million.

Diluted earnings per share increased by 51.2% to $1.27.

Total Revenue
$574M
Previous year: $458M
+25.3%
EPS
$1.41
Previous year: $0.99
+42.4%
Adjusted EBITDA
$53.9M
Previous year: $38.3M
+40.7%
Gross Profit
$142M
Previous year: $114M
+25.4%
Cash and Equivalents
$102M
Previous year: $83.5M
+21.7%
Total Assets
$1.68B
Previous year: $1.26B
+33.8%

ePlus

ePlus

ePlus Revenue by Segment

Forward Guidance

ePlus initiated fiscal year 2024 revenue guidance of $2.23 billion to $2.33 billion, and an adjusted EBITDA range of $200 million to $215 million, representing a margin of 9.0% to 9.2%.

Positive Outlook

  • Continued improvement in the supply chain
  • Enabling previously delayed customer projects.
  • Focus on serving faster-growing end markets
  • Resilient nature of business
  • Strength of backlog

Challenges Ahead

  • Macroeconomic uncertainty continues to affect overall IT spending
  • Organizations prioritize projects that enhance operational efficiency
  • Organizations prioritize projects that reduce risk
  • Organizations prioritize projects that deliver faster returns
  • The Company cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses