CDW Q1 2024 Declines - Financials Analyzed
*** ****** ************ *** ******** ******* in ** **** ***** ********** ***** declines ********** ****.
****** **** ****, ** ******* ***'* most ****** ********* *******, ******** **** CDW's **********, ***, ************, *** ******** business ***********.
*** ******** **** ******* ** ***'* financials, ****** ****:
- *** ***** **** *** ** **** Commercial ******** (** **** ********)
- *** ********** *** **** ******** ********
Executive *******
***'* ***** *** **** ~**% ****** after ** ******** *** ** **** results, ** ***** *** ******* ******** "weaker **** ********" ******* ** * 4.5% *** *** ***** ******* *** attributed *** ******* ** *********' "********" IT ******** **** ************.
****** ******** * ~**% ****-**** *** revenue ******* ** ****, *** ******* said ** ******* **** ** **** out ********* ** **** *** **** it **** *** ****** [*********'] ******** cycle ** ******* ** *** **** term. ******* *** ******* ** ****, CDW's ***** *** ** **%+ ********** last ****.
**** *** *** ** *** *******, CDW ******** **** ******* ** ******** (SaaS) ***** **** ****** ****** ***** in ** ****,* ******* *** ******** ** ****, **** *** *** **** ******** in *** ************* ********** *** *** growth ** *** **** **********.
***** *** ******* *** ******** ** most *********, *** **** ***** ***** it *** ****** **** ******** *** cloud. *** ******* ********* **** **** was ******* ******** ** **** ** customers' "*******-******** **********" ** **** ******** their ***** *** *** ******** ** other *****.
Q1 **** *******
*** *** * *** ***** ******* of *.*% ** ** ****, **** education ***** *** *****-*** ********:
Stock ********
***'* ***** *** **** **** **** 10% ** *** *, ****, *** day *** ******* ******** *** ** 2024 *******:
**** ******* ***** *** *** ***** since *** ********* ** **** ****:
*******, ***'* ***** *** ****** ** the **** **** ********** ******* ********** ****:
Solution ******** **** **** ***** ***** ***********
***'* *** ********* ***** ********* ****** the *******'***** ****** ******** ******* *** ******** (************) ******** *** impacted *** **** ** *** **** quarter ** ********* ******* ***** ****** carefully:
***** *** * ****** ** ******* that ******** ******* ** ******* ********* results ** * ****** ******* ***********, that ********** ** **** * ***** call ******* ***** ** **** *** market *** *** ********* *** *** a **** ** ********* *** **********.
*** ******** *** ********* ***********, ** other *****, *** ******** **** *** inflation ***********, *** ****** *** ******* driver ** *** ****** ** *** corporate **** *** *** ***** ******** team.
**** ******* ** ******** ** *** environment, ***** ***** **** *'** **** an ****** ****** ********* *********. **** similar ** *** ****** ** *** in ****. ** * ******, *** customers ******** ********. **** *** *******. There *** ********** ******** ** ***** across *** ***** ** *** ******** states, ************ ** ********* ******* ** cost ************ *** *****-**** ***.
***** *** ******* **** **** *** "engagement ******* ** ********** ******" ** solutions, **** *** *** ********* ** its ********, *** *** ***** ********:
**** ****'* ****** ** **** *** solid ******** *** *** ********* **** invoicing ** *** ********* ********* ** it ***** ** * ****** ********* environment. ***, ***** ** **** **** the ***** ** *** ******* *********, we *** ******* ********* *** **** to ******* *** ******** ***** ***** them. [**** ** *] ******** **** in **** *'** **** * ***** risk, ***** ******** ****** ********, *** at *** *** ** *** ***. It *** ********* **** ******** *** results *******.
***'* *** ****** ******** ******* ********** on *** *** ******* *** ********** in *** ******** ********** ***** ********* take ****** ** ****** ** ***** purchases:
*** ********** ** *** ********* ***** is ****, **********, ********* **** **** to *** ** ***** ******. *** I ***** *** *** ******** ******** a *** ** ***** ******** *******. Just *** ***** **** **'** ** right *** ** ********* *** *********, taking ******, **** **** ******** ****** to *** ** **** ******** *****, but ** **** **** **'* *** there. ** **** ***** ** *** I ******* *** ********* *******.
Security ******** ***** *** ***** ******
*** *** ***** **** ********* **** security ** ***** *********' *** ********** as **** *** ** ******** ***** and ******** **** **********:
******* ********, ******** ********** ******** **** optimization, **** **********, *** ********* ************. This ***** ***** ** ********, *****, and ** * *******, ** **** as ****** ****** *** ******** ** AI.
***** *** ********** ******** ****** ********* sales, ****, ********** *****, ****** *****, and *********, ** *** ******** ******* in ******** ***** ** *** ** the ***** *********.
** ********* *****, *** *** ***** said ***** *** * *% *** decline ** ********* ***** ** ***** ROIs, *** ***** *** ******** *** priorities ***** ******** ********:
********* *** **** ******** *% **** over ****, *** ********-****** ** ******* elongated **** * ********** ***** ** ROI *** * **** ***** ** project ******** ***** ******** **** ************.
Cloud *** ******** ************** ******** ** ***** ********* ********* ** ******** *****. [Emphasis added]
** ****, *** *** ***** **** that ******** ** ***** *********' ******** priorities ******* *** *******'* ******* *% YoY ***** *******:
***** ********** ****** * *% ****-****-**** top-line *******. *** **** ********* ** help ********* *******mission-critical ********** ****** ******** and productivity, which drove meaningful increases in cloud and software customer spending. [Emphasis added]
** ********** *****, *** *** ***** pointed *** **** ******** *** ******-***** growth ***** *** ***** ******* *** down *.*%:
***** *** *****'* ***-***** ******** *** more **** ****** ** * ******* in *** ******* ******** *** * total ********** ******* ** *.*%. ** high *****; ****** ****** ******** * key ***** ****, ****security ****** ************* ****** ****** [******]. [Emphasis added]
** *********, *** *** ***** ********* that ******* * **% ******* ****** the *******, ******** ***** ***** *** mid-single ****** ******:
** ********* ** ** * *********** environment *** *********, *** *** ******* posted * **% ******* ********** **** higher ********* ************' ***** ** ***** more **** ****.
Security ******** * *** ********, *** **** *** **** *** ***** ****** ********* ** ***-****** ******. [Emphasis added]
*** ** **********, *** *** ***** said **** ******** *** ******-***** ****** while *** ***** ******* ******** *% YoY ** *** **** *******:
********** ******** *%. ************* *********** *** positive **** ** ******** ** ****** devices ***** ********* ********. ********** *********** was ******* ** ********** **** ******** caution ***** *** *********** ***** ** cost ************.Security *** **** * ***** ***** ****, ********** ******-***** ********* ** ***** *** ***** *******. [Emphasis added]
*** ***** ****** ******** *** ********* between ***'* **** ******* ***** *** growth ** ******** ***** ************.
Emphasis ** **
***** ******** ******** ** ******** ******** was ********* ** ******, ***'* ***** of ******** ******** ** ** *** not *********** ******* ** *** ********** as ** *********** ******** ** ******** (subscription) *****. *** *** ***** ********* the *******'* ********* ** *********:
** *** ******** ****, ** **** that ** **** **** **** ****** as **'** ****** *** ********* ***** the *****. ***** *** **** ***** is **** ******* **** *** *****, the **** ******** ** **** *******.
**** ****** *** ********** *** ****** in ******* **-******* ********* *** ********, AI's ******* ********-******** ****** ***** ********-******* providers **** *** **** ***** ** perform. ***** ** *** ***** ******** devices ** ******* ** ***********, *** company ************ **** ** *** *** not *** ******** ** *** ******* sales:
**** ** ****** ** *** ***** that **'** ******* ***, ******, ********* AI ***.
*** ** *** **** ****. ***** is ********. *****'* * *** ** talk **** ********* * *** ** talk ****** ***** ******** *** *** best ***** ** ** **** ***. But ***** *** **** *** ******** are ********* [*** ***** ****] ***** compute ***** ** ****** **.
*** *** ***** ******* ********** ** how *** ** ***** ** *** "early *******" ** ******** ********* ** adopt ** *** *** ******* *********' decision-making ******* **:
** ************** *** ** ***** ********** in *** ************ *******. **'** ** a **** ********** ***** **** **, a ******** ******** *** *** *** businesses ** ********** **** ** ***** to ***** ******** *** ***** *********, what ** ***** ** ***** ******* technology ********, *** **** *** ************ for **************.
**'** ** *** ***** *******, *** initial ****** ** *** ********** *******, developing *** ********* *** ***** *** adopting **** ********** **** ********* ** deliver ******** *** ****** ***-**-*** ********.
******* **** *** ******, *** ***** that ** ***** ***** ******* ***** in ********** ***********:
**** ****, ** ***** ****** *** arc ** ** ** **** **** the *********** ***** *** *** ******** that **'** ********* ** ********* ** the **** *** **** **** *** data ******.
********* ** ****** *** **** *** technology *********** ****** *** **** ***** with ***** ****** ****** *** ****** stack.
Outlook *** ********
*** ****** *** ******** ******** ** making *** ******-***** ****** ** *** past *******, ** *** *** ******** explained *** **** *** **** ********* guidance **** ****:
** ***** ***** *** ******** ** 2023. * **** *****, * *** of *** ******* *** ******* **** we ********** *** *********, *** * would ***, ** **** ******, **** became **** **** **********. *****'* * mixed ***** ** *** *******. *** when *** ***** ***** *** ********* aspects, ** *** *****-*******, ** **** from ** *********** ** *** ****** of * ****** ** **** **** to *** ********* ** **, ***** is **** *********. ** *****'* **** quite *** ******* ******.
*** ******* ********** *** ******** *** 2024, ** ** *********** ****** ****** in *** ********* ***** ******** ** the ****. *** *** ***** ********:
******* *** **** ***** ** *** year, ** ***** *** ********* *** market ******. *** ** ** ***** that ** ** *** ****** * hockey *****, *** * ** *** the ********* *** ****** ****** ******* and *** ******** ********* *********** ********* include ******* ********* ** ******* *********** through ********* ****-******** *****, ********* ** geopolitical ******, ** **** ** ******* election **** ***********. ** ** ****** do, ** **** ****** *** **** of *** ****** ** ** **** through *** ****.
*** *******'* ******* **** ******* ** as *******. ** ******** *** ***-**** earnings *** ******* ***** ****** **** mid-single ***** ****** ** ***-****** ***** growth:
Gross ****** ** ** ** *** ******** ****-**** ********
***** *** ******* ********** * ***** decline ** ** ****, ** ******** its ***** ****** ** *.*%:
*******, *** *******'* *** ******* **** he ** *** ********* ***'* ****-**** 2024 ***** ****** ******** ****** *******:
*** *** **** ****. * ***** say **'** ******* ** *** *********** on *** ***** ****** **** ** gave, ***** *** **** ** ***** be ******* ** ****. *****'* ***** to ******** ** **** *********** ******* to *******, *** ** **** ********, we ***** **** ** ***** ************. Certainly, ***** **** *** *** ******* a *** ** ** ** *** stronger ****** ****** ****** *** ***** solutions. ***'* ****** **** ***** **** some ****** ** *** ***** ******.
*** * ***** *** **** ** think ***** *** ************ ** *** down *******, ***** ** ***** ** durable, ****'* ****** ** **** ***** margins **. **, ** **** ********, we're ******* ** **** *********** ** that **** ** **** ** **** gross ****** ******* ** ****.