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Quiq Welcomes CX Veterans Mike Zinne as First Chief Experience Officer and Cristina Bravo Olmo as SVP of Marketing

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Leader in Customer-facing AI Agent Deployments Prepares for Next Stage of Growth as Enterprise Confidence in Generative AI Increases and Buying Accelerates

BOZEMAN, Mont., Sept. 30, 2024 /PRNewswire/ — Quiq, the leader in customer-centric AI for CX, is bolstering its executive bench and CX expertise with the addition of two former Zendesk leaders: Mike Zinne and Cristina Bravo Olmo. Zinne will lead Client Services, Customer Support, Customer Success, Solution Consulting, and Professional Services, and Bravo Olmo will oversee all aspects of Marketing at Quiq.

According to Forrester, “Conversational AI is entering an entirely new phase, thanks to genAI and LLMs. Usable chatbots and IVAs that will deliver far better customer (and employee) experiences – plus those much-vaunted cost savings – are finally within reach for brands. Specifically, genAI and LLMs will improve conversational AI for brands by: massively reducing application development time…reaping significant ROI that will only rise…[and] making usable, friendly chatbots the norm.” (The State Of Conversational AI, Forrester Research, Inc., 6 September 2024.) A complimentary copy of the report is available here.

Both executives are critical hires as an increasing number of enterprise brands turn to vendors with deep CX expertise, like Quiq, when building industry- and brand-specific AI agents. Simultaneously, current Quiq customers are rapidly expanding into new cases, including those that are customer-facing, as trust in Quiq’s customer-centric AI for CX grows. As a result, Quiq’s daily conversation volume has nearly doubled year over year in each  of the past five years.

“There is no one better at delivering client service in the CX space than Zinne,” said Quiq Founder and CEO Mike Myer. “It’s hard to find someone who is truly an expert in building authentic relationships with enterprise executives, mastering technical details, and establishing scalable processes, but Zinne possesses all of these skills and much more. I worked with him at RightNow and then Oracle after the acquisition, and I have been hoping to work with him again ever since. I’m thrilled to welcome Zinne back to my team.”

Zinne will make his first public appearance on behalf of Quiq at Customer Contact Week (CCW) in Amsterdam on October 7. He will join Quiq customers, Panasonic Head of Customer Service Governance Adam Neale, and Panasonic Digital Service Manager Eugen Majeri, in leading a workshop entitled, “A Path to Personalized CX that Maximises Business Outcomes.” If you are attending CCW and would like to meet with Zinne or another member of the Quiq team, please contact Press@Quiq.com.

“This is a great time to be in CX SaaS and I’m honored to join Quiq in its quest to keep consumers at the center of every decision as more and more brands embrace AI,” said Zinne. “I am confident that combining all of our technical interactions with clients into a single team will help us accelerate our clients’ successes and turn their customers into brand loyalists.”

Previously, Zinne was the Chief Customer Officer at Outreach, the VP of Customer Experience at Zendesk, and the VP of Sales Consulting at Oracle. Mike has a proven track record of building and scaling world-class professional services and customer success teams. He has successfully managed global customer organizations and thrives on delivering custom yet simple approaches to customer experiences. While his passion is customer delight, Mike has experience in a wide range of executive roles and is an asset in managing profitability and growth in SaaS organizations.

“Cristina is phenomenal at putting herself in the shoes of our clients and seeing everything we produce through their eyes, which is critical when you’re working with emerging technology,” added Myer. “I am an engineer by trade so I can ensure our product is best-in-class, but I depend on domain superstars, like Cristina and Zinne to tell the Quiq story and deliver CX results. They will be instrumental in Quiq’s growth because they are the best at converting clients into champions and ensuring every CX leader who believes in the value of seamless journeys and is relentless in their pursuit of CX excellence knows the Quiq name.”

Previously, Bravo Olmo held marketing leadership roles at Sigma Computing, Wrike, Zendesk, Marketo, and Trend Micro. She has extensive B2B SaaS marketing experience, a legacy of building successful go-to-market strategies, and a proven ability to lead high-performance teams. While at Zendesk, Bravo Olmo was a key member of the internal IPO team, and while at Marketo, she founded Marketing Nation, the company’s customer community.

“Since Zendesk, my heart has been in CX. I have been waiting for the right company to come along so I can return to it, and I found what I have been looking for in Quiq,” said Bravo Olmo. “The CX space had been more or less stagnant since the first wave of cloud-native solutions transformed how brands engage with consumers in the early 2010s. The introduction of Generative AI has brought much needed excitement to the space, and I am thrilled to join a company that is leading customer-centric AI for CX innovation.”

About Quiq
Quiq is an AI for CX platform and the leader in customer-centric AI for CX. Quiq creates best-in-class solutions that enable seamless customer journeys across channels and between AI agents and humans. Built by CX and AI experts, Quiq delivers on the promise of generative AI by driving revenue, reducing costs, and improving CX outcomes. With Quiq’s AI Studio, enterprise brands get the best of “build” with control and customization, and the best of “buy” with expert support, security, and scalability. The world’s leading brands, including Terminix, Volvo, and IHG Hotels & Resorts, trust Quiq to improve CX outcomes. Learn how your team can be their best https://quiq.com/.

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SOURCE QUIQ, INC.

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Technology

IAS Reports Third Quarter 2024 Financial Results

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Total revenue increased 11% to $133.5 million

Net income of $16.1 million at a 12% margin; adjusted EBITDA increased to $50.6 million at a 38% margin 

NEW YORK, Nov. 12, 2024 /PRNewswire/ — Integral Ad Science Holding Corp. (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced financial results for the third quarter ended September 30, 2024.

“We increased revenue at a double-digit rate in the third quarter, driven by our industry-leading products and the contribution from new customers, with strong adjusted EBITDA performance,” said Lisa Utzschneider, CEO of IAS. “We are excited about several new logo wins and the C-level executives we have added to our team. Our focus remains on driving product innovation and leveraging AI to deliver superior value for our customers. We were delighted to announce our first-to-market optimization solution for Meta in October.”

Third Quarter 2024 Financial Highlights

Total revenue was $133.5 million, an 11% increase compared to $120.3 million in the prior-year period.Optimization revenue was $61.1 million, a 7% increase compared to $57.0 million in the prior-year period.Measurement revenue was $52.9 million, an 11% increase compared to $47.8 million in the prior-year period.Publisher revenue was $19.5 million, a 26% increase compared to $15.5 million in the prior-year period.International revenue, excluding the Americas, was $40.8 million, an 11% increase compared to $36.9 million in the prior-year period, or 31% of total revenue for the third quarter of 2024.Gross profit was $106.2 million, a 12% increase compared to $94.7 million in the prior-year period. Gross profit margin was 80% for the third quarter of 2024.Net income was $16.1 million, or $0.10 per share, compared to a net loss of $13.7 million, or $0.09 per share, in the prior-year period. Net income margin was 12% for the third quarter of 2024.Adjusted EBITDA* was $50.6 million, a 25% increase compared to $40.6 million in the prior-year period. Adjusted EBITDA* margin was 38% for the third quarter of 2024.Cash and cash equivalents were $57.1 million at September 30, 2024.

Recent Business Highlights

C-Level Appointments – In September, IAS announced that Marc Grabowski was appointed as Chief Operating Officer from his previous role as Global VP of Oracle Advertising. Srishti Gupta joined as Chief Product Officer from Rokt where she served as Chief Product Officer. She was previously Director of Ads Measurement at Amazon.First-to-Market Meta Optimization Solution – In October, IAS announced the testing of first-to-market availability pre-bid optimization solutions for IAS’s current advertisers on Meta. Social Optimization for Content Block Lists enable advertisers to ensure that better impressions are delivered to brand suitable ad adjacencies. This solution empowers advertisers with proactive pre-screen capabilities at the content level on Facebook and Instagram.TikTok Partnership Expansion – In October, IAS expanded its Total Media Quality (TMQ) offering for TikTok to include viewability, invalid traffic, and brand safety and suitability measurement for advertisers across TikTok’s newly available ad placements within the Profile, Search, Following Feeds and TikTok Lite.Misinformation Detection Launch on YouTube – In September, IAS announced the expansion of its TMQ offering on YouTube to include its industry-aligned misinformation brand safety and suitability reporting for advertisers running campaigns across YouTube ad inventory. IAS can now detect content across YouTube that it identifies as misinformation, enabling advertisers to further verify the safety and suitability of their digital media investments on YouTube.Google Ad Manager Partnership – In November, IAS announced the launch of IAS Curation with Google Ad Manager. IAS now offers programmatic buyers a deal-based enrichment pathway designed to curate inventory at the source. IAS Curation empowers advertisers with actionable data to activate avoidance and contextual targeting strategies across media buys at scale for Google Ad Manager.Quality Attention Expansion to Publishers and SSPs – In October, IAS announced the availability of Quality Attention for publishers and sell-side platforms (SSPs). IAS’s Quality Attention metrics and scores, previously available only to advertisers, help publishers improve yield optimization and drive revenue opportunities.

Financial Outlook

“We reported revenue growth of 11% and an adjusted EBITDA margin of 38% for the period,” said Tania Secor, CFO of IAS. “With healthy cash flows and low debt, we will continue to invest in the business to support our growth. Our updated financial outlook for the full year reflects our third quarter performance and anticipated advertising demand in the fourth quarter.”

IAS is providing the following financial outlook for the fourth quarter of 2024 and updating its full year 2024 revenue and adjusted EBITDA outlook:

Fourth Quarter Ending December 31, 2024:

Total revenue of $148 million to $150 millionAdjusted EBITDA* of $55 million to $57 million

Year Ending December 31, 2024:

Total revenue of $525 million to $527 millionAdjusted EBITDA* of $185 million to $187 million

* See “Supplemental Disclosure Regarding Non-GAAP Financial Information” section herein for an explanation of these measures. IAS is unable to provide a reconciliation for forward-looking guidance of adjusted EBITDA and corresponding margin to net income (loss), the most closely comparable GAAP measures without unreasonable effort, because certain material reconciling items, such as depreciation and amortization, interest expense, income tax expense (benefit) and acquisition, restructuring and integration expenses, cannot be estimated due to factors outside of IAS’s control and could have a material impact on the reported results. However, IAS estimates stock-based compensation expense for the fourth quarter of 2024 in the range of $15 million to $16 million and for the full year 2024 in the range of $62 million to $63 million.

 

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE DATA)

September 30,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents

$         57,085

$      124,759

Restricted cash

170

54

Accounts receivable, net

81,168

74,609

Unbilled receivables

48,421

46,548

Prepaid expenses and other current assets

38,030

18,959

Total current assets

224,874

264,929

Property and equipment, net

4,077

3,769

Internal use software, net

51,546

40,301

Intangible assets, net

150,618

178,908

Goodwill

675,538

675,282

Operating lease right-of-use assets

20,472

21,668

Deferred tax asset, net

2,544

2,465

Other long-term assets

5,029

4,402

Total assets

$    1,134,698

$   1,191,724

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued expenses

$         48,874

$        72,232

Operating lease liability

10,242

9,435

Due to related party

2

121

Deferred revenue

1,454

682

Total current liabilities

60,572

82,470

Deferred tax liability, net

4,989

20,367

Long-term debt, net

64,073

153,725

Operating lease liabilities, non-current

16,391

19,523

Other long-term liabilities

6,186

6,183

Total liabilities

152,211

282,268

Commitments and Contingencies (Note 13)

Stockholders’ Equity

Preferred Stock, $0.001 par value, 50,000,000 shares authorized at September 30, 2024;

0 shares issued and outstanding at September 30, 2024 and December 31, 2023.

Common Stock, $0.001 par value, 500,000,000 shares authorized, 161,955,151 and

158,757,620 shares issued and outstanding at September 30, 2024 and December 31,

2023, respectively.

162

159

Additional paid-in-capital

952,123

901,259

Accumulated other comprehensive loss

(1,276)

(916)

Retained earnings

31,478

8,954

Total stockholders’ equity

982,487

909,456

Total liabilities and stockholders’ equity

$    1,134,698

$   1,191,724

 

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

2024

2023

2024

2023

Revenue

$      133,528

$      120,331

$      377,063

$      340,074

Operating expenses:

Cost of revenue (excluding depreciation and amortization

shown below)

27,373

25,599

80,628

71,100

Sales and marketing

30,144

29,604

91,541

87,566

Technology and development

16,840

17,211

52,305

53,850

General and administrative

25,348

22,611

71,407

85,673

Depreciation and amortization

16,243

14,027

47,032

40,373

Foreign exchange (gain) loss, net

(2,607)

2,078

(723)

931

Total operating expenses

113,341

111,130

342,190

339,493

Operating income

20,187

9,201

34,873

581

Interest expense, net

(1,325)

(3,109)

(4,787)

(9,747)

Net income (loss) before income taxes

18,862

6,092

30,086

(9,166)

(Provision) benefit for income taxes

(2,773)

(19,841)

(7,562)

6,240

Net income (loss)

$      16,089

$     (13,749)

$      22,524

$       (2,926)

Net income (loss) per share – basic and diluted

$          0.10

$         (0.09)

$          0.14

$         (0.02)

Weighted average shares outstanding:

Basic

161,663,506

157,055,904

160,528,610

157,691,005

Diluted

165,084,108

157,055,904

164,635,076

157,691,005

Other comprehensive income (loss):

    Foreign currency translation adjustments

892

(1,717)

(360)

(789)

Total comprehensive income (loss)

$      16,981

$     (15,466)

$      22,164

$       (3,715)

 

Stock-Based Compensation  

(UNAUDITED)

Three Months Ended
 September 30,

Nine Months Ended
 September 30,

(IN THOUSANDS)

2024

2023

2024

2023

Cost of revenue

$      80

$     118

$     286

$     328

Sales and marketing

4,829

5,714

14,002

17,859

Technology and development

4,941

2,902

14,139

13,434

General and administrative

6,593

5,166

18,758

34,020

Total stock-based compensation

$16,443

$13,900

$47,185

$65,641

 

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

Three Months Ended September 30, 2024

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Shares

Amount

Additional
paid-in
capital

Accumulated
other
comprehensive
loss

Retained
earnings

Total
stockholders’
equity

Balance, June 30, 2024

160,786,740

$   161

$934,194

$             (2,168)

$         15,389

$      947,576

RSUs and MSUs vested

995,796

1

1

ESPP purchase

172,615

1,478

1,478

Stock-based compensation

16,451

16,451

Foreign currency translation adjustment

892

892

Net income

16,089

16,089

Balance, September 30, 2024

161,955,151

$   162

$952,123

$             (1,276)

$         31,478

$      982,487

Nine Months Ended September 30, 2024

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Shares

Amount

Additional
paid-in
capital

Accumulated
other
comprehensive
loss

Retained
earnings

Total
stockholders’
equity

Balance, December 31, 2023

158,757,620

$   159

$901,259

$                (916)

$           8,954

$      909,456

RSUs and MSUs vested

2,827,628

3

3

Option exercises

44,049

313

313

ESPP purchase

325,854

3,373

3,373

Stock-based compensation

47,178

47,178

Foreign currency translation adjustment

(360)

(360)

Net income

22,524

22,524

Balance, September 30, 2024

161,955,151

$   162

$952,123

$             (1,276)

$         31,478

$      982,487

Three Months Ended September 30, 2023

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Shares

Amount

Additional
paid-in
capital

Accumulated
other
comprehensive
loss

Retained
earnings
(accumulated
deficit)

Total
stockholders’
equity

Balance, June 30, 2023

156,279,075

$   156

$867,490

$             (1,971)

$         12,539

$      878,214

RSUs and MSUs vested

1,102,702

1

1

Option exercises

53,748

1

590

591

ESPP purchase

162,406

1,424

1,424

Stock-based compensation

13,882

13,882

Foreign currency translation adjustment

(1,717)

(1,717)

Net loss

(13,749)

(13,749)

Balance, September 30, 2023

157,597,931

$   158

$883,386

$             (3,688)

$         (1,210)

$      878,646

Nine Months Ended September 30, 2023

Common Stock

(IN THOUSANDS, EXCEPT SHARES)

Shares

Amount

Additional
paid-in
capital

Accumulated
other
comprehensive
loss

Retained
earnings
(accumulated
deficit)

Total
stockholders’
equity

Balance, December 31, 2022

153,990,128

$   154

$810,186

$             (2,899)

$              775

$      808,216

RSUs and MSUs vested

2,692,984

3

3

Option exercises

641,250

1

5,583

5,584

ESPP purchase

273,569

2,306

2,306

Stock-based compensation

65,311

65,311

Foreign currency translation adjustment

(789)

(789)

Adoption of ASC 326, net of tax

941

941

Net loss

(2,926)

(2,926)

Balance, September 30, 2023

157,597,931

$   158

$883,386

$             (3,688)

$         (1,210)

$      878,646

 

INTEGRAL AD SCIENCE HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended September 30,

(IN THOUSANDS)

2024

2023

Cash flows from operating activities:

Net income (loss)

$22,524

$  (2,926)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

47,032

40,373

Stock-based compensation

47,185

65,641

Foreign currency (gain) loss, net

(1,775)

571

Deferred tax benefit

(15,457)

(17,974)

Amortization of debt issuance costs

348

348

Allowance for credit losses

949

2,223

Impairment of assets

37

Changes in operating assets and liabilities:

Increase in accounts receivable

(7,028)

(19,936)

Increase in unbilled receivables

(1,723)

(370)

(Increase) decrease in prepaid expenses and other current assets

(18,668)

5,851

(Increase) decrease in operating leases, net

(1,169)

139

Increase in other long-term assets

(696)

(27)

(Decrease) increase in accounts payable and accrued expenses and other long-term liabilities

(21,958)

148

Increase in deferred revenue

768

150

Decrease in due to/from related party

(119)

(93)

Net cash provided by operating activities

50,250

74,118

Cash flows from investing activities:

Purchase of property and equipment

(1,594)

(1,954)

Development of internal use software and other

(28,868)

(23,539)

Net cash used in investing activities

(30,462)

(25,493)

Cash flows from financing activities:

Proceeds from the Revolver

75,000

Repayment of long-term debt

(90,000)

(125,000)

Proceeds from exercise of stock options

313

5,584

Cash received from Employee Stock Purchase Program

2,329

2,236

Net cash used in financing activities

(87,358)

(42,180)

Net (decrease) increase in cash, cash equivalents, and restricted cash

(67,570)

6,445

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(113)

(1,330)

Cash, cash equivalents and restricted cash at beginning of period

127,290

89,671

Cash, cash equivalents, and restricted cash, at end of period

$59,607

$ 94,786

Supplemental Disclosures:

Net cash paid during the period for:

Interest

$  4,613

$   8,880

Taxes

$29,942

$ 10,361

Non-cash investing and financing activities:

Property and equipment acquired included in accounts payable

$      47

$        17

Internal use software acquired included in accounts payable

$     966

$   1,012

Lease liabilities arising from right of use assets

$  6,110

$   4,832

Supplemental Disclosure Regarding Non-GAAP Financial Information

We use supplemental measures of our performance, which are derived from our consolidated financial information, but which are not presented in our consolidated financial statements prepared in accordance with GAAP. Adjusted EBITDA is the primary financial performance measure used by management to evaluate our business and monitor ongoing results of operations. Adjusted EBITDA is defined as income before depreciation and amortization, stock-based compensation, interest expense, income taxes, acquisition, restructuring and integration costs, foreign exchange gain, net, asset impairments, and other one-time, non-recurring costs. Adjusted EBITDA margin represents the adjusted EBITDA for the applicable period divided by the revenue for that period presented in accordance with GAAP.

We use non-GAAP financial measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance from period to period and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our shareholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. Although we believe these measures are useful to investors and analysts for the same reasons they are useful to management, as discussed below, these measures are not a substitute for, or superior to, U.S. GAAP financial measures or disclosures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

Reconciliations of historical adjusted EBITDA to its most directly comparable GAAP financial measure, net income/loss, are presented below. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, we may exclude such items and may incur income and expenses similar to these excluded items.

Reconciliation of Adjusted EBITDA

Three Months Ended
September 30,

Nine Months Ended
 September 30,

(IN THOUSANDS, EXCEPT PERCENTAGES)

2024

2023

2024

2023

Net income (loss)

$  16,089

$(13,749)

$  22,524

$  (2,926)

Depreciation and amortization

16,243

14,027

47,032

40,373

Stock-based compensation

16,443

13,900

47,185

65,641

Interest expense, net

1,325

3,109

4,787

9,747

Provision (benefit) for income taxes

2,773

19,841

7,562

(6,240)

Acquisition, restructuring and integration costs

290

1,353

1,465

2,974

Foreign exchange (gain) loss, net

(2,607)

2,078

(723)

931

Asset impairments and other costs

90

11

90

1,517

Adjusted EBITDA

$  50,646

$  40,570

$129,922

$112,017

Revenue

$133,528

$120,331

$377,063

$340,074

Net income (loss) margin

12 %

(11) %

6 %

(1) %

Adjusted EBITDA margin

38 %

34 %

34 %

33 %

Conference Call and Webcast Information
IAS will host a conference call and live webcast to discuss its third quarter 2024 financial results today at 5:00 p.m. ET. To access the live webcast and conference call dial-in, please register under the “News & Events” section of IAS’s investor relations website. A replay will be available on IAS’s investor relations website following the live call: https://investors.integralads.com.

About Integral Ad Science
Integral Ad Science (IAS) is a leading global media measurement and optimization platform that delivers the industry’s most actionable data to drive superior results for the world’s largest advertisers, publishers, and media platforms. IAS’s software provides comprehensive and enriched data that ensures ads are seen by real people in safe and suitable environments, while improving return on ad spend for advertisers and yield for publishers. Our mission is to be the global benchmark for trust and transparency in digital media quality. For more information, visit integralads.com.

Forward-Looking Statements
This earnings press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance, including guidance, and business, including pipeline and industry trends. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our estimated and projected costs, profitability, expenditures, cash flows, growth rates and financial results or our plans and objectives for future operations, growth initiatives or strategies, including pursuing business from Oracle or other competitors are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: (i) the adverse effect on our business, operating results, financial condition, and prospects from various macroeconomic factors, including instability in geopolitical or market conditions; (ii) our failure to innovate or make the right investment decisions; (iii) our ability to provide digital or cross-platform analytics; (iv) our failure to maintain or achieve industry accreditation standards; (v) our dependence on integrations with advertising platforms, demand side providers (“DSPs”) and proprietary platforms that we do not control; (vi) our ability to compete successfully with our current or future competitors in an intensely competitive market, including with respect to the Oracle opportunity; (vii) our inability to use software licensed from third parties; (viii) our international expansion; (ix) our ability to expand into new channels; (x) our ability to sustain our profitability and revenue growth rate; (xi) risks that our customers do not pay or choose to dispute their invoices; (xii) risks of material changes to revenue share agreements with certain DSPs; (xiii) our dependence on the overall demand for advertising; (xiv) our ability to effectively manage our growth; (xv) the impact that any acquisitions we have completed in the past and may consummate in the future, strategic investments, or alliances may have on our business, financial condition, and results of operations; (xvi) our ability to successfully execute our international plans; (xvii) the risks associated with the seasonality of our market; (xviii) our ability to maintain high impression volumes; (xix) the difficulty in evaluating our future prospects given our short operating history; (xx) uncertainty in how the market for buying digital advertising verification solutions will evolve; (xxi) interruption by man-made problems such as terrorism, computer viruses, or social disruptions; (xxii) the risk of failures in the systems and infrastructure supporting our solutions and operations; (xxiii) our ability to avoid operational, technical, and performance issues with our platform; (xxiv) risks associated with any unauthorized access to user, customer, or inventory and third-party provider data; (xxv) our ability to provide the non-proprietary technology, software, products, and services that we use; (xxvi) the risk that we are sued by third parties for alleged infringement, misappropriation, or other violation of their proprietary rights; (xxvii) our ability to obtain, maintain, protect, or enforce intellectual property and proprietary rights that are important to our business; (xxviii) our involvement in lawsuits to protect or enforce our intellectual property; (xxix) risks that our employees, consultants, or advisors have wrongfully used or disclosed alleged trade secrets of their current or former employers; (xxx) risks that our trademarks and trade names are not adequately protected; (xxxi) the impact of unforeseen changes to privacy and data protection laws and regulation on digital advertising; (xxxii) our ability to maintain our corporate culture; (xxxiii) public health outbreaks, epidemics, pandemics, or other public health crises; (xxxiv) risks posed by earthquakes, fires, floods, and other natural catastrophic events; (xxxv) the risk that a perceived failure to comply with laws and industry self-regulation may damage our reputation; and (xxxvi) other factors disclosed in our filings with the SEC. Given these factors, as well as other variables that may affect our operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods.

We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to update or revise any forward- looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Contact:
Jonathan Schaffer
ir@integralads.com

Media Contact:
press@integralads.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/ias-reports-third-quarter-2024-financial-results-302303120.html

SOURCE Integral Ad Science, Inc.

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ePlus Reports Second Quarter and First Half Financial Results Fiscal Year 2025

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Second Quarter Gross Profit And Gross Margin Improved Year Over Year

Second Quarter Fiscal Year 2025

•          

Net sales decreased 12.3% to $515.2 million; technology business net sales decreased 13.8% to $493.3 million; service revenues increased 46.0% to $103.7 million.

•          

Technology business gross billings decreased 5.6% to $808.2 million.

•          

Consolidated gross profit increased 2.5% to $148.0 million.

•          

Consolidated gross margin was 28.7%, compared with 24.6% last year.

•          

Net earnings decreased 4.1% to $31.3 million.

•          

Adjusted EBITDA decreased 2.7% to $52.1 million.

•          

Diluted earnings per share decreased 4.1% to $1.17. Non-GAAP diluted earnings per share decreased 2.9% to $1.36.

 

First Half Fiscal Year 2025

•          

Net sales decreased 8.8% to $1,059.7 million; technology business net sales decreased 9.6% to $1,028.8 million; service revenues increased 31.3% to $181.9 million.

•          

Technology business gross billings decreased 3.3% to $1,641.9 million.

•          

Consolidated gross profit decreased 1.5% to $282.5 million.

•          

Consolidated gross margin increased to 26.7%, compared with 24.7% last year.

•          

Net earnings decreased 11.8% to $58.6 million.

•          

Adjusted EBITDA decreased 11.3% to $95.3 million.

•          

Diluted earnings per share decreased 12.0% to $2.19. Non-GAAP diluted earnings per share decreased 11.0% to $2.50.

HERNDON, Va., Nov. 12, 2024 /PRNewswire/ — ePlus inc. (NASDAQ: PLUS), a leading provider of technology and financing solutions, today announced financial results for the three months and six months ended September 30, 2024, the second quarter of its 2025 fiscal year.

Management Comment

“Our results in the second quarter reflect the ongoing evolution of the industry towards ratable and subscription revenue models and slower product sales, partially offset by the continued strength of our services-led approach,” said Mark Marron, president and CEO of ePlus. “Notably, we experienced a year on year increase in gross profit and gross margin on lower gross billings and net sales, driven by higher margin services revenues, which increased 46%, and strong financing revenues.

“During the quarter, we acquired Bailiwick Services, LLC, which will help us drive core to edge computing solutions for our enterprise customers. In addition, we continue to see a shift towards services and more software and subscription-based sales as a percentage of the whole, and these are often recognized ratably or on a net basis creating a net sales headwind. On the product front, artificial intelligence (AI) continues to progress, and our customers are exploring advantages to integrate AI into various aspects of their businesses.”

Mr. Marron continued, “We ended the quarter with a solid balance sheet. Our healthy cash position enabled us to fund the acquisition of Bailiwick in the quarter, with ample additional liquidity to support our capital allocation priorities as we work to deliver increased shareholder value.”

Second Quarter Fiscal Year 2025 Results 

For the second quarter ended September 30, 2024, as compared to the second quarter ended September 30, 2023:

Consolidated net sales decreased 12.3% to $515.2 million, from $587.6 million.

Technology business net sales decreased 13.8% to $493.3 million, from $571.9 million as lower product sales were offset by higher service revenues. Technology business gross billings decreased 5.6% to $808.2 million from $856.5 million.

Product sales declined 22.2% to $389.6 million, from $500.9 million, due to lower demand combined with a shift in mix. Product margin was 22.9%, up from 20.9% last year due to a higher proportion of third-party maintenance, software subscriptions and services sold in the current quarter, which are recorded on a net basis.

Professional service revenues increased 61.7% from last year to $61.9 million, from $ 38.3 million, due in part to the acquisition of Bailiwick Services, LLC. Gross margins remained consistent at 41.3%.

Managed service revenues increased 27.6% to $41.8 million due to ongoing growth in these offerings, including Enhanced Maintenance Support and Cloud services. Gross profit from managed services increased 21.0% from last year due to the increase in revenues. Managed service margins declined to 29.5% from 31.1%.

Financing business segment net sales increased 39.7% to $21.9 million, from $15.7 million, primarily due to increases in transactional gains. Gross profit in the financing business segment increased $7.1 million, from $13.6 million last year to $20.7 million this year, due to the increase in net sales.

Consolidated gross profit increased 2.5% to $148.0 million, from $144.4 million. Consolidated gross margin was 28.7%, compared with last year’s gross margin of 24.6%.

Consolidated operating expenses were $105.3 million, up 5.8% from $99.5 million last year, primarily due to increases in salaries and benefits from additional headcount, as well as increases in acquisition-related expenses of $1.0 million. Our headcount at the end of the quarter was 2,323, up 446 from a year ago. The acquisition of Bailiwick Services LLC on August 19, 2024 added 441 employees, and Peak Resources on January 27, 2024 added 24 employees. Of the 446 additional employees, 328 were customer facing employees.

Consolidated operating income decreased 4.8% to $42.7 million and earnings before tax decreased 3.7% to $43.3 million. Other income was $0.6 million compared to $0.1 million last year, as higher interest income of $2.4 million was offset by foreign exchange losses of $1.8 million.

Our effective tax rate for the current quarter was 27.7%, slightly higher than the prior year quarter of 27.4%.

Net earnings decreased 4.1% to $31.3 million.

Adjusted EBITDA in the technology business declined 17.3% and increased 68.9% in the financing business segment, and when combined, resulted in consolidated adjusted EBITDA decreasing 2.7% to $52.1 million.

Diluted earnings per common share was $1.17 for the second quarter ended September 30, 2024, compared with $1.22 in the prior year quarter. Non-GAAP diluted earnings per common share was $1.36 for the second quarter ended September 30, 2024, compared with $1.40 last year.

First Half Fiscal Year 2025 Results 

For the six months ended September 30, 2024, as compared to the six months ended September 30, 2023:

Consolidated net sales decreased 8.8% to $1,059.7 million, from $1,161.8 million.

Technology business net sales decreased 9.6% to $1,028.8 million, from $1,137.6 million due to lower product sales, offset by higher service revenues. Technology business gross billings decreased 3.3% to $1,641.9 million from $1,698.5 million.

Product sales decreased 15.2% to $846.9 million, from $999.1 million, due to declines in customer demand, as well as a shift in product mix. Gross profit from sales of product decreased 13.1% to $187.9 million due to lower sales combined with a shift in mix towards third-party maintenance and services, which are recorded on a net basis.

Professional service revenues increased 34.3% due in part to the acquisition of Bailiwick Services, LLC. Gross margins increased slightly to 41.4%, from 41.3% for the same period in the prior year.

Managed service revenues increased 27.8% to $82.7 million, from $64.7 million, due to ongoing growth in these offerings, including Enhanced Maintenance Support, Cloud and Service Desk services. Gross profit from managed services increased 25.9% to $25.2 million, from $20.0 million, due to the increase in revenues. Gross margins declined slightly to 30.4% from 30.9% last year.

Financing business segment net sales increased 28.0% to $30.9 million, from $24.2 million, due to higher transactional gains and portfolio earnings offset by lower post-contract earnings. Gross profit in the financing business segment increased $8.4 million primarily due to the increase in sales.

Consolidated gross profit decreased to $282.5 million from $286.6 million. Consolidated gross margin was 26.7%, compared with last year’s gross margin of 24.7%, due to higher product margins.

Operating expenses were $204.3 million, up 4.5% from $195.4 million last year, primarily due to increases in salaries and benefits as a result of increases in personnel and acquisition related amortization and expenses from the acquisition of Bailiwick Services LLC and Peak Resources.

Consolidated operating income decreased 14.3% to $78.2 million. Earnings before tax decreased 11.7% to $80.8 million. Other income was $2.7 million compared to $0.3 million last year, as higher interest income of $4.9 million was offset by foreign exchange losses of $2.3 million.

Our effective tax rate for the current year period was 27.4%, slightly higher than last year’s 27.3%.

Net earnings decreased 11.8% to $58.6 million.

Adjusted EBITDA decreased 11.3% to $95.3 million.

Diluted earnings per common share was $2.19 for the six months ended September 30, 2024, compared with $2.49 in the prior year. Non-GAAP diluted earnings per common share was $2.50 for the six months ended September 30, 2024, compared with $2.81 last year.

Balance Sheet Highlights

As of September 30, 2024, cash and cash equivalents decreased to $187.5 million from $253.0 million as of March 31, 2024, due to the acquisition of Bailiwick Services, LLC, repurchases of our common stock, and working capital needs. Inventory decreased 32.8% to $93.9 million as of September 30, 2024, compared with $139.7 million as of March 31, 2024. Total stockholders’ equity as of September 30, 2024 was $947.0 million, compared with $901.8 million as of March 31, 2024. Total shares outstanding were 26.8 million as of September 30, 2024, and 27.0 million as of March 31, 2024.

Fiscal Year Guidance

Fiscal year 2025 net sales are now expected to be similar to fiscal year 2024. The adjusted EBITDA range is now expected to be $195 million to $205 million. ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to the ePlus’ results computed in accordance with GAAP.  Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full year 2025 forecast.

Summary and Outlook 

“While we’ve seen some softening in enterprise demand due to prior absorption of purchases and global economic uncertainty, our outlook continues to reflect our prioritized investments in key high-growth categories such as AI, security and related software and services to drive long-term sustainable growth.  Our customer relationships are strong and their feedback for our AI Ignite offering reinforces our view that clients are at the early stage of adoption for these solutions. We are well positioned to serve this emerging demand, and over the longer term, our strong balance sheet supports our ability to build on the success that we have achieved over the past several years,” concluded Mr. Marron.

Recent Corporate Developments/Recognitions

In the second quarter of its 2025 fiscal year, ePlus:

Achieved renewal of the Cisco Environmental Sustainability Specialization.Acquired Bailiwick Services, LLC.Announced Storage-as-a-Service Leveraging NetApp.

Conference Call Information

ePlus will hold a conference call and webcast at 4:30 p.m. ET on November 12, 2024:

Date:

November 12, 2024

Time:

4:30 p.m. ET

Audio Webcast (Live & Replay):

https://events.q4inc.com/attendee/569325154

Live Call:

(888) 596-4144 (toll-free/domestic)

(646) 968-2525 (international)

Archived Call:

(800) 770-2030 (toll-free/domestic)

(609) 800-9909 (international)

Conference ID:

5394845# (live call and replay)

A replay of the call will be available approximately two hours after the call through November 13, 2024. A transcript of the call will also be available on the ePlus Investor Relations website at https://www.eplus.com/investors

About ePlus inc. 

ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking, and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and more than 2,300 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia‐Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on LinkedIn, X, Facebook, and Instagram.

ePlus, Where Technology Means More®.

ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. The names of other companies and products mentioned herein may be the trademarks of their respective owners.

Forward-looking statements 

Statements in this press release that are not historical facts may be deemed to be “forward-looking statements,” including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, exposure to fluctuation in foreign currency rates, interest rates, and inflation, including as a result of national and international political instability fostering uncertainty and volatility in the global economy, which may cause increases in our costs and wages and our ability to increase prices to our customers, negative impacts to the arrangements that have pricing commitments over the term of an agreement and/or the loss of key lenders or constricting credit markets as a result of changing interest rates, which may result in adverse changes in our results of operations and financial position; significant adverse changes in, reductions in, or loss of one or more of our larger volume customers or vendors; reliance on third-parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price agreements, or assurance of stock availability; our ability to remain secure during a cybersecurity attack or other information technology (“IT”) outage, including disruptions in our, our vendors or other third party’s IT systems and data and audio communication networks; our ability to secure our own and our customers’ electronic and other confidential information, while maintaining compliance with evolving data privacy and regulatory laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; ongoing remote work trends, and the increase in cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; the possibility of a reduction of vendor incentives provided to us; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel, and vendor certifications; risks relating to use or capabilities of artificial intelligence (“AI”) including social and ethical risks; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service (“IaaS”), software as a service (“SaaS”), platform as a service (“PaaS”), and AI; supply chain issues, including a shortage of IT products, may increase our costs or cause a delay in fulfilling customer orders, or increase our need for working capital, or delay completing professional services, or purchasing IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; our inability to identify acquisition candidates, perform sufficient due diligence prior to completing an acquisition, successfully integrate a completed acquisition, or identify an opportunity for or successfully complete a business disposition, may affect our earnings; our ability to raise capital, maintain or increase as needed our lines of credit with vendors or our floor plan facility, obtain debt for our financing transactions, or the effect of those changes on our common stock price; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission. All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law.

ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

September 30, 2024

March 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

$187,528

$253,021

Accounts receivable—trade, net

587,998

644,616

Accounts receivable—other, net

76,102

46,884

Inventories

93,857

139,690

Financing receivables—net, current

136,357

102,600

Deferred costs

61,874

59,449

Other current assets

58,663

27,269

Total current assets

1,202,379

1,273,529

Financing receivables and operating leases—net

90,561

79,435

Deferred tax asset

5,633

5,620

Property, equipment and other assets

104,081

89,289

Goodwill

203,233

161,503

Other intangible assets—net

94,167

44,093

TOTAL ASSETS

$1,700,054

$1,653,469

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Current liabilities:

Accounts payable

$281,927

$315,676

Accounts payable—floor plan

115,660

105,104

Salaries and commissions payable

45,163

43,696

Deferred revenue

143,334

134,596

Non-recourse notes payable—current

28,970

23,288

Other current liabilities

34,868

34,630

Total current liabilities

649,922

656,990

Non-recourse notes payable—long-term

9,723

12,901

Other liabilities

93,412

81,799

TOTAL LIABILITIES 

753,057

751,690

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY

Preferred stock, $0.01 per share par value; 2,000 shares
        authorized; none outstanding

Common stock, $0.01 per share par value; 50,000 shares
        authorized; 26,798 outstanding at September 30, 2024 and
        26,952 outstanding at March 31, 2024

276

274

Additional paid-in capital

187,330

180,058

Treasury stock, at cost, 750 shares at September 30, 2024 and 

        447 shares at March 31, 2024

(47,461)

(23,811)

Retained earnings

801,627

742,978

Accumulated other comprehensive income—foreign currency

        translation adjustment

5,225

2,280

Total Stockholders’ Equity

946,997

901,779

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$1,700,054

$1,653,469

 

ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

2024

2023

Net sales

     Product

$411,505

$516,609

$877,854

$1,023,265

     Services

103,667

71,002

181,856

138,521

          Total

515,172

587,611

1,059,710

1,161,786

Cost of sales

     Product

301,436

398,234

661,593

787,138

     Services

65,745

45,012

115,645

88,010

          Total

367,181

443,246

777,238

875,148

Gross profit

147,991

144,365

282,472

286,638

Selling, general, and administrative

98,971

92,652

192,579

182,950

Depreciation and amortization

5,765

5,630

10,584

10,422

Interest and financing costs

537

1,220

1,122

2,071

Operating expenses

105,273

99,502

204,285

195,443

Operating income

42,718

44,863

78,187

91,195

Other income (expense), net

579

117

2,652

307

Earnings before taxes

43,297

44,980

80,839

91,502

Provision for income taxes

11,987

12,316

22,190

24,991

Net earnings

$31,310

$32,664

$58,649

$66,511

Net earnings per common share—basic

$1.18

$1.23

$2.20

$2.50

Net earnings per common share—diluted

$1.17

$1.22

$2.19

$2.49

Weighted average common shares outstanding—basic

26,567

26,624

26,604

26,588

Weighted average common shares outstanding—diluted

26,676

26,679

26,750

26,659

 

Technology Business

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

Change

2024

2023

Change

(in thousands)

(in thousands)

Net sales

    Product

$389,613

$500,937

(22.2 %)

$846,925

$999,103

(15.2 %)

    Professional services

61,900

38,270

61.7 %

99,179

73,826

34.3 %

    Managed services

41,767

32,732

27.6 %

82,677

64,695

27.8 %

          Total

493,280

571,939

(13.8 %)

1,028,781

1,137,624

(9.6 %)

Gross profit

     Product

89,359

104,749

(14.7 %)

187,864

216,140

(13.1 %)

     Professional services

25,583

15,796

62.0 %

41,038

30,520

34.5 %

     Managed services

12,339

10,194

21.0 %

25,173

19,991

25.9 %

          Total

127,281

130,739

(2.6 %)

254,075

266,651

(4.7 %)

Selling, general, and administrative

94,050

88,593

6.2 %

184,134

175,693

4.8 %

Depreciation and amortization

5,765

5,602

2.9 %

10,584

10,366

2.1 %

Interest and financing costs

661

(100.0 %)

1,211

(100.0 %)

Operating expenses

99,815

94,856

5.2 %

194,718

187,270

4.0 %

Operating income

$27,466

$35,883

(23.5 %)

$59,357

$79,381

(25.2) %

Gross billings

$808,229

$856,495

(5.6 %)

$1,641,937

$1,698,465

(3.3) %

Adjusted EBITDA

$36,804

$44,496

(17.3 %)

$76,305

$95,445

(20.1) %

Technology Business Gross Billings by Type

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

Change

2024

2023

Change

(in thousands)

(in thousands)

Cloud

$195,852

$200,637

(2.4 %)

$437,126

$459,561

(4.9 %)

Networking

219,797

311,671

(29.5 %)

501,325

588,316

(14.8 %)

Security

163,565

143,340

14.1 %

315,448

290,683

8.5 %

Collaboration

46,717

51,770

(9.8 %)

79,693

73,931

7.8 %

Other

72,545

78,571

(7.7 %)

117,137

148,332

(21.0 %)

Product gross billings

698,476

785,989

(11.1 %)

1,450,729

1,560,823

(7.1 %)

Service gross billings

109,752

70,506

55.7 %

191,207

137,642

38.9 %

Total gross billings

$808,228

$856,495

(5.6 %)

$1,641,936

$1,698,465

(3.5 %)

Technology Business Net Sales by Type 

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

Change

2024

2023

Change

(in thousands)

(in thousands)

Cloud

$121,336

$135,068

(10.2 %)

$258,567

$307,112

(15.8 %)

Networking

186,776

268,636

(30.5 %)

421,516

513,824

(18.0 %)

Security

41,209

51,886

(20.6 %)

89,214

97,682

(8.7 %)

Collaboration

17,988

27,083

(33.6 %)

38,887

40,039

(2.9 %)

Other

22,304

18,264

22.1 %

38,741

40,446

(4.2 %)

Total product

389,613

500,937

(22.2 %)

846,925

999,103

(15.2 %)

Professional services

61,900

38,270

61.7 %

99,179

73,826

34.3 %

Managed services

41,767

32,732

27.6 %

82,677

64,695

27.8 %

Total net sales

$493,280

$571,939

(13.8 %)

$1,028,781

$1,137,624

(9.6 %)

Technology Business Net Sales by Customer End Market

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

Change

2024

2023

Change

(in thousands)

(in thousands)

Telecom, Media, & Entertainment

$108,870

$124,306

(12.4 %)

$226,423

$265,641

(14.8 %)

Technology

54,988

110,948

(50.4 %)

164,094

184,351

(11.0 %)

SLED

97,687

94,906

2.9 %

189,783

204,311

(7.1 %)

Healthcare

78,235

72,022

8.6 %

153,515

158,678

(3.3 %)

Financial Services 

34,759

69,885

(50.3 %)

84,484

135,575

(37.7 %)

All other

118,741

99,872

18.9 %

210,482

189,068

11.3 %

Total net sales

$493,280

$571,939

(13.8 %)

$1,028,781

$1,137,624

(9.6 %)

Financing Business Segment

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

Change

2024

2023

Change

(in thousands)

(in thousands)

Portfolio earnings

$4,864

$3,339

45.7 %

$9,025

$6,412

40.8 %

Transactional gains

14,502

6,949

108.7 %

15,795

8,228

92.0 %

Post-contract earnings

2,105

5,038

(58.2 %)

5,420

8,672

(37.5 %)

Other

421

346

21.7 %

689

850

(18.9 %)

Net sales 

21,892

15,672

39.7 %

30,929

24,162

28.0 %

Gross profit

20,710

13,626

52.0 %

28,397

19,987

42.1 %

Selling, general, and administrative

4,921

4,059

21.2 %

8,445

7,257

16.4 %

Depreciation and amortization

28

(100.0 %)

56

(100.0 %)

Interest and financing costs

537

559

(3.9 %)

1,122

860

30.5 %

Operating expenses

5,458

4,646

17.5 %

9,567

8,173

17.1 %

Operating income

$15,252

$8,980

69.8 %

$18,830

$11,814

59.4 %

Adjusted EBITDA

$15,319

$9,072

68.9 %

$18,961

$12,002

58.0 %

ePlus inc. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP INFORMATION

We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Adjusted EBITDA for business segments, (iii) non-GAAP Net Earnings and (iv) non-GAAP Net Earnings per Common Share – Diluted.

We define Adjusted EBITDA as net earnings calculated in accordance with US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition and integration expenses, provision for income taxes, and other income (expense). Adjusted EBITDA presented for the technology business segments and the financing business segment is defined as operating income calculated in accordance with US GAAP, adjusted for interest expense, share-based compensation, acquisition and integration expenses, and depreciation and amortization. We consider the interest on notes payable from our financing business segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be operating expenses. As such, they are not included in the amounts added back to net earnings in the Adjusted EBITDA calculation.

Non-GAAP net earnings and non-GAAP net earnings per common share – diluted are based on net earnings calculated in accordance with GAAP, adjusted to exclude other income (expense), share based compensation, and acquisition related amortization expense, and the related tax effects.

We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that such non-GAAP financial measures provide management and investors a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results.

Our use of non-GAAP information as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, non-GAAP net earnings and non-GAAP net earnings per common share or similarly titled measures differently, which may reduce their usefulness as comparative measures.

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

2024

2023

(in thousands)

Consolidated

Net earnings

$31,310

$32,664

$58,649

$66,511

Provision for income taxes

11,987

12,316

22,190

24,991

Share based compensation

2,597

2,414

5,452

4,619

Acquisition related expenses

1,043

1,043

Interest and financing costs

661

1,211

Depreciation and amortization [1]

5,765

5,630

10,584

10,422

Other (income) expense, net [2]

(579)

(117)

(2,652)

(307)

Adjusted EBITDA

$52,123

$53,568

$95,266

$107,447

Technology Business Segments

Operating income

$27,466

$35,883

$59,357

$79,381

Share based compensation

2,530

2,350

5,321

4,487

Depreciation and amortization [1]

5,765

5,602

10,584

10,366

Acquisition related expenses

1,043

1,043

Interest and financing costs

661

1,211

Adjusted EBITDA

$36,804

$44,496

$76,305

$95,445

Financing Business Segment

Operating income

$15,252

$8,980

$18,830

$11,814

Share based compensation

67

64

131

132

Depreciation and amortization [1]

28

56

Adjusted EBITDA

$15,319

$9,072

$18,961

$12,002

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

2024

2023

(in thousands)

GAAP: Earnings before taxes

$43,297

$44,980

$80,839

$91,502

Share based compensation

2,597

2,414

5,452

4,619

Acquisition related expenses

1,043

1,043

Acquisition related amortization expense [3]

4,447

4,023

8,197

7,492

Other (income) expense [2]

(579)

(117)

(2,652)

(307)

Non-GAAP: Earnings before provision for income taxes           

50,805

51,300

92,879

103,306

GAAP: Provision for income taxes

11,987

12,316

22,190

24,991

Share based compensation

730

665

1,529

1,272

Acquisition related expenses

293

293

Acquisition related amortization expense [3]

1,246

1,106

2,293

2,058

Other (income) expense, net [2]

(163)

(32)

(743)

(84)

Tax benefit (expense) on restricted stock

184

79

492

216

Non-GAAP: Provision for income taxes

14,277

14,134

26,054

28,453

Non-GAAP: Net earnings

$36,528

$37,166

$66,825

$74,853

Three Months Ended September 30,

Six Months Ended September 30,

2024

2023

2024

2023

GAAP: Net earnings per common share – diluted

$1.17

$1.22

$2.19

$2.49

Share based compensation

0.07

0.07

0.15

0.13

Acquisition related expenses

0.03

0.03

Acquisition related amortization expense [3]

0.12

0.11

0.22

0.20

Other (income) expense, net [2]

(0.02)

(0.07)

Tax benefit (expense) on restricted stock

(0.01)

(0.02)

(0.01)

Total non-GAAP adjustments – net of tax

0.19

0.18

0.31

0.32

Non-GAAP: Net earnings per common share – diluted

$1.36

$1.40

$2.50

$2.81

[1] Amount consists of depreciation and amortization for assets used internally.

[2] Interest income and foreign currency transaction gains and losses.

[3] Amount consists of amortization of intangible assets from acquired businesses.

 

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SOURCE EPLUS INC.

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Genpact Announces Chief Strategy and Corporate Development Officer

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Strategic business development leader Jinsook Han joins Genpact to spearhead strategy and M&A

NEW YORK, Nov. 12, 2024 /PRNewswire/ — Genpact (NYSE: G), a global professional services and solutions firm delivering outcomes that shape the future, today announced that Jinsook Han has joined the Company as Chief Strategy and Corporate Development Officer, effective immediately. She will be responsible for the company’s strategy and investments, including ventures and acquisitions. Jinsook will report to President and CEO, Balkrishan “BK” Kalra.

“Jinsook has that rare profile that combines a deep understanding of how data, analytics and AI will transform industries, with strong M&A experience that drives shareholder value and a keen ability to bring teams together towards a common goal,” said Balkrishan “BK” Kalra, President and CEO, Genpact.  “I am delighted to welcome Jinsook to Genpact where she will guide our leadership team as we continue to drive superior value for our clients, harnessing the combined power of Genpact’s industry knowledge, data, and artificial intelligence.”

Jinsook was most recently a Cloud, Engineering, Data & AI partner at PwC. She was instrumental in shaping and advising large transformations for clients. Prior to PwC, she was the Chief Strategy Officer of the Applied Intelligence Business at Accenture.  In this role, she refreshed growth strategies, incubated new businesses, managed R&D funding, expanded strategic partnerships and increased acquisitions. Jinsook also held executive strategy and technology roles at AIG and McKinsey & Company.

Jinsook holds a Bachelor’s degree from Virginia Tech and an MBA from Kellogg School of Management. She is also a graduate of the Advanced Management Program at the Harvard Business School and CHRO program at The Wharton School of Business. She is a Certified Public Accountant.

“I am excited to join Genpact as the Company’s Chief Strategy and Corporate Development Officer,” said Jinsook Han. “Together, we will focus on identifying and executing on high-impact opportunities, elevating our capabilities, and expanding our partnership ecosystem. I look forward to bringing my expertise to help advance Genpact’s growth and to truly drive transformation not only within the Company but across the offerings and solutions we provide to our clients.”

About Genpact

Genpact (NYSE: G) is a global professional services and solutions firm delivering outcomes that shape the future. Our 125,000+ people across 30+ countries are driven by our innate curiosity, entrepreneurial agility, and desire to create lasting value for clients. Powered by our purpose – the relentless pursuit of a world that works better for people – we serve and transform leading enterprises, including the Fortune Global 500, with our deep business and industry knowledge, digital operations services, and expertise in data, technology, and AI.

Get to know us at genpact.com and on LinkedInXYouTube, and Facebook

MEDIA CONTACT:
Alexia Taxiarchos
Global Head of Communications
+1 617-259-8172
alexia.taxiarchos@genpact.com

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SOURCE Genpact Ltd.

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