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Coya Therapeutics Reports Statistically Significant Improvement of Inflammatory Blood Markers in Patients with Alzheimer’s Disease Following Monthly Dosing with Low-Dose IL-2, Further Supporting Clinical Development

Coya Therapeutics Reports Statistically Significant Improvement of Inflammatory Blood Markers in Patients with Alzheimer’s Disease Following Monthly Dosing with Low-Dose IL-2, Further Supporting Clinical Development

Investigator-initiated data from Houston Methodist Hospital showed LD IL-2 reduced proinflammatory factors, both systemically and within the central nervous system, while demonstrating statistically significant improvement in beta amyloid 42 clearance with stabilization of cognitive declineover a five-month treatment period

Comprehensive data set will be presented and released throughout 2025 and in a peer reviewed publication

HOUSTON–(BUSINESS WIRE)–Coya Therapeutics, Inc. (NASDAQ: COYA) (“Coya” or the “Company”), a clinical-stage biotechnology company developing biologics intended to enhance regulatory T cell (Treg) function, announced encouraging blood biomarker data from an investigator-initiated, 21-week, double-blind, placebo-controlled, exploratory Phase 2 study of LD IL-2 in patients with Alzheimer’s disease (AD).

Statistically significant reduced levels of proinflammatory markers were observed in patients receiving a five-day treatment of subcutaneous LD IL-2 on a monthly cycle in comparison to a biweekly 5-day administration or placebo. Lower blood levels of the proinflammatory chemokine (C-C motif) ligand 2 (CCL2) (p<0.05) and proinflammatory cytokine IL-15 (p <0.001) were statistically significant, and a statistically significant increase in the anti-inflammatory cytokine IL-4 (p<0.01) in patients receiving monthly cycles of LD IL-2 was observed, compared to patients receiving placebo. At the end of the five-month treatment period when treatment was removed, the anti-inflammatory benefits reverted back to placebo levels. In addition, patients receiving LD IL-2 cycles at the higher biweekly frequency showed a smaller impact on these factors compared to monthly LD IL-2, supporting the potential beneficial effects of monthly LD IL-2.

“We believe the reduction of proinflammatory factors within peripheral blood corresponding with significant improvement in beta amyloid 42 in the cerebrospinal fluid and cognitive stabilization during LD IL-2 therapy underscores the importance of targeting regulatory T cells in Alzheimer’s disease. We believe LD IL-2 offers an immunomodulatory strategy that enhances Treg function for potentially treating Alzheimer’s disease and several other neurodegenerative disorders,” commented Coya CMO Fred Grossman, DO.

The statistically significant improvement in serum inflammatory markers corresponded with previously-reported findings from AD patients receiving monthly LD IL-2 compared to patients receiving biweekly LD IL-2 or placebo. Monthly LD IL-2 showed an increase in Aβ42 levels in cerebrospinal fluid (CSF), suggesting increased clearance of amyloid-β, stable levels of neurofilament light chain (NfL) in CSF, and statistically significant Treg expansion, all demonstrating targeted biological activity. In addition, patients receiving monthly LD IL-2 showed a 4.93-point improvement in the ADAS-Cog score compared to placebo over the 21-week treatment period.

Topline results from this investigator-initiated study were presented in October 2024 at the Clinical Trials on Alzheimer’s Disease Conference (CTAD) in Madrid. The main objectives of the study were to evaluate safety and tolerability, biological activity, and preliminary efficacy of LD IL-2 administered at two different dosing regimens. This academic study was conducted at the Houston Methodist Research Institute and received funding from the Alzheimer’s Association, the Gates Foundation, and the National Institute on Aging, with additional support from Coya.

LD IL-2 was well-tolerated and no serious adverse events (SAEs) or deaths were reported. The most common AEs were mild injection site reactions and a mild increase in eosinophil counts.

LD IL-2 plays a key role in the expansion and immunomodulatory function of Tregs in vivo. LD IL-2 binds to the high affinity interleukin-2 receptor α-chain (IL-2Rα; CD25), which is mainly expressed in Tregs. In contrast, higher doses of IL-2 also bind to the lower affinity IL-2Rβ (CD122), which stimulates proinflammatory T cells and NK cells. The improved biological and clinical effects experienced by patients receiving monthly LD IL-2 administration could be due to selective expansion of Tregs at lower doses, while higher IL-2 doses activate pro-inflammatory pathways.

Coya plans to publish and present the results of this study throughout 2025.

Coya CEO Arun Swaminathan, Ph.D., added, “While monotherapy with LD IL-2 shows targeted improvement in biological activity in patients with AD, as demonstrated in this early Phase 2 academic study, we think that combining our proprietary LD IL-2 (COYA 301) with several other immunomodulatory modalities could deliver additive or even synergistic targeted effects.”

Summary of Study Design

The investigator-initiated, randomized, double-blind, placebo-controlled Phase 2 trial evaluated two dosing regimens of subcutaneous LD IL-2 in 38 participants with Alzheimer’s disease that were between the ages of 50 to 86 and had Mini-Mental State Examination (MMSE) scores ranging from 12 to 26.

Of the 38 total participants, 22 were randomized in a 1:1 ratio to receive either five days of LD IL-2 (106 IU/day) (LD IL-2 q4wks) or placebo every four weeks for 21 weeks. An additional 16 participants were randomized in a 2:1 ratio to receive 5-day cycles of LD IL-2 every two weeks (LD IL-2 q2wks) or placebo for the same 21-week duration. All participants were monitored for nine weeks post-treatment, resulting in a total study period of 30 weeks. Demographics and baseline disease characteristics were comparable among the treatment groups.

The primary endpoint was the incidence and severity of adverse events (AEs), with the secondary endpoint evaluating changes in Tregs. Exploratory endpoints assessed changes in cerebrospinal fluid (CSF), AD-related biomarkers, and cognitive status.

About COYA 301

COYA 301 is the company’s proprietary investigational low-dose interleukin-2 (IL-2) intended to enhance the anti-inflammatory function of regulatory T cells (Tregs) and is designed for subcutaneous administration. COYA 301 is an investigational product not yet approved by the FDA or any other regulatory agency.

About COYA 302

COYA 302 is an investigational and proprietary biologic combination therapy with a dual immunomodulatory mechanism of action intended to enhance the anti-inflammatory function of regulatory T cells (Tregs) and suppress the inflammation produced by activated monocytes and macrophages. COYA 302 is comprised of proprietary low-dose interleukin-2 (LD IL-2) and cytotoxic T lymphocyte-associated antigen 4 immunoglobulin fusion protein (CTLA4-Ig) and is being developed for subcutaneous administration for the treatment of patients with ALS, FTD, Parkinson’s Diseases (PD), and Alzheimer’s disease. These mechanisms may have additive or synergistic effects.

In February of 2023, Coya announced results from a proof-of-concept, open-label clinical study evaluating commercially available LD IL-2 and CTLA4-Ig in a small cohort of patients with ALS conducted at the Houston Methodist Research Institute (Houston, Texas) by Stanley Appel, M.D., Jason Thonhoff, M.D., Ph.D., and David Beers, Ph.D. This study was the first-of-its-kind to evaluate this dual-mechanism immunotherapy for the treatment of ALS. Patients in the study received investigational treatment for 48 consecutive weeks and were evaluated for safety and tolerability, Treg function, serum biomarkers of oxidative stress and inflammation, and clinical functioning as measured by the Revised Amyotrophic Lateral Sclerosis Functional Rating Scale (ALSFRS-R) scale.

During the 48-week treatment period, the therapy was well tolerated. The most common adverse event was mild injection-site reactions. No patient discontinued the study, and no deaths or other serious adverse events were reported.

Patients’ disease progression was measured using the ALSFRS-R scale, a validated rating tool for monitoring the progression of disability in patients with ALS. The mean (±SD) ALSFRS-R scores at week 24 (33.75 ±3.3) and week 48 (32 ±7.8) after initiation of treatment were not statistically different compared to the ALSFRS-R score at baseline (33.5 ±5.9), suggesting significant amelioration in the progression of the disease over the 48-week treatment period.

Treg suppressive function, expressed as a percentage of inhibition of proinflammatory T cell proliferation, showed a statistically significant increase over the course of the treatment period and was significantly reduced at the end of the 8-week washout post-treatment period. Treg suppressive function at 24 weeks (79.9 ±9.6) and 48 weeks (89.5 ±4.1) were significantly higher compared to baseline (62.1 ±8.1) (p<0.01), suggesting enhanced and durable Treg suppressive function over the course of treatment. In contrast, Treg suppressive function (mean ±SD) was significantly decreased at the end of the 8-week washout period compared to end-of-treatment at week 48 (70.3±8.1 vs. 89.5±4.1, p <0.05).

The study also evaluated serum biomarkers of inflammation, oxidative stress, and lipid peroxides. The available data up to 16 weeks after initiation of treatment suggest a decrease in these biomarker levels, which is consistent with the observed enhancement of Treg function. The evaluation of the full biomarker data is ongoing.

COYA 302 is an investigational product not yet approved by the FDA or any other regulatory agency.

About Coya Therapeutics, Inc.

Headquartered in Houston, TX, Coya Therapeutics, Inc. (Nasdaq: COYA) is a clinical-stage biotechnology company developing proprietary treatments focused on the biology and potential therapeutic advantages of regulatory T cells (“Tregs”) to target systemic inflammation and neuroinflammation. Dysfunctional Tregs underlie numerous conditions, including neurodegenerative, metabolic, and autoimmune diseases, and this cellular dysfunction may lead to sustained inflammation and oxidative stress resulting in lack of homeostasis of the immune system.

Coya’s investigational product candidate pipeline leverages multiple therapeutic modalities aimed at restoring the anti-inflammatory and immunomodulatory functions of Tregs. Coya’s therapeutic platforms include Treg-enhancing biologics, Treg-derived exosomes, and autologous Treg cell therapy.

For more information about Coya, please visit www.coyatherapeutics.com

Forward-Looking Statements

This press release contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information concerning our current and future financial performance, business plans and objectives, current and future clinical and preclinical development activities, timing and success of our ongoing and planned clinical trials and related data, the timing of announcements, updates and results of our clinical trials and related data, our ability to obtain and maintain regulatory approval, the potential therapeutic benefits and economic value of our product candidates, competitive position, industry environment and potential market opportunities. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors including, but not limited to, those related to risks associated with the success, cost and timing of our product candidate development activities and ongoing and planned clinical trials; our plans to develop and commercialize targeted therapeutics; the progress of patient enrollment and dosing in our preclinical or clinical trials; the ability of our product candidates to achieve applicable endpoints in the clinical trials; the safety profile of our product candidates; the potential for data from our clinical trials to support a marketing application, as well as the timing of these events; our ability to obtain funding for our operations; development and commercialization of our product candidates; the timing of and our ability to obtain and maintain regulatory approvals; the rate and degree of market acceptance and clinical utility of our product candidates; the size and growth potential of the markets for our product candidates, and our ability to serve those markets; our commercialization, marketing and manufacturing capabilities and strategy; future agreements with third parties in connection with the commercialization of our product candidates; our expectations regarding our ability to obtain and maintain intellectual property protection; our dependence on third party manufacturers; the success of competing therapies or products that are or may become available; our ability to attract and retain key scientific or management personnel; our ability to identify additional product candidates with significant commercial potential consistent with our commercial objectives; ; and our estimates regarding expenses, future revenue, capital requirements and needs for additional financing.

We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed herein may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although our management believes that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. We undertake no obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Contact

David Snyder, CFO

[email protected]

CORE IR

Bret Shapiro

[email protected]

561-479-8566

Media Contacts

For Coya Therapeutics:

Kati Waldenburg

[email protected]

212-655-0924

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Health Neurology Clinical Trials Research Science Pharmaceutical Biotechnology

MEDIA:

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Zscaler to Host Second Quarter Fiscal Year 2025 Earnings Conference Call

Earnings Results to be Released on Wednesday, March 5, After the Close of the Market

SAN JOSE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, will release second quarter fiscal year 2025 earnings after the market closes on Wednesday, March 5, 2025. The company will host an investor conference call that day at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) to discuss the results.

Date: Wednesday, March 5, 2025
Time: 1:30 p.m. PT
Webcast:
https://ir.zscaler.com
Dial-in: To join by phone, register at the following link:Click Here. After registering, you will be provided with a dial-in number and a personal PIN that you will need to join the call.


Please dial in at least 10 minutes prior to the 1:30 p.m. PT start time. A live webcast of the conference call will be accessible from the Zscaler website at ir.zscaler.com. Listeners may log on to the call under the “Events & Presentations” section and select “Q2 2025 Zscaler Earnings Conference Call” to participate.

About Zscaler

Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 150 data centers globally, the SSE-based Zero Trust Exchange™ is the world’s largest in-line cloud security platform.

Zscaler™ and the other trademarks listed at


https://www.zscaler.com/legal/trademarks


are either (i) registered trademarks or service marks or (ii) trademarks or service marks of Zscaler, Inc. in the United States and/or other countries. Any other trademarks are the properties of their respective owners.

Media Relations Contact:

Natalia Wodecki
[email protected]

Investor Relations Contact:

Ashwin Kesireddy
[email protected]



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GrowGeneration Issues 2024 Year End Letter To Shareholders and Provides Business Update Including Preliminary Full Year 2024 Results

GrowGeneration Issues 2024 Year End Letter To Shareholders and Provides Business Update Including Preliminary Full Year 2024 Results

Includes Key 2024 Milestones and Outlook for 2025

DENVER–(BUSINESS WIRE)–GrowGeneration Corp. (NASDAQ: GRWG) (“GrowGen” or the “Company”), one of the largest retailers and distributors of specialty hydroponic and organic gardening products in the United States, today issued the following letter to shareholders commenting on the Company’s 2024 accomplishments, preliminary full year 2024 results and expectations and other operational updates from its Co-Founder and Chief Executive Officer Darren Lampert.

Dear Fellow Shareholders,

2024 was a year of significant transformation and progress for GrowGeneration. We accomplished a great deal and on behalf of our executive team and Board of Directors, I want to express our sincere gratitude to our shareholders for their loyalty and support as we’ve executed on our strategic restructuring plan to drive revenue growth, improve margins, and build a more efficient, profitable company.

A Year of Transformation

As we embark on a new year, I am excited to share the progress GrowGeneration has made in transforming into a product-driven organization with a business-to-business (B2B) customer focus. As part of this, we have been working to increase proprietary brand sales as a percentage of Cultivation and Gardening net sales. As a result, over 30% of our cultivation and gardening revenue in the fourth quarter of 2024 was driven from our proprietary products—a significant milestone towards driving higher margins and recurring revenue. This performance indicator aligns with our goal to grow proprietary brand sales to 35% as a percentage of Cultivation and Gardening net sales by the end of 2025.

Our proprietary brands such as Char Coir Coco, Drip Hydro nutrients and our Ion LED lighting solutions have been leading the charge. These innovative products, which are designed to reduce costs, improve yields, and deliver sustainability, have been widely adopted by some of the largest cultivators in the U.S. They are game-changers not only for cannabis operators, but also for vertical farming, greenhouses, and the expanding home gardening market.

Another key focus for us in 2024 was a digital transformation of sales throughout our entire organization with a B2B customer focus. Our new B2B e-commerce platform was launched during the fourth quarter of 2024 and customer feedback to date has been extremely positive. We intend to continue migrating transaction activity from our brick-and-mortar stores to our new digital platform. To complement this digital strategy, we have also been implementing a new fulfillment strategy, where commercial customers will shop online and have access to products at existing warehouse-style stores for convenient pickup.

During 2024, we further streamlined operations throughout our entire organization. We met our store closure target before year end and ahead of schedule, and maintained our focus on improving efficiencies, and reducing store and other operating expenses. We now have 31 operational stores and two regional distribution centers. At the same time, we have taken a number of actions to improve our operations, including reorganizing our sales, marketing, and administrative activities, rationalizing inventory, revisiting our strategic vendor relationships, and improving recovery of freight expense. All of these actions combined are expected to reduce expenses by approximately $12 million on an annualized basis, drive higher margins, and improve overall profitability.

Financial Strength and Momentum

In light of these achievements, I’m happy to deliver this update on our preliminary and unaudited 2024 results as well as other highlights of our progress. For the full year 2024, the Company anticipates:

  • Total 2024 net sales in the range of $188 million to $190 million;

  • Total 2024 proprietary brand sales in the range of $39 million to $40 million;

  • Positive same store sales for full year 2024;

  • Total 2024 storage solutions sales in the range of $25 million to $26 million;

  • Ending the year with a debt-free balance sheet and a strong cash, cash equivalents and marketable securities position of more than $56 million.

With the improvements made to our cost structure and store footprint, we are well-positioned for profitability in 2025. We’ve streamlined operations and increased efficiency, allowing us to focus on recurring revenue from consumables, including our industry-leading Drip Hydro powders and sustainable Char Coir bio pots. Additionally, our margins are improving steadily as our product mix shifts further toward higher-margin brands, supported by reduced overhead and optimized store locations.

Looking Ahead – Driving Innovation and Market Expansion

With everything we accomplished last year, 2025 is poised to be a year of proprietary brand growth and innovation for GrowGeneration as we continue to increase private brands sales, solidify our operational efficiencies and expand strategically. Hydroponics and consumable products remain at the core of our business, with Drip Hydro’s powders providing the lowest cost per gallon of nutrients without sacrificing quality. Complementing this, our Char Coir bio pots, coins, and other coco-based products are helping us penetrate the big-box garden center market while promoting sustainability. Further, our Ion LED lighting solutions and investments in under-canopy and energy-efficient technology are helping growers reduce costs while increasing yields.

With our 31 operational stores located in high-demand regions and two regional distribution centers, GrowGeneration has built a scalable platform for both B2C and B2B growth. Through partnerships with Amazon and other wholesale partners, we are also extending our reach into the home gardening and greenhouse markets, opening exciting new revenue streams for the Company.

With a new presidential administration in Washington, we believe that the cannabis industry is positioned for modest growth with potential advancements tied to rescheduling cannabis to Schedule III and SAFER Banking reforms. While uncertainties persist, our focus remains on enabling growth for our partners through innovative solutions, cost savings, and international supply chain enhancements.

In addition to driving organic growth, we also continue to identify opportunities to accelerate our growth through strategic, targeted M&A. With a debt-free balance sheet and a strong cash position, we remain focused on acquiring businesses that complement our product portfolio and expand our market share. Every acquisition is a strategic step toward becoming the dominant supplier of innovative, sustainable, and cost-saving solutions for growers nationwide.

In closing, GrowGeneration’s evolution has been bold, and our efforts are yielding results. With restructuring largely behind us, an improved cost structure, and a focus on higher-margin products, 2025 is set to be a pivotal year of growth, profitability, and innovation. Our transformation into a product-driven B2B organization positions us not only to lead in the hydroponics and cultivation sectors but also to grow across diverse verticals.

We are confident in the foundation we’ve built and the path forward. On behalf of the entire GrowGeneration team, I thank you for your continued trust and support as we enter this exciting next chapter. I look forward to sharing more exciting news with you in 2025.

Sincerely,

Darren Lampert

Chairman and CEO

GrowGeneration

About GrowGeneration Corp:

GrowGen is a leading developer, marketer, retailer, and distributor of products for both indoor and outdoor hydroponic and organic gardening, as well as customized storage solutions. GrowGen carries and sells thousands of products, such as nutrients, additives, growing media, lighting, environmental control systems, and benching and racking, including proprietary brands such as Char Coir, Drip Hydro, Power Si, Ion lights, The Harvest Company, and more. Incorporated in Colorado in 2014, GrowGen is the largest chain of specialty retail hydroponic and organic garden centers in the United States. The Company also operates an online B2B marketplace for cultivators at growgeneration.com, as well as a wholesale business for resellers, GrowGen Distribution, and a benching, racking, and storage solutions business, Mobile Media or MMI.

To be added to the GrowGeneration email distribution list, please email [email protected] with GRWG in the subject line.

Forward Looking Statements:

This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect opinions only as of the date of this release. Please keep in mind that the Company does not have an obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as “look forward,” “expect,” “believe,” “continue,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings made with the United States Securities and Exchange Commission, available at: www.sec.gov, and on the Company’s website, at: www.growgeneration.com.

KCSA Strategic Communications

Philip Carlson

Managing Director

T: 212-896-1233

E: [email protected]

KEYWORDS: United States North America Colorado

INDUSTRY KEYWORDS: Cannabis Online Retail Retail Agriculture Specialty Natural Resources

MEDIA:

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Alignment Healthcare to Announce Fourth Quarter and Full-Year 2024 Financial Results and Host Conference Call Thursday, Feb. 27, 2025

ORANGE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Alignment Healthcare, Inc. (NASDAQ: ALHC), will release its fourth quarter and full-year 2024 financial results on Thursday, Feb. 27, 2025, after market close. Following the release, the company will host a conference call to review its financial results at 5 p.m. EST.

Conference Call Details

A live audio webcast will be available online at https://ir.alignmenthealth.com/. At the start of the conference call, participants may access the webcast at the following link:

https://edge.media-server.com/mmc/p/oawc6g57

A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call at the same web links and will remain available for approximately 12 months.

About Alignment Health

Alignment Health is championing a new path in senior care that empowers members to age well and live their most vibrant lives. A consumer brand name of Alignment Healthcare (NASDAQ: ALHC), Alignment Health’s mission-focused team makes high-quality, low-cost care a reality for its Medicare Advantage members every day. Based in California, the company partners with nationally recognized and trusted local providers to deliver coordinated care, powered by its customized care model, 24/7 concierge care team and purpose-built technology, AVA®. As it expands its offerings and grows its national footprint, Alignment upholds its core values of leading with a serving heart and putting the senior first. For more information, visit www.alignmenthealth.com.

Investor Contact

Harrison Zhuo
[email protected]

Media Contact

Priya Shah
mPR, Inc. for Alignment Health
[email protected]



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AI, Data Tools Shape Brazilian Sustainability Strategies

AI, Data Tools Shape Brazilian Sustainability Strategies

Regulation, climate events spur companies’ environmental efforts, raising demand for services to improve performance, reporting, ISG Provider Lens™ report says

SÃO PAULO–(BUSINESS WIRE)–
Many enterprises in Brazil are directing technology investments toward environmental sustainability and partnering with service providers to identify and mitigate potential effects of climate change, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Sustainability and ESG report for Brazil finds that the adoption of environmental, social and governance (ESG) sustainability practices has advanced in the last year, though some companies still have not taken meaningful action. Climate change is in the spotlight after recent severe storms and forest fires, and organizations are becoming more aware of possible cost increases and supply chain disruptions triggered by such events.

“Brazilian companies with sustainability commitments are recognizing that long-term initiatives must have business benefits that outweigh the costs,” said Bob Krohn, ISG partner and industry lead for manufacturing in the Americas. “With the help of service providers, they are developing strategies that can be measured on the basis of rigorous methodologies.”

Many companies have poured resources into renewable energy systems, energy efficiency, electric mobility and sustainable building technologies, the report says. However, effectively integrating these practices into their operating models requires major investments in research, infrastructure and training. Enterprises are working closely with service providers that offer the tools to make a smooth transition to sustainable practices.

Though service providers in Brazil are launching new sustainability offerings more slowly this year, the use of advanced technologies to increase sustainability and meet ESG demands has intensified, the report says. Providers are using AI and ML to help clients improve the collection, validation, standardization and analysis of data, while generative AI is being applied to the design of more sustainable products. Automation has increased efficiency, and IoT has revolutionized the management of water and energy.

Sustainability initiatives and requirements are driving up demand for data platforms to gain insight into ESG performance, ISG says. Organizations are adopting AI and advanced analytics to improve data transparency and traceability. Starting in 2027, the national government’s Resolution 193 will require companies to assess their social and environmental risks and how those may affect their finances. This is expected to expand the market for ESG data platforms and services in Brazil.

The market for operational technology associated with sustainability is also growing, the report says. More enterprises are using automation to reduce waste and emissions from their infrastructure and deploying IoT systems for real-time data collection and asset management. Some companies have adopted digital twins and blockchain to record and control emissions.

“A growing number of Brazilian enterprises are seeking strategic partners to help them embed sustainable practices in their operations,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are crucial to planning these initiatives and monitoring and reporting ESG performance.”

The report also examines other sustainability and ESG trends in Brazil, including slower corporate progress on social sustainability and a growing commitment to the principles of the circular economy.

For more insights into the sustainability and ESG challenges facing Brazilian enterprises, plus ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Sustainability and ESG report for Brazil evaluates the capabilities of 66 providers across four quadrants: Strategy and Enablement Services, OT and Industry-specific Solutions and Services, IT Solutions and Services and Data Platforms and Managed Services.

The report names Accenture, Capgemini, IBM and Wipro as Leaders in all four quadrants. It names TCS as a Leader in three quadrants. Deloitte, EY, Microsoft, NTT DATA, PwC and Schneider Electric are named as Leaders in two quadrants each. Agrotools, AWS, BCG, DEEP ESG, EcoVadis, ERM, KPMG, Kyndryl, SAP, Stefanini, TIVIT and WayCarbon are named as Leaders in one quadrant each.

In addition, Cognizant, Schneider Electric and TIVIT are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, PwC is named the global ISG CX Star Performer for 2024 among Sustainability and ESG service providers. PwC earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Sustainability and ESG report for Brazil is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

[email protected]

Thábata Mondoni, Mondoni Press for ISG

Mobile: +55 11 98671 5652

[email protected]

KEYWORDS: Latin America South America Brazil

INDUSTRY KEYWORDS: Environment Technology Climate Change Professional Services Software Sustainability Data Management IOT (Internet of Things) Environmental, Social and Governance (ESG) Artificial Intelligence

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NV5 Awarded $5 Million in Substation Design Contracts by Northeast Utilities

HOLLYWOOD, Fla., Feb. 06, 2025 (GLOBE NEWSWIRE) — NV5 Global, Inc. (the “Company” or “NV5”) (Nasdaq: NVEE), NV5, a provider of technology, certification, and consulting solutions, announced today that it has been awarded $5 million in substation design contracts by Northeast utilities. These projects will strengthen electrical grid reliability and support the resiliency of New York and New Jersey utility infrastructure. The contract awards continue the expansion of NV5’s relationship with Northeast electric utilities and promotes double-digit organic growth with the Northeast utility sector.

NV5’s engineers will design substation infrastructure to expand the capacity of existing substations and connect to underground electrical distribution. Following the design phase of the project, NV5 will be well positioned to enhance the contract with cross-selling of additional services. Utilities throughout the U.S. are investing in substation and other electrical distribution infrastructure improvements to accommodate additional energy demands related to electrification initiatives and population growth.

“NV5 has expanded its utility design capacity along the East Coast to provide a wide array of technical solutions including planning, engineering design, surveying, geospatial, and owner representation,” said Ben Heraud, CEO of NV5. “These awards underscore NV5’s reputation as a leader in utility infrastructure engineering and consulting solutions to meet the nation’s growing demand for safe and reliable energy.”

About NV5

NV5 Global, Inc. (NASDAQ: NVEE) is a provider of technology, certification, and consulting solutions for public and private sector clients supporting utility, infrastructure, and building assets and systems. The Company primarily focuses on six business verticals: Utility services, infrastructure support, conformity assessment, buildings & technology, environmental services, and geospatial services. NV5 operates out of more than 100 offices nationwide and abroad. For additional information, please visit the Company’s website at www.NV5.com. Also visit the Company on Twitter, LinkedIn, Facebook, and Vimeo.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements, except as required by law.

Investor Relations Contact

NV5 Global, Inc.
Jack Cochran
Vice President, Marketing & Investor Relations
Tel: +1-954-637-8048
Email: [email protected]

Source: NV5 Global, Inc.



Posted on

Insight Enterprises, Inc. Reports Fourth Quarter and Full Year Results

Insight Enterprises, Inc. Reports Fourth Quarter and Full Year Results

CHANDLER, Ariz.–(BUSINESS WIRE)–Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter and full year ended December 31, 2024. Highlights include:

  • Gross profit increased 1% year over year to $439.6 million with gross margin expanding 170 basis points to a record 21.2% for the fourth quarter and gross profit increased 6% for the full year to $1.8 billion with gross margin expanding 210 basis points to a record 20.3%

    • Insight Core services gross profit increased 12% year over year for the fourth quarter and increased 15% for the full year

    • Cloud gross profit grew 3% year over year for the fourth quarter and increased 21% for the full year

  • Consolidated net earnings decreased 59% to $37.0 million, year to year for the fourth quarter and decreased 11% to $249.7 million for the full year

  • Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) decreased 11% to $141.1 million, year to year for the fourth quarter but increased 4% to $543.5 million for the full year

  • Diluted earnings per share of $0.99 decreased 59% year to year for the fourth quarter and diluted earnings per share of $6.55 decreased 13% for the full year

  • Adjusted diluted earnings per share of $2.66 decreased 11% year to year for the fourth quarter and Adjusted diluted earnings per share of $9.68 was flat for the full year

  • Cash flows provided by operating activities were $215.1 million for the fourth quarter and $632.8 million for the full year

In the fourth quarter of 2024, net sales decreased 7%, year to year, to $2.1 billion, while gross profit increased 1%, year over year, to $439.6 million. Gross margin expanded 170 basis points compared to the fourth quarter of 2023 to 21.2%. Earnings from operations of $64.7 million decreased 51% compared to $131.9 million in the fourth quarter of 2023. Adjusted earnings from operations of $129.4 million decreased 13%, year to year compared to $148.7 million in the fourth quarter of 2023. Consolidated net earnings were $37.0 million, or 1.8% of net sales, in the fourth quarter of 2024, and Adjusted consolidated net earnings were $91.1 million, or 4.4% of net sales. Diluted earnings per share for the quarter was $0.99, down 59%, year to year, and Adjusted diluted earnings per share was $2.66, down 11%, year to year.

For the full year 2024, net sales decreased 5%, year to year, to $8.7 billion, while gross profit increased 6%, year over year, to $1.8 billion. Gross margin expanded 210 basis points compared to the prior year to 20.3%. Earnings from operations of $388.6 million decreased 7% compared to $419.8 million in 2023. Adjusted earnings from operations of $502.4 million increased 2%, year over year compared to $492.1 million in 2023. Consolidated net earnings were $249.7 million, or 2.9% of net sales for the full year and Adjusted consolidated net earnings were $338.2 million, or 3.9% of net sales. Diluted earnings per share for the full year was $6.55, down 13%, year to year, and Adjusted diluted earnings per share was $9.68, flat, year to year.

“In 2024, clients continued to exercise caution due to the macroeconomic environment, which influenced their investment priorities and prolonged their decision-making. Still, Q4 met our expectations and we posted another record year of gross margin at 20.3% and cash flow from operations of $633 million,” stated Joyce Mullen, President and Chief Executive Officer. “We took critical steps forward with our offerings across key growth areas: cloud solutions and Insight Core services, and we continued building expertise and scale in other areas important to our clients, particularly in GCP, ServiceNow and AWS, augmenting our existing strength in Azure,” stated Mullen.

KEY HIGHLIGHTS

Results for the Quarter:

  • Consolidated net sales for the fourth quarter of 2024 of $2.1 billion decreased 7%, year to year, when compared to the fourth quarter of 2023. Product net sales decreased 10%, year to year, while services net sales increased 3%, year over year.

    • Net sales in North America decreased 5%, year to year, to $1.7 billion;

      • Product net sales decreased 6%, year to year, to $1.4 billion;

      • Services net sales increased 1%, year over year, to $321.3 million;

    • Net sales in EMEA decreased 18%, year to year, to $319.8 million; and

    • Net sales in APAC decreased 6%, year to year, to $52.1 million.

  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales also decreased 7%, year to year, with decreases in net sales in North America, EMEA and APAC of 5%, 19% and 6%, year to year, respectively.

  • Consolidated gross profit increased 1% compared to the fourth quarter of 2023 to $439.6 million, with consolidated gross margin expanding 170 basis points to 21.2% of net sales. Product gross profit decreased 1%, year to year, and services gross profit increased 3%, year over year. Cloud gross profit grew 3%, year over year, and Insight Core services gross profit increased 12%, year over year. By segment, gross profit:

    • decreased 1% in North America, year to year, to $350.0 million (20.6% gross margin);

    • increased 8% in EMEA, year over year, to $72.6 million (22.7% gross margin); and

    • increased 13% in APAC, year over year, to $17.0 million (32.7% gross margin).

  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit was also up 1%, year over year, with gross profit growth in EMEA and APAC of 7% and 13%, respectively, year over year, partially offset by a decrease in North America of 1%, year to year.

  • Consolidated earnings from operations decreased 51% compared to the fourth quarter of 2023 to $64.7 million, or 3.1% of net sales. By segment, earnings from operations:

    • decreased 55% in North America, year to year, to $52.4 million, or 3.1% of net sales;

    • decreased 26% in EMEA, year to year, to $7.4 million, or 2.3% of net sales; and

    • increased 7% in APAC, year over year, to $4.9 million, or 9.5% of net sales.

  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations were also down 51%, year to year, with decreases in earnings from operations in North America and EMEA of 55% and 24%, respectively, year to year, partially offset by increased earnings from operations in APAC of 8%, year over year.

  • Adjusted earnings from operations decreased 13% compared to the fourth quarter of 2023 at $129.4 million, or 6.2% of net sales. By segment, Adjusted earnings from operations:

    • decreased 17% in North America, year to year, to $109.2 million, or 6.4% of net sales;

    • increased 21% in EMEA, year over year, to $14.6 million, or 4.6% of net sales; and

    • increased 16% in APAC, year over year, to $5.6 million, or 10.7% of net sales.

  • Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations decreased 13% compared to the fourth quarter of 2023, with a decrease in Adjusted earnings from operations in North America of 17%, year to year, partially offset by increased Adjusted earnings from operations in EMEA and APAC of 22% and 16%, respectively, year over year.

  • Consolidated net earnings and diluted earnings per share for the fourth quarter of 2024 were $37.0 million and $0.99, respectively, at an effective tax rate of 29.2%.

  • Adjusted consolidated net earnings and Adjusted diluted earnings per share for the fourth quarter of 2024 were $91.1 million and $2.66, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share decreased 10%, year to year.

Results for the Year:

  • Consolidated net sales of $8.7 billion for the full year of 2024 decreased 5%, year to year, when compared to the full year of 2023.

    • Net sales in North America decreased 4%, year to year, to $7.1 billion;

      • Product net sales decreased 7%, year to year, to $5.8 billion;

      • Services net sales increased 7%, year over year, to $1.3 billion;

    • Net sales in EMEA decreased 10%, year to year, to $1.4 billion; and

    • Net sales in APAC increased 1%, year over year, to $233.0 million.

  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales also decreased 5%, year to year, with declines in net sales in North America and EMEA of 4% and 11%, respectively, year to year, partially offset by an increase in net sales in APAC of 2%.

  • Consolidated gross profit increased 6% compared to the full year of 2023 to $1.8 billion, with consolidated gross margin expanding 210 basis points to 20.3% of net sales. Product gross profit decreased 2%, year to year, and services gross profit increased 13%, year over year. Cloud gross profit grew 21%, year over year, and Insight core services gross profit increased 15%, year over year. By segment, gross profit:

    • increased 4% in North America, year over year, to $1.4 billion (19.9% gross margin);

    • increased 13% in EMEA, year over year, to $293.2 million (20.7% gross margin); and

    • increased 11% in APAC, year over year, to $70.8 million (30.4% gross margin).

  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit was also up 6%, year over year, with gross profit growth in North America, EMEA and APAC of 4%, 11% and 12%, respectively, year over year.

  • Consolidated earnings from operations decreased 7% compared to the full year of 2023 to $388.6 million, or 4.5% of net sales. By segment, earnings from operations:

    • decreased 12% in North America, year to year, to $319.1 million, or 4.5% of net sales;

    • increased 21% in EMEA, year over year, to $46.2 million, or 3.3% of net sales; and

    • increased 19% in APAC, year over year, to $23.3 million, or 10.0% of net sales.

  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations were also down 7%, year to year, with a decrease in earnings from operations in North America of 12%, year to year, partially offset by increased earnings from operations in both EMEA and APAC of 20%, year over year.

  • Adjusted earnings from operations increased 2% compared to the full year of 2023 to $502.4 million, or 5.8% of net sales. By segment, Adjusted earnings from operations:

    • decreased 1% in North America, year to year, to $422.0 million, or 6.0% of net sales;

    • increased 18% in EMEA, year over year, to $55.9 million, or 4.0% of net sales; and

    • increased 21% in APAC, year over year, to $24.5 million, or 10.5% of net sales.

  • Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations were also up 2%, year over year, with increases in EMEA and APAC of 16% and 22%, respectively, year over year. Adjusted earnings from operations in North America remained flat.

  • Consolidated net earnings and diluted earnings per share for the full year of 2024 were $249.7 million and $6.55, respectively, at an effective tax rate of 25.0%.

  • Adjusted consolidated net earnings and Adjusted diluted earnings per share for the full year of 2024 were $338.2 million and $9.68, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share was flat, year to year.

In discussing financial results for the three and twelve months ended months ended December 31, 2024 and 2023 in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See “Use of Non-GAAP Financial Measures” for additional information. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.

In some instances, the Company refers to changes in net sales, gross profit, earnings from operations and Adjusted earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In addition, the Company refers to changes in Adjusted diluted earnings per share on a consolidated basis excluding the effects of fluctuating foreign currency exchange rates. These are also considered to be non-GAAP measures. The Company believes providing this information excluding the effects of fluctuating foreign currency exchange rates provides valuable supplemental information to investors regarding its underlying business and results of operations, consistent with how the Company and its management evaluate the Company’s performance. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period. The performance measures excluding the effects of fluctuating foreign currency exchange rates should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

The tax effect of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions.

GUIDANCE

For the full year 2025, we expect Adjusted diluted earnings per share to be between $9.70 and $10.10. We expect to deliver low single-digits gross profit growth and expect that our gross margin will continue to be approximately 20%.

This outlook assumes:

  • interest expense of $70 to $75 million;

  • an effective tax rate of approximately 25% to 26% for the full year;

  • capital expenditures of $35 to $40 million; and

  • an average share count for the full year of 32.9 million shares, reflecting the net impact of settling our outstanding convertible senior notes (the “Convertible Notes”) in February 2025 and the associated warrants in 2025.

This outlook excludes acquisition-related intangibles amortization expense of approximately $74.3 million, assumes no acquisition or integration related expenses, transformation or severance and restructuring expenses, net, does not contemplate any impact of tariffs, and no significant change in our debt instruments, with the exception of the settlement of our Convertible Notes, and no significant change in the macroeconomic environment. Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings, diluted earnings per share and selling and administrative expenses, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings, diluted earnings per share and selling and administrative expenses. Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2025 forecast.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and live webcast today at 9:00 a.m. ET to discuss fourth quarter and full year 2024 results of operations. A live webcast of the conference call (in listen-only mode) will be available on the Company’s web site at http://investor.insight.com/, and a replay of the webcast will be available on the Company’s web site for a limited time following the call. To access the live conference call, please register in advance using the event link on the Company’s web site. Upon registering, participants will receive dial-in information via email, as well as a unique registrant ID, event passcode, and detailed instructions regarding how to join the call.

USE OF NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) gains and losses from revaluation of acquisition related earnout liabilities, (vii) certain third-party data center service outage related expenses and recoveries, and (viii) the tax effects of each of these items, as applicable. Transformation costs represent costs we are incurring to transform our business, to help us achieve our strategic objectives, including becoming a leading solutions integrator. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company’s operating segments. Adjusted diluted earnings per share also includes the impact of the benefit from the note hedge where the Company’s average stock price for the fourth quarter of 2024 was in excess of $68.32, which is the initial conversion price of our Convertible Notes. Adjusted EBITDA excludes (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization of property and equipment, (iv) amortization of intangible assets, (v) severance and restructuring expenses, net, (vi) certain executive recruitment and hiring related expenses, (vii) transformation costs (viii) certain acquisition and integration related expenses, (ix) certain third-party data center service outage related expenses and recoveries, and (x) gains and losses from revaluation of acquisition related earnout liabilities. Adjusted return on invested capital (“ROIC”) excludes (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) certain third-party data center service outage related expenses and recoveries, (vii) gains and losses from revaluation of acquisition related earnout liabilities, and (viii) the tax effects of each of these items, as applicable.

These non-GAAP measures are used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company’s competitors’ results and assist in forecasting performance for future periods. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

 

FINANCIAL SUMMARY TABLE

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)
 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

 

2024

 

 

 

2023

 

 

change

 

 

2024

 

 

 

2023

 

 

change

Insight Enterprises, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

1,651,471

 

 

$

1,827,980

 

 

(10%)

 

$

7,015,640

 

 

$

7,631,388

 

 

(8%)

Services

 

$

421,194

 

 

$

408,031

 

 

3%

 

$

1,686,058

 

 

$

1,544,452

 

 

9%

Total net sales

 

$

2,072,665

 

 

$

2,236,011

 

 

(7%)

 

$

8,701,698

 

 

$

9,175,840

 

 

(5%)

Gross profit

 

$

439,638

 

 

$

436,150

 

 

1%

 

$

1,766,016

 

 

$

1,669,525

 

 

6%

Gross margin

 

 

21.2

%

 

 

19.5

%

 

170 bps

 

 

20.3

%

 

 

18.2

%

 

210 bps

Selling and administrative expenses

 

$

358,487

 

 

$

298,206

 

 

20%

 

$

1,343,151

 

 

$

1,236,243

 

 

9%

Severance and restructuring expenses, net

 

$

15,967

 

 

$

3,136

 

 

> 100%

 

$

31,605

 

 

$

6,091

 

 

> 100%

Acquisition and integration related expenses

 

$

510

 

 

$

2,947

 

 

(83%)

 

$

2,676

 

 

$

7,396

 

 

(64%)

Earnings from operations

 

$

64,674

 

 

$

131,861

 

 

(51%)

 

$

388,584

 

 

$

419,795

 

 

(7%)

Net earnings

 

$

37,012

 

 

$

90,608

 

 

(59%)

 

$

249,691

 

 

$

281,309

 

 

(11%)

Diluted earnings per share

 

$

0.99

 

 

$

2.42

 

 

(59%)

 

$

6.55

 

 

$

7.55

 

 

(13%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Mix

 

 

 

 

 

**

 

 

 

 

 

**

Hardware

 

 

55

%

 

 

51

%

 

(2%)

 

 

53

%

 

 

55

%

 

(10%)

Software

 

 

25

%

 

 

31

%

 

(23%)

 

 

28

%

 

 

28

%

 

(4%)

Services

 

 

20

%

 

 

18

%

 

3%

 

 

19

%

 

 

17

%

 

9%

 

 

 

100

%

 

 

100

%

 

(7%)

 

 

100

%

 

 

100

%

 

(5%)

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

1,379,530

 

 

$

1,471,761

 

 

(6%)

 

$

5,759,744

 

 

$

6,167,512

 

 

(7%)

Services

 

$

321,288

 

 

$

318,591

 

 

1%

 

$

1,294,836

 

 

$

1,214,842

 

 

7%

Total net sales

 

$

1,700,818

 

 

$

1,790,352

 

 

(5%)

 

$

7,054,580

 

 

$

7,382,354

 

 

(4%)

Gross profit

 

$

349,987

 

 

$

353,812

 

 

(1%)

 

$

1,401,994

 

 

$

1,345,955

 

 

4%

Gross margin

 

 

20.6

%

 

 

19.8

%

 

80 bps

 

 

19.9

%

 

 

18.2

%

 

170 bps

Selling and administrative expenses

 

$

287,118

 

 

$

230,913

 

 

24%

 

$

1,058,184

 

 

$

976,172

 

 

8%

Severance and restructuring expenses, net

 

$

10,259

 

 

$

2,741

 

 

> 100%

 

$

23,042

 

 

$

3,793

 

 

> 100%

Acquisition and integration related expenses

 

$

214

 

 

$

2,781

 

 

(92%)

 

$

1,700

 

 

$

3,908

 

 

(56%)

Earnings from operations

 

$

52,396

 

 

$

117,377

 

 

(55%)

 

$

319,068

 

 

$

362,082

 

 

(12%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Mix

 

 

 

 

 

**

 

 

 

 

 

**

Hardware

 

 

59

%

 

 

57

%

 

(2%)

 

 

57

%

 

 

61

%

 

(10%)

Software

 

 

22

%

 

 

25

%

 

(17%)

 

 

25

%

 

 

23

%

 

3%

Services

 

 

19

%

 

 

18

%

 

1%

 

 

18

%

 

 

16

%

 

7%

 

 

 

100

%

 

 

100

%

 

(5%)

 

 

100

%

 

 

100

%

 

(4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

246,019

 

 

$

325,122

 

 

(24%)

 

$

1,127,483

 

 

$

1,331,338

 

 

(15%)

Services

 

$

73,758

 

 

$

65,406

 

 

13%

 

$

286,614

 

 

$

232,316

 

 

23%

Total net sales

 

$

319,777

 

 

$

390,528

 

 

(18%)

 

$

1,414,097

 

 

$

1,563,654

 

 

(10%)

Gross profit

 

$

72,632

 

 

$

67,343

 

 

8%

 

$

293,188

 

 

$

259,987

 

 

13%

Gross margin

 

 

22.7

%

 

 

17.2

%

 

550 bps

 

 

20.7

%

 

 

16.6

%

 

410 bps

Selling and administrative expenses

 

$

59,923

 

 

$

56,993

 

 

5%

 

$

238,300

 

 

$

216,246

 

 

10%

Severance and restructuring expenses

 

$

5,336

 

 

$

285

 

 

> 100%

 

$

7,975

 

 

$

2,125

 

 

> 100%

Acquisition and integration related expenses

 

$

17

 

 

$

166

 

 

(90%)

 

$

695

 

 

$

3,488

 

 

(80%)

Earnings from operations

 

$

7,356

 

 

$

9,899

 

 

(26%)

 

$

46,218

 

 

$

38,128

 

 

21%

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Mix

 

 

 

 

 

**

 

 

 

 

 

**

Hardware

 

 

36

%

 

 

29

%

 

—%

 

 

36

%

 

 

35

%

 

(8%)

Software

 

 

41

%

 

 

54

%

 

(38%)

 

 

44

%

 

 

50

%

 

(20%)

Services

 

 

23

%

 

 

17

%

 

13%

 

 

20

%

 

 

15

%

 

23%

 

 

 

100

%

 

 

100

%

 

(18%)

 

 

100

%

 

 

100

%

 

(10%)

 

 

 

 

 

 

 

 

 

 

 

 

 

APAC

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

25,922

 

 

$

31,097

 

 

(17%)

 

$

128,413

 

 

$

132,538

 

 

(3%)

Services

 

$

26,148

 

 

$

24,034

 

 

9%

 

$

104,608

 

 

$

97,294

 

 

8%

Total net sales

 

$

52,070

 

 

$

55,131

 

 

(6%)

 

$

233,021

 

 

$

229,832

 

 

1%

Gross profit

 

$

17,019

 

 

$

14,995

 

 

13%

 

$

70,834

 

 

$

63,583

 

 

11%

Gross margin

 

 

32.7

%

 

 

27.2

%

 

550 bps

 

 

30.4

%

 

 

27.7

%

 

270 bps

Selling and administrative expenses

 

$

11,446

 

 

$

10,300

 

 

11%

 

$

46,667

 

 

$

43,825

 

 

6%

Severance and restructuring expenses

 

$

372

 

 

$

110

 

 

> 100%

 

$

588

 

 

$

173

 

 

> 100%

Acquisition and integration related expenses

 

$

279

 

 

$

—

 

 

*

 

$

281

 

 

$

—

 

 

*

Earnings from operations

 

$

4,922

 

 

$

4,585

 

 

7%

 

$

23,298

 

 

$

19,585

 

 

19%

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Mix

 

 

 

 

 

**

 

 

 

 

 

**

Hardware

 

 

15

%

 

 

18

%

 

(22%)

 

 

15

%

 

 

19

%

 

(19)%

Software

 

 

35

%

 

 

39

%

 

(14%)

 

 

40

%

 

 

39

%

 

5%

Services

 

 

50

%

 

 

43

%

 

9%

 

 

45

%

 

 

42

%

 

8%

 

 

 

100

%

 

 

100

%

 

(6%)

 

 

100

%

 

 

100

%

 

1%

*

Percentage change not considered meaningful

**

Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates

FORWARD-LOOKING INFORMATION

Certain statements in this release and the related conference call, webcast and presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those related to the impact of inflation and higher interest rates, the Company’s future financial performance and results of operations, including gross profit growth, Adjusted diluted earnings per share, gross margin, and Adjusted selling and administrative expenses, as well as the Company’s other key performance indicators, the Company’s anticipated effective tax rate, capital expenditures, and expected average share count, the Company’s expectations regarding cash flow, the Company’s plans and expectations relating to the settlement of the Convertible Notes and the related warrants, the Company’s expectations regarding supply constraints, future trends in the IT market, the Company’s business strategy and strategic initiatives, which are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurances that the results discussed by the forward-looking statements will be achieved, and actual results may differ materially from those set forth in the forward-looking statements. Some of the important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements include, but are not limited to, the following, which are discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC:

  • actions of our competitors, including manufacturers and publishers of products we sell;

  • our reliance on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can and do change significantly in the amounts made available and in the requirements year over year;

  • our ability to keep pace with rapidly evolving technological advances and the evolving competitive marketplace;

  • general economic conditions, economic uncertainties and changes in geopolitical conditions, including the possibility of a recession or a decline in market activity as a result of the ongoing conflicts in Ukraine and Gaza;

  • changes in the IT industry and/or rapid changes in technology;

  • our ability to provide high quality services to our clients;

  • our reliance on independent shipping companies;

  • the risks associated with our international operations;

  • supply constraints for products;

  • natural disasters or other adverse occurrences, including public health issues such as pandemics or epidemics;

  • disruptions in our IT systems and voice and data networks;

  • cyberattacks, outages, or third-party breaches of data privacy as well as related breaches of government regulations;

  • intellectual property infringement claims and challenges to our copyrights, patents, trademarks and trade names;

  • potential liability and competitive risk based on the development, adoption, and use of Generative Artificial Intelligence;

  • legal proceedings, client audits and failure to comply with laws and regulations;

  • risks of termination, delays in payment, audits and investigations related to our public sector contracts;

  • exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;

  • our potential to draw down a substantial amount of indebtedness;

  • the Company is subject to counterparty risk with respect to certain hedge and warrant transactions entered into in connection with the issuance of the Convertible Notes;

  • increased debt and interest expense and the possibility of decreased availability of funds under our financing facilities;

  • possible significant fluctuations in our future operating results as well as seasonality and variability in client demands;

  • potential contractual disputes with our clients and third-party suppliers;

  • our dependence on certain key personnel and our ability to attract, train and retain skilled teammates;

  • risks associated with the integration and operation of acquired businesses, including achievement of expected synergies and benefits; and

  • future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock.

Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the SEC. Any forward-looking statements in this release, the related conference call, webcast and presentation speak only as of the date on which they are made and should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance that may be made by third parties.

 

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)
 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2024

 

 

 

2023

 

 

2024

 

 

 

2023

Net sales:

 

 

 

 

 

 

 

Products

$

1,651,471

 

 

$

1,827,980

 

$

7,015,640

 

 

$

7,631,388

Services

 

421,194

 

 

 

408,031

 

 

1,686,058

 

 

 

1,544,452

Total net sales

 

2,072,665

 

 

 

2,236,011

 

 

8,701,698

 

 

 

9,175,840

Costs of goods sold:

 

 

 

 

 

 

 

Products

 

1,465,690

 

 

 

1,639,458

 

 

6,259,815

 

 

 

6,859,178

Services

 

167,337

 

 

 

160,403

 

 

675,867

 

 

 

647,137

Total costs of goods sold

 

1,633,027

 

 

 

1,799,861

 

 

6,935,682

 

 

 

7,506,315

Gross profit

 

439,638

 

 

 

436,150

 

 

1,766,016

 

 

 

1,669,525

Operating expenses:

 

 

 

 

 

 

 

Selling and administrative expenses

 

358,487

 

 

 

298,206

 

 

1,343,151

 

 

 

1,236,243

Severance and restructuring expenses, net

 

15,967

 

 

 

3,136

 

 

31,605

 

 

 

6,091

Acquisition and integration related expenses

 

510

 

 

 

2,947

 

 

2,676

 

 

 

7,396

Earnings from operations

 

64,674

 

 

 

131,861

 

 

388,584

 

 

 

419,795

Non-operating expense (income):

 

 

 

 

 

 

 

Interest expense, net

 

14,660

 

 

 

9,358

 

 

58,036

 

 

 

41,124

Other (income) expense, net

 

(2,237

)

 

 

328

 

 

(2,365

)

 

 

817

Earnings before income taxes

 

52,251

 

 

 

122,175

 

 

332,913

 

 

 

377,854

Income tax expense

 

15,239

 

 

 

31,567

 

 

83,222

 

 

 

96,545

Net earnings

$

37,012

 

 

$

90,608

 

$

249,691

 

 

$

281,309

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

Basic

$

1.17

 

 

$

2.78

 

$

7.73

 

 

$

8.53

Diluted

$

0.99

 

 

$

2.42

 

$

6.55

 

 

$

7.55

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

Basic

 

31,769

 

 

 

32,583

 

 

32,286

 

 

 

32,991

Diluted

 

37,212

 

 

 

37,513

 

 

38,136

 

 

 

37,241
 

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In THOUSANDS)

(UNAUDITED)
 

December 31,

2024

 

December 31,

2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

259,234

 

 

$

268,730

 

Accounts receivable, net

 

4,172,104

 

 

 

3,568,290

 

Inventories

 

122,581

 

 

 

184,605

 

Contract assets, net

 

81,980

 

 

 

120,518

 

Other current assets

 

208,723

 

 

 

189,158

 

Total current assets

 

4,844,622

 

 

 

4,331,301

 

 

 

 

 

Long-term contract assets, net

 

86,953

 

 

 

132,780

 

Property and equipment, net

 

215,678

 

 

 

210,061

 

Goodwill

 

893,516

 

 

 

684,345

 

Intangible assets, net

 

426,493

 

 

 

369,687

 

Long-term accounts receivable

 

845,943

 

 

 

412,666

 

Other assets

 

135,373

 

 

 

145,510

 

 

$

7,448,578

 

 

$

6,286,350

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable – trade

$

3,059,667

 

 

$

2,255,183

 

Accounts payable – inventory financing facilities

 

217,604

 

 

 

231,850

 

Accrued expenses and other current liabilities

 

512,052

 

 

 

538,346

 

Current portion of long-term debt

 

332,879

 

 

 

348,004

 

Total current liabilities

 

4,122,202

 

 

 

3,373,383

 

 

 

 

 

Long-term debt

 

531,233

 

 

 

592,517

 

Deferred income taxes

 

64,459

 

 

 

27,588

 

Long-term accounts payable

 

799,546

 

 

 

353,794

 

Other liabilities

 

160,527

 

 

 

203,335

 

 

 

5,677,967

 

 

 

4,550,617

 

Stockholders’ equity:

 

 

 

Preferred stock

 

—

 

 

 

—

 

Common stock

 

318

 

 

 

326

 

Additional paid-in capital

 

342,893

 

 

 

328,607

 

Retained earnings

 

1,508,558

 

 

 

1,448,412

 

Accumulated other comprehensive loss – foreign currency translation adjustments

 

(81,158

)

 

 

(41,612

)

Total stockholders’ equity

 

1,770,611

 

 

 

1,735,733

 

 

$

7,448,578

 

 

$

6,286,350

 
 

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)
 

Twelve Months Ended

December 31,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net earnings

$

249,691

 

 

$

281,309

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

98,137

 

 

 

62,476

 

Provision for losses on accounts receivable

 

10,038

 

 

 

5,062

 

Non-cash stock-based compensation

 

33,971

 

 

 

28,951

 

Net change on revaluation of earnout liabilities

 

(7,848

)

 

 

—

 

Deferred income taxes

 

8,296

 

 

 

(13,080

)

Amortization of debt issuance costs

 

5,591

 

 

 

4,870

 

Other adjustments

 

1,054

 

 

 

234

 

Changes in assets and liabilities:

 

 

 

Increase in accounts receivable

 

(656,092

)

 

 

(11,892

)

Decrease in inventories

 

54,439

 

 

 

75,729

 

Decrease (increase) in contract assets

 

58,433

 

 

 

(13,840

)

Increase in long-term accounts receivable

 

(454,887

)

 

 

(126,850

)

Decrease in other assets

 

16,199

 

 

 

34,061

 

Increase in accounts payable

 

825,555

 

 

 

216,229

 

Increase in long-term accounts payable

 

441,881

 

 

 

111,790

 

Decrease in accrued expenses and other liabilities

 

(51,613

)

 

 

(35,518

)

Net cash provided by operating activities:

 

632,845

 

 

 

619,531

 

Cash flows from investing activities:

 

 

 

Proceeds from sale of assets

 

13,751

 

 

 

15,515

 

Purchases of property and equipment

 

(46,782

)

 

 

(39,252

)

Acquisitions, net of cash and cash equivalents acquired

 

(270,247

)

 

 

(481,464

)

Net cash used in investing activities:

 

(303,278

)

 

 

(505,201

)

Cash flows from financing activities:

 

 

 

Borrowings on ABL revolving credit facility

 

4,622,416

 

 

 

4,587,596

 

Repayments on ABL revolving credit facility

 

(5,176,546

)

 

 

(4,288,036

)

Net repayments under inventory financing facilities

 

(13,577

)

 

 

(70,408

)

Proceeds from issuance of senior unsecured notes

 

500,000

 

 

 

—

 

Payment of debt issuance costs

 

(8,652

)

 

 

—

 

Repurchases of common stock

 

(200,020

)

 

 

(217,108

)

Repayment of principal on the Convertible Notes

 

(16,895

)

 

 

—

 

Earnout and acquisition related payments

 

(20,286

)

 

 

(15,615

)

Other payments

 

(7,711

)

 

 

(13,141

)

Net cash used in financing activities:

 

(321,271

)

 

 

(16,712

)

Foreign currency exchange effect on cash, cash equivalents and restricted cash balances

 

(17,614

)

 

 

7,449

 

(Decrease) increase in cash, cash equivalents and restricted cash

 

(9,318

)

 

 

105,067

 

Cash, cash equivalents and restricted cash at beginning of period

 

270,785

 

 

 

165,718

 

Cash, cash equivalents and restricted cash at end of period

$

261,467

 

 

$

270,785

 
 

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)
 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Adjusted Consolidated Earnings from Operations:

 

 

 

 

 

 

 

 

GAAP consolidated EFO

 

$

64,674

 

 

$

131,861

 

 

$

388,584

 

 

$

419,795

 

Amortization of intangible assets

 

 

18,597

 

 

 

10,988

 

 

 

69,581

 

 

 

36,231

 

Change in fair value of earnout liabilities

 

 

22,800

 

 

 

—

 

 

 

(7,849

)

 

 

—

 

Other*

 

 

23,342

 

 

 

5,823

 

 

 

52,056

 

 

 

36,101

 

Adjusted non-GAAP consolidated EFO

 

$

129,413

 

 

$

148,672

 

 

$

502,372

 

 

$

492,127

 

 

 

 

 

 

 

 

 

 

GAAP EFO as a percentage of net sales

 

 

3.1

%

 

 

5.9

%

 

 

4.5

%

 

 

4.6

%

Adjusted non-GAAP EFO as a percentage of net sales

 

 

6.2

%

 

 

6.6

%

 

 

5.8

%

 

 

5.4

%

 

 

 

 

 

 

 

 

 

Adjusted Consolidated Net Earnings:

 

 

 

 

 

 

 

 

GAAP consolidated net earnings

 

$

37,012

 

 

$

90,608

 

 

$

249,691

 

 

$

281,309

 

Amortization of intangible assets

 

 

18,597

 

 

 

10,988

 

 

 

69,581

 

 

 

36,231

 

Change in fair value of earnout liabilities

 

 

22,800

 

 

 

—

 

 

 

(7,849

)

—

 

—

 

Other*

 

 

23,342

 

 

 

5,823

 

 

 

52,056

 

 

 

36,101

 

Income taxes on non-GAAP adjustments

 

 

(10,620

)

 

 

(4,287

)

 

 

(25,298

)

 

 

(18,016

)

Adjusted non-GAAP consolidated net earnings

 

$

91,131

 

 

$

103,132

 

 

$

338,181

 

 

$

335,625

 

 

 

 

 

 

 

 

 

 

GAAP net earnings as a percentage of net sales

 

 

1.8

%

 

 

4.1

%

 

 

2.9

%

 

 

3.1

%

Adjusted non-GAAP net earnings as a percentage of net sales

 

 

4.4

%

 

 

4.6

%

 

 

3.9

%

 

 

3.7

%

 

 

 

 

 

 

 

 

 

Adjusted Diluted Earnings Per Share:

 

 

 

 

 

 

 

 

GAAP diluted EPS

 

$

0.99

 

 

$

2.42

 

 

$

6.55

 

 

$

7.55

 

Amortization of intangible assets

 

 

0.50

 

 

 

0.29

 

 

 

1.82

 

 

 

0.97

 

Change in fair value of earnout liabilities

 

 

0.61

 

 

 

—

 

 

 

(0.21

)

 

 

—

 

Other

 

 

0.63

 

 

 

0.16

 

 

 

1.37

 

 

 

0.97

 

Income taxes on non-GAAP adjustments

 

 

(0.29

)

 

 

(0.11

)

 

 

(0.66

)

 

 

(0.48

)

Impact of benefit from note hedge

 

 

0.22

 

 

 

0.22

 

 

 

0.81

 

 

 

0.68

 

Adjusted non-GAAP diluted EPS

 

$

2.66

 

 

$

2.98

 

 

$

9.68

 

 

$

9.69

 

 

 

 

 

 

 

 

 

 

Shares used in diluted EPS calculation

 

 

37,212

 

 

 

37,513

 

 

 

38,136

 

 

 

37,241

 

Impact of benefit from note hedge

 

 

(3,011

)

 

 

(2,874

)

 

 

(3,205

)

 

 

(2,619

)

Shares used in Adjusted non-GAAP diluted EPS calculation

 

 

34,201

 

 

 

34,639

 

 

 

34,931

 

 

 

34,622

 

 

 

 

 

 

 

 

 

 

Adjusted North America Earnings from Operations:

 

 

 

 

 

 

 

 

GAAP EFO from North America segment

 

$

52,396

 

 

$

117,377

 

 

$

319,068

 

 

$

362,082

 

Amortization of intangible assets

 

 

16,820

 

 

 

9,245

 

 

 

62,377

 

 

 

32,514

 

Change in fair value of earnout liabilities

 

 

22,800

 

 

 

—

 

 

 

(1,419

)

 

 

—

 

Other*

 

 

17,198

 

 

 

5,122

 

 

 

41,951

 

 

 

29,763

 

Adjusted non-GAAP EFO from North America segment

 

$

109,214

 

 

$

131,744

 

 

$

421,977

 

 

$

424,359

 

 

 

 

 

 

 

 

 

 

GAAP EFO as a percentage of net sales

 

 

3.1

%

 

 

6.6

%

 

 

4.5

%

 

 

4.9

%

Adjusted non-GAAP EFO as a percentage of net sales

 

 

6.4

%

 

 

7.4

%

 

 

6.0

%

 

 

5.7

%

 

 

 

 

 

 

 

 

 

Adjusted EMEA Earnings from Operations:

 

 

 

 

 

 

 

 

GAAP EFO from EMEA segment

 

$

7,356

 

 

$

9,899

 

 

$

46,218

 

 

$

38,128

 

Amortization of intangible assets

 

 

1,777

 

 

 

1,635

 

 

 

6,912

 

 

 

3,277

 

Change in fair value of earnout liabilities

 

 

—

 

 

 

—

 

 

 

(6,430

)

 

 

—

 

Other

 

 

5,493

 

 

 

591

 

 

 

9,236

 

 

 

6,165

 

Adjusted non-GAAP EFO from EMEA segment

 

$

14,626

 

 

$

12,125

 

 

$

55,936

 

 

$

47,570

 

 

 

 

 

 

 

 

 

 

GAAP EFO as a percentage of net sales

 

 

2.3

%

 

 

2.5

%

 

 

3.3

%

 

 

2.4

%

Adjusted non-GAAP EFO as a percentage of net sales

 

 

4.6

%

 

 

3.1

%

 

 

4.0

%

 

 

3.0

%

 

 

 

 

 

 

 

 

 

Adjusted APAC Earnings from Operations:

 

 

 

 

 

 

 

 

GAAP EFO from APAC segment

 

$

4,922

 

 

$

4,585

 

 

$

23,298

 

 

$

19,585

 

Amortization of intangible assets

 

 

—

 

 

 

108

 

 

 

292

 

 

 

440

 

Other

 

 

651

 

 

 

110

 

 

 

869

 

 

 

173

 

Adjusted non-GAAP EFO from APAC segment

 

$

5,573

 

 

$

4,803

 

 

$

24,459

 

 

$

20,198

 

 

 

 

 

 

 

 

 

 

GAAP EFO as a percentage of net sales

 

 

9.5

%

 

 

8.3

%

 

 

10.0

%

 

 

8.5

%

Adjusted non-GAAP EFO as a percentage of net sales

 

 

10.7

%

 

 

8.7

%

 

 

10.5

%

 

 

8.8

%

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

GAAP consolidated net earnings

 

$

37,012

 

 

$

90,608

 

 

$

249,691

 

 

$

281,309

 

Interest expense

 

 

16,960

 

 

 

11,958

 

 

 

68,272

 

 

 

48,576

 

Income tax expense

 

 

15,239

 

 

 

31,567

 

 

 

83,222

 

 

 

96,545

 

Depreciation and amortization of property and equipment

 

 

7,183

 

 

 

6,790

 

 

 

28,556

 

 

 

26,245

 

Amortization of intangible assets

 

 

18,597

 

 

 

10,988

 

 

 

69,581

 

 

 

36,231

 

Change in fair value of earnout liabilities

 

 

22,800

 

 

 

—

 

 

 

(7,849

)

 

 

—

 

Other*

 

 

23,342

 

 

 

5,823

 

 

 

52,056

 

 

 

36,101

 

Adjusted non-GAAP EBITDA

 

$

141,133

 

 

$

157,734

 

 

$

543,529

 

 

$

525,007

 

 

 

 

 

 

 

 

 

 

GAAP consolidated net earnings as a percentage of net sales

 

 

1.8

%

 

 

4.1

%

 

 

2.9

%

 

 

3.1

%

Adjusted non-GAAP EBITDA as a percentage of net sales

 

 

6.8

%

 

 

7.1

%

 

 

6.2

%

 

 

5.7

%

*

 

Includes transformation costs of $5.4 million and $2.6 million for the three months ended December 31, 2024 and 2023, respectively and $18.4 million and $16.6 million for the twelve months ended December 31, 2024 and 2023, respectively. Includes certain third-party data center service outage expenses, net of recoveries of $1.3 million for the three months ended December 31, 2024 and recoveries in excess of expenses of $2.1 million for the twelve months ended December 31, 2024. Includes data center service outage related recoveries of $3.0 million for the three months ended December 31, 2023 and data center service outage related expenses, net of recoveries of $5.0 million for the twelve months ended December 31, 2023. Includes severance and restructuring expenses, net of $16.0 million and $31.6 million for the three and twelve months ended December 31, 2024, respectively. Includes severance and restructuring expenses, net of $3.1 million and $6.1 million for the three and twelve months ended December 31, 2023, respectively.
 

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)
 

 

 

Twelve Months Ended

December 31,

 

 

 

2024

 

 

 

2023

 

Adjusted return on invested capital:

 

 

 

 

GAAP consolidated EFO

 

$

388,584

 

 

$

419,795

 

Amortization of intangible assets

 

 

69,581

 

 

 

36,231

 

Change in fair value of earnout liabilities

 

 

(7,849

)

 

 

—

 

Other5

 

 

52,056

 

 

 

36,101

 

Adjusted non-GAAP consolidated EFO

 

 

502,372

 

 

 

492,127

 

Income tax expense1

 

 

130,617

 

 

 

127,953

 

Adjusted non-GAAP consolidated EFO, net of tax

 

$

371,755

 

 

$

364,174

 

Average stockholders’ equity2

 

$

1,775,136

 

 

$

1,628,480

 

Average debt2

 

 

953,619

 

 

 

690,402

 

Average cash2

 

 

(296,166

)

 

 

(209,674

)

Invested Capital

 

$

2,432,589

 

 

$

2,109,208

 

 

 

 

 

 

Adjusted non-GAAP ROIC (from GAAP consolidated EFO)3

 

 

11.82

%

 

 

14.73

%

Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO)4

 

 

15.28

%

 

 

17.27

%

1

Assumed tax rate of 26.0%.

2

Average of previous five quarters.

3

Computed as GAAP consolidated EFO, net of tax of $101,032 and $109,147 for the twelve months ended December 31, 2024 and 2023, respectively, divided by invested capital.

4

Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital.

5

Includes transformation costs of $18.4 million and $16.6 million for the twelve months ended December 31, 2024 and 2023, respectively. Includes certain third-party data center service outage related recoveries in excess of expenses of $2.1 million for the twelve months ended December 31, 2024. Includes certain third-party data center service outage related expenses, net of recoveries of $5.0 million for the twelve months ended December 31, 2023. Includes severance and restructuring expenses, net of $31.6 million and $6.1 million for the twelve months ended December 31, 2024 and 2023, respectively.

 

JAMES MORGADO

CHIEF FINANCIAL OFFICER

TEL. 480.333.3251

EMAIL [email protected]

KEYWORDS: Arizona United States North America

INDUSTRY KEYWORDS: Data Management Security Technology Software Networks Artificial Intelligence Internet

MEDIA:

Posted on

Idaho National Laboratory Testing of FuelCell Energy’s Electrolyzer to Show Further Commercialization Opportunity for Nuclear Power Plants

  • Largest and first fully integrated electrolyzer to be tested at Idaho National Laboratory.
  • Testing to validate 100% electrical efficiency with nuclear integration.
  • Hydrogen production capabilities show multiple uses of nuclear energy for energy production.
  • System can provide critical grid support through production of clean hydrogen at lower cost.

DANBURY, Conn., Feb. 06, 2025 (GLOBE NEWSWIRE) — FuelCell Energy (NASDAQ:FCEL) announced that its solid oxide electrolysis cell (SOEC) system has begun a testing and validation period at the U.S. Department of Energy’s Idaho National Laboratory (INL), which focuses on innovations in nuclear research, renewable energy systems and security solutions.

The project, funded partially by a 2020 U.S. Department of Energy Office of Nuclear Energy award, will study how hydrogen production operations can help nuclear plants diversify and increase their profitability by switching between electricity production and hydrogen generation. The testing will also look at the potential of advanced small modular reactor designs (200 to 500 MWs in size) paired with FuelCell Energy’s SOEC utility scale electrolzyers.

The testing involves the largest electrolyzer to be studied at INL, and it is expected to show that the technology can reduce the cost of clean hydrogen production by converting 100% of the electricity and water fed into the system into zero carbon hydrogen. Additionally, the FuelCell Energy electrolyzer

  • will produce 150 kilograms of hydrogen per day,
  • from 250 kilowatts of nuclear energy-generated electricity,
  • simulating the benefits of 100% efficiency when waste heat from the nuclear power plant is used.

Unlike past testing INL has conducted on electrolysis “stacks,” the FuelCell Energy electrolyzer being studied is a fully integrated solid oxide electrolyzer system.

FuelCell Energy President and CEO Jason Few commented, “Pairing FuelCell Energy’s electrolyzer with nuclear plants is an excellent example of the ‘all-of-the-above’ energy strategy that is necessary to meet the needs of a strained electric infrastructure.”

“Nuclear energy is a baseload power source that when paired with FuelCell Energy’s electrolyzer can ensure that every kilowatt of power is converted into a usable or stored energy resource. FuelCell Energy’s electrolysis platform can enable 100% smart energy utilization.”

What makes FuelCell Energy’s electrolyzer different?

An electrolyzer is a system that performs electrolysis, which is the process of using electricity to split water molecules (H2O) into hydrogen (H2) and oxygen (O2). Hydrogen produced from electrolysis can be stored long term and transported, allowing energy from wind, solar, and nuclear to be available on demand.

FuelCell Energy’s electrolyzer takes in cold water and electricity and then converts it into hydrogen. And when an external source of heat is added, such as heat from a nuclear power plant, the FuelCell Energy electrolyzer can reach 100% efficiency. At this level, the cost of hydrogen can be reduced by as much as 30%, alleviating cost as a barrier to wider adopting of hydrogen as an energy source.

The INL testing will study real world use cases that incorporate the application of thermal energy from a nuclear reactor, grid dynamics and a nuclear reactor control simulator.

Few concluded, “Energy innovation that drives down costs, emissions, and leverages all the above energy sources we have today is smart energy and a win-win. We look forward to the progress of this testing, which we believe can positively contribute to the ongoing development of nuclear and fuel cell hydrogen technologies to create more abundant energy.”

Despite its capacity, the FuelCell Energy electrolyzer occupies a small footprint with a modular design and was shipped to INL from FuelCell Energy’s headquarters in Connecticut on two flatbed trucks. The system is easy to site, replicate, and scale to the customer’s needs.

While at INL, the FuelCell Energy system will be exhibited to members of the global energy industry who visit the facility to learn about nuclear energy’s ability to generate clean electricity. They will have the chance to learn about clean hydrogen production by combining it with FuelCell Energy’s electrolysis platform. Additionally, hydrogen produced by this system will be used for ongoing research at INL in the areas of e-chemical synthesis, hydrogen turbine co-firing for power generation, and heavy-duty vehicle refueling.

About FuelCell Energy

FuelCell Energy, a pioneer in clean energy technology, provides efficient and sustainable power, carbon capture, and hydrogen solutions worldwide. The company’s fuel cells have been in commercial operation for more than 20 years and are able to run on various fuels including natural gas, hydrogen, and biofuel. The company’s installations have a wide variety of applications, including support of the electric grid, distributed baseload power on site for data centers, industrial operations, and major manufacturers. Founded in 1969 in Danbury, Connecticut, FuelCell Energy holds more than 450 patents that enable solutions for today’s energy needs.

Learn more about our groundbreaking technology at fuelcellenergy.com. Learn more about FuelCell Energy’s electrolyzer here.

Investors
[email protected]
203.205.2491

Media
[email protected]
203.546.5844



Posted on

Redfin Reports New Listings Post Biggest Increase of the Year While Homebuying Demand Declines, Leading to Big Pool of Supply

Redfin Reports New Listings Post Biggest Increase of the Year While Homebuying Demand Declines, Leading to Big Pool of Supply

The uptick in new listings, along with slow sales, is contributing to a growing pool of supply for homebuyers to choose from. It has also led to the typical home selling for 2% under asking price, the biggest discount in two years—but housing costs are still ultra-high.

SEATTLE–(BUSINESS WIRE)–
(NASDAQ: RDFN) — New listings of U.S. homes for sale rose 7.9% from a year earlier during the four weeks ending February 2, the biggest increase since the end of last year. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

On the buying side, pending sales have improved marginally from last month, but they’re still down 8.1% year over year. It’s a similar story at earlier stages of the homebuying process: Redfin’s Homebuyer Demand Index—a seasonally adjusted measure of tours and other buying services from Redfin agents—ticked up slightly from the week before, but remains near its lowest level since last spring.

The uptick in new listings and lack of sales is contributing to a growing pool of supply for homebuyers to choose from. There are 5 months of supply on the market, up from 4.4 months a year earlier and the most in six years, except the prior four-week period. Months of supply is the length of time it would take for the existing supply of homes to be bought up at the market’s current pace; it’s typically used to measure the balance between supply and demand, with a longer span indicating favorable conditions for buyers. The big pool of inventory has led to homes selling for under their asking price: The typical home is selling for 2% less than list price, the biggest discount in nearly two years.

There are several reasons would-be buyers are holding off. First, even though homes are typically selling for under asking price, costs are still near record highs. Stubbornly high home prices and mortgage rates have pushed the median monthly housing payment up to $2,784, up 8.3% year over year to just $21 shy of the all-time high. But it’s worth noting that daily average mortgage rates dropped below 7% this week for the first time since mid-December. Second, some buyers are waiting because they don’t want to make a major purchase amid uncertain federal economic policy. And finally, snow and extreme cold across the Midwest, Northeast and South kept many house hunters at home in January.

“Listings are picking up as we inch toward spring,” said Joe Paolazzi, a Redfin Premier agent in Pittsburgh. “Homeowners have been holding off, waiting for mortgage rates to go down or market conditions to improve, and now it seems clear rates have declined about as much as they’re going to decline for now. Sellers are also noticing that even though there are fewer buyers in the market than usual, the buyers who are on the hunt are serious and willing to pay a fair price. There are bidding wars for homes in desirable neighborhoods, and for investment properties that would be easy to rent out.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

 

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

6.99% (Feb. 5)

First dip below 7% since mid-December; down from 7.26% 3 weeks earlier

Essentially unchanged

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.95% (week ending Jan. 30)

Down from 7.04% 2 weeks earlier, but still near highest level since May

Up from 6.63%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Down 4% from a week earlier (as of week ending Jan. 31)

Essentially unchanged (+0.2%)

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Near lowest level since July (as of week ending Feb. 2)

Down 4%

 

 

Redfin Homebuyer Demand Index, a measure of tours and other homebuying services from Redfin agents

Touring activity

 

Up 13% from the start of the year (as of Feb. 3)

At this time last year, it was up 13% from the start of 2024

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Essentially unchanged from a month earlier (as of Feb. 2)

Essentially unchanged

 

Google Trends

Key housing-market data

 

U.S. highlights: Four weeks ending Feb. 2, 2025

Redfin’s national metrics include data from 400+ U.S. metro areas, and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending Feb. 2, 2025

Year-over-year change

Notes

Median sale price

$376,750

4.6%

 

Median asking price

$412,157

5.7%

 

Median monthly mortgage payment

$2,784 at a 6.95% mortgage rate

8.3%

$21 shy of April’s all-time high

Pending sales

65,603

-8.1%

 

New listings

76,194

7.9%

Biggest increase in 5 weeks

Active listings

897,798

12.5%

Smallest increase in nearly a year

Months of supply

5

+0.6 pts. to longest span since Feb. 2019, except the prior 4-week period

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

29%

Down from 32%

 

Median days on market

55

+6 days to longest span in nearly 5 years

 

Share of homes sold above list price

20.7%

Down from 22%

 

Average sale-to-list price ratio

98%

Down from 98.1%

 

Metro-level highlights: Four weeks ending Feb. 2, 2025

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Pittsburgh (15.7%)

New Brunswick, NJ (12.1%)

Newark, NJ (12.1%)

Nassau County, NY (11.5%)

Fort Lauderdale, FL (11.2%)

 

 

 

Austin, TX (-5.5%)

Tampa, FL (-3.5%)

San Francisco (-1.9%)

Jacksonville, FL (-0.8%)

Atlanta (-0.6%)

 

Declined in 5 metros

Pending sales

Portland, OR (7.1%)

Tampa, FL (2.3%)

Milwaukee (1%)

Pittsburgh (0.4%)

 

 

Miami (-21.6%)

Atlanta (-21.1%)

Houston (-20.2%)

San Diego (-20%)

San Antonio (-17.3%)

Increased in 4 metros

New listings

Orlando, FL (27.7%)

San Jose, CA (26.7%)

Oakland, CA (26.1%)

Tampa, FL (25.6%)

Phoenix (23.8%)

Detroit (-13.9%)

San Antonio (-13.5%)

Chicago (-11.3%)

Atlanta (-6.6%)

Indianapolis (-6.1%)

Declined in 12 metros

 

To view the full report, including charts, please visit:

https://www.redfin.com/news/housing-market-update-new-listings-increase-demand-declines

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country’s #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we’ve saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email [email protected]. To view Redfin’s press center, click here.

Contact Redfin

Redfin Journalist Services:

Tana Kelley

[email protected]

KEYWORDS: Washington United States North America

INDUSTRY KEYWORDS: Professional Services Technology Residential Building & Real Estate Finance Construction & Property Internet

MEDIA:

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Playtika Announces Date of Fourth Quarter 2024 Results Conference Call

HERZLIYA, Israel, Feb. 06, 2025 (GLOBE NEWSWIRE) — Playtika Holding Corp. (NASDAQ:PLTK) announced today that it will release financial results for the fourth quarter of 2024 before U.S. markets open on Thursday, February 27, 2025.

On the same day, Playtika management will hold a conference call to discuss the results at 5:30 AM Pacific Time, 8:30 AM Eastern Time.

A live webcast of the conference call and earnings release materials will be available on Playtika’s Investor Relations website at investors.playtika.com.

About Playtika

Playtika (NASDAQ:PLTK) is a mobile gaming entertainment and technology market leader with a portfolio of multiple game titles. Founded in 2010, Playtika was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms. Headquartered in Herzliya, Israel, and guided by a mission to entertain the world through infinite ways to play, Playtika has employees across offices worldwide.

Contact

Investor Contact

Tae Lee
SVP, Corporate Finance and Investor Relations
[email protected]

Source: Playtika Holding Corp.