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Sep 30, 2021
ePlus Q2 2022 Earnings Report
Reported strong financial results driven by substantial operating leverage and the continued success of its growth strategy.
Key Takeaways
ePlus inc. reported a strong second quarter for fiscal year 2022, with net sales increasing by 5.8% to $458.0 million and net earnings increasing by 58.3% to $31.4 million. The company's growth was fueled by its technology solutions and financing segments, with services remaining one of the fastest-growing areas.
Net sales increased 5.8% to $458.0 million; technology segment net sales increased 4.0% to $436.3 million; service revenues increased 23.1% to $60.9 million.
Adjusted gross billings increased 10.5% to $664.1 million.
Net earnings increased 58.3% to $31.4 million.
Diluted earnings per share increased 58.1% to $2.34. Non-GAAP diluted earnings per share increased 54.2% to $2.59.
ePlus
ePlus
ePlus Revenue by Segment
Revenue by Segment
Technology Business Revenue
CapyFin.comFinancing Business Revenue
CapyFin.com Forward Guidance
ePlus is well-positioned for continued growth, with the products, services, financing, and expertise that enable customers to meet the challenges of digital transformation and modernization.
Positive Outlook
- Data center, security and cloud-focused solutions remain especially timely and relevant.
- Investments in emerging areas, including collaboration and AI, provide new opportunities for growth.
- Strength of open orders and backlog, both of which have increased significantly during the year.
- Team and channel partners have performed admirably in navigating supply chain challenges to date.
- ePlus remains committed to investing in its people and in its capabilities to stay on the forefront of technology trends.
Challenges Ahead
- Continue to closely monitor constraints within the supply chain that may limit future product availability.
- The duration and impact of the ongoing COVID-19 pandemic could materially adversely affect our financial condition and results of operations
- National and international political instability fostering uncertainty and volatility in the global economy including an economic downturn, significant and rapid inflation, an increase in tariffs or adverse changes to trade agreements, exposure to fluctuation in foreign currency rates, interest rates and pressure on prices.
- Supply constraints of certain IT products, including constraints caused by shortages in semiconductors and other components
- Inflation of both wages and product costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income