TD SYNNEX (SNX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue rose 10% year-over-year to $15.8B, with non-GAAP gross billings up 7% to $21.2B and free cash flow of $513M, meeting the $1B full-year target.

• FY2024 non-GAAP gross billings reached $80.1B, up 4% year-over-year, and strategic technologies accounted for 26% of Q4 billings.

• Returned $750M to shareholders in FY24, representing 72% of free cash flow, through $612M in share repurchases and $138M in dividends.

• Strong performance in Endpoint and Advanced Solutions, with double-digit growth in cloud, cybersecurity, and Hyve.

• Cash provided by operations was $562M in Q4 and $1.2B for the year.

Financial highlights

• Q4 gross profit was $1.04B, with a gross margin of 6.6% (down 50 bps year-over-year); Q4 operating income was $325M, up 13% year-over-year.

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

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

• FY24 adjusted EBITDA was $1.74B; adjusted ROIC was 10.0%.

• Returned 72% of FY24 free cash flow to shareholders.

Outlook and guidance

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

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

• Full-year 2025 gross billings expected to grow mid-single digits year-over-year; free cash flow guidance: ~$1.1B.

• Quarterly dividend raised 10% to $0.44 per share.

• Estimated Q1 FY25 tax rate of 23% and interest expense of $78M.