Insight Enterprises, Inc. · NASDAQ:NSIT

Insight Enterprises — Q1 2025 Earnings Presentation

36 slides from Insight Enterprises's earnings presentation, May 1, 2025

  1. Slide 1: First Quarter 2025 Earnings Conference Call and Webcast

    Insight Enterprises, Inc. First Quarter 2025 Earnings Conference Call and Webcast 1 © 2025 Insight. All Rights Reserved.

  2. Slide 2: Disclosures

    Disclosures ◦ Safe harbor statement This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 related to Insight’s plans and expectations. Statements that are not historical facts, including those related to our expectations ab

  3. Slide 3: Table of Contents

    Table of Contents ◦ Solutions Integrator Strategy ◦ Solutions at Work ◦ Awards, Recognitions and Impact ◦ First Quarter 2025 Highlights and Performance ◦ 2027 KPIs for Success ◦ 2025 Outlook ◦ Appendix 3 © 2025 Insight. All Rights Reserved.

  4. Slide 4: Our strategy is to become the leading Solutions Integrator

    Our strategy is to become THE leading SOLUTIONS INTEGRATOR X Put clients first The pillars of our strategy are: We put our clients first, delivering essential value that contributes to their success and making us the partner they can't live without. Put Deliver Champion Drive Clients First Different

  5. Slide 5: Our strategy is to become the leading Solutions Integrator

    Our strategy is to become THE leading SOLUTIONS INTEGRATOR Put clients first We put our clients first, delivering essential value that contributes to their success and making us the partner they can't live without. DRIVE PROFITABLE Deliver differentiation Our combination of innovative and scalable G

  6. Slide 6: 10x Faster Content Creation

    10x Faster Content Creation The challenge: The solution: The results: • The Sherlock Company faced the challenge of • Insight partnered with The Sherlock Company • Reduced thumbnail selection time from days to efficiently extracting compelling, on-brand stills to design and implement a multistage AI

  7. Slide 7: Using Data for Competitive Edge

    Using Data for Competitive Edge The challenge: The solution: The results: • Boyne Resorts faced data silos due to • Insight's Microsoft architects are helping • The unified Customer 360 view will allow managing multiple disconnected systems, implement "Customer 360," an integration Boyne Resorts to

  8. Slide 8: Awards, Recognitions and Impact

    Awards, Recognitions and Impact Awards and Recognitions X • 2025 Google Partner of the Year for Google Workspace Corporate Citizenship Report • Intel US Data Center Partner of the Year • ESET Canada Enterprise Partner of the Year • Attained top-tier status as an Elite consulting partner with Databri

  9. Slide 9: Q1 2025 Performance

    Q1 2025 Performance (Changes against prior year period) NET SALES GROSS PROFIT CLOUD GROSS PROFIT INSIGHT CORE SERVICES XD GROSS PROFIT $2.1B $406M $103M $73M -12% YoY -8% YoY -3% YoY -4% YoY MARGINS EARNINGS EARNINGS FROM OPERATIONS ADJUSTED EARNINGS FROM GROSS MARGIN EFO MARGIN ADJUSTED EFO* MARGI

  10. Slide 10: Debt

    Debt • Total debt balance at March 31, 2025 - $961.2 million • Total debt balance at March 31, 2024 - $881.6 million • YoY increase in total debt of $79.6 million • Acquisitions, share repurchases and warrant settlement - $574 million US Dollars in millions Description Net payments InfoCenter (May 2

  11. Slide 11: 2027 KPIs for Success

    2027 KPIs for Success KPIs TTM Q1 2025** 2027 Cloud GP Growth 14% 16% - 20% 5-year CAGR*** Core services GP Growth 8% 16% - 20% 5-year CAGR*** Adjusted EBITDA Margin* 6.2% 6.5% - 7.0% Adjusted DEPS* Growth (9)% 19% - 22% 5-year CAGR*** Adjusted ROIC* 14.9% >25% Adjusted free cash flow 129% >90% as %

  12. Slide 12: Full Year 2025 Outlook

    Full Year 2025 Outlook Assumptions: As of May 1, 2025 Gross profit growth low single-digits Gross margin approximately 20% Adjusted diluted EPS* $9.70 - $10.10 Interest expense $70 - $75 million Effective tax rate 25% - 26% Capital expenditures $35 - $40 million Average share count 32.9 million Othe

  13. Slide 13: Appendix

    Appendix 13 © 2025 Insight. All Rights Reserved.

  14. Slide 14: Net Sales and Gross Profit

    NET SALES Trailing twelve months $2.1B -12% YoY $8.4B* -9% YoY $9.2B $9.2B $9.0B $8.9B $8.7B $8.4B $2.4B $2.2B $2.1B $2.1B $2.1B Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 2023 Q1-24 Q2-24 Q3-24 2024 Q1-25 GROSS PROFIT Trailing twelve months $406M -8% YoY $1.7B* +1% YoY 20.6% 19.9% 20.3% 18.2% 18.6% 19.2% 18.5%

  15. Slide 15: Services Net Sales and Gross Profit

    SERVICES NET SALES Trailing twelve months $396M -5% YoY $1.7B* +4% YoY $1,604M $1,635M $1,673M $1,686M $1,666M $1,544M $416M $435M $414M $421M $396M Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 2023 Q1-24 Q2-24 Q3-24 2024 Q1-25 SERVICES GROSS PROFIT Trailing twelve months $231M -7% YoY $1.0B* +4% YoY 59% 60% 60% 6

  16. Slide 16: Insight Core Services and Cloud Gross Profit

    INSIGHT CORE SERVICES GROSS PROFIT Trailing twelve months $73M -4% YoY $312M* +8% YoY 30% 31% 31% 31% 32% 32% 31% 32% 32% 32% 31% Gross Margin $297M $307M $315M $312M $273M $288M $76M $81M $81M $78M $73M Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 2023 Q1-24 Q2-24 Q3-24 2024 Q1-25 CLOUD GROSS PROFIT Trailing twel

  17. Slide 17: Earnings from Operations

    EARNINGS FROM OPERATIONS Trailing twelve months $60M -40% YoY $349M* -21% YoY $442M $455M $456M $420M $389M $349M $131M $100M $93M $65M $60M Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 2023 Q1-24 Q2-24 Q3-24 2024 Q1-25 ADJUSTED EARNINGS FROM OPERATIONS** Trailing twelve months $102M -16% YoY $483M* -7% YoY $492M

  18. Slide 18: Diluted Earnings Per Share

    DILUTED EARNINGS PER SHARE Trailing twelve months $0.22 -87% YoY $5.11* -36% YoY $7.95 $8.05 $7.94 $7.55 $2.27 $6.55 $1.74 $5.11 $1.52 $0.99 $0.22 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 2023 Q1-24 Q2-24 Q3-24 2024 Q1-25 ADJUSTED DILUTED EARNINGS PER SHARE** Trailing twelve months $2.06 -13% YoY $9.39* -9% Yo

  19. Slide 19: Q1 2025 YTD | Financial Performance

    Q1 2025 YTD | Financial Performance Three Months Ended March 31, US Dollars in $000s, except for per share data 2025 2024 Change Consolidated IEI Net sales $2,103,556 $2,379,485 (12)% Net sales, constant currency* (11)% Product net sales $1,707,800 $1,963,955 (13)% Services net sales $395,756 $415,5

  20. Slide 20: Consolidated IEI Financial Metrics

    Consolidated IEI Financial Metrics Three Months Ended Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Twelve Months Ended 2023 Q1-24 Q2-24 Q3-24 2024 Q1-25 Net Sales YoY 2% (8)% (8)% (7)% (12)% Net Sales YoY (12)% (9)% (7)% (6)% (5)% (9)% Gross Margin 18.5% 21.0% 20.7% 21.2% 19.3% Gross Margin 18.2% 18.6% 19.2% 19.9%

  21. Slide 21: Services Financial Metrics

    Services Financial Metrics Three Months Ended Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Twelve Months Ended 2023 Q1-24 Q2-24 Q3-24 2024 Q1-25 Services Revenue $416M $435M $414M $421M $396M Services Revenue $1,544M $1,604M $1,635M $1,673M $1,686M $1,666M Services Revenue YoY 17% 8% 10% 3% (5%) Services Revenue Y

  22. Slide 22: GEO Financial Metrics

    GEO Financial Metrics Three Months Ended March 31, 2025 North America EMEA APAC Net Sales $1.7B $342.8M $60.1M Net Sales YoY** (11%) (15%) 1% Gross Profit $319.5M $71.9M $15.1M Gross Profit YoY** (9%) (2%) (2%) Gross Margin 18.8% 21.0% 25.1% Gross Margin YoY 40 bps 280 bps (90) bps GAAP EFO $50.8M $

  23. Slide 23: Adjusted EBITDA and Debt Covenants

    Adjusted EBITDA and Debt Covenants Twelve Months Ended March 31, Fixed Charge Coverage US Dollars in $000s 2025 2024 $550,000 $509,985 Adjusted Consolidated EBITDA: $500,000 Net earnings $ 190,178 $ 298,364 $450,000 Interest expense 70,742 52,157 $400,000 $350,000 Taxes 73,552 101,321 $300,000 Depre

  24. Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures* Three Months Ended March 31, US Dollars in $000s 2025 2024 2023 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 60,103 $ 99,986 $ 77,461 Amortization of intangible assets 18,548 14,925 8,310 Change in fair value of earnou

  25. Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended March 31, US Dollars in $000s, except per share data 2025 2024 2023 Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 7,514 $ 67,027 $ 49,972 Amortization of intangible assets 18,548 14,925 8,310

  26. Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended March 31, US Dollars in $000s 2025 2024 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 50,790 $ 84,023 Amortization of intangible assets 16,804 13,146 Change in fair value of

  27. Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Three Months Ended March 31, US Dollars in $000s 2025 2024 Adjusted Consolidated EBITDA: GAAP consolidated net earnings $ 7,514 $ 67,027 Interest expense 17,739 15,269 Income tax expense 11,495 21,165 Depreciation and amortization of

  28. Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Twelve Months Ended March 31, US Dollars in $000s 2025 2024 Adjusted Return on Invested Capital: GAAP consolidated EFO $ 348,701 $ 442,320 Amortization of intangible assets 73,204 42,846 Change in fair value of earnout liabilities 6,4

  29. Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Three Months Ended March 31, US Dollars in $000s 2025 2024 Adjusted Consolidated Selling and Administrative Expenses: GAAP selling and administrative expenses $ 339,173 $ 337,434 Less: Change in fair value of earnout liabilities 15,20

  30. Slide 30: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Twelve Months Ended March 31, US Dollars in $000s 2025 Adjusted Free Cash Flow: Net cash provided by operating activities $ 463,716 Less: Purchases of property and equipment 47,430 Adjusted non-GAAP free cash flow $ 416,286 Net cash

  31. Slide 31: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended Three Months Ended Three Months Ended June 30, September 30, December 31, US Dollars in $000s 2024 2023 2024 2023 2024 2023 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 131,073 $ 118,611

  32. Slide 32: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended Three Months Ended Three Months Ended June 30, September 30, December 31, US Dollars in $000s, except per share data 2024 2023 2024 2023 2024 2023 Adjusted Consolidated Net Earnings: GAAP consolidated net earnings

  33. Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) US Dollars in $000s 2022 TTM Q1-23 TTM Q2-23 TTM Q3-23 2023 TTM Q1-24 TTM Q2-24 TTM Q3-24 2024 TTM Q1-25 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 413,700 $ 411,312 $ 400,367 $ 401,950 $ 419,795 $ 442,32

  34. Slide 34: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

    Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) US Dollars in $000s, except per share data 2022 TTM Q1-23 TTM Q2-23 TTM Q3-23 2023 TTM Q1-24 TTM Q2-24 TTM Q3-24 2024 TTM Q1-25 Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 280,608 $ 273,949 $ 265,247 $ 268,17

  35. Slide 35: Financial Results by Offering Category

    Financial Results by Offering Category US Dollars in $000s Q1-23 Q2-23 Q3-23 Q4-23 FY 2023 Q1-24 Q2-24 Q3-24 Q4-24 FY 2024 Q1-25 Consolidated IEI by Offering Category: Hardware $ 1,328,845 $ 1,310,273 $ 1,301,155 $ 1,148,664 $ 5,088,937 $ 1,134,727 $ 1,172,641 $ 1,137,518 $ 1,130,014 $ 4,574,900 $ 1

  36. Slide 36: Warrants (Illustrative example)

    Warrants (Illustrative example) • Insight settled 3,586,212 of the total originally outstanding 5,123,160 warrants in cash in Q1 and Q2 2025 • The remaining 1,536,948 warrants will mature on May 15, 2025 and settle towards the end of 2025 • DEPS will continue to be impacted by the net shares owed on

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