Slide 1: Fourth Quarter and Full Year 2024 Earnings Conference Call and Webcast
Insight Enterprises, Inc. Fourth Quarter and Full Year 2024 Earnings Conference Call and Webcast Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2025 Insight Direct USA, Inc. All Rights Reserved. 1
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
Slide 3: Table of Contents
Table of Contents ◦ Solutions Integrator Strategy ◦ Solutions at Work ◦ Awards and Recognitions ◦ Fourth Quarter and Full Year 2024 Highlights and Performance ◦ 2027 KPIs for Success ◦ 2025 Outlook ◦ Appendix Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2025 2022 Insight Direct U
Slide 4: Our strategy is to become the leading Solutions Integrator
Our strategy is to become THE leading SOLUTIONS INTEGRATOR The pillars of our strategy are: Put clients first We put our clients first, delivering essential Put Deliver Champion Drive value that contributes to their success and making us the partner they can't live without. Clients First Differentia
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
Slide 6: Building a Strong Posture from the Ground Up
Building a Strong Posture from the Ground Up The challenge: The solution: The results: • The consumer health division of a major The Insight team helped the client architect and • 4,000+ tickets supported pharmaceutical corporation needed to stand up its entire security practice from day one • Reduc
Slide 7: Unlocking New Fan Experiences with AI
Unlocking New Fan Experiences with AI The challenge: The solution: The results: • Cricket Australia oversees more than • The client partnered with Insight and Microsoft to • Scaled workload capacity 4x while reducing 7,000 weekly matches and major enhance fan engagement through AI-driven solutions o
Slide 8: Awards
Awards FORBES Sector Leaders X World's Best Employers No. 40 in Tech No. 37 in IT • 2024 Best Large Employers • 2024 Canada's Best Employers • 2024 Best Employers for Diversity North America Great Place to Work International Great Place to Work No. 5 | Phoenix Business Journal's 2024 Best Places No.
Slide 9: Industry and Partner Recognitions
Industry and Partner Recognitions BROADCOM VMWARE | North America Cybersecurity Partner of the Year & Fastest Growth Partner of the Year • 2024 Global Sales Partner of X • Surface Reseller Partner of the the Year GITLAB | 2024 Americas Emerging Partner of • 2024 Location-Based Services the Year Year
Slide 10: Q4/Full Year 2024 Performance
Q4/Full Year 2024 Performance (Changes against prior year period) CLOUD GROSS PROFIT INSIGHT CORE SERVICES GROSS PROFIT Q4 2024 FY 2024 Q4 2024 FY 2024 $125M $484M $78M $315M +3% YoY +21% YoY +12% YoY +15% YoY Note: We have updated our definition of cloud gross profit. Prior period cloud gross profi
Slide 11: Q4/Full Year 2024 Performance (continued)
Q4/Full Year 2024 Performance (continued) (Changes against prior year period) NET SALES GROSS PROFIT Q4 2024 FY 2024 Q4 2024 FY 2024 $2.1B $8.7B $440M $1.8B -7% YoY -5% YoY +1% YoY +6% YoY 57% services as a % of total gross profit and 27% cloud as a % of total gross profit** EARNINGS FROM OPERATIONS
Slide 12: Q4/Full Year 2024 Performance (continued)
Q4/Full Year 2024 Performance (continued) (Changes against prior year period) EARNINGS NET EARNINGS DILUTED EARNINGS PER SHARE Q4 2024 FY 2024 Q4 2024 FY 2024 $37M $250M $0.99 $6.55 -59% YoY -11% YoY -59% YoY -13% YoY ADJUSTED EBITDA* ADJUSTED DILUTED EARNINGS PER SHARE* Q4 2024 FY 2024 Q4 2024 FY 2
Slide 13: Debt
Debt • Total debt balance at December 31, 2024 - $864.1 million • Total debt balance at December 31, 2023 - $940.5 million • YoY decrease in total debt of $76.4 million • Acquisitions and share repurchases - $470 million US Dollars in millions Description Net payments InfoCenter (May 2024) $265 NWT*
Slide 14: 2027 KPIs for Success
2027 KPIs for Success KPIs 2024** 2-yr CAGR*** 2027 Cloud GP Growth 21% 24% 16% - 20% 5-year CAGR**** Core services GP Growth 15% 12% 16% - 20% 5-year CAGR**** Adjusted EBITDA Margin* 6.2% 6.5% - 7.0% Adjusted DEPS* Growth flat 3% 19% - 22% 5-year CAGR**** Adjusted ROIC* 15.3% >25% Adjusted free cas
Slide 15: Full Year 2025 Outlook
Full Year 2025 Outlook Assumptions: As of February 6, 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
Slide 16: Appendix
Appendix Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2025 Insight Direct USA, Inc. All Rights Reserved. 16
Slide 17: Net Sales and Gross Profit
NET SALES Trailing twelve months $2.1B -7% YoY $8.7B* -5% YoY $10.4B $9.4B $9.2B $8.3B $8.7B $2.2B $2.4B $2.2B $2.1B $2.1B Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 2020 2021 2022 2023 2024 GROSS PROFIT Trailing twelve months $440M +1% YoY $1.8B* +6% YoY 20.3% 18.2% 15.6% 15.3% 15.7% 19.5% 18.5% 21.0% 20.7% 21.
Slide 18: Services Net Sales and Gross Profit
SERVICES NET SALES Trailing twelve months $421M +3% YoY $1.7B* +9% YoY $1,686M $1,483M $1,544M $435M $1,316M $408M $416M $414M $421M $1,168M Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 2020 2021 2022 2023 2024 SERVICES GROSS PROFIT Trailing twelve months $254M +3% YoY $1.0B* +13% YoY 58% 60% 53% 54% 54% 61% 60% 6
Slide 19: Insight Core Services and Cloud Gross Profit
INSIGHT CORE SERVICES GROSS PROFIT Trailing twelve months $78M +12% YoY $315M* +15% YoY 30% 32% 32% 32% 32% 27% 27% 27% 31% 30% Gross Margin $315M $273M $81M $81M $253M $76M $78M $221M $69M $196M Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 2020 2021 2022 2023 2024 CLOUD GROSS PROFIT Trailing twelve months $125M +
Slide 20: Earnings from Operations and Adjusted EFO
EARNINGS FROM OPERATIONS Trailing twelve months $65M -51% YoY $389M* -7% YoY $414M $420M $389M $332M $132M $131M $272M $100M $93M $65M Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 2020 2021 2022 2023 2024 ADJUSTED EARNINGS FROM OPERATIONS** Trailing twelve months $129M -13% YoY $502M* +2% YoY $492M $502M $467M $14
Slide 21: Diluted and Adjusted Diluted Earnings Per Share
DILUTED EARNINGS PER SHARE Trailing twelve months $0.99 -59% YoY $6.55* -13% YoY $7.66 $7.55 $6.55 $5.95 $2.42 $2.27 $4.87 $1.74 $1.52 $0.99 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 2020 2021 2022 2023 2024 ADJUSTED DILUTED EARNINGS PER SHARE** Trailing twelve months $2.66 -11% YoY $9.68* flat YoY $9.69 $9.68
Slide 22: FY 2024 | Financial Performance
FY 2024 | Financial Performance Twelve Months Ended December 31, US Dollars in $000s, except for per share data 2024 2023 Change Consolidated IEI Net sales $8,701,698 $9,175,840 (5)% Net sales, constant currency* (5)% Product net sales $7,015,640 $7,631,388 (8)% Services net sales $1,686,058 $1,544,
Slide 23: Consolidated IEI Financial Metrics
Consolidated IEI Financial Metrics Three Months Ended Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Twelve Months Ended 2020 2021 2022 2023 2024 Net Sales YoY (11)% 2% (8)% (8)% (7)% Net Sales YoY 8% 13% 11% (12)% (5)% Gross Margin 19.5% 18.5% 21.0% 20.7% 21.2% Gross Margin 15.6% 15.3% 15.7% 18.2% 20.3% GAAP EFO $1
Slide 24: Services Financial Metrics
Services Financial Metrics Three Months Ended Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Twelve Months Ended 2020 2021 2022 2023 2024 Services Revenue $408M $416M $435M $414M $421M Services Revenue $1,168M $1,316M $1,483M $1,544M $1,686M Services Revenue YoY 6% 17% 8% 10% 3% Services Revenue YoY 17% 13% 13% 4% 9
Slide 25: GEO Financial Metrics
GEO Financial Metrics Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2024 North America EMEA APAC North America EMEA APAC Net Sales $1.7B $319.8M $52.1M $7.1B $1.4B $233.0M Net Sales YoY** (5%) (19%) (6%) (4%) (11%) 2% Gross Profit $350.0M $72.6M $17.0M $1.4B $293.2M $70.8M Gr
Slide 26: Adjusted EBITDA and Debt Covenants
Adjusted EBITDA and Debt Covenants Twelve Months Ended December 31, Fixed Charge Coverage US Dollars in $000s 2024 2023 $530,718 Adjusted Consolidated EBITDA: $550,000 $500,000 Net earnings $ 249,691 $ 281,309 $450,000 Interest expense 68,272 48,576 $400,000 Taxes 83,222 96,545 $350,000 $300,000 Dep
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures* Three Months Ended Twelve Months Ended December 31, December 31, US Dollars in $000s 2024 2023 2022 2024 2023 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 64,674 $ 131,861 $ 114,016 $ 388,584 $ 419,795 Amortization of
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended Twelve Months Ended December 31, December 31, US Dollars in $000s, except per share data 2024 2023 2022 2024 2023 Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 37,012 $ 90,608 $ 77,477 $ 249,
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended Twelve Months Ended December 31, December 31, US Dollars in $000s 2024 2023 2024 2023 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 52,396 $ 117,377 $ 319,068 $ 362,082 Amor
Slide 30: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Three Months Ended Twelve Months Ended December 31, December 31, US Dollars in $000s 2024 2023 2024 2023 Adjusted Consolidated EBITDA: GAAP consolidated net earnings $ 37,012 $ 90,608 $ 249,691 $ 281,309 Interest expense 16,960 11,958
Slide 31: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Twelve Months Ended December 31, US Dollars in $000s 2024 2023 Adjusted Return on Invested Capital: GAAP consolidated EFO $ 388,584 $ 419,795 Amortization of intangible assets 69,581 36,231 Change in fair value of earnout liabilities
Slide 32: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Three Months Ended Twelve Months Ended December 31, December 31, US Dollars in $000s 2024 2023 2024 2023 Adjusted Consolidated Selling and Administrative Expenses: GAAP selling and administrative expenses $ 358,487 $ 298,206 $ 1,343,1
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Twelve Months Ended December 31, US Dollars in $000s 2024 Adjusted Free Cash Flow: Net cash provided by operating activities $ 632,845 Less: Purchases of property and equipment 46,782 Adjusted non-GAAP free cash flow $ 586,063 Net ca
Slide 34: 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 March 31, June 30, September 30, US Dollars in $000s, except per share data 2024 2023 2024 2023 2024 2023 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO
Slide 35: 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 2019 2020 2021 2022 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 240,594 $ 271,575 $ 332,061 $ 413,700 Amortization of intangible assets 22,985 37,535 32,045 32,89
Slide 36: Financial Results by Offering Category
Financial Results by Offering Category US Dollars in $000s FY 2022 Q1-23 Q2-23 Q3-23 Q4-23 FY 2023 Q1-24 Q2-24 Q3-24 Q4-24 FY 2024 Consolidated IEI by Offering Category: Hardware $ 6,450,895 $ 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 $
Slide 37: Cloud Gross Profit Update
Cloud Gross Profit Update US Dollars in $000s FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Cloud Gross Profit Reconciliation: Cloud Gross Profit (as previously reported)* $ 217,859 $ 264,389 $ 339,993 $ 428,804 $ 514,498 Cloud Services Gross Profit** (7,969) (10,090) (24,465) (28,979) (30,635) Cloud Gros
Slide 38: Convertible Senior Notes (Illustrative Example)
Convertible Senior Notes (Illustrative Example) • Insight Convertible Senior Notes - $333 million principal • Required to settle the convertible notes principal/par value in cash in February 2025 • Excess required to be settled in shares resulting in dilution in GAAP reported Diluted Earnings Per Sh