NASDAQ$CLMB

Climb Global Solutions Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a 20% increase in net sales and ninth consecutive quarter of profitability improvements.

Climb Global Solutions reported a 20% increase in net sales to $81.7 million and a 4% increase in Adjusted EBITDA to $4.7 million. The company made strategic investments in operating systems, new personnel, and training and development to reinforce infrastructure for future growth. They believe they are well equipped to deliver growth and profitability objectives in both the U.S. and abroad.

  • Net sales increased 20% year-over-year to $81.7 million.
  • Adjusted gross billings increased 14% year-over-year to $274.7 million.
  • Gross profit increased 10% year-over-year to $13.7 million.
  • Adjusted EBITDA increased 4% year-over-year to $4.7 million.

Headline financials

Total Revenue

$81.7M

Previous: $67.9M+20.4%
EPS (adj)

$0.72

Previous: $0.63+14.3%
Free Cash Flow

$1.38M

Previous: $2.79M-50.5%
Net Income

$1.38M

Previous: $2.79M-50.5%
Operating Income

$1.51M

Previous: $4.11M-63.2%
Gross Profit

$13.7M

Previous: $12.5M+9.7%
Cash & Equivalents

$43.9M

Previous: $29.3M+49.6%
Total Assets

$234M

Previous: $179M+30.6%
Stock-Based Comp

$2.21M

Previous: $345K+539.4%

Revenue & EPS history

Climb Global Solutions · Revenue · Quarterly

$81.7M

Q2 2023+20.4%vs Q2 2022
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

Company believes that it has a solid foundation in place to continue driving organic growth with existing vendors while adding new, innovative vendors to its line card. They will also continue to evaluate M&A opportunities that can enhance service and solutions, in addition to geographic footprint and will enable execution of organic and inorganic growth objectives in 2023.

Tailwinds

  • Driving organic growth with existing vendors.
  • Adding new, innovative vendors to the line card.
  • Evaluating M&A opportunities to enhance service and solutions.
  • Enhancing geographic footprint.
  • Executing organic and inorganic growth objectives in 2023.

Headwinds

  • Continued acceptance of the Company’s distribution channel by vendors and customers
  • The timely availability and acceptance of new products
  • Product mix, market conditions, competitive pricing pressures
  • The successful integration of acquisitions
  • Contribution of key vendor relationships and support programs, inflation, as well as factors that affect the software industry in general

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+2.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+4.3%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+19.4%

Q4 2022

Best reaction

-21.9%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-21.6%-7.4%+1.3%
Q4 2025-2.2%-3.9%-15.7%
Q3 2025-7.7%-15.1%-24.3%
Q1 2025-4.5%+1.0%+4.5%
Q4 2024+12.8%+1.8%-16.4%
Q3 2024-3.7%+1.6%+26.6%
Q2 2024+18.8%+27.3%+46.4%
Q1 2024-8.3%-9.4%-10.7%
Q4 2023+13.3%+11.5%+18.1%
Q3 2023-5.5%-4.6%+8.9%
Q2 2023-21.9%-20.5%-12.4%
Q1 2023+2.6%+6.9%+6.7%
Q4 2022+19.4%+23.3%+34.1%
Q3 2022-0.8%-1.4%+2.3%
Q2 2022-1.5%+0.4%-7.9%
Q1 2022+1.9%-0.7%+9.4%
Q4 2021+11.2%+4.3%+14.1%
Q3 2021+7.6%+3.6%+11.2%
Q2 2021+15.3%+9.1%+6.4%
Q1 2021-0.6%+0.3%+16.6%
Q4 2020+18.2%+21.9%+22.6%
Q3 2020-10.6%-11.6%-16.1%
Q2 2020-16.0%-15.3%-1.2%
Q1 2020+15.7%+20.5%+58.4%
Q4 2019+15.2%+11.6%-23.3%
Q3 2019-8.6%-7.8%-0.5%
Q2 2019+9.2%+14.8%+25.9%
Q1 2019-0.7%-2.9%-10.8%
Q4 2018+11.1%+10.7%+6.6%
Q3 2018+3.7%-0.6%-10.6%
Q2 2018-5.2%-8.5%-11.4%
Q1 2018+2.9%+3.3%+2.5%
Q4 2017+10.2%+10.9%+1.8%
Q3 2017-2.9%-3.1%+9.8%
Q2 2017-2.2%-6.1%-14.4%
Q1 2017+7.2%+3.6%+4.1%
Q4 2016+9.0%+7.2%+10.2%
Q3 2016+1.5%+0.0%-0.3%
Q2 2016+0.1%-0.3%-3.7%
Q1 2016-0.8%
Q4 2015-8.2%
Q3 2015+4.0%
Q2 2015+1.3%
Q1 2015+2.7%
Q4 2014-3.6%
Q3 2014+0.2%
Q2 2014-1.0%
Q1 2014-12.7%
Q4 2013+6.8%
Q3 2013+1.3%
Q2 2013+3.3%
Q1 2013+2.8%
Q4 2012-0.3%
Q3 2012-1.3%
Q2 2012-0.8%
Q1 2011+2.3%
Q1 2012+1.3%
Q4 2009+0.8%
Q4 2011+0.8%
Q3 2011+1.4%
Q3 2010+1.4%
Q2 2011+15.1%
Q4 2010+15.1%
Q2 2010+15.1%
Q1 2010-0.3%

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