- Revenue of $14.5 billion, an increase of 4.0% from the prior
fiscal first quarter. On a constant currency(1) basis, revenue
increased by 6.0% compared to the prior fiscal first quarter.
- Non-GAAP gross billings(1) of $20.7 billion, an increase of
7.5% from the prior fiscal first quarter and at the top end of our
outlook. On a constant currency(1) basis, non-GAAP gross
billings(1) increased by 9.5% compared to the prior fiscal first
quarter.
- Diluted earnings per share (“EPS”) of $1.98 and non-GAAP
diluted EPS(1) of $2.80, within our outlook.
- Returned $138 million to stockholders in the form of $101
million of share repurchases and $37 million in dividends.
- Announced a quarterly cash dividend of $0.44 per common share,
up 10% from the prior fiscal first quarter.
TD SYNNEX (NYSE: SNX) today announced financial results for the
fiscal first quarter ended February 28, 2025.
“The strength of our business model allowed us to grow ahead of
the market in Q1. Our end-to-end strategy, global reach and
specialist go to market approach continues to empower us to capture
a wide range of IT spend,” said Patrick Zammit, CEO of TD SYNNEX.
“Gross billings in constant currency grew by 9.5% year-over-year in
Q1 with all regions and major technologies contributing.”
Consolidated Financial Highlights for the Fiscal 2025 First
Quarter:
GAAP
($ in millions, except earnings
per share)
Q1 FY25
Q1 FY24
Net Change from Q1
FY24
Revenue
$
14,531.7
$
13,975.3
4.0
%
Gross profit
$
998.0
$
1,005.8
(0.8
)%
Gross margin
6.87
%
7.20
%
(33) bps
Operating income
$
304.5
$
302.6
0.6
%
Operating margin
2.10
%
2.17
%
(7) bps
Net income
$
167.5
$
172.1
(2.7
)%
Diluted EPS
$
1.98
$
1.93
2.6
%
Non-GAAP
($ in millions, except earnings
per share)
Q1 FY25
Q1 FY24
Net Change from Q1
FY24
Gross billings(1)
$
20,718.2
$
19,266.7
7.5
%
Gross to net %(1)
(29.9
)%
(27.5
)%
(240) bps
Revenue
$
14,531.7
$
13,975.3
4.0
%
Gross profit
$
998.0
$
1,005.8
(0.8
)%
Gross margin
6.87
%
7.20
%
(33) bps
Operating income(1)
$
398.8
$
424.6
(6.1
)%
Operating margin(1)
2.74
%
3.04
%
(30) bps
Net income(1)
$
237.4
$
266.2
(10.8
)%
Diluted EPS(1)
$
2.80
$
2.99
(6.4
)%
Consolidated Fiscal 2025 First Quarter Highlights
- Revenue was $14.5 billion, compared to $14.0 billion in the
prior fiscal first quarter, representing an increase of 4.0%. On a
constant currency(1) basis, revenue increased by 6.0% compared to
the prior fiscal first quarter driven by growth in both our
Endpoint Solutions and Advanced Solutions portfolios. A greater
percentage of our sales were presented on a net basis, which
negatively impacted our revenue compared to the prior fiscal first
quarter by approximately 4%.
- Non-GAAP gross billings(1) were $20.7 billion, compared to
$19.3 billion in the prior fiscal first quarter, representing an
increase of 7.5% and at the top end of our outlook. On a constant
currency(1) basis, non-GAAP gross billings(1) increased by 9.5%
compared to the prior fiscal first quarter.
- Gross profit was $998 million, compared to $1,006 million in
the prior fiscal first quarter.
- Gross margin was 6.9%, compared to 7.2% in the prior fiscal
first quarter, primarily due to higher margins in the prior year in
strategic technologies and product mix. The presentation of
additional revenues on a net basis positively impacted our gross
margin by approximately 23 basis points.
- Operating income was $305 million, compared to $303 million in
the prior fiscal first quarter. Non-GAAP operating income(1) was
$399 million, compared to $425 million in the prior fiscal first
quarter.
- Operating margin was 2.1%, compared to 2.2% in the prior fiscal
first quarter. Non-GAAP operating margin(1) was 2.7%, compared to
3.0% in the prior fiscal first quarter.
- Diluted EPS was $1.98, compared to $1.93 in the prior fiscal
first quarter. Non-GAAP diluted EPS(1) was $2.80, compared to $2.99
in the prior fiscal first quarter.
- Cash used in operations of $748 million, compared to cash
provided by operations of $385 million in the prior fiscal first
quarter, and negative free cash flow(1) of $790 million, compared
to positive free cash flow(1) of $344 million in the prior fiscal
first quarter.
- We returned $138 million to stockholders in the form of share
repurchases and dividends, compared to $235 million in the prior
fiscal first quarter.
Regional Fiscal 2025 First Quarter Highlights
- Americas:
- Revenue was $8.4 billion, compared to $7.9 billion in the prior
fiscal first quarter, representing an increase of 6.2%. On a
constant currency(1) basis, revenue increased by 7.0% compared to
the prior fiscal first quarter. A greater percentage of our sales
were presented on a net basis, which negatively impacted our
revenue compared to the prior fiscal first quarter by approximately
2%.
- Non-GAAP gross billings(1) were $12.4 billion, compared to
$11.5 billion in the prior fiscal first quarter, representing an
increase of 8.2%. On a constant currency(1) basis, non-GAAP gross
billings(1) increased by 9.1% compared to the prior fiscal first
quarter.
- Operating income was $194 million, compared to $160 million in
the prior fiscal first quarter. Non-GAAP operating income(1) was
$248 million, compared to $240 million in the prior fiscal first
quarter.
- Operating margin was 2.3%, compared to 2.0% in the prior fiscal
first quarter. Non-GAAP operating margin(1) was 3.0%, consistent
with the prior fiscal first quarter.
- Europe:
- Revenue was $5.1 billion, an increase of 0.4% compared to the
prior fiscal first quarter. On a constant currency(1) basis,
revenue increased by 4.3%. A greater percentage of our sales were
presented on a net basis, which negatively impacted our revenue
compared to the prior fiscal first quarter by approximately
4%.
- Non-GAAP gross billings(1) were $6.9 billion, compared to $6.6
billion in the prior fiscal first quarter, representing an increase
of 4.3%. On a constant currency(1) basis, non-GAAP gross
billings(1) increased by 8.1% compared to the prior fiscal first
quarter.
- Operating income was $86 million, compared to $108 million in
the prior fiscal first quarter. Non-GAAP operating income(1) was
$124 million, compared to $148 million in the prior fiscal first
quarter.
- Operating margin was 1.7%, compared to 2.1% in the prior fiscal
first quarter. Non-GAAP operating margin(1) was 2.4%, compared to
2.9% in the prior fiscal first quarter.
- Asia-Pacific and Japan:
- Revenue was $1.0 billion, compared to $955 million in the prior
fiscal first quarter, representing an increase of 5.2%. On a
constant currency(1) basis, revenue increased by 7.2% compared to
the prior fiscal first quarter. A greater percentage of our sales
were presented on a net basis, which negatively impacted our
revenue compared to the prior fiscal first quarter by approximately
14%.
- Non-GAAP gross billings(1) were $1.4 billion, compared to $1.2
billion in the prior fiscal first quarter, representing an increase
of 19.5%. On a constant currency(1) basis, non-GAAP gross
billings(1) increased by 21.6% compared to the prior fiscal first
quarter.
- Operating income was $25 million, compared to $35 million in
the prior fiscal first quarter. Non-GAAP operating income(1) was
$27 million, compared to $36 million in the prior fiscal first
quarter.
- Operating margin was 2.5%, compared to 3.6% in the prior fiscal
first quarter. Non-GAAP operating margin(1) was 2.7%, compared to
3.8% in the prior fiscal first quarter.
Fiscal 2025 Second Quarter Outlook
The following statements are based on TD SYNNEX’s current
expectations for the fiscal 2025 second quarter. These statements
are forward-looking and actual results may differ materially.
Non-GAAP gross billings(1) include the impact of costs incurred and
netted against revenue related to sales of third-party supplier
service contracts, software as a service arrangements and certain
fulfillment contracts, and the remaining non-GAAP financial
measures exclude the impact of acquisition, integration and
restructuring costs, amortization of intangible assets, share-based
compensation, and the related tax effects thereon.
Q2 2025 Outlook
Revenue
$13.9 - $14.7 billion
Non-GAAP gross billings(1)
$19.7 - $20.7 billion
Net income
$137 - $179 million
Non-GAAP net income(1)
$205 - $247 million
Diluted earnings per share
$1.64 - $2.14
Non-GAAP diluted earnings per share(1)
$2.45 - $2.95
Estimated outstanding diluted weighted
average shares
83.2 million
Dividend
TD SYNNEX announced today that its Board of Directors declared a
quarterly cash dividend of $0.44 per common share. The dividend is
payable on April 25, 2025 to stockholders of record as of the close
of business on April 11, 2025.
Conference Call and Webcast
TD SYNNEX will host a conference call today to discuss the 2025
fiscal first quarter results at 6:00 AM (PT)/9:00 AM (ET).
A live audio webcast of the earnings call will be accessible at
ir.tdsynnex.com and a replay of the webcast will be available
following the call.
About TD SYNNEX
TD SYNNEX (NYSE: SNX) is a leading global distributor and
solutions aggregator for the IT ecosystem. We’re an innovative
partner helping more than 150,000 customers in 100+ countries to
maximize the value of technology investments, demonstrate business
outcomes and unlock growth opportunities. Headquartered in
Clearwater, Florida and Fremont, California, TD SYNNEX’s over
23,000 co-workers are dedicated to uniting compelling IT products,
services and solutions from approximately 2,500 best-in-class
technology vendors. Our edge-to-cloud portfolio is anchored in some
of the highest-growth technology segments including cloud,
cybersecurity, big data/analytics, AI, IoT, mobility and everything
as a service.
TD SYNNEX is committed to serving customers and communities, and
we believe we can have a positive impact on our people and our
planet, intentionally acting as a respected corporate citizen. We
aspire to be a diverse and inclusive employer of choice for talent
across the IT ecosystem. For more information, visit TDSYNNEX.com,
follow our newsroom or find us on LinkedIn, Facebook and
Instagram.
(1)Use of Non-GAAP Financial Information
In addition to the financial results presented in accordance
with GAAP, TD SYNNEX uses and refers to:
- Non-GAAP gross billings, which adjusts revenues to exclude
costs related to sales of third-party supplier service contracts,
software as a service arrangements and certain fulfillment
contracts. Non-GAAP gross billings are a useful non-GAAP metric in
understanding the volume of our business activity and serve as an
important performance metric in internally managing our
operations.
- Revenue and non-GAAP gross billings in constant currency, which
adjusts for the translation effect of foreign currencies so that
certain financial results can be viewed without the impact of
fluctuations in foreign currency exchange rates, thereby
facilitating period-to-period comparisons of our performance.
Financial results adjusted for constant currency are calculated by
translating current period activity using the comparable prior year
periods’ currency conversion rate.
- “Gross to net %” refers to the percentage of adjustments made
to non-GAAP gross billings for costs incurred and netted against
revenue related to sales of third-party supplier service contracts,
software as a service arrangements and certain fulfillment
contracts.
- Adjusted selling, general and administrative expenses, which
excludes acquisition, integration and restructuring costs, the
amortization of intangible assets and share-based compensation
expense. TD SYNNEX also uses adjusted selling, general and
administrative expenses as a percentage of non-GAAP gross billings,
which is a useful metric in considering our selling, general and
administrative expenses without the impact of gross to net revenue
adjustments to gross billings. Furthermore, TD SYNNEX uses adjusted
selling, general and administrative expenses as a percentage of
gross profit, which is a useful metric in considering the portion
of gross profit retained after selling, general and administrative
expenses.
- Non-GAAP operating income and non-GAAP operating margin, which
exclude acquisition, integration and restructuring costs, the
amortization of intangible assets and share-based compensation
expense.
- Earnings before interest, taxes, depreciation and amortization
(“EBITDA”), which excludes interest expense and finance charges,
net, the provision for income taxes, depreciation, and amortization
of intangibles. TD SYNNEX also uses adjusted earnings before
interest, taxes, depreciation and amortization (“Adjusted EBITDA”)
which excludes interest expense and finance charges, net, the
provision for income taxes, depreciation, amortization of
intangibles, other income (expense), net, acquisition, integration
and restructuring costs, and share-based compensation expense.
- Non-GAAP net income and non-GAAP diluted earnings per share,
which exclude acquisition, integration and restructuring costs, the
amortization of intangible assets, share-based compensation
expense, and the related tax effects thereon.
- Free cash flow, which is cash flow from operating activities
reduced by purchases of property and equipment. TD SYNNEX uses free
cash flow to conduct and evaluate its business because although it
is similar to cash flows from operating activities, TD SYNNEX
believes free cash flow is an additional useful measure of cash
flows since purchases of property and equipment are a necessary
component of ongoing operations. Free cash flow reflects an
additional way of viewing TD SYNNEX’s liquidity that, when viewed
with its GAAP results, provides a more complete understanding of
factors and trends affecting its cash flows. Free cash flow has
limitations as it does not represent the residual cash flow
available for discretionary expenditures. For example, free cash
flow does not incorporate payments for business acquisitions.
Therefore, TD SYNNEX believes it is important to view free cash
flow as a complement to its entire Consolidated Statements of Cash
Flows.
- Trailing fiscal four quarters return on invested capital
(“ROIC”), which is defined as the last four quarters’ tax effected
operating income divided by the average of the last five quarterly
balances of borrowings and equity, net of cash. Adjusted ROIC is
calculated by excluding the tax effected impact of non-GAAP
adjustments from operating income and by excluding the cumulative
tax effected impact of current and prior period non-GAAP
adjustments on equity.
In prior periods, TD SYNNEX has excluded other items relevant to
those periods for purposes of its non-GAAP financial measures.
Acquisition, integration and restructuring costs, which are
expensed as incurred, primarily represent professional services
costs for legal, banking, consulting and advisory services,
severance and other personnel-related costs, share-based
compensation expense and debt extinguishment fees that are incurred
in connection with acquisition, integration, restructuring, and
divestiture activities. From time to time, this category may also
include transaction-related gains/losses on divestitures/spin-off
of businesses, costs related to long-lived assets including
impairment charges and accelerated depreciation and amortization
expense due to changes in asset useful lives, as well as various
other costs associated with the acquisition or divestiture.
TD SYNNEX’s acquisition activities have resulted in the
recognition of finite-lived intangible assets which consist
primarily of customer relationships and vendor lists. Finite-lived
intangible assets are amortized over their estimated useful lives
and are tested for impairment when events indicate that the
carrying value may not be recoverable. The amortization of
intangible assets is reflected in the Company’s Statements of
Operations. Although intangible assets contribute to the Company’s
revenue generation, the amortization of intangible assets does not
directly relate to the sale of the Company’s products.
Additionally, intangible asset amortization expense typically
fluctuates based on the size and timing of the Company’s
acquisition activity. Accordingly, the Company believes excluding
the amortization of intangible assets, along with the other
non-GAAP adjustments, which neither relate to the ordinary course
of the Company’s business nor reflect the Company’s underlying
business performance, enhances the Company’s and investors’ ability
to compare the Company’s past financial performance with its
current performance and to analyze underlying business performance
and trends. Intangible asset amortization excluded from the related
non-GAAP financial measure represents the entire amount recorded
within the Company’s GAAP financial statements, and the revenue
generated by the associated intangible assets has not been excluded
from the related non-GAAP financial measure. Intangible asset
amortization is excluded from the related non-GAAP financial
measure because the amortization, unlike the related revenue, is
not affected by operations of any particular period unless an
intangible asset becomes impaired or the estimated useful life of
an intangible asset is revised.
Share-based compensation expense is a non-cash expense arising
from the grant of equity awards to employees and non-employee
members of the Company’s Board of Directors based on the estimated
fair value of those awards. Although share-based compensation is an
important aspect of the compensation of our employees, the fair
value of the share-based awards may bear little resemblance to the
actual value realized upon the vesting or future exercise of the
related share-based awards and the expense can vary significantly
between periods as a result of the timing of grants of new
stock-based awards, including grants in connection with
acquisitions. Given the variety and timing of awards and the
subjective assumptions that are necessary when calculating
share-based compensation expense, TD SYNNEX believes this
additional information allows investors to make additional
comparisons between our operating results from period to
period.
TD SYNNEX management uses non-GAAP financial measures internally
to understand, manage and evaluate the business, to establish
operational goals, and in some cases for measuring performance for
compensation purposes. These non-GAAP measures are intended to
provide investors with an understanding of TD SYNNEX’s operational
results and trends that more readily enable investors to analyze TD
SYNNEX’s base financial and operating performance and to facilitate
period-to-period comparisons and analysis of operational trends, as
well as for planning and forecasting in future periods. Management
believes these non-GAAP financial measures are useful to investors
in allowing for greater transparency with respect to supplemental
information used by management in its financial and operational
decision-making. As these non-GAAP financial measures are not
calculated in accordance with GAAP, they may not necessarily be
comparable to similarly titled measures employed by other
companies. These non-GAAP financial measures should not be
considered in isolation or as a substitute for the comparable GAAP
measures, and should be read only in conjunction with TD SYNNEX’s
Consolidated Financial Statements prepared in accordance with GAAP.
A reconciliation of TD SYNNEX’s GAAP to non-GAAP financial
information is set forth in the supplemental tables at the end of
this press release.
Safe Harbor Statement
Statements in this news release regarding TD SYNNEX that are not
historical facts are “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking
statements are inherently uncertain, and stockholders and other
potential investors must recognize that actual results may differ
materially from TD SYNNEX expectations as a result of a variety of
factors. These forward-looking statements may be identified by
terms such as believe, foresee, expect, may, will, provide, could
and should and the negative of these terms or other similar
expressions. These forward-looking statements include, but are not
limited to, statements about our strategy, demand, plans and
positioning, capital allocation, as well as guidance related to the
second quarter of 2025. Such forward-looking statements are based
upon management’s current expectations and include known and
unknown risks, uncertainties and other factors, many of which TD
SYNNEX is unable to predict or control, that may cause TD SYNNEX
actual results, performance, or plans to differ materially from any
future results, performance or plans expressed or implied by such
forward-looking statements.
These risks and uncertainties include, but are not limited to:
the unfavorable outcome of any legal proceedings that have been or
may be instituted against us; the ability to retain key personnel;
general economic and political conditions; weakness in information
technology spending; seasonality; the loss or consolidation of one
or more of our significant original equipment manufacturer, or OEM,
suppliers or customers; market acceptance and product life of the
products we assemble and distribute; competitive conditions in our
industry and their impact on our margins; pricing, margin and other
terms with our OEM suppliers; our ability to gain market share;
variations in supplier-sponsored programs; changes in our costs and
operating expenses; the timing and amount of returns to our
stockholders via repurchases of our common stock and dividends;
changes in foreign currency exchange rates; increased inflation;
changes in tax laws; risks associated with our international
operations; uncertainties and variability in demand by our reseller
and integration customers; supply shortages or delays; any
termination or reduction in our supplier finance programs; credit
exposure to our reseller customers and negative trends in their
businesses; any incidents of theft; the declaration, timing and
payment of dividends, and the Board’s reassessment thereof; and
other risks and uncertainties detailed in our Form 10-K for the
fiscal year ended November 30, 2024 and subsequent SEC filings.
Statements included in this press release are based upon
information known to TD SYNNEX as of the date of this release, and
TD SYNNEX assumes no obligation to update information contained in
this press release unless otherwise required by law.
Copyright 2025 TD SYNNEX CORPORATION. All rights
reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX
company, product and services names and slogans are trademarks or
registered trademarks of TD SYNNEX Corporation. Other names and
marks are the property of their respective owners.
TD SYNNEX Corporation
Consolidated Balance
Sheets
(Currency and share amounts in
thousands, except par value)
(Amounts may not add or
compute due to rounding)
(Unaudited)
February 28, 2025
November 30, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
541,863
$
1,059,378
Accounts receivable, net
9,424,100
10,341,625
Receivables from vendors, net
969,784
958,105
Inventories
8,359,741
8,287,048
Other current assets
663,385
678,540
Total current assets
19,958,873
21,324,696
Property and equipment, net
468,389
457,024
Goodwill
3,877,529
3,895,077
Intangible assets, net
3,819,180
3,912,267
Other assets, net
672,095
685,415
Total assets
$
28,796,066
$
30,274,479
LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current
$
590,956
$
171,092
Accounts payable
13,037,467
15,084,107
Other accrued liabilities
2,105,434
1,966,036
Total current liabilities
15,733,857
17,221,235
Long-term borrowings
3,737,009
3,736,399
Other long-term liabilities
462,547
468,648
Deferred tax liabilities
812,258
812,763
Total liabilities
20,745,671
22,239,045
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000
shares authorized, no shares issued or outstanding
—
—
Common stock, $0.001 par value, 200,000
shares authorized, 99,012 shares issued as of both February 28,
2025 and November 30, 2024
99
99
Additional paid-in capital
7,446,315
7,437,688
Treasury stock, 15,796 and 15,289 shares
as of February 28, 2025 and November 30, 2024, respectively
(1,595,512
)
(1,513,017
)
Accumulated other comprehensive loss
(686,605
)
(645,117
)
Retained earnings
2,886,098
2,755,781
Total stockholders' equity
8,050,395
8,035,434
Total liabilities and equity
$
28,796,066
$
30,274,479
TD SYNNEX Corporation
Consolidated Statements of
Operations
(Currency and share amounts in
thousands, except per share amounts)
(Amounts may not add or
compute due to rounding)
(Unaudited)
Three Months Ended
February 28, 2025
February 29, 2024
Revenue
$
14,531,707
$
13,975,253
Cost of revenue
(13,533,701
)
(12,969,487
)
Gross profit
998,006
1,005,766
Selling, general and administrative
expenses
(692,485
)
(671,545
)
Acquisition, integration and restructuring
costs
(1,062
)
(31,649
)
Operating income
304,459
302,572
Interest expense and finance charges,
net
(87,880
)
(75,891
)
Other expense, net
(1,696
)
(2,884
)
Income before income taxes
214,883
223,797
Provision for income taxes
(47,346
)
(51,669
)
Net income
$
167,537
$
172,128
Earnings per common share:
Basic
$
1.98
$
1.94
Diluted
$
1.98
$
1.93
Weighted-average common shares
outstanding:
Basic
83,615
87,891
Diluted
83,970
88,203
TD SYNNEX Corporation
Consolidated Statements of
Cash Flows
(Currency amounts in
thousands)
(Amounts may not add or
compute due to rounding)
(Unaudited)
Three Months Ended
February 28, 2025
February 29, 2024
Cash flows from operating
activities:
Net income
$
167,537
$
172,128
Adjustments to reconcile net income to net
cash (used in) provided by operating activities:
Depreciation and amortization
99,710
100,619
Share-based compensation
21,861
17,490
Provision for doubtful accounts
6,366
11,194
Other
4,373
1,170
Changes in operating assets and
liabilities, net of acquisition of businesses:
Accounts receivable, net
854,220
1,343,075
Receivables from vendors, net
(16,640
)
46,380
Inventories
(102,861
)
42,176
Accounts payable
(1,970,112
)
(926,836
)
Other operating assets and liabilities
187,549
(422,687
)
Net cash (used in) provided by operating
activities
(747,997
)
384,709
Cash flows from investing
activities:
Purchases of property and equipment
(41,525
)
(41,088
)
Acquisition of businesses, net of cash
acquired
(3,793
)
(28,443
)
Other
786
1,621
Net cash used in investing activities
(44,532
)
(67,910
)
Cash flows from financing
activities:
Dividends paid
(37,220
)
(35,652
)
Proceeds from reissuance of treasury
stock
9,781
2,727
Repurchases of common stock
(100,510
)
(199,225
)
Repurchases of common stock for tax
withholdings on equity awards
(4,250
)
(4,798
)
Net borrowings (repayments) on revolving
credit loans
421,422
(56,055
)
Principal payments on long-term debt
(627
)
(18,204
)
Net cash provided by (used in) financing
activities
288,596
(311,207
)
Effect of exchange rate changes on cash
and cash equivalents
(13,582
)
(8,422
)
Net decrease in cash and cash
equivalents
(517,515
)
(2,830
)
Cash and cash equivalents at beginning of
period
1,059,378
1,033,776
Cash and cash equivalents at end of
period
$
541,863
$
1,030,946
TD SYNNEX Corporation
Regional Financial Highlights
- Fiscal 2025 First Quarter
(Currency in millions)
(Amounts may not add or
compute due to rounding)
Q1 FY25
Q1 FY24
Net Change from Q1
FY24
Americas
Revenue
$
8,389.3
$
7,903.1
6.2
%
Non-GAAP gross billings(1)
$
12,445.8
$
11,506.3
8.2
%
Operating income
$
193.7
$
159.7
21.3
%
Non-GAAP operating income(1)
$
248.1
$
240.3
3.2
%
Operating margin
2.31
%
2.02
%
29 bps
Non-GAAP operating margin(1)
2.96
%
3.04
%
(8) bps
Europe
Revenue
$
5,137.8
$
5,117.3
0.4
%
Non-GAAP gross billings(1)
$
6,887.2
$
6,601.4
4.3
%
Operating income
$
85.9
$
108.3
(20.7
)%
Non-GAAP operating income(1)
$
123.6
$
147.8
(16.4
)%
Operating margin
1.67
%
2.12
%
(45) bps
Non-GAAP operating margin(1)
2.41
%
2.89
%
(48) bps
Asia-Pacific and Japan
Revenue
$
1,004.6
$
954.9
5.2
%
Non-GAAP gross billings(1)
$
1,385.2
$
1,159.0
19.5
%
Operating income
$
24.8
$
34.6
(28.3
)%
Non-GAAP operating income(1)
$
27.1
$
36.4
(25.5
)%
Operating margin
2.47
%
3.62
%
(115) bps
Non-GAAP operating margin(1)
2.70
%
3.82
%
(112) bps
(1) A reconciliation of TD SYNNEX’s GAAP
to non-GAAP financial information is set forth in the supplemental
tables at the end of this press release.
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(Currency in
thousands)
(Amounts may not add or
compute due to rounding)
Three Months Ended
February 28, 2025
February 29, 2024
Revenue in constant currency
Consolidated
Revenue
$
14,531,707
$
13,975,253
Impact of changes in foreign
currencies
283,697
—
Revenue in constant currency
$
14,815,404
$
13,975,253
Americas
Revenue
$
8,389,338
$
7,903,096
Impact of changes in foreign
currencies
66,239
—
Revenue in constant currency
$
8,455,577
$
7,903,096
Europe
Revenue
$
5,137,765
$
5,117,252
Impact of changes in foreign
currencies
198,678
—
Revenue in constant currency
$
5,336,443
$
5,117,252
Asia-Pacific and Japan
Revenue
$
1,004,604
$
954,905
Impact of changes in foreign
currencies
18,780
—
Revenue in constant currency
$
1,023,384
$
954,905
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(Currency in
thousands)
(Amounts may not add or
compute due to rounding)
Three Months Ended
February 28, 2025
February 29, 2024
Non-GAAP gross billings
Consolidated
Revenue
$
14,531,707
$
13,975,253
Costs incurred and netted against revenue
related to sales of third-party supplier service contracts,
software as a service arrangements and certain fulfillment
contracts
6,186,489
5,291,480
Non-GAAP gross billings
$
20,718,196
$
19,266,733
Impact of changes in foreign
currencies
381,353
—
Non-GAAP gross billings in constant
currency
$
21,099,549
$
19,266,733
Americas
Revenue
$
8,389,338
$
7,903,096
Costs incurred and netted against revenue
related to sales of third-party supplier service contracts,
software as a service arrangements and certain fulfillment
contracts
4,056,479
3,603,247
Non-GAAP gross billings
$
12,445,817
$
11,506,343
Impact of changes in foreign
currencies
106,143
—
Non-GAAP gross billings in constant
currency
$
12,551,960
$
11,506,343
Europe
Revenue
$
5,137,765
$
5,117,252
Costs incurred and netted against revenue
related to sales of third-party supplier service contracts,
software as a service arrangements and certain fulfillment
contracts
1,749,413
1,484,128
Non-GAAP gross billings
$
6,887,178
$
6,601,380
Impact of changes in foreign
currencies
251,631
—
Non-GAAP gross billings in constant
currency
$
7,138,809
$
6,601,380
Asia-Pacific and Japan
Revenue
$
1,004,604
$
954,905
Costs incurred and netted against revenue
related to sales of third-party supplier service contracts,
software as a service arrangements and certain fulfillment
contracts
380,597
204,105
Non-GAAP gross billings
$
1,385,201
$
1,159,010
Impact of changes in foreign
currencies
23,579
—
Non-GAAP gross billings in constant
currency
$
1,408,780
$
1,159,010
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(Currency in
thousands)
(Amounts may not add or
compute due to rounding)
Three Months Ended
February 28, 2025
February 29, 2024
Adjusted selling, general and
administrative expenses
Revenue
$
14,531,707
$
13,975,253
Costs incurred and netted against revenue
related to sales of third-party supplier service contracts,
software as a service arrangements and certain fulfillment
contracts
6,186,489
5,291,480
Non-GAAP gross billings
$
20,718,196
$
19,266,733
Gross profit
$
998,006
$
1,005,766
Selling, general and administrative
expenses(1)
$
693,547
$
703,194
Acquisition, integration and restructuring
costs
(1,062
)
(31,649
)
Amortization of intangibles
(71,407
)
(72,877
)
Share-based compensation
(21,861
)
(17,490
)
Adjusted selling, general and
administrative expenses
$
599,217
$
581,178
Selling, general and administrative
expenses(1) as a percentage of revenue
4.77
%
5.03
%
Adjusted selling, general and
administrative expenses as a percentage of non-GAAP gross
billings
2.89
%
3.02
%
Selling, general and administrative
expenses(1) as a percentage of gross profit
69.5
%
69.9
%
Adjusted selling, general and
administrative expenses as a percentage of gross profit
60.0
%
57.8
%
(1) Includes acquisition, integration and
restructuring costs, which are presented separately on the
Consolidated Statements of Operations.
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(Currency in
thousands)
(Amounts may not add or
compute due to rounding)
Three Months Ended
February 28, 2025
February 29, 2024
Non-GAAP operating income &
non-GAAP operating margin - Consolidated
Revenue
$
14,531,707
$
13,975,253
Operating income
$
304,459
$
302,572
Acquisition, integration and restructuring
costs
1,062
31,649
Amortization of intangibles
71,407
72,877
Share-based compensation
21,861
17,490
Non-GAAP operating income
$
398,789
$
424,588
Operating margin
2.10
%
2.17
%
Non-GAAP operating margin
2.74
%
3.04
%
Three Months Ended
February 28, 2025
February 29, 2024
Non-GAAP operating income &
non-GAAP operating margin - Americas
Revenue
$
8,389,338
$
7,903,096
Operating income
$
193,722
$
159,682
Acquisition, integration and restructuring
costs
324
27,372
Amortization of intangibles
40,417
41,453
Share-based compensation
13,651
11,798
Non-GAAP operating income
$
248,114
$
240,305
Operating margin
2.31
%
2.02
%
Non-GAAP operating margin
2.96
%
3.04
%
Three Months Ended
February 28, 2025
February 29, 2024
Non-GAAP operating income &
non-GAAP operating margin - Europe
Revenue
$
5,137,765
$
5,117,252
Operating income
$
85,892
$
108,325
Acquisition, integration and restructuring
costs
626
3,952
Amortization of intangibles
30,189
30,802
Share-based compensation
6,860
4,763
Non-GAAP operating income
$
123,567
$
147,842
Operating margin
1.67
%
2.12
%
Non-GAAP operating margin
2.41
%
2.89
%
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(Currency in
thousands)
(Amounts may not add or
compute due to rounding)
Three Months Ended
February 28, 2025
February 29, 2024
Non-GAAP operating income &
non-GAAP operating margin - Asia-Pacific and Japan
Revenue
$
1,004,604
$
954,905
Operating income
$
24,845
$
34,565
Acquisition, integration and restructuring
costs
112
325
Amortization of intangibles
801
622
Share-based compensation
1,350
929
Non-GAAP operating income
$
27,108
$
36,441
Operating margin
2.47
%
3.62
%
Non-GAAP operating margin
2.70
%
3.82
%
Three Months Ended
February 28, 2025
February 29, 2024
EBITDA & adjusted EBITDA
Net income
$
167,537
$
172,128
Interest expense and finance charges,
net
87,880
75,891
Provision for income taxes
47,346
51,669
Depreciation(1)
28,303
27,742
Amortization of intangibles
71,407
72,877
EBITDA
$
402,473
$
400,307
Other expense, net
1,696
2,884
Acquisition, integration and restructuring
costs
1,062
31,254
Share-based compensation
21,861
17,490
Adjusted EBITDA
$
427,092
$
451,935
(1) Includes depreciation recorded in
acquisition, integration, and restructuring costs.
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(Currency in thousands, except
per share amounts)
(Amounts may not add or
compute due to rounding)
Three Months Ended
February 28, 2025
February 29, 2024
Non-GAAP net income & non-GAAP
diluted EPS(1)
Net income
$
167,537
$
172,128
Acquisition, integration and restructuring
costs
1,062
31,649
Amortization of intangibles
71,407
72,877
Share-based compensation
21,861
17,490
Income taxes related to the above
(24,496
)
(27,921
)
Non-GAAP net income
$
237,371
$
266,223
Diluted EPS(1)
$
1.98
$
1.93
Acquisition, integration and restructuring
costs
0.01
0.36
Amortization of intangibles
0.84
0.81
Share-based compensation
0.26
0.20
Income taxes related to the above
(0.29
)
(0.31
)
Non-GAAP Diluted EPS(1)
$
2.80
$
2.99
(1) Diluted EPS is calculated using the
two-class method. Unvested restricted stock awards granted to
employees are considered participating securities. For purposes of
calculating Diluted EPS, net income allocated to participating
securities was approximately 0.9% of net income for both the three
months ended February 28, 2025 and February 29, 2024.
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(Amounts may not add or
compute due to rounding)
Three Months Ended
(Currency in thousands)
February 28, 2025
February 29, 2024
Free cash flow
Net cash (used in) provided by operating
activities
$
(747,997
)
$
384,709
Purchases of property and equipment
(41,525
)
(41,088
)
Free cash flow
$
(789,522
)
$
343,621
Forecast
Three Months Ending
(Currency in millions, except per share
amounts)
May 31, 2025
Non-GAAP net income and non-GAAP
Diluted EPS
Low
High
Net income
$
137
$
179
Amortization of intangibles
75
75
Share-based compensation
13
13
Income taxes related to the above
(20
)
(20
)
Non-GAAP net income
$
205
$
247
Diluted EPS(1)
$
1.64
$
2.14
Amortization of intangibles
0.89
0.89
Share-based compensation
0.16
0.16
Income taxes related to the above
(0.24
)
(0.24
)
Non-GAAP Diluted EPS(1)
$
2.45
$
2.95
(1) Diluted EPS is calculated using the
two-class method. Unvested restricted stock awards granted to
employees are considered participating securities. Net income
allocable to participating securities is estimated to be
approximately 0.9% of the forecast net income for the three months
ending May 31, 2025.
Forecast
Three Months Ending
(Currency in billions)
May 31, 2025
Non-GAAP gross billings
Low
High
Revenue
$
13.9
$
14.7
Costs incurred and netted against revenue
related to sales of third-party supplier service contracts,
software as a service arrangements and certain fulfillment
contracts
5.8
6.0
Non-GAAP gross billings
$
19.7
$
20.7
TD SYNNEX Corporation
Calculation of Financial
Metrics
Return on Invested Capital
(“ROIC”)
(Currency in
thousands)
(Amounts may not add or
compute due to rounding)
February 28, 2025
February 29, 2024
ROIC
Operating income (trailing fiscal four
quarters)
$
1,196,098
$
1,082,442
Income taxes on operating income(1)
(241,222
)
(222,351
)
Operating income after taxes
$
954,876
$
860,091
Total invested capital comprising equity
and borrowings, less cash (last five quarters average)
$
11,307,850
$
11,405,681
ROIC
8.4
%
7.5
%
Adjusted ROIC
Non-GAAP operating income (trailing fiscal
four quarters)
$
1,601,231
$
1,624,021
Income taxes on non-GAAP operating
income(1)
(354,345
)
(364,991
)
Non-GAAP operating income after taxes
$
1,246,886
$
1,259,030
Total invested capital comprising equity
and borrowings, less cash (last five quarters average)
$
11,307,850
$
11,405,681
Tax effected impact of cumulative non-GAAP
adjustments (last five quarters average)
1,530,137
1,172,514
Total non-GAAP invested capital (last five
quarters average)
$
12,837,987
$
12,578,195
Adjusted ROIC
9.7
%
10.0
%
(1) Income taxes on GAAP operating income
was calculated using the effective year-to-date tax rates during
the respective periods. Income taxes on non-GAAP operating income
was calculated by excluding the tax effect of taxable and
deductible non-GAAP adjustments using the effective year-to-date
tax rate during the respective periods.
TD SYNNEX Corporation
Calculation of Financial
Metrics
Cash Conversion Cycle
(Currency in
thousands)
(Amounts may not add or
compute due to rounding)
Three Months Ended
February 28, 2025
February 29, 2024
Days sales outstanding
Revenue
(a)
$
14,531,707
$
13,975,253
Accounts receivable, net
(b)
9,424,100
8,902,803
Days sales outstanding
(c) = ((b)/(a))*the number of
days during the period
58
58
Days inventory outstanding
Cost of revenue
(d)
$
13,533,701
$
12,969,487
Inventories
(e)
8,359,741
7,091,146
Days inventory outstanding
(f) = ((e)/(d))*the number of
days during the period
56
50
Days payable outstanding
Cost of revenue
(g)
$
13,533,701
$
12,969,487
Accounts payable
(h)
13,037,467
12,372,749
Days payable outstanding
(i) = ((h)/(g))*the number of
days during the period
87
87
Cash conversion cycle
(j) = (c)+(f)-(i)
27
21
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250327973757/en/
David Jordan Investor Relations 510-668-8436 IR@tdsynnex.com
Emily Moseley Global Corporate Communications 727-538-5864
emily.moseley@tdsynnex.com
Grafico Azioni TD SYNNEX (NYSE:SNX)
Storico
Da Mar 2025 a Apr 2025
Grafico Azioni TD SYNNEX (NYSE:SNX)
Storico
Da Apr 2024 a Apr 2025
