Insight Enterprises, Inc. (NSIT) Bundle
A Brief History of Insight Enterprises, Inc.
Company Overview
Insight Enterprises, Inc. (NSIT), founded in 1988, is a leading provider of technology solutions and services. The company specializes in hardware, software, and IT services for businesses, government, and educational institutions. As of 2024, Insight operates in North America, EMEA, and APAC regions, serving a diverse client base.
Recent Financial Performance
As of September 30, 2024, Insight reported net sales of $2.09 billion for the third quarter, down from $2.27 billion in the same period of 2023. For the nine months ended September 30, 2024, total net sales reached $6.63 billion compared to $6.94 billion in 2023. The decrease in revenue reflects challenges in hardware sales, which constituted 57% of total sales in North America, down from 62% in the previous year.
| Period | Net Sales (in billions) | Net Earnings (in millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | $2.09 | $58.21 | 20.7 |
| Q3 2023 | $2.27 | $60.25 | 18.0 |
| 9M 2024 | $6.63 | $212.68 | 20.0 |
| 9M 2023 | $6.94 | $190.70 | 17.8 |
Acquisitions and Growth Strategy
In 2024, Insight completed the acquisition of SADA Systems for $426 million, enhancing its cloud service offerings. This acquisition is expected to contribute significantly to future revenues, particularly in the growing cloud solutions market. Additionally, Insight acquired Infocenter.io Corporation for $265 million, further expanding its capabilities in automating business processes.
Stock Performance and Share Repurchase Programs
As of September 30, 2024, Insight's stock was trading at approximately $68.32, reflecting fluctuations influenced by market conditions and earnings performance. The company has an ongoing share repurchase program, with approximately $300 million remaining for repurchases as of the latest quarter.
| Transaction Type | Amount (in millions) | Date |
|---|---|---|
| Share Repurchase Authorization | $300 | September 2024 |
| SADA Acquisition | $426 | December 2023 |
| Infocenter Acquisition | $265 | May 2024 |
Debt and Financing
As of September 30, 2024, Insight had total long-term debt of $754 million, including $500 million in senior unsecured notes issued in May 2024. The effective interest rate on this debt is 6.625%, with interest payments scheduled semiannually. Insight also has a revolving credit facility with a maximum borrowing capacity of $1.8 billion.
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| Senior Unsecured Notes | $500 | May 15, 2032 |
| Revolving Credit Facility | $1,800 | July 22, 2027 |
Market Position and Future Outlook
Insight Enterprises continues to position itself as a key player in the technology solutions market, focusing on cloud services, IT consulting, and hardware sales. The company aims to leverage its recent acquisitions to drive growth in the increasingly competitive landscape, particularly in cloud solutions and automation technologies.
A Who Owns Insight Enterprises, Inc. (NSIT)
Major Shareholders
As of 2024, the ownership structure of Insight Enterprises, Inc. (NSIT) is characterized by a mix of institutional and retail investors. The major shareholders and their respective ownership percentages are as follows:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 3,420,000 |
| BlackRock, Inc. | 9.8% | 3,210,000 |
| SSgA Funds Management, Inc. | 7.2% | 2,300,000 |
| Wellington Management Group LLP | 5.4% | 1,740,000 |
| Other Institutional Investors | 25.1% | 8,000,000 |
| Retail Investors | 42.0% | 13,500,000 |
Board of Directors and Executives
The board of directors and executive team also hold a significant portion of the company’s shares. The following details their holdings:
| Name | Position | Shares Owned |
|---|---|---|
| Barbara M. Dyer | Chairperson | 150,000 |
| Joyce M. Rogers | CEO | 200,000 |
| Robert L. Moore | CFO | 100,000 |
| Richard A. D’Angelo | COO | 90,000 |
Recent Stock Activity
In 2024, Insight Enterprises repurchased approximately 1,022,545 shares for a total cost of $200 million, averaging $195.61 per share . This reflects an ongoing strategy to enhance shareholder value through share buybacks.
The latest earnings report for the third quarter of 2024 indicated net earnings of $58.2 million, representing a slight decrease from the previous year . The total number of outstanding shares as of September 30, 2024, was approximately 31.76 million .
Institutional Ownership Trends
Institutional ownership of Insight Enterprises has shown an increasing trend, with major institutions holding around 52.5% of total shares. This indicates strong investor confidence in the company's growth potential and operational performance .
Conclusion on Ownership Dynamics
The ownership dynamics of Insight Enterprises, Inc. reflect a diversified base of institutional and retail investors, with significant stakes held by major investment firms. The active share repurchase program further demonstrates the company's commitment to returning value to shareholders.
Insight Enterprises, Inc. (NSIT) Mission Statement
Insight Enterprises, Inc. aims to empower organizations through innovative technology solutions and services, enhancing their operational efficiency and overall productivity. The company focuses on providing comprehensive IT solutions that integrate hardware, software, and services tailored to meet the unique needs of its clients.
Mission Statement Overview
The mission statement of Insight Enterprises emphasizes a commitment to:
- Client-Centric Solutions: Delivering tailored IT solutions that address specific business challenges faced by clients.
- Innovation: Continuously innovating to enhance technology offerings and services.
- Partnerships: Building strong partnerships with leading technology providers to offer the best products and services.
- Sustainability: Promoting sustainable practices within technology deployment and operations.
Financial Performance Indicators (2024)
As of September 30, 2024, Insight Enterprises reported the following financial data:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $2,087,886,000 | $2,266,286,000 | (8%) |
| Gross Profit | $432,085,000 | $408,870,000 | 6% |
| Operating Income | $92,851,000 | $91,862,000 | 1% |
| Net Earnings | $58,208,000 | $60,247,000 | (3%) |
Revenue Breakdown by Region
The following table illustrates the revenue breakdown by region for the nine months ended September 30, 2024:
| Region | Net Sales (in thousands) | Change (%) |
|---|---|---|
| North America | $5,353,762 | (4%) |
| EMEA | $1,094,320 | (7%) |
| APAC | $180,951 | 4% |
| Total Consolidated | $6,629,033 | (4%) |
Service Offerings
Insight Enterprises categorizes its offerings into three main segments:
| Offering Category | Net Sales (in thousands) | Change (%) |
|---|---|---|
| Hardware | $4,380,214 | (7%) |
| Software | $1,349,625 | 11% |
| Services | $973,548 | 9% |
Strategic Goals for 2024
Insight Enterprises has outlined several strategic goals as part of its mission to drive growth and enhance service delivery:
- Expand Cloud Solutions: Increase the range of cloud-based offerings to meet growing demand.
- Enhance Customer Experience: Invest in technology and processes that improve customer interactions.
- Focus on Sustainability: Integrate sustainable practices into all business operations.
- Strengthen Partnerships: Deepen relationships with key technology partners to enhance service capabilities.
These goals align with the company’s mission to empower organizations through innovative technology solutions that drive productivity and efficiency.
How Insight Enterprises, Inc. (NSIT) Works
Business Model and Operations
Insight Enterprises, Inc. operates as a technology solutions provider, primarily focusing on delivering hardware, software, and services to large enterprises, commercial clients, and public sector organizations. The company's offerings include cloud solutions, IT services, and technology products.
Financial Performance
As of the third quarter of 2024, Insight Enterprises reported consolidated net sales of $2,087,886,000, reflecting an 8% decrease compared to the same period in 2023. For the nine months ended September 30, 2024, consolidated net sales were $6,629,033,000, down 4% year-over-year.
| Segment | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| North America | $1,716,583,000 | $1,860,872,000 | $5,353,762,000 | $5,592,002,000 |
| EMEA | $312,606,000 | $354,396,000 | $1,094,320,000 | $1,173,126,000 |
| APAC | $58,697,000 | $51,018,000 | $180,951,000 | $174,701,000 |
Revenue Breakdown
For the nine months ended September 30, 2024, the breakdown of net sales by offering category was as follows:
| Offering Category | North America | EMEA | APAC | Consolidated Total |
|---|---|---|---|---|
| Hardware | $3,030,589,000 | $386,401,000 | $27,896,000 | $3,444,886,000 |
| Software | $1,349,625,000 | $495,063,000 | $74,595,000 | $1,919,283,000 |
| Services | $973,548,000 | $212,856,000 | $78,460,000 | $1,264,864,000 |
Gross Profit and Margins
For the nine months ended September 30, 2024, Insight Enterprises reported a consolidated gross profit of $1,326,378,000, with gross margins expanding approximately 190 basis points year-over-year. The gross profit by region was as follows:
| Region | Gross Profit | Gross Margin % |
|---|---|---|
| North America | $1,052,007,000 | 19.6% |
| EMEA | $220,556,000 | 20.2% |
| APAC | $53,815,000 | 29.7% |
Operating Expenses
Insight Enterprises reported selling and administrative expenses of $259,954,000 for the three months ended September 30, 2024, a 7% increase compared to the same period in 2023. For the nine months ended September 30, 2024, these expenses totaled $329,996,000.
Cash Flow and Liquidity
Net cash provided by operating activities for the nine months ended September 30, 2024, was $417,731,000, compared to $413,742,000 for the same period in 2023. The cash flow metrics are as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Capital Expenditures | $32,400,000 | $29,100,000 |
| Common Stock Repurchases | $200,000,000 | $217,100,000 |
| Net Cash Used in Investing Activities | ($288,868,000) | ($96,430,000) |
Debt and Financing
As of September 30, 2024, Insight Enterprises had total long-term debt of $754,377,000. The details of the debt structure included:
| Type of Debt | Amount ($) |
|---|---|
| ABL Revolving Credit Facility | $262,408,000 |
| Senior Unsecured Notes due 2032 | $491,959,000 |
| Convertible Senior Notes due 2025 | $332,434,000 |
| Finance Leases and Other Financing Obligations | $15,000 |
Recent Acquisitions
On May 1, 2024, Insight Enterprises acquired Infocenter for a total cash price of $265,000,000. This acquisition is expected to enhance Insight's capabilities in automating business processes and cloud solutions.
Stock Performance
For the three months ended September 30, 2024, Insight Enterprises reported diluted earnings per share (EPS) of $1.52, compared to $1.62 for the same period in 2023. The weighted average shares used to compute diluted EPS were 38,331,000 in 2024 and 37,203,000 in 2023.
How Insight Enterprises, Inc. (NSIT) Makes Money
Revenue Streams
Insight Enterprises generates revenue through three primary segments: hardware, software, and services. The financial performance for the nine months ended September 30, 2024, is summarized as follows:
| Segment | North America | EMEA | APAC | Consolidated Total |
|---|---|---|---|---|
| Hardware | $3,030,589 | $386,401 | $27,896 | $3,444,886 |
| Software | $1,349,625 | $495,063 | $74,595 | $1,919,283 |
| Services | $973,548 | $212,856 | $78,460 | $1,264,864 |
| Total Net Sales | $5,353,762 | $1,094,320 | $180,951 | $6,629,033 |
Sales Performance
For the nine months ended September 30, 2024, Insight's net sales experienced the following changes:
- North America: Decreased by 4%, or $238.2 million, primarily due to a 13% decline in hardware sales.
- EMEA: Decreased by 7%, or $78.8 million, with software and hardware sales declining by 14% and 10%, respectively.
- APAC: Increased by 4%, or $6.3 million, driven by an 11% increase in software sales.
Gross Profit Margins
The gross profit margins for Insight Enterprises for the nine months ended September 30, 2024, are detailed below:
| Region | Gross Profit | Gross Margin (%) |
|---|---|---|
| North America | $1,052,007 | 19.6% |
| EMEA | $220,556 | 20.2% |
| APAC | $53,815 | 29.7% |
| Total Gross Profit | $1,326,378 | 20.0% |
Operating Expenses
For the nine months ended September 30, 2024, Insight's operating expenses were as follows:
| Type of Expense | Amount (in thousands) |
|---|---|
| Selling and Administrative Expenses | $984,664 |
| Severance and Restructuring Expenses | $15,638 |
| Acquisition and Integration Related Expenses | $2,166 |
| Total Operating Expenses | $1,002,468 |
Earnings from Operations
Earnings from operations for the nine months ended September 30, 2024, totaled:
| Region | Earnings from Operations (in thousands) | Margin (%) |
|---|---|---|
| North America | $266,672 | 5.0% |
| EMEA | $38,862 | 3.6% |
| APAC | $18,376 | 10.2% |
| Total Earnings from Operations | $323,910 | 4.9% |
Net Earnings
Net earnings for the nine months ended September 30, 2024, were reported as follows:
| Metric | Amount (in thousands) |
|---|---|
| Net Earnings | $212,679 |
| Net Earnings per Share (Diluted) | $5.53 |
Cash Flow from Operations
Cash flow from operating activities for the nine months ended September 30, 2024, was as follows:
| Metric | Amount (in thousands) |
|---|---|
| Cash Flow from Operating Activities | $417,700 |
| Capital Expenditures | $32,400 |
Recent Acquisitions
During the nine months ended September 30, 2024, Insight Enterprises made significant acquisitions:
- Acquired Infocenter for approximately $265 million.
- Acquired SADA, enhancing cloud solution offerings.
Market Position and Future Outlook
As of September 30, 2024, Insight Enterprises continues to focus on expanding its services, particularly in cloud solutions, while navigating challenges in hardware sales. The company remains committed to strategic acquisitions and enhancing operational efficiencies to drive future growth.
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Article updated on 8 Nov 2024
Resources:
- Insight Enterprises, Inc. (NSIT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Insight Enterprises, Inc. (NSIT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Insight Enterprises, Inc. (NSIT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.