TD SYNNEX (SNX) Q3 2024 earnings summary

Executive summary

• Non-GAAP gross billings for Q3 reached $20.3 billion, up 9% year-over-year, exceeding guidance and reflecting strong growth in both Endpoint and Advanced Solutions segments, with strategic technologies accounting for 26% of billings.

• Revenue for Q3 2024 was $14.7 billion, up 5.2% year-over-year, driven by growth in Advanced and Endpoint Solutions portfolios across all geographic segments.

• Net income for Q3 was $179 million (GAAP), with non-GAAP net income at $245 million; diluted EPS was $2.08 (GAAP) and $2.86 (non-GAAP), both above the midpoint of guidance.

• Free cash flow for Q3 was $339 million, with $530 million generated year-to-date and a full-year target of $1 billion.

• Strategic focus areas include revenue growth, margin management, cost discipline, and disciplined capital allocation to drive shareholder value.

Financial highlights

• Gross profit for Q3 was $961 million (4.7% of gross billings), down 1% year-over-year, with gross margin at 6.54%.

• Non-GAAP operating income was $393 million, down 1% year-over-year; GAAP operating income was $303 million, up 26% year-over-year.

• Non-GAAP diluted EPS grew 3% year-over-year to $2.86; GAAP diluted EPS was $2.08, up 40% year-over-year.

• Cash and cash equivalents stood at $854 million as of August 31, 2024.

• Returned $91 million to shareholders in Q3 via $57 million in share repurchases and $34 million in dividends.

Outlook and guidance

• Q4 non-GAAP gross billings expected between $20.5 billion and $21.5 billion; revenue guidance of $14.9–$15.7 billion.

• Q4 non-GAAP net income guidance is $239 million–$282 million; diluted EPS expected between $2.80 and $3.30 (non-GAAP), $1.90–$2.40 (GAAP).

• Fiscal year free cash flow projected at approximately $1 billion, with expectations to exceed this in fiscal 2025.

• Quarterly dividend of $0.40 per share, up 14% year-over-year, payable October 25, 2024.

• Management expects continued focus on strategic technologies such as hybrid cloud, security, data analytics, AI, and hyperscale infrastructure.