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Mar 31, 2023

ePlus Q4 2023 Earnings Report

ePlus's Q4 2023 earnings reflected strong growth in net sales, gross profit, and earnings per share, driven by a focus on high-value end markets and strategic investments.

Key Takeaways

ePlus reported a strong fourth quarter with a 9.0% increase in net sales to $492.2 million and a 35.5% increase in net earnings to $32.9 million. Diluted earnings per share increased by 35.2% to $1.23, and non-GAAP diluted earnings per share increased by 34.7% to $1.36.

Net sales increased by 9.0% to $492.2 million, with technology segment net sales up 15.2% to $483.2 million.

Consolidated gross profit increased by 14.7% to $132.3 million, and gross margin improved to 26.9%.

Net earnings increased by 35.5% to $32.9 million, with diluted earnings per share at $1.23 and non-GAAP diluted earnings per share at $1.36.

The company's headcount increased by 177, with 140 customer-facing employees, including 84 in professional services and technical support.

Total Revenue
$492M
Previous year: $452M
+9.0%
EPS
$1.36
Previous year: $1.01
+34.7%
Adjusted EBITDA
$48.7M
Previous year: $39.7M
+22.6%
Gross Profit
$132M
Previous year: $115M
+14.7%
Cash and Equivalents
$103M
Previous year: $155M
-33.7%
Total Assets
$1.41B
Previous year: $1.17B
+21.3%

ePlus

ePlus

ePlus Revenue by Segment

Forward Guidance

Despite an uncertain economic environment, ePlus believes its portfolio is strongly aligned with customers' needs and remains committed to building long-term stakeholder value through organic growth, acquisitions, and operational efficiencies.

Positive Outlook

  • Resilient business model and capabilities to deliver cost-effective technology solutions.
  • IT spending focused on solutions that drive growth, digital transformation, efficiencies, and cybersecurity.
  • Portfolio strongly aligned with customers’ needs.
  • Commitment to building long-term stakeholder value.
  • Consistent execution of growth strategy both organically and through acquisitions and generating further operational efficiencies.

Challenges Ahead

  • Uncertain economic environment.
  • Ongoing remote work trends.
  • Increase in cybersecurity attacks while employees work remotely.
  • National and international political instability fostering uncertainty and volatility in the global economy.
  • Exposure to fluctuation in foreign currency rates, interest rates, and inflation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income