The following is a summary of the EPlus Inc. (PLUS) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Q1 2025 net sales were $544.5 million, a decrease from $574.2 million in the previous year's first quarter.

• Gross profit for Q1 2025 was $134.5 million with a gross margin of 24.7%.

• Adjusted EBITDA increased by 24.3% in the Finance segment.

• Operating income and operating margin increased by more than 20% and 130 basis points, respectively.

• Earnings per share (EPS) for Q1 2025 were $1.02, down from $1.27 year-over-year.

• Repurchased 162,319 shares during the quarter under the share repurchase program.

Business Progress:

• Continued investment in growth areas such as AI, cloud security, and managed services, reflecting increased sales in these segments.

• Launched new storage as a service and Azure recovery program to meet evolving customer needs.

• Experienced significant growth in managed services, with bookings up approximately 70% year-over-year.

Opportunities:

• The strong growth and interest in managed services and AI solutions, alongside 70% growth in managed services bookings and the recent introduction of new services, present significant opportunities for consistent future revenue streams.

• Recent enhancements in AI and storage services are designed to meet the rapidly evolving needs of ePlus's customers, positioning the company to capitalize on these high-demand areas.

Risks:

• Revenue headwinds and timing differences in revenue recognition due to the abrupt easing of supply chain constraints, affecting both product sales and customer orders.

• A lag in revenue generation relative to rising SG&A expenses due to increased headcount aimed at fostering growth in new solution areas.

More details: ePlus IR

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