ePlus Q4 2023 Earnings Report
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.
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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