Climb Global Solutions, Inc. reported significant financial growth for the nine months ended September 30, 2024, with net sales reaching $303.8 million, a 24% increase from $245.2 million in the same period of 2023. This growth was driven by both organic expansion and strategic acquisitions, including Douglas Stewart Software & Services (DSS) and Data Solutions Holdings Limited. The Distribution segment saw a 26% increase in net sales, totaling $286.5 million, while the Solutions segment experienced a slight decline of 6%, with sales of $17.3 million.
Gross profit for the nine-month period rose to $59.8 million, up 39% from $43.2 million in the prior year, reflecting an improved gross margin of 19.7%, compared to 17.6% in 2023. The company reported a net income of $11.6 million, a substantial increase from $7.1 million in the previous year, translating to earnings per share of $2.54, up from $1.57.
In the third quarter alone, net sales surged by 52% to $119.3 million, with gross profit increasing by 70% to $24.3 million. The Distribution segment's gross profit rose 85% to $21.6 million, while the Solutions segment's gross profit increased modestly by 4% to $2.7 million. Selling, general, and administrative (SG&A) expenses also rose, totaling $13.9 million for the quarter, a 38% increase compared to the same period in 2023.
The company’s cash and cash equivalents decreased by 39% to $22.1 million as of September 30, 2024, primarily due to significant cash outflows for acquisitions, totaling $20.7 million for DSS. Net cash used in investing activities was $24.3 million, which included $3.6 million for fixed asset purchases. The company reported a net cash provided by operating activities of $17.8 million.
Climb Global Solutions also recognized acquisition-related costs of $1.2 million for the nine months ended September 30, 2024, compared to $0.3 million in the prior year. The effective tax rate for the period was 23.5%, down from 27.0% in 2023.
The company continues to focus on enhancing its operational efficiency and expanding its market presence through strategic acquisitions and investments in technology solutions.
About Climb Global Solutions, Inc.
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