VRT

Vertiv 10-Q Report – 7.8% Net Sales Increase

Vertiv Holdings Co has recently released its 10-Q report, revealing a 7.8% increase in net sales to $1,639.1 million in the first three months of 2024 compared to $1,521.1 million in the same period in 2023. The company, headquartered in Westerville, Ohio, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments globally. Vertiv offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure. The company provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems under various brands such as Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent.

In the first three months of 2024, Vertiv reported a gross profit of $566.4 million, representing a 14.3% increase from $495.5 million in the same period in 2023. The company's selling, general and administrative expenses (SG&A) increased by $5.3 million to $314.0 million in the first quarter of 2024, primarily driven by increased compensation costs and professional service fees. The company also reported a net loss of $5.9 million in the first three months of 2024, compared to a net income of $50.3 million in the same period in 2023. This change was primarily due to a loss of $176.6 million from the change in fair value of warrant liabilities, as well as a decrease in income tax expense of $44.5 million in the first quarter of 2024.

Vertiv's 10-Q report also highlighted the company's investments in capacity expansion to meet current and anticipated additional customer demand and its focus on developing new products, services, and solutions to serve the increasing demand for AI infrastructure. Additionally, the company acquired CoolTera Ltd. in December 2023, further strengthening its advanced cooling technology and adding to its existing thermal management portfolio.

The report also emphasized the company's efforts to mitigate risks associated with long-term fixed price contracts, competition in the infrastructure technologies industry, and fluctuations in foreign currency exchange rates. Vertiv's outlook and trends highlighted its aim to create a world where critical technologies always work and empower the vital applications of the digital world. As a result of these announcements, the company's shares have moved 3.3% on the market, and are now trading at a price of $93.31. Check out the company's full 10-Q submission here.

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