TD SYNNEX (SNX) Q4 2024 earnings summary

Executive summary

• Q4 revenue grew 10% year over year to $15.8B, with non-GAAP gross billings up 7% to $21.2B; FY24 non-GAAP gross billings reached $80.1B, up 4% year over year.

• Free cash flow for FY24 was $1.0B, with $513M generated in Q4; 72% of free cash flow (~$750M) was returned to shareholders via buybacks and dividends.

• Strategic and advanced technologies accounted for 26% of Q4 non-GAAP gross billings, reflecting strong growth in cloud, AI, security, and hyperscale infrastructure.

• Hyve and Advanced Solutions delivered double-digit revenue growth, though Hyve margins were impacted by tough year-over-year comparisons.

• The business model's resilience and diversified portfolio enabled consistent margins and cash flow despite macroeconomic uncertainty.

Financial highlights

• Q4 gross billings: $21.2B, up 7.4% year over year; Q4 net revenue: $15.8B, up 10% year over year.

• Q4 gross profit: $1.04B (4.91% of gross billings), with gross margin at 6.6%, down 50 bps year over year.

• Q4 non-GAAP net income: $263M; non-GAAP diluted EPS: $3.09; FY24 non-GAAP diluted EPS: $11.68.

• Q4 operating income: $325M (GAAP), up 13% year over year; non-GAAP operating margin: 2.66%.

• Q4 cash conversion cycle improved to 18 days from 23 days year over year.

Outlook and guidance

• Q1 FY25 non-GAAP gross billings expected at $19.7B–$20.7B; revenue guidance: $14.4B–$15.2B.

• Q1 FY25 non-GAAP net income: $224M–$266M; non-GAAP diluted EPS: $2.65–$3.15.

• Full-year FY25 gross billings expected to grow mid-single digits year over year; FY25 free cash flow expected at $1.1B.

• Quarterly dividend raised 10% to $0.44 per share, payable January 31, 2025.