Insight Enterprises Q2 2024 10-Q Filing

TL;DR

Insight Enterprises filed its Q2 2024 10-Q. Financials are in.

AI Summary

Insight Enterprises Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results for the second quarter and the first half of the year, detailing revenues from product and service sales. Specific financial figures and operational details are contained within the filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Insight Enterprises, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 20240630 — Period End Date (Indicates the end of the reporting period for this 10-Q.)
• 20240801 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• INSIGHT ENTERPRISES INC (company) — Filer
• 0000932696 (company) — Central Index Key
• 20240630 (date) — Period of Report
• 20240801 (date) — Filed as of Date
• 480-889-9500 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 NSIT The NASDAQ Global Select Market

Filing Documents

• nsit-20240630.htm (10-Q) — 1497KB
• nsit-20240630x10qexx311.htm (EX-31.1) — 10KB
• nsit-20240630exx312.htm (EX-31.2) — 10KB
• nsit-20240630x10qexx321.htm (EX-32.1) — 7KB
• nsit-20240630_g1.jpg (GRAPHIC) — 5KB
• 0001628280-24-034041.txt ( ) — 7038KB
• nsit-20240630.xsd (EX-101.SCH) — 42KB
• nsit-20240630_cal.xml (EX-101.CAL) — 64KB
• nsit-20240630_def.xml (EX-101.DEF) — 229KB
• nsit-20240630_lab.xml (EX-101.LAB) — 553KB
• nsit-20240630_pre.xml (EX-101.PRE) — 379KB
• nsit-20240630_htm.xml (XML) — 1110KB

Financial Statements

Financial Statements: Consolidated Balance Sheets (unaudited) – June 30, 2024 and December 31, 2023 1 Consolidated Statements of Operations (unaudited) – Three and Six Months June 30, 2024 and 2023 2 Consolidated Statements of Comprehensive Income (unaudited) – Three and Six Months Ended June 30, 2024 and 2023 3 Consolidated Statements of Stockholders' Equity (unaudited) – Three and Six Months Ended June 30, 2024 and 2023 4 Consolidated Statements of Cash Flows (unaudited) – Six Months Ended June 30, 2024 and 2023 5

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 6 Item 2 –

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3 –

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4 –

Controls and Procedures

Controls and Procedures 41 PART II - Other Information 42 Item 1 –

Legal Proceedings

Legal Proceedings 42 Item 1A –

Risk Factors

Risk Factors 42 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3 – Defaults Upon Senior Securities 42 Item 4 – Mine Safety Disclosures 43 Item 5 – Other Information 43 Item 6 – Exhibits 44

Signatures

Signatures 45 Table of Contents INSIGHT ENTERPRISES, INC. FORWARD-LOOKING INFORMATION References to "the Company," "Insight," "we," "us," "our" and other similar words refer to Insight Enterprises, Inc. and its consolidated subsidiaries, unless the context suggests otherwise. Certain statements in this Quarterly Report on Form 10-Q, including statements in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part I, Item 2 of this report, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include: projections of, and matters that affect, net sales, gross profit, gross margin, operating expenses, earnings from operations, non-operating income and expenses, net earnings or cash flows, cash needs and the payment of accrued expenses and liabilities; our expectations regarding supply constraints, including our belief that supply constraints and extended lead times for certain infrastructure, including networking products, have now normalized back to near historic levels; our belief that the general slowdown in our clients' decision making could continue in the short term; our expectations regarding certain trends for our business; our expectation that transformation costs are not expected to recur in the longer term; the expected effects of seasonality on our business, including as a result of recent acquisitions; expectations of further consolidation and trends in the Information Technology ("IT") industry; our business strategy and our strategic initiatives, including our efforts to grow our core business in the current environment, develop and grow our global cloud business and build scalable solutions; expectations regarding the impact of partner incentives and changes to partner incentive programs; our expectations about future benefits of our acquisitions and our plans related thereto, including potential expansion into wider re

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. INSIGHT ENTERPRISES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 256,307 $ 268,730 Accounts receivable, net of allowance for doubtful accounts of $ 28,397 and $ 12,623 , respectively 4,143,400 3,568,290 Inventories 145,456 184,605 Contract assets, net 89,179 120,518 Other current assets 265,141 189,158 Total current assets 4,899,483 4,331,301 Long-term contract assets, net 119,332 132,780 Property and equipment, net of accumulated depreciation and amortization of $ 220,600 and $ 219,591 , respectively 211,852 210,061 Goodwill 872,785 684,345 Intangible assets, net of accumulated amortization of $ 207,112 and $ 175,463 , respectively 460,809 369,687 Long-term accounts receivable 648,162 412,666 Other assets 140,390 145,510 $ 7,352,813 $ 6,286,350 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable—trade $ 2,973,317 $ 2,255,183 Accounts payable—inventory financing facilities 218,553 231,850 Accrued expenses and other current liabilities 487,556 538,346 Current portion of long-term debt 331,997 348,004 Total current liabilities 4,011,423 3,373,383 Long-term debt 663,075 592,517 Deferred income taxes 52,357 27,588 Long-term accounts payable 608,298 353,794 Other liabilities 170,115 203,335 5,505,268 4,550,617 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.01 par value, 3,000 shares authorized; no shares issued — — Common stock, $ 0.01 par value, 100,000 shares authorized; 32,584 shares at June 30, 2024 and 32,590 shares at December 31, 2023 issued and outstanding 326 326 Additional paid-in capital 334,573 328,607 Retained earnings 1,569,774 1,448,412 Accumulated other comprehensive loss – foreign currency translation adjustments ( 57,128 ) ( 41,612 ) Total stockholders' equity 1,847,545 1,735,733 $ 7,352,813 $ 6,286,350 Se

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Basis of Presentation and Recently Issued Accounting Standards We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology. We serve these clients in North America; Europe, the Middle East and Africa ("EMEA"); and Asia-Pacific ("APAC"). As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 36 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways. Our company is organized in the following three operating segments, which are primarily defined by their related geographies: Operating Segment Geography North America United States and Canada EMEA Europe, Middle East and Africa APAC Asia-Pacific Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly our financial position as of June 30, 2024 and our results of operations for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023. The consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated balance sheet at such date. The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the rules and regulations promulgated by the SEC and consequently do not include all of the disclosures norm

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis. The amendments aim to improve interim disclosure requirements, clarify situations where an entity can reveal multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and include other disclosure requirements. The main objective of the amendments is to assist investors in understanding the entity's overall performance and evaluate potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption being permitted. We did not early adopt this guidance. The updated guidance is not expected to have a material effect on the Company's consolidated financial statements or disclosures. There have been no other material changes in, or additions to the recently issued accounting standards as previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2023 that affect or may affect our current financial statements. 2. Receivables, Contract Liabilities and Performance Obligations Contract Balances The following table provides information about receivables and contract liabilities as of June 30, 2024 and December 31, 2023 (in thousands): June 30, 2024 December 31, 2023 Current receivables, which are included in "Accounts receivable, net" $ 4,143,400 $ 3,568,290 Contract assets, net 89,179 120,518 Long-term accounts receivab

View Full Filing

View this 10-Q filing on SEC EDGAR