CLMB - Earnings call transcript Q4 2024 | Climb Global Solutions, Inc.

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Operator

Good morning, everyone, and thank you for participating in today's conference call to discuss Climb Global Solutions' financial results for the fourth quarter and full year ended December 31, 2024.

Joining us today are Climb's CEO, Mr. Dale Foster; the company's CFO, Mr. Matthew Sullivan; and the company's Investor Relations adviser, Mr. Aaron D'Souza with Elevate IR.

have earnings the issued press at X:XX should full quarter yesterday everyone approximately XXXX year release, p.m. now, access fourth to and afternoon By which was Time. Eastern of in Investor available is Solutions' release www.climbglobalsolutions.com. Relations The section at website Climb the Global

available be company's webcast replay also website. will on call for This the

Following call your be questions. the we'll management's open remarks, -- for

now comments. introductory like D'Souza Mr. for to I'd turn to the call over

Aaron D'Souza

operator. you, Thank

remind statements to differ could are cause are These these listeners conference from and forward-looking Before forward-looking that that as to results comments like in subject I materially unknown uncertainties introduce Private risks statements. and this webcast actual Dale, made assumptions those known as Act well the reflected call certain under forward-looking to and Reform of considered I'd statements on Litigation certain Securities XXXX.

being on forward-looking to made law, no forward-looking time with These described revision as undertakes SEC. any place are this other of are release company's to filings company the required date obligation Except the reliance subject to the forward-looking statements uncertainties as not the or risks that and results call. of by also publicly any to Do statements, in statements. the any which time are revise from of only undue

business. SEC Our including margin in accordance effective as presentation and gross non-GAAP metrics net GAAP most rules. measures also measures, have and includes performance directly measures to EPS and the supplemental our certain non-GAAP billings, of adjusted financial All key with been operational comparable of income adjusted reconciled EBITDA, measures

the Form release in information the X-K other press find You'll and reconciliation we with furnished yesterday. charts in SEC important earnings

Foster. the like to call now Climb's CEO, to Dale over I turn would

Dale Foster

morning, Thank everyone. Aaron, you, good and

metrics. capped Our achievements another exceptional our These all off underscore financial key year of fourth core marking team's initiatives. our record of results across execution quarter XXXX, performance an

card and organic and new goals. acquisition vendors delivering vendors A-LIGN focus customers growth relationships on deepening to emerging continue to while signing on our our We by with existing

them, the quickly the but signed XXX innovative In of I'd in evaluated a of technologies X only vendors on highlight focusing wins. brands year, XX evaluated these segments. with only to partnered we most them. and of XX we market like Throughout couple over QX, agreements with our

a First, a AI cyber-resilient aims secure leader partnership in for launched across we their expand data with North environments. scalable, Scality, America, to software organizations Scality's global strategic for enabling storage and needs. reach to collaboration access storage high-performance growing solutions This

to drive agreement and a work Next, teams innovation with automate workflows we empowers scale signed Smartsheet, and with and dynamic an collaborate, platform flexibility that management security.

We and are with way. products of relationship their vendors each a excited to collaborate market, to mutually-beneficial building these along the bring

our continue real-time across and of make accessibility progress ERP streamlining system, We with data to new in enhancing step processes implementation critical operations. global the a the

the are still we stages, already in we in seeing While are improvements early transactional efficiency.

optimizing and anticipate we continue agility, benefits, systems, across unlocking additional we our As organization. operational greater effectiveness the driving visibility

we our announced several Matt Officer following Clark. retirement of Chief our changes leadership the Financial In appointed start, January, To team. we Sullivan Drew executive to

contribution promotion role and invaluable has Matt Corporate role accretive as due the X for congratulate financial his growth internally his Chief has He Accounting accounting played strategy and Officer, Since reporting, also on to Climb's overseeing since helping XXXX. planning. Matt to in his risen for external, compliance our years, advancing Drew thank most our drive functions, through well-earned pivotal President, including Controller, Climb global in to internal us like acquisitions I'd Vice as a joining recent over XXXX CFO. diligence and

pivotal Climb's who role success. Shortly have also in played we the driving after of promotion leaders appointment, announced and Matt's growth a X

our commitment to talent our track and Climb. record testament First, as to nurture of dedication to Kim's Officer. is Marketing appointed Stevens and Chief we Kim has success proven a within been excellence

Next, taken ecosystem, to in Alliance innovative and responsibility Climb proud Charles a Charles the of seeing achievements Officer Chief Client for into for positioning they new of in our global Global role the has partner in will impact forward growth. I'm marketplace Solutions. look these X was I trusted the most Bass onboarding that on technologies the our as promoted our newly-created identifying, their of to individuals, to make continue vetting and roles.

Compensation Chairman a of January, in the over Board years At John John the announced has as XXXX and sector our we Climb him of of lead John the Climb's with forward the working of technology and to member, drive to of He XX Board We're Board proud is vision of the strategic currently as end looks Chair. also executive McCarthy experience serves appointment since Board. Committee forward. our Director new our to leadership. have team

we our strengthen some view opportunity while We're an leaving this have as exit our the to we excited public to about to further mix diversify ahead. offerings. holes of Citrix year And fill channel, the the and due

Looking continue a while building foundation improving leverage. organic generate strong operating further ahead, growth solid we will on to

record evaluate to opportunities organic solutions robust as geographic footprint inorganic XXXX. coupled execution our our well enhance deliver and We expand with enable These in initiatives, and and on overseas. sheet, the initiatives to a will in also as will that us offerings our balance demonstrated will M&A continue of U.S. and our track services

results. will to the I Sullivan, you call financial the With take over to our that, Matt through turn CFO,

Matthew Sullivan

fourth as variance specified. and everyone. address the A reminder to comparisons CFO. you I'm quarter, otherwise prior for the first Thank for refer financial pleased all time year quick to as morning, we review the commentary you, unless Dale, Climb's and new our good quarter, results

to billings release, billings million, million, million million. to Distribution to gross gross increased XX% decreased $XXX X% Solutions segment As earnings $XXX in $XX the and reported quarter. compared increased in $XXX year-ago to our press XX% billings segment gross

organic contribution our primarily from of and in last sales year. DSS as as of which to increased XX% July existing quarter fourth new $XXX.X in reflects Net growth the to acquisition compared from vendors million, million, XXXX of $XXX.X well

and by profit XX% the was billings North from as profit $XX.X DSS. fourth organic growth and compared Gross to Gross contributions quarter gross as driven as million, increase both million. in to new from existing percentage X.X% the of America compared a period. X.X%, Again, $XX.X vendors Europe well to in was increased the the year-ago in

SG&A the $X.X in million, expenses compared compared for DSS to fourth were of same $XX.X percentage as decreased in from to the year-ago $XX.X the for X.X% a SG&A quarter period the XXXX. X.X% of accounted million gross period. SG&A in billings million increase. to

per compared to quarter per XX% share, share $X.X increased fourth in the XXXX or or for $X.XX to million in income Net of $X.XX comparable diluted period $X the million diluted XXXX.

a in impacted income acquisition change associated As release, our charge press with in Limited. Spinnakar was million fair contingent a $X.X of value referenced consideration related net to by

share period. XX.X%, gross vendors was increase from both net to compared EBITDA the compared Adjusted Adjusted from per the $XX.X increased prior-year year-ago share, to or XXX income diluted per in million XX% points diluted in quarter. million to increased The to well percentage existing by basis to a margin driven million $X.X as the DSS. period. aforementioned or or to XX.X% as $X.X increased in Adjusted effective the $X.XX profit $XX.X of million, EBITDA growth new year-ago compared the for $X.XX contribution as XX% quarter fourth organic and

of million this for XX, compared vendor at receivable XXXX, paid cash were $XX.X December period. payments. on working $XX.X our million acquisition of our equivalents cash Turning million was XXXX, $XX.X closing during of Cash by as to primarily sheet. DSS as decrease and to balance capital the as million of about while and to decreased $X.X December attributed The in timing the cash well collections XX,

under million with credit with revolving December had we XXXX, $XX JPMorgan of As outstanding borrowings our outstanding of XX, Chase. debt facility $XXX,XXX no

XXXX, common record $X.XX share of quarterly our and Directors declared XX, of as February XXXX. XXXX, XX, dividend of a payable stock on On March XX, our to Board of March per of shareholders

Looking position while with organic inorganic the with to our growth worldwide. our and and us strong expanding to customers ahead, opportunities both liquidity vendors continues relationships pursue flexibility provide

in on are we to another be profitability and XXXX. North disciplined to and we evaluate to accretive a we continue targets year execution, a will M&A the well-positioned enhance With front approach active deliver and in expansion America growth on of focus as believe both We overseas.

our concludes remarks. prepared This

those open now for the in up you. will We from call. questions participating Operator, it back to

Operator

from [Operator take question our Instructions] Barrington Vincent first with Colicchio And we Research. will

Vincent Colicchio

Dale, quarter. nice in Yes. the job

Matthew Sullivan

Thanks, Vince.

Vincent Colicchio

it have you Because Did any large deals the was in quarter? quite result. unexpected a

Dale Foster

Yes.

goes VAST vendor that really our So came -- been it's and our we Vince. relationship far Western as taking plan, this, said of a acquired that's is quite if to a this vendor as up to think Europe, it U.S. back to with years, ways, you a plans the But it's on that. Spinnakar, listen strategic technology the here we've And acquired and we back couple coming starting -- it I

a then and relationship to So U.S. we there started the with

So for we have XXXX. some good things

But quarters. the across yes, just in also, great some deal outside in that that, a all of we had just our of large had at VAST But had end we We the came a that looking helped numbers. QX. lumpy QX divisions of growth

And larger our is typically QX one.

that SaaS same in year. should hammering the in big, revenue keep get you that applications recurring software and quarter selling you're that's if So next you

well. taking we're that as So of advantage

Vincent Colicchio

amongst Did your security growth segments? lead continue to

Dale Foster

seeing and better. AI XX% vendors A still security, put between out build portfolio. It their It now components make XX% we're to into to did. word of from vendors new just money our flow their did. is and It making up of lot our investors products

We'll come as So XXXX. that we'll really announcements see the talk that in out. about

Vincent Colicchio

And how versus your did expectations? DSS perform

Dale Foster

their mean not I good. biggest education do heavy QX They market. quarter they're the is because in

their but isn't So And as -- seasons the the state QX you're quarters. were into the QX. buying one -- nothing but and and They up local end governments. going of it's they at year-over-year, really off of of it then kick bigger

Vincent Colicchio

number vendors, you the year, of Of number them How I'm forgetting of productive? added you would were that? the the for all that characterize off-hand,

Dale Foster

Yes.

a building the you relationship, work kissing because say, hey, a before think a it's lot getting say, us. frogs for and lot good a fit I is the much when like is sign as So as vendors hard this can vendor upfront vetting you of you that of

selling. we to ops when as team because before to to the that's all from we sales onboard goes yes, inside gets start say, of them, finance even soon it have to energy back As the Climb goes consumed

up we perform. signed, look then or I at ago of they our and could -- We'll pushing picked just Elevate the a from But all we're ones know those direct transact as moving $X some with in that the be again, to to $X share that still we're we've didn't shift on that we've they're that indirect XX Scality alone, still team highlighted just they're because years we that if we've ago, And them launched off signed, But the brand. QX a an already So up. pushing probably I of -- quarters Climb we couple them. model. million, as million starts

but if have they launch to try try when that the to now I signed don't [ go run into quick to individual that a get move we ones, we to them. we ], to they -- get So and also at believe rate were we VAST don't or we

Operator

at [Operator questions time. back Dale it closing further remarks. any additional Instructions] And the to program turn will appears for no I now have or that we this

Dale Foster

supporting Thank you, operator. us thank for shareholders you our in again, XXXX. And to

I Climb. never miss our Just for thanking to year teams. a Also, great want

our of we a the for usually our celebrating. have countries. together all one the team planning year. had them finally ever kickoffs do. Bristol, did one We first We North U.K. in which beginning Europe, so EMEA pulled of couple get from into great in and days and different the We sales did of America, We at

to team I But in want thank job Tremendous XXXX. members. our

XXXX, we're our as have We us good in out work market we've but always for in a talked cut about. space just

again. Thank you thank So you, operator.

Operator

conclude This for presentation. participation. your today's you Thank Thank does you.

disconnect time. at may You any

Climb Global Solutions (CLMB) 6 Mar 252024 Q4 Earnings call transcript