Insight Enterprises Q3 2024 Filing Analysis

TL;DR

Insight Enterprises Q3 2024: Mixed results across segments, detailed financials available.

AI Summary

Insight Enterprises Inc. reported its Q3 results for the period ending September 30, 2024. The company's financial performance for the third quarter and the first nine months of 2024 showed varied results across its product and service segments compared to the same periods in 2023. Specific financial figures for revenue, gross profit, and net income are detailed 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: medium — The filing contains detailed financial data, but without specific comparative figures or forward-looking statements, assessing the overall risk is challenging.

Key Numbers

• 2024-09-30 — Period End Date (Indicates the end of the reporting quarter.)
• 2024-07-01 to 2024-09-30 — Q3 2024 Reporting Period (Specific timeframe for the third quarter financial data.)
• 2023-07-01 to 2023-09-30 — Q3 2023 Reporting Period (Comparative timeframe for the third quarter of the previous year.)
• 2024-01-01 to 2024-09-30 — Nine Months 2024 Period (Year-to-date financial data for 2024.)
• 2023-01-01 to 2023-09-30 — Nine Months 2023 Period (Year-to-date financial data for 2023.)

Key Players & Entities

• INSIGHT ENTERPRISES INC (company) — Filer
• 0000932696 (company) — Central Index Key
• 20240930 (date) — Period of Report
• 20241031 (date) — Filing Date

FAQ

Key Financial Figures

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

Filing Documents

• nsit-20240930.htm (10-Q) — 1504KB
• nsit-20240930x10qexx311.htm (EX-31.1) — 10KB
• nsit-20240930exx312.htm (EX-31.2) — 10KB
• nsit-20240930x10qexx321.htm (EX-32.1) — 7KB
• nsit-20240930_g1.jpg (GRAPHIC) — 5KB
• 0001628280-24-044520.txt ( ) — 7154KB
• nsit-20240930.xsd (EX-101.SCH) — 42KB
• nsit-20240930_cal.xml (EX-101.CAL) — 64KB
• nsit-20240930_def.xml (EX-101.DEF) — 227KB
• nsit-20240930_lab.xml (EX-101.LAB) — 550KB
• nsit-20240930_pre.xml (EX-101.PRE) — 378KB
• nsit-20240930_htm.xml (XML) — 1174KB

Financial Statements

Financial Statements: Consolidated Balance Sheets (unaudited) – September 30, 2024 and December 31, 2023 1 Consolidated Statements of Operations (unaudited) – Three and Nine Months Ended September 30, 2024 and 2023 2 Consolidated Statements of Comprehensive Income (unaudited) – Three and Nine Months Ended September 30, 2024 and 2023 3 Consolidated Statements of Stockholders' Equity (unaudited) – Three and Nine Months Ended September 30, 2024 and 2023 4 Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended September 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 43 Item 4 –

Controls and Procedures

Controls and Procedures 43 PART II - Other Information 44 Item 1 –

Legal Proceedings

Legal Proceedings 44 Item 1A –

Risk Factors

Risk Factors 44 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3 – Defaults Upon Senior Securities 45 Item 4 – Mine Safety Disclosures 45 Item 5 – Other Information 45 Item 6 – Exhibits 46

Signatures

Signatures 47 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 remaining 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 will 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

- 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) September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 317,449 $ 268,730 Accounts receivable, net of allowance for doubtful accounts of $ 24,654 and $ 12,623 , respectively 3,897,481 3,568,290 Inventories 151,013 184,605 Contract assets, net 85,767 120,518 Other current assets 208,798 189,158 Total current assets 4,660,508 4,331,301 Long-term contract assets, net 105,273 132,780 Property and equipment, net of accumulated depreciation and amortization of $ 222,495 and $ 219,591 , respectively 214,878 210,061 Goodwill 888,808 684,345 Intangible assets, net of accumulated amortization of $ 226,900 and $ 175,463 , respectively 448,680 369,687 Long-term accounts receivable 828,465 412,666 Other assets 139,831 145,510 $ 7,286,443 $ 6,286,350 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable—trade $ 2,683,323 $ 2,255,183 Accounts payable—inventory financing facilities 235,192 231,850 Accrued expenses and other current liabilities 493,175 538,346 Current portion of long-term debt 332,439 348,004 Total current liabilities 3,744,129 3,373,383 Long-term debt 754,377 592,517 Deferred income taxes 72,849 27,588 Long-term accounts payable 788,078 353,794 Other liabilities 160,710 203,335 5,520,143 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; 31,761 shares at September 30, 2024 and 32,590 shares at December 31, 2023 issued and outstanding 318 326 Additional paid-in capital 334,337 328,607 Retained earnings 1,471,546 1,448,412 Accumulated other comprehensive loss – foreign currency translation adjustments ( 39,901 ) ( 41,612 ) Total stockholders' equity 1,766,300 1,735,733 $ 7,286,443 $ 6,28

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 September 30, 2024 and our results of operations for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 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

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 September 30, 2024 and December 31, 2023 (in thousands): September 30, 2024 December 31, 2023 Current receivables, which are included in "Accounts receivable, net" $ 3,897,481 $ 3,568,290 Contract assets, net 85,767 120,518 Long-term account

View Full Filing

View this 10-Q filing on SEC EDGAR