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Mar 31, 2022

ePlus Q4 2022 Earnings Report

Reported robust sales growth driving significant gains in operating income and earnings.

Key Takeaways

ePlus reported a strong fourth quarter and fiscal year 2022, with net sales increasing by 28.1% to $451.5 million and net earnings increasing by 55.9% to $24.2 million in Q4. The company's technology segment and service revenues also saw significant growth. Diluted earnings per share increased to $0.91, and non-GAAP diluted earnings per share increased to $1.01.

Net sales increased 28.1% to $451.5 million; technology segment net sales increased 26.4% to $419.4 million; service revenues increased 16.6% to $61.6 million.

Adjusted gross billings increased 20.8% to $638.5 million.

Net earnings increased 55.9% to $24.2 million.

Diluted earnings per share increased 56.9% to $0.91. Non-GAAP diluted earnings per share increased 42.3% to $1.01.

Total Revenue
$452M
Previous year: $353M
+28.1%
EPS
$1.01
Previous year: $0.71
+42.3%
Adjusted EBITDA
$39.7M
Previous year: $29.6M
+34.1%
Gross Profit
$115M
Previous year: $97.9M
+17.9%
Cash and Equivalents
$155M
Previous year: $130M
+19.9%
Total Assets
$1.17B
Previous year: $1.08B
+8.3%

ePlus

ePlus

ePlus Revenue by Segment

Forward Guidance

ePlus believes the outlook for IT spending in 2022 remains favorable, positioning the company for continued growth. Lead times are extending for certain technologies, which is anticipated to extend project implementations throughout the year. The company continues to work closely with its technology partners to deliver timely, innovative solutions.

Positive Outlook

  • Solid momentum entering fiscal year 2023.
  • Strength of backlog.
  • Healthy market fundamentals as enterprise technology investments remain a top priority.
  • Successful execution of growth strategy.
  • Expanding market share by strengthening relationships with existing customers and leveraging expertise across the technology stack.

Challenges Ahead

  • Lead times are extending for certain technologies.
  • This is anticipated to extend project implementations throughout the year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income