Slide 1: CDW Corporation Webcast Conference Call
CDW Corporation Webcast Conference Call May 7, 2025
Slide 2: Today's Agenda
First Quarter 2025 Results Performance Drivers Today's Agenda Outlook Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the futur
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial condition that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accorda
Slide 5: Financial Performance
Financial Performance • Net sales of $5.2 billion • Up 6.7% on a reported basis • Up 8.4% on an average daily sales ("ADS") basis • Up 8.7% on an ADS constant currency* basis • Gross profit of $1.1 billion, up 5.5% • Gross profit margin of 21.6%, down 20 basis points • Operating income of $361 milli
Slide 6: Net Sales By Channel
Net Sales By Channel ($ in millions) Three Months Ended March 31, Average Daily 2025 2024 % Change % Change(1) Corporate $ 2,236.0 $ 2,135.9 4.7 % 6.3 % Small Business 404.6 380.9 6.2 7.9 Public Government 537.8 543.3 (1.0) 0.6 Education 652.4 596.8 9.3 11.1 Healthcare 687.9 584.6 17.7 19.5 Total Pu
Slide 7: Financial Results
Financial Results ($ in millions, except percentages) Three Months Ended March 31, 2025 2024 % Change Net sales $ 5,199.1 $ 4,872.7 6.7 % Average daily net sales(1) $ 82.5 $ 76.1 8.4 Gross profit $ 1,122.3 $ 1,063.3 5.5 Gross profit margin 21.6 % 21.8 % Selling and administrative expenses $ 760.9 $
Slide 8: Earnings Per Diluted Share
Earnings Per Diluted Share ($ and shares in millions, except per share amounts) Three Months Ended March 31, 2025 2024 % Change US GAAP Net income $ 224.9 $ 216.1 4.1 % Weighted-average common shares outstanding - Diluted 133.5 136.0 Net income per diluted share $ 1.69 $ 1.59 6.1 Non-GAAP net income
Slide 9: Debt and Revolver Availability
Debt and Revolver Availability ($ in millions) March 31, 2025 December 31, 2024 March 31, 2024 Cash and cash equivalents $ 471.4 $ 503.5 $ 803.8 Short-term investments 216.7 214.2 — Total debt 5,853.0 5,842.8 5,632.3 Net debt* 5,164.9 5,125.1 4,828.5 Revolver availability 1,265.0 1,244.1 1,251.7 Cas
Slide 10: Cash Conversion Cycle
Cash Conversion Cycle (Based on a rolling three-month average) March 31, 2025 December 31, 2024 March 31, 2024 Days of sales outstanding 86 84 75 Days of supply in inventory 13 13 14 Days purchases outstanding (84) (79) (73) Cash conversion cycle 15 18 16 10
Slide 11: Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow and Adjusted Free Cash Flow ($ in millions) Three Months Ended March 31, 2025 2024 Net cash provided by operating activities $ 287.2 $ 440.0 Capital expenditures (26.9) (29.5) Free Cash Flow* 260.3 410.5 Net change in accounts payable - inventory financing (11.5) (46.1) Adjusted free
Slide 12: 2025 Capital Allocation Priorities
2025 Capital Allocation Priorities PRIORITIES OBJECTIVES ACTIONS Target ~25% payout of Non-GAAP net ~1% increase in November 2024 Increase Dividend annually income; grow in-line with earnings to $2.50/share annually Target ~2.0 to 3.0 times Net Leverage Ratio; (1) Maintain Net Leverage Ratio consist
Slide 13: Outlook
CUSTOMER SPEND U.S. IT growth plus a premium target of ~200 to 300 bps 2025 (1),(2) GROSS PROFIT Low-single digit growth Outlook NON-GAAP EARNINGS PER DILUTED SHARE Low-single digit growth 1. Certain annual outlooks are provided on a non-GAAP basis because certain reconciling items are dependent on
Slide 14: Modeling Thoughts
Modeling Thoughts Metric Expectations • Mid-to-high single digit sequential growth in Q2 leads to low-single digit year-over-year growth Gross profit • 1H slightly lower than 2H, but slightly weighted more to 1H than historical splits • Currency expected to be approximately neutral for the year • Ap
Slide 15: Questions and Answers
Questions and Answers ———————