Insight Enterprises Reports $8.7 Billion in Net Sales for Fiscal Year 2024

Insight Enterprises, Inc. reported its financial results for the fiscal year ended December 31, 2024, revealing a net sales figure of $8.7 billion, a decrease of 5% compared to the previous year. Despite the decline in sales, the company achieved a gross profit of $1.8 billion, marking a 6% increase from 2023, and a record gross margin of 20.3%, up 210 basis points year-over-year. The decrease in net sales was attributed primarily to an 8% drop in product sales, while service sales increased by 9%, driven by growth in cloud solutions and Insight Delivered services.

The company undertook several strategic acquisitions during the year, including Infocenter, SADA Systems, and Amdaris, which collectively enhanced its capabilities in digital transformation and cloud services. The acquisition of Infocenter, completed on May 1, 2024, for $265 million, is expected to bolster Insight's offerings in automating business processes. The acquisition of SADA, finalized on December 1, 2023, for approximately $400 million, is anticipated to strengthen Insight's position in the multicloud market. These acquisitions contributed to an increase in goodwill, which rose to $893.5 million as of December 31, 2024.

Operationally, Insight Enterprises reported a total employee headcount of 14,324 as of year-end 2024, reflecting the integration of new personnel from its acquisitions. The company also noted a significant increase in its customer base, particularly in the public sector and large enterprise segments. However, the overall customer engagement metrics indicated a slowdown in decision-making among clients, which is expected to persist in the short term. The company’s North American segment accounted for 81% of consolidated net sales, while EMEA and APAC contributed 16% and 3%, respectively.

Looking ahead, Insight Enterprises anticipates continued challenges in the IT market, including pricing pressures and a potential slowdown in demand for hardware products. The company expects that its focus on expanding service offerings and solutions will help improve gross margins in the future. Additionally, Insight plans to utilize cash generated in 2025 to pay down debt, fund strategic acquisitions, and settle a portion of its convertible notes, which are due in February 2025. The company remains committed to enhancing its operational efficiency and maintaining a strong financial position amid evolving market conditions.