ePlus (PLUS) Sidoti September Small-Cap Virtual Conference summary

Business overview and strategy

• Operates in technology and financing segments, with a shift toward a services-led model enhancing margins and growth.

• Over 30 years in business, demonstrating adaptability to market changes like cloud and AI.

• Maintains a collaborative management team with annual five-year strategic planning.

• Focuses on supporting large customers through strategically placed integration centers and international reach.

• Differentiates from competitors by emphasizing services and solutions over commodity products.

Service offerings and market positioning

• Provides consultative, professional, staffing, and annuity services, with a strong push in managed services.

• Managed services CAGR of 22% over five years, with a 28% YoY increase in the latest quarter.

• Offers cloud, data center modernization, security, and AI solutions, including the AI Ignite program.

• Storage-as-a-service and flexible consumption models help customers manage costs and scalability.

• Customer Innovation Center and labs demonstrate technology capabilities to clients.

Financial performance and guidance

• Net sales CAGR of 9% and gross billings CAGR of 11% over five years.

• Services revenue CAGR of 11%, with managed services at 22% and managed services gross profit CAGR at 30%.

• Consolidated gross margin reached 24.8% in fiscal 2024, with technology business margin rising to 23.4%.

• Net earnings and diluted EPS CAGR of 14% from 2020 to 2024; adjusted EBITDA CAGR of 12%.

• Fiscal 2025 guidance: revenue growth of 3%-6% and adjusted EBITDA of $200M-$215M.