Climb Global Solutions, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with net sales rising 32% to $465.6 million, up from $352.0 million in 2023. Gross profit also saw a substantial increase of 42%, reaching $91.1 million compared to $64.2 million in the previous year. The company's net income surged by 51% to $18.6 million, translating to earnings per diluted share of $4.06, a 49% increase from $2.72 in 2023. This growth was attributed to both organic expansion in existing vendor lines and the contributions from recent acquisitions, including Douglas Stewart Software & Services and Data Solutions.
The company experienced notable changes in its operational metrics, with gross billings increasing by 42% to $1.785 billion, driven primarily by the Distribution segment, which accounted for approximately 95% of consolidated net sales. The Distribution segment's net sales rose 36% to $441.9 million, while the Solutions segment saw a decrease of 12% to $23.7 million. The decline in the Solutions segment was offset by an increase in gross billings, indicating a shift in product mix towards more cloud-based and security products.
Strategically, Climb Global Solutions has focused on acquisitions as a key growth driver. In 2024, the company completed the acquisition of DSS, which added approximately $11.8 million in revenue, and the acquisition of Data Solutions, which was finalized in late 2023. These acquisitions have expanded the company's geographic footprint and enhanced its vendor relationships, particularly in the United Kingdom and North America. The company plans to continue evaluating acquisition opportunities as part of its growth strategy.
Operationally, Climb Global Solutions reported a total employee headcount of 394 as of December 31, 2024, with a focus on maintaining a diverse workforce. The company also emphasized the importance of customer service, noting that three key customers accounted for 43% of total net sales. The company’s marketing efforts have increasingly targeted value-added resellers (VARs), contributing to a growing customer base. Additionally, net sales in Europe and the United Kingdom represented 21% and 19% of consolidated net sales, respectively, indicating successful geographic expansion.
Looking ahead, Climb Global Solutions anticipates continued growth driven by its strategic initiatives and market demand for IT products and services. The company remains cautious about potential risks, including competitive pricing pressures and economic conditions that could impact demand. Management expressed confidence in the company's ability to navigate these challenges while leveraging its acquisitions and expanding its product offerings to enhance profitability and market share.
About Climb Global Solutions, Inc.
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