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Softchoice (SFTC) investor relations material
Softchoice Q3 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved double-digit organic growth in Q3 2024, with gross profit up 8.9%–10% year-over-year, driven by strong Software & Cloud and Services performance, recurring SaaS/cloud gross profit, and market share gains.
Customer base expanded over 4% in Q3 and 5% over the last 12 months, with a 105% revenue retention rate and increased salesforce investment.
Launched the SAM+ Hub, a proprietary software asset management tool, with over 1,000 customers using it since September, driving customer engagement and acquisition.
Recognized for workplace excellence, ESG leadership, and as Cisco Canada's Commercial Impact Partner of the Year.
Strong Microsoft partnership, with CSP revenue up over 50% in 2023 and expected to rise 25% in 2024.
Financial highlights
Q3 2024 gross profit: $85.2M, up 8.9% year-over-year; gross profit margin was 13.6% of gross sales.
Adjusted EBITDA grew 2%–2.2% in Q3, with margin stable at 27.3% of gross profit.
Adjusted EPS (diluted) was $0.18, down from $0.27 or $0.23 in Q3 2023, due to higher taxes and financial expenses.
Net income per share (diluted) was $0.15, up from $0.14 in Q3 2023.
Free cash flow for the trailing twelve months declined to $33M from $62M, mainly due to higher taxes and expenses.
Outlook and guidance
Confident in achieving 2024 objectives for market share and returning to historical top-line growth rates, with continued organic growth and margin expansion targeted.
Q4 expected to be seasonally lower, around 26% of full-year gross profits, due to timing of incentives and hardware orders.
Dividend per share increased by 18% over Q4 2023, reflecting confidence in future cash flows.
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