Climb Global Solutions (CLMB) investor relations material

Strategic direction and growth plans

• Plans to accelerate acquisitions, targeting $100M in annual acquired revenue, primarily outside the U.S., to double EBITDA by 2030, with a focus on software and high-margin regions like EMEA.

• Organic growth is modeled at 10%+ annually through 2030, with top vendors currently growing above this rate.

• Shifted to a sales-first approach in 2020, prioritizing vendor recruitment, field sales, and compensation changes.

• Expansion strategy includes entering new regions (DACH, Nordics, France, Middle East, LATAM, APAC) and leveraging global contracts for faster vendor launches.

• Built a scalable, capital-efficient inside sales and operations engine across North America and EMEA.

Operational efficiency and technology initiatives

• Major ERP transformation completed, consolidating systems for a single source of truth and enabling AI-driven process automation.

• Implements a three-pronged technology roadmap: AI-enabled efficiency, unified customer/partner experience, and rigorous security/compliance.

• In-house AI-powered quoting system launching in late 2026, expected to improve efficiency by 30-40%.

• Achieved compliance with SOC 2, NIST, ISO 27001, and CMMC to unlock regulated markets and reduce risk.

• Customer experience platform and marketplace for MSPs and resellers to be live by Q1 2027, aiming for Amazon-like self-service and improved renewal processes.

Business model and market positioning

• Focused on challenger and emerging brands, reducing line card from 465 to 100 brands, with 70 brands making up 95% of sales.

• Prioritizes brands with strong distribution-first models and channel mechanics; annual refresh of line card with 12-18 new brands onboarded.

• Differentiates from broad-line distributors by offering tailored marketing, field engagement, and rapid onboarding.

• Value-added solutions segment (Grey Matter, Climb Global Services) delivers higher margins and recurring revenue.

• Marketplace and recurring revenue models are expanding, especially in EMEA, with Microsoft as a cornerstone vendor.