Insight Enterprises, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period.
For the third quarter of 2024, net sales totaled $2,087.9 million, reflecting an 8% decrease from $2,266.3 million in Q3 2023. The decline was primarily attributed to lower demand for hardware and software from large enterprise clients, despite a 9% increase in services revenue driven by cloud solutions. Gross profit for the quarter increased by 6% to $432.1 million, resulting in a gross margin of 20.7%, up from 18.0% in the prior year. Earnings from operations rose slightly to $92.9 million, a 1% increase year-over-year.
For the nine months ended September 30, 2024, net sales were $6,629.0 million, down 4% from $6,939.8 million in the same period of 2023. Gross profit for this period increased by 8% to $1,326.4 million, with a gross margin of 20.0%, up from 17.8% in the previous year. Earnings from operations for the nine months rose 12% to $323.9 million.
The company’s cash and cash equivalents increased to $317.4 million as of September 30, 2024, compared to $268.7 million at the end of 2023. Total current assets also rose to $4,660.5 million, up from $4,331.3 million. However, total current liabilities increased to $3,744.1 million from $3,373.4 million, and long-term debt rose to $754.4 million from $592.5 million.
Strategically, Insight Enterprises made significant acquisitions, including Infocenter.io Corporation for $265.0 million and SADA Systems, LLC for $399.8 million, which contributed to an increase in goodwill and intangible assets. The company recognized net gains from these acquisitions, reflecting adjustments in estimated fair value of earnout payments.
The effective tax rate for the third quarter was 22.5%, down from 24.7% in the prior year, influenced by tax benefits from acquisition-related adjustments. The company continued its share repurchase program, repurchasing approximately $200.0 million of its common stock during the nine months ended September 30, 2024.
Overall, while Insight Enterprises faced challenges in revenue generation, particularly in hardware and software sales, it demonstrated resilience through improved gross profit margins and strategic acquisitions that are expected to enhance its service offerings.
About INSIGHT ENTERPRISES INC
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