Insight Enterprises, Inc. has recently released its 10-K report, providing a detailed overview of its financial performance and operations. The company, founded in 1988 and headquartered in Chandler, Arizona, specializes in providing information technology, hardware, software, and services both in the United States and internationally. Its services include modern platforms/infrastructure, cybersecurity solutions, data and artificial intelligence, modern workplace and apps, and intelligent edge solutions. The company serves various industries, including construction, financial services, healthcare and life sciences, manufacturing, retail and restaurant, service providers, small to medium businesses, and travel and tourism.
In the 10-K report, Insight Enterprises reported gross profit of $1.8 billion and a record gross margin of 20.3% in the full year 2024, driven primarily by margin expansion in North America. The company generated cash flows from operations of $632.8 million. However, net sales decreased by 5% to $8.7 billion compared to 2023. Earnings from operations decreased to $388.6 million in 2024, representing 4.5% of net sales. The company reported net earnings of $249.7 million and diluted net earnings per share of $6.55 in 2024, down from $281.3 million and $7.55, respectively, in 2023.
Insight Enterprises also highlighted the impact of supply chain constraints and inflation on its operations. The company noted that supply constraints that had an industry-wide impact since the beginning of 2020 eased in the second half of 2023, but it continues to see a general slowdown in clients' decision making. Inflation contributed to higher interest rates on all of its variable rate facilities in 2024 compared to 2023.
The report further delved into the breakdown of net sales by offering category for North America, EMEA, and APAC. It revealed that net sales of products (hardware and software) decreased by 8% in 2024, while net sales of services increased by 9% compared to 2023. The company's net sales by operating segment for 2024 and 2023 were as follows: North America ($7,054,580 in 2024 vs. $7,382,354 in 2023, a 4% decrease), EMEA ($1,414,097 in 2024 vs. $1,563,654 in 2023, a 10% decrease), and APAC ($233,021 in 2024 vs. $229,832 in 2023, a 1% increase).
Today the company's shares have moved -1.2% to a price of $165.58. For more information, read the company's full 10-K submission here.
