SNX - Earnings call transcript Q3 2024

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Operator

Good morning. My name is Audra, and I will be your conference operator today. I would like to welcome everyone to the TD SYNNEX Third Quarter Fiscal 2024 Earnings Call. Today's call is being recorded. [Operator Instructions]

at opening to would the David Head Investor for the to Americas time of over call Jordan, Relations this remarks, like I pass and At SYNNEX. TD CFO of begin. may David, you

David Jordan

us Thank you. Good Witt, Zammit, call. everyone, and CFO. Patrick me is and for for today thank With CEO; today's you morning, joining Marshall

estimates, statements the today's well future fiscal statements for within forward-looking future we let periods. federal laws, statements strategy, Before securities contains about continue, other return flow, expectations me positioning, demand, discussion remind allocation projections including including events, plans as predictions, meaning and our stockholder about growth, you of or capital that our as the cash and

statements in of and update our other filed section Actual statements. filings from differ Form earnings results today's today, to may Factors and forward-looking materially do not Form a forward-looking in uncertainties risks as X-K discussed those of intend XX-K any in these with We release, the in Risk we the SEC. and the result reports mentioned

X-K release non-GAAP the call, results included certain of press will our reference GAAP including on available are Relations information, Investor website, Also during ir.tdsynnex.com. earnings billings. this to gross Form we non-GAAP related our financial in Reconciliations and

This not TD our conference be of call may permission. is SYNNEX recorded and the property without or rebroadcast

to Patrick? call Patrick. will now turn over the I

Patrick Zammit

to discuss for the to quarter as Good everyone, excited the TD for third morning, us and our David. of SYNNEX. time you, today results. you CEO first Thank today and I'm thank operating you address very honored joining

along business, partners trust and SYNNEX of the move would business our role our today ecosystem, as business and passion vendors play I advantage QX in thank take we priorities few I'll on update fostered for and the and for to key begin, the a the us start business confidence on brief TD I their for broader with coworkers collaboration we by together for Before to for their dedication our our the opportunities we forward call our performance. a thoughts providing in IT ahead. like

ecosystem, everyone small- vital We access service us Fortune in remain vendors XXX from who XXX,XXX go-to-market the reach, across medium-sized world specialized the solution is IT helping businesses. What providers approach. end-to-end to a and the global and our portfolio differentiates our link IT

a value by vendors propositions We accelerate services to and that recruit to go-to-market of customized our reach, growth. have provide increase enable full technology enable partners their suite and

passionate that this a All of of people an in are customer-centric team culture. grounded is exceptional driven by

trusted of fortunate Additionally, have IT around high-quality to we be continuing and are committed choice a and to ecosystem partner globe. relationships are the across the to

Moving our on business priorities. to

delivering record will expect We of growth and and have a continue. profitable long flow, that we cash free sustainable track

priorities. forward, focused our move we business As major on teams X are

The first well needs is we cover focus technologies, we which both be as emerging endpoint ensuring revenue franchises geographical area of ensuring expanding advanced meet will customers. existing of vendor growth, expansion, and our delivered the and vendors solutions as through

management. second The margin on pricing focused is being and priority

to disciplined continuing our proposition, portfolio and improving execution services of by in enhance this achieve our exceed expectations. remaining returns to enable expect We or meet to value to our our

is to is a of cost ensure This metric gross profit. managing SG&A focus to profit of helps growth. which area third profitable is we The non-GAAP gross drive our percentage, comparison to key a and

on operational pursue. make choose and opportunities gross the to through expect improve people decisions to automation our percentage technology We discipline, who profit we and in our investing embracing ultimately

flow The capital and fourth is we management critical It working cash generation. priority remain allocation. is around capital disciplined free

investments for and stockholders. to by focusing value We at are returns on committed cash accretive returning stockholders creating to excess

to performance. QX on our Moving

regarding IT In businesses. was QX be growth Solutions our IT our particular, optimism Advanced saw the across and geographic around we a and both quarter, We market Endpoint segments optimistic recovery. in recovery. market continue reinforcing to significant strong

grew X%, execution helping global our the of ahead card in above extensive These us billings and gross coming high market. reach, Additionally, are in of results QX line grow strategy that underscore effective end our slightly of our broad range.

Within the experienced mix we product margin in decline compares driven quarter, by Hyve. and year-over-year tough

Our cost on our to ability remained to while profit consistent, gross percentage demonstrating focusing growth. costs control our profitable

the to returning results ahead, our we and our about and SYNNEX. I'm excited of coverage on is And QX believe are expand the our uniquely we customers. services QX deliver value-added positioned to TD Looking solutions expectations, Based growth. trajectory to market and

to for of partner want distribution. do to reiterate IT team make Lastly, to my everything choice in the you our gratitude I us

people and industry. Our are the in differentiates what us our culture

to over on provide it pass now will outlook. additional so Marshall can that and our Marshall? he financial I performance details

Marshall Witt

Thanks, billings with gross good of today's and on everyone performance to QX Patrick, ahead had and We good in morning call. backlog increasing fiscal year-over-year. expectations

which We growth thesis of above regrew range. high slight a premium Solutions is guidance and Total Advanced market. end quarter, pleased our the both billion, and supports $XX.X year-over-year, X% the which at has IT to market growth were gross the to our Endpoint billing in to were that see the across up returned

with as-a-service Solutions by reduction are technology In by higher and basis. driven difference by cloud, of measures QX, recorded X net the the Endpoint there to offerings, hybrid driven net mobile mix and expectations software Advanced software year-over-year, gross revenue, and was a From XX.X% services. services. which billings between consistent X% Hyve, components, a PCs, perspective, Solutions from was grew grew on a XX% and driven which slightly

gross million $XXX comparison basis in Non-GAAP primarily year-over-year XX year-over-year tough of by Hyve mix. X.X% X% business and gross was driven points profit billings, or or down

Advanced year aged of recoveries as XXXX. experienced commented prior we Hyve, sits sold inventory margins the Solutions, recognition quarter, costs cost in in the through we which within carrying As to prior and incremental inventory elevated in due

from point prior Non-GAAP SG&A basis represented X.X% was non-GAAP which year. billings, improvement expense the of or $XXX XX million gross a

down. profit gross profit we believe metric a discussed, being Patrick is SG&A to new gross metric better we revenue as a reported our business expense compare than netted are As introducing to as of is non-GAAP more comparing

was to while percentage XX.X%, areas. profit QX to improvement by slight year-over-year driven in gross cost a growth continuing strategic The cost in balance management investments disciplined representing

Our as and business. gross we grow will profit to metric cost important focus our an percentage be

Non-GAAP which which distribution was due and decline operating Hyve down primarily $XXX expectations. million, income the billings, The of down Non-GAAP consistent year-over-year. was mix previously X% X.X% year-over-year, within margin with the discussed business. was basis to headwinds, we gross points our operating XX was

and $XX million, non-GAAP expectations. basis X.XX%, On rate effective a reported was and charges was margin points approximately the and Interest prior finance operating tax were the expense basis, XX revenue year down from consistent non-GAAP XX%. with

non-GAAP tax net was due than diluted was rate effective $XXX mix. guidance was and of expected Our EPS items our and $X.XX, discrete non-GAAP midpoint was range. favorable income lower which slightly the to million, above Total

the balance to turning sheet. Now

$X.X improvement working net This down year-over-year from QX, QX. And X of and net cycle was capital was conversion XX For quarter-over-quarter. billion, represented million days. cash the on days an $XX revenue based

stockholders generated of million quarter approximately As million dividends. of of quarter. a of $XX returned result returned of free have share and cash Year-to-date, $XX million flow capital $XXX stockholders was and repurchases the in to management, buybacks free million We million our and cash with $XXX form payments. dividend $XX we X in $XXX million strong the to for working flow

Similarly, shares billion paid dividends, cash our totaling million since or 'XX, of X.XX fiscal and flow. billion XXX% repurchased $XXX free have of we $X.X

sequential For quarter repurchases. share on slightly to capital a X, expect our increase basis, we towards allocation

stockholders $X.XX million dividend of quarter, For business $X.X October has Board our on and of and ended equivalents record of the payable be on will a $XXX XXXX, of We Directors cash cash the to close per XX, XX, debt approved with of billion. of XXXX. as quarter share, which current common the of October

Our also target of gross in was leverage net X.Xx. notes our that at paid million matured $XXX within QX, is was range. senior which ratio off we August X.XX%. In leverage X.Xx, And

to moving quarter. fourth for fiscal outlook Now our the

For to of representing the range midpoint. billion be $XX.X the $XX.X at billings to of in non-GAAP QX, we billion, expect growth X% gross

be which expect to XX.X%, approximately adjustment net of $XX.X translates gross billion We reported to $XX.X to our to billion revenue. percentage

of based Our guidance dollar X.X. to is a exchange rate on euro

$XXX of average range shares to $X.XX diluted to million. to to a of $X.XX net on the approximately expected Non-GAAP non-GAAP be income EPS per weighted million outstanding in share is diluted range is XX.X based be per expected And million. is diluted $XXX of which share,

Our non-GAAP is tax rate expense and to is expected to be million. interest approximately XX%, $XX be expected

flow QX, to stockholders, we approximately for the we in As close free mind returning committed and strategically flow to grow cash excess our free year to to fiscal needed business. investments keeping are out $X in cash billion generate expect

also and 'XX. is into result will working continue an expect to days, We returns investments cash result which in in through accretive spend fiscal fell 'XX, expected expand and as increased fiscal capital in IT will QX increase these to in demand but in

we to choice we the and believe in In distribution. remain to positioned recovery partner our the IT allowing be have of strong IT global unique fund sheet balance closing, capabilities, to a market benefit well us from

portion We call. Operator? the are begin ready to now Q&A of the

Operator

[Operator question David first Instructions] at from We'll take our Vogt UBS.

David Vogt

return what we your think think how sort about flow, the year When Maybe the the imagine a year, the would expectations, business of cash peaked next capital I and term? policy like conversion and IT, when which a talk cash we going intermediate the Marshall. business of over the in about about recovery looks of in cycle working has mix for maybe generation question and capital for cash sort sort flow of should you this into the preliminary

-- term. billion of the I flow of we on we're we coming think long should how weakened to of $X.X over think to kind cash know love about But talked hear couple next going about forward. over you've backdrop to of just quarters, year love getting thoughts given this last the sort your out that

Marshall Witt

question, the Yes. for David. Thanks

recovery $X.X free that can to that. still outlook So right, you're out believe that will 'XX for and we continue our we growth, capital. to increase of medium-term into attain the cash 'XX be we billion working what continued But given and flow, need expect of our in

about up point the the the blend good of and a You business. mix bring

As longer you the for their on or carrying know, needs. to regards carrying model capital has costs longer working in requirement days Hyve

expand, our increase that working will to we continues that, that think if do overall So capital.

XX probably quarter we days. I'm exponential think typical and right that, X%-ish year. looking still a XX do it as that more we'll still we're and a appropriate. at And right We next think is conversion X go as the growth beyond, we XX that's maybe into we that growth beyond, see to XX, range, for not giving days proxy, back that call just target then the around our as and cycle Stepping if cash target,

finish to for our And comments our around the fiscal we fiscal north modeled we that be $X given yet said billion, 'XX we'll haven't expect that But of expectations. where about is out 'XX expectation for 'XX. we

David Vogt

Right.

flow so factor So just the of the to in is vectors. and growth of look sort like cash paraphrase, maybe next terms swing Hyve year, of different what working could given -- cap Marshall, sort big

Marshall Witt

when mind, well. that as out big strategic distribution, large That buys. times, of recovery past They're can spoken is as the we that at we what the correct. in but swing Hyve, do we've, contribute kind factor not call we've within Keeping in as positions come do also for of certainly

Operator

move Northcoast at to We'll next Housum Keith Research.

Keith Housum

capital working and extra on that little quarter, perhaps, also the can for customers investing I you had Can the large a bit little And last bit impact if provide the quarter? the more you money perhaps had of to building I adding. in terms you spent gross this to the think color guys Hyve margins back business, a speak look In that? up and you're whatnot training on

Marshall Witt

the for Keith. Thanks question, Yes.

X You're X that right. to X. in ramped we in The continue customer in and strength our that And will expectation quarter show beyond. quarter to good spoke quarter continued is

news good build. is that to So is that continues -- the

we As next to headwinds also margin had saw QX but into that the year. that in be into mentioned, expected and some a quarter, we going headwind

resources, we've and to that to make for address the of need where in out get and You're the to solutions continue the and right capabilities right, end-to-end to meet footprint capital Hyve investments needs and is we the be got to we ensuring the building there business.

impact our gross benefits experienced on inventory customer of And quite One as you Hyve More the in we to just markup. to carry Hyve year 'XX. coming the on for QX carry gives of QX, as remember, us prior quarter, profit. is through, sold and bit X and the fiscal we a out aged us margin a also and it that out pays that specifically,

us to in a and year benefit last So QX significant that of had QX.

one-off They're programs. half recovery of cost some in the nature. had in also They we then And year. through second last came

the comes good making So profit think decline from if majority we're terms in where our then it profitability QX of the was and the of year in you grow in strength investments to year-on-year, back performance overall due in those about this the and year just to step business. last

Patrick Zammit

add margins. would thing. one I mean, enjoyed And I like to just higher Hyve

grow to we with have and our results. it on our be accretive will positive as So impact will a Hyve, mix

Operator

Next, RBC Markets. we'll Capital move to Ashish at Sabadra

David Paige Papadogonas

early into just Paige quarter. driving for is strategic I one what had the in read strongly. which on Ashish. little This provide you just -- color 'XX. if quick the growth seems growing And give then more a Maybe a to technologies, can, during an strength continually David fiscal strategic was you could be regarding the bit technologies very on maybe in

Patrick Zammit

Yes.

it's clearly, know, cloud, continue It to And nice as year, will in market, continue massively. AI to the roughly security AI. markets invest have enjoy will specifically, announced hyperscalers that it's Hyve. strategic So invest billion. those also and This particular, the $XXX you And they includes growth. technologies, they

thanks participate that also mean, we'll Hyve, I market. to in

growth, see distribution, will we in in that growth of So which acceleration of I the I security mean, besides the up. investments rate cloud, AI, mean, hybrid hyperscalers drive and that -- the to continue the in

Operator

to next at James. Adam move We'll Raymond Tindle

Adam Tindle

start question Working seeing just in is strong were on just of a increased. wanted billings, philosophical gross Obviously, the I what to down. very business. intensity on kind margins Okay. growth but capital we're here running

that's into continue QX. going the of explanation to but some on Hyve, understand I

areas just grow? wondering areas precursor focus to sacrifice to expect QX bit we're growth your X and QX, a if potentially order sort at on look little I'm more a is or for of on where bit X under what and those investors So little you should this those leadership, other less going in a

in strategy? the example, And X been didn't that or for know play if you so, of I which a right industry the that either component a help kind be part this You've And players those time. out really seen why long would in of We've through shareholders. lived distribution, of.

priority growth of on growth the kind curious revenue focus the on first that that speaking, was mentioned. just given generally So you and

Patrick Zammit

question. Yes. No, thanks a the lot for

I So focused on growth are clearly, mean, profitable flow generation. cash and we

that sales we being at expectations exceeding, by and you So had bit course, results look you the of when little a the very nice of our margin a quarter, this muted. growth see way, more the

mix. the vast percent of explained, GM related majority and Marshall then decline is as Hyve Again, the to related to the

Going improvement percent, forward, to an think we mean, reasons. I going I GM the X see on are

when we the one and at driving that APJ faster we sales what a So increase, America. standpoint than of first operating the North recovery better in Europe see the And growing is is you America, enjoy from geographic North margins. look are

So accelerates as have market it's recovery, to the North mix. American on going positive its impact a

we accretive. I the is, large reason I second at were deals. some in The mean return again on are those which mid-segment. But we margins moment, the mean, higher have the benefited deals, the from right

recovers, again, we so improvement of margins. an again mid-segment And the see should as the

I on is the we want point to which if to of percent to make GM we improve it the I services. last need to our sustainable, The our going at want strategy. be increase its insist mix of is core services, and mean

to are you referring component the business. So

I at the only there, to record And the here. look at on track always same intend If quality. but do growth I also my the growth you focused margin not right

least is faster. same that the growth sales, for profitable again, make at GP If and at if pace is with target growing sure as margin, the lower But we large not we the return deals right. go will really

Operator

Michael Goldman to next at Sachs. move We'll Ng

Michael Ng

I you was AI little up bit Are on wondering from I more Endpoint. there specifically PCs. a talk on just just one have what could seeing PCs if around the quarter? in you're showing benefits any

Endpoint a just if Solutions could also sequentially. obviously decline also least Hyve, but And saw of lot Endpoint at you on talked comment a gross We've bit about margins. little margin a

Patrick Zammit

Mike. for Thanks lot Yes. a question, the

So take PC market. see will in -- we I the what the

see all market regions. growth, PC in to is we the the and that back So

pace high were expecting of and Now muted expected. single-digit growth, more We low were single-digit more we is the to recovery growth. mid- slightly in than

the we going both that an PCs, of growth. so but the acceleration the not evolves, AI talked pandemic and think only of in forward, tailwinds PC I particular, with replaced during should the refresh Now think XX, the we've required refresh being about, PCs XX the story and by Windows Windows that see I

AI PCs, very rapidly.

resell -- the the to low. the continues So be the PC again, moment AI in of weight PCs total relatively at

just the new coming being into PCs One AI that market. reasons are of the the

customers a the see coming. to at especially the a had by midrange bit, quarter. think be There of I beginning the will the the more little launches waiting of So We end of have quarter. been PCs series

that acceleration first And of half think an year. Marshall, next do again so to... I And we want will you see in the

Marshall Witt

It's okay.

it. covered You

Operator

We'll go Joseph at JPMorgan. next Cardoso to

Joseph Cardoso

pretty sounds broader -- say, So from this next, and recovery the let's IT of just environment. of into than a into VAR half confident who around a different It second partners, the we're a, what heading me. some of like you're are pretty you're mixed bit market for year is the seeing which more feeling in hearing your one maybe spending

perhaps Just confident where is vertical versus or still, can confidence curious out that maybe are a your most you what areas it, perhaps either around by other a feeling customer call driving sluggish. area recovery product that And you're flesh the here. the bit

Patrick Zammit

Yes.

So thanks a lot.

half second of is I the an the next back market. about expectation. in bit you the growth, So we little are look PC should Again, see below this And markets, -- recovery acceleration to year. we the the a when talked I mean, recovery at but year

networking. know mean, which the why which we explains table mean We half, bring down to technology got huge market -- I in normalizing. is backlogs, the The want tough compares double that digits. today the last is is that year. I we again had to But other had I second shipped year-on-year

be we the in So of compare. I end think at QX, the tough should

will year, again positive. we we next the have so And compare, normal a and should see

I coming are I market mean, Europe we is in BXB recovering should slightly -- It's a market. acceleration. the driven again, geographical I Europe flat, on down, bit little and also in X% some see to but really recovery distribution so The market market, is more the growth. I -- say want the would mean from aspect. again, I distributors BXC America mean, a well. for we what muted, Europe, -- faster. the APJ, is mid-single-digit see market is insist where, the is, serving and down. I also specifically, is the moment, the we but see North mean, BXC doing

by And technologies networking. here again, PCs, by come all market are we I back And expect driven better, doing mean, too. the the much to driven other

have an growth. of and of -- that So the next acceleration believe we good year we should because that, we see a should

Operator

our to move next at Ruplu Bank Bhattacharya of question We'll America. from

Ruplu Bhattacharya

I have two.

over do investments you to Patrick. where Is enhance? next want see year? happy portal? for one you the with Patrick, something First your the that you Are

make And the over then further need impact where you your invest that that? to to to drive need about you AI, thoughts you on enhance take card area as do advantage of to next So or year. the of think we think investments just your in growth any line

Patrick Zammit

to technology in So be key us. for to so going -- is start I want investment

in the America ERP, news the we've completed and that in On our conversions. both good is North Europe,

on one are we so And system. now

come to there, so the back expect to normal. And investments I

here, market there. support When our The our to proposition continue is to will of need particular continue weight enhance value increasing, platforms, in we in to for and the total invest. to mix it comes as-a-service, to Software-as-a-Service we

investments So particular. yes, in cloud in our platform more platform,

So yes, sorry.

Marshall Witt

AI. Go and cover ahead AI.

Patrick Zammit

Yes.

see So we an demand. on AI, again, of I mean, acceleration

believe So the to category. AI called all as technologies. the know, only is not service that category, we've you developed covering category, to benefit the program Because and which also will to specific a but our networking AI, endpoint software the we go-to-market category, Destination

today, very line our well fact, you positioned. card in those technologies, look at on are, we If all

We to already the in have believe, leaders, I we us -- will mean, enable the market. win which

and already today, constantly look that proposition our competitive. value that we remains product are in think I we mean, partners very well yes, So make at But we sure space. portfolio positioned our new again, to

Marshall Witt

AI an us growing And previous for They regards in in Ruplu, mentioned That to to partnership we continues has this experience opportunity significant to we've into just go be one and a Hyve, continue XXXX. thing expand to add to discussions. as business with on NVIDIA. and

Ruplu Bhattacharya

looking help us debt up this capital priorities. you mean any are things? Marshall, M&A and you reduction? -- potential I in can just help at can allocation can prioritize space if follow buybacks? or So I So on you how these us

Marshall Witt

to Sure. I'll Sure, M&A Patrick his there, Ruplu. and thoughts I'll close and have speak then it. first

Patrick Zammit

Yes.

technologies to geographies be opportunity capabilities. acquire in to So to M&A for us to growth or accelerate continues specific or specific an acquire

The second look always disciplined. you thing I very would at mention is been we've that policy, M&A our when

financial go going only that we meet will to expectations. return M&As we the our So for where know is

the very wanted a track of thing we integration. And is to M&A third record have add and successful I

look all at of acquisitions mergers merge Avnet, have SYNNEX. accretive. or the those Again, acquisition the been Tech and between Data You

true We companies. integrating have a expertise

of because And to strategy. of so continue be will M&A, the part that

Marshall Witt

repurchase share allocation that the a buyback Certainly dividends. we holding And on and of years couple then, the ago. set on excuse me, -- our just XX-XX out Ruplu, to

million. at and looking since $XXX share repurchased -- our dividends of over X.XX And or returned overall 'XX, of the we fiscal shares repurchase billion

billion, about cash XXX% So $X.X totals that is of our free which flow.

prepared M&A there, So that back the where we our returning repurchase In to continue QX. to in plan to shares with pivoting back remarks, in it wasn't to filled the shareholders. we

at X.Xx in and that target range. net, We're feel standpoint, right with we're From gross the a we're leverage so where happy comfortable we're X.Xx at.

Operator

George next to go We'll Wang Barclays. at

Dong Wang

questions. X quick just have I

customer a of new curious to couple hone hyperscalers. Hyve, for kind assets the just logos. again, for be of concentration in Firstly, guys. expansion might ground And of are seeing when with Previously, I you on some just want there you

design curious the side, of kind in for if utilization also going the new wins curious the how have assembly is but Just assembly lines. you

Marshall Witt

Yes. Thanks the for question.

key we So in in that a 'XX. into landed continued quarter we X X, quarter have about customer spoken have that bit customer a That's of a and do expect one of to on quarter good and diversification. hyperscalers of continue strategies, prior next opportunities at We building grow customer tier out the capabilities. both done in newly will quite to the the really expand and focus and job our our

And strength of specifically, our has bit attribute of and us, a attention an for a quite or onshore capabilities interest been capabilities. getting bit quite a those in

One of it's to onboarding aspects a a customer, months of minimum. long. It at take XX XX the can

pipeline So onboarding that close start what a we part slows as we into land down. nevertheless, we're tends year. to I'll like of a what to that us and customers some call to going go be pipeline prospects, But do next of

Dong Wang

Okay.

on the follow-up quick a utilization. Just

curious the capacity. Just talk you some guys excess there's if about guys you if about can have you utilization. any talked change in Previously,

backfill current to the is demand the capacity. some going increase of whether curious in Just

Marshall Witt

Yes.

business where today We next the it have couple capacity enough to expect the of we years. and handle over go to

Dong Wang

Okay. Great.

quickly, if squeeze in. I Just can

corporate enthusiasm, just continued AI spend impending PCs? Some P&L. sort traditional interim of period, it'll you AI you have sort because But of I of on the the PC any the into you in have of PC. of -- of flow might this you terms AI think about talk like competitors the cannibalization on wave of PC, PC have some Just any your have on near-term of when also, sort uncertainty curious if sort from kind changes the a just seen just

behavior you if over have any curious last change in the and dynamics Just months. the customer seen X

Patrick Zammit

is AI So up. the of weight ramping PCs

was than coming it. And we bit with are happening of AI I PCs launched think see PCs know, the the is mean to you of so mean are I Qualcomm. little -- the have now. Intel as I I opportunity AI expected. we going first PCs mean just we as come. new AI -- were AI the a I So launch is one slower It again, the PCs. explaining,

PCs. the so see the midrange, And with in offering, we of product adoption in of the increase an especially the AI acceleration should

Operator

And Valero we'll next, to at Loop Alek Capital. move

Alek Valero

non-GenAI demand? have seeing pickup server any question. you of guys sort normal a I non-GenAI Are in

Patrick Zammit

don't statistics would new is we looking what see we enough transparently, take I say, have still, enterprises So is are that GenAI the know and it. to we utilize at yet on advantage technology. -- What how of

resellers initiative little identify position to That's our GenAI end a right use the and the with bit Destination So users our time. helping taking of AI aims cases. at

So mean in the next GenAI have confident year, term. impact the probably positive again, server the next more that I half think we the are not see on I very to But a going market. we're benefit will of year, second in short

Alek Valero

Got it.

a quick any seeing you impact customers? changes rev slightly XQ guys or question. large Just Are from different at XQ to

Marshall Witt

just did QX that we I you can Alek, repeat again? and QX? have in heard, seen customers large the impact, you from say

Alek Valero

customers through right. from XQ revenue Yes, or impact QX? large any Yes, that's

Patrick Zammit

I the of an little continues we yet demand. so in America seeing in the bit the more status muted, acceleration no, the North for that to as are moment, of particular, a mean, market, okay? So segment today. of that's Yes, So be

Marshall Witt

is broader, do a any clarify, are cash there see question the think I Patrick lower larger a couple corporate large of quarter? activity given days. in deals that but to had just the then the Alek, we great referenced, returns margin And impacts

So outside But of that, not those come go. much. and

Operator

now back I concludes will our closing over conference Patrick remarks. Q&A session. that for the turn And to

Patrick Zammit

you Yes. much. Thank very

serving customers, for to look I globe our to marketplace large. and their good coworkers and So technology before forward call, at the we wrap to reconnecting dedication to our day. the acknowledge next vendors everyone Thank today's we XX,XXX quarter. you the want just a across call, Have attending for

Operator

your conference today's concludes And this call. thank Again, participation. for you

You may now disconnect.

TD SYNNEX (SNX) 26 Sep 242024 Q3 Earnings call transcript