Insight reports 'record' Q1, snaps up ServiceNow partner Infocenter
The top VAR saw healthy growth across its services as its latest M&A deal adds more managed services to its automation solutions portfolio
Insight Enterprises hails "record" first quarter results alongside a fresh M&A announcement.
First up, the results, with the NASDAQ-listed group enjoying a 13 per cent year-on-year rise in gross profit to bring in a record $440.9m.
Meanwhile net sales for the quarter ended March 31, 2024 saw a modest uptick of two per cent to $2.4bn but dipped three per cent to $412.8m in EMEA.
Product net sales came in flat while the services side jumped 17 per cent year-over-year to $415m.
"We are pleased to announce another record setting first quarter with very strong performance in our key strategic areas of cloud and Insight Core services, fortified by continued operating expense discipline," stated Joyce Mullen, president and chief executive officer.
Insight Core services gross profit saw 24 per cent growth while cloud gross profit surged 33 per cent during the quarter.
"We also achieved several first quarter records including gross profit, gross margin and adjusted diluted earnings per share, demonstrating we are executing well against our strategic objective of becoming the leading solutions integrator."
Outlook
Looking ahead to the full year 2024, Insight predicts adjusted diluted earnings per share to be between $10.60 and $10.90.
It also expects to deliver gross profit growth in the mid to high teens.
The reseller said this outlook excludes acquisition-related intangibles amortisation expense of approximately $60m, assumes no acquisition or integration related expenses, transformation or severance and restructuring expenses, net and no significant change in our debt instruments or the macroeconomic environment.
Insight buy ServiceNow partner Infocenter
In a double header of announcements, Insight reveals it has bought pure-play ServiceNow Elite Partner Infocenter to add further ServiceNow consulting, implementation and managed services to its automation solutions portfolio.
The Sheffield-HQ reseller explained client demand for intelligent enterprise automation continues to grow rapidly, fueling a market that's estimated at $220bn by 2025.
The addition of Infocenter brings in more skills to implement ServiceNow capabilities and pursue digital transformation goals for clients.
Infocenter's approach to modernising business processes on the Now Platform will become part of Insight's Solutions Integrator framework.
The deal is also hoped to complement Insight's multi-cloud capabilities around Microsoft Azure, Google Cloud Platform, AWS and private cloud infrastructure. This provides an opportunity for Insight to help clients leverage generative AI and other Now platform enhancements provided by the cloud hyperscalers.
"Workflow automation has become a necessity," said Mullen.
"Our clients expect unified cross-enterprise experiences, and with Infocenter's deep ServiceNow expertise, we will be better positioned than ever to deliver industry-leading intelligent workflow automation solutions fueled by AI to create unified experiences and deliver valuable insights."
Infocenter CEO Michael Vadini added: "We're excited to join Insight and augment how they architect, deliver and manage enterprise-wide transformation for clients.
"Insight focuses on providing efficient access to technology and making modernisation simple. This aligns perfectly with our mission to help companies plan, build and manage ServiceNow ― bringing organisations of every size, in every industry, smarter, faster and better ways to work."