PC Connection Inc. reported a net revenue of $2.8 billion for the fiscal year ending December 31, 2024, reflecting a decrease of 1.7% from the previous year's revenue of $2.85 billion. The decline was primarily attributed to reduced sales in the Enterprise Solutions and Business Solutions segments, particularly in advanced technology categories such as networking and software products. Despite the overall revenue drop, the company's gross profit increased by 1.6% to $519.8 million, with a gross margin improvement to 18.6%, up from 18.0% in 2023. This increase was driven by better margins in desktop sales and a higher proportion of software sales recognized on a net basis.
In terms of operational changes, PC Connection's workforce saw a slight reduction, with 711 sales representatives employed as of December 31, 2024, compared to 726 in the previous year. The company has focused on enhancing its sales and technical capabilities, which contributed to a year-over-year increase in selling, general, and administrative (SG&A) expenses, which rose to $422.3 million, or 15.1% of net sales. This increase was partly due to investments in resources aimed at strengthening sales and technical support.
The company continues to adapt to market conditions, with strategic initiatives including a focus on artificial intelligence and cloud-based solutions. In 2024, PC Connection launched its CNXN Helix initiative, aimed at expanding its AI capabilities and services. The company also reported a significant increase in interest income, which rose to $18.7 million, up from $10 million in 2023, due to higher cash balances and interest rates on short-term investments.
Looking ahead, PC Connection remains cautiously optimistic about its growth prospects. The company plans to leverage its strong vendor relationships and expand its product offerings to capture a greater share of IT expenditures from its customers. However, it acknowledges potential challenges, including inflationary pressures, supply chain disruptions, and increased competition in the IT solutions market. The company is committed to maintaining operational efficiency and enhancing its service offerings to navigate these challenges effectively.
About PC CONNECTION INC
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