Climb Global Solutions Inc (CLMB) 2024 Q2 法說會逐字稿

Good morning, everyone, and welcome and thank you for participating in today’s conference call to discuss Climb Global Solutions financial results for the second quarter ended June 30, 2024.

大家早安，歡迎並感謝您參加今天的電話會議，討論 Climb Global Solutions 截至 2024 年 6 月 30 日的第二季度財務業績。

Joining us today are Climb’s CEO, Mr. Dale Foster; the company’s CFO, Mr. Drew Clark; and the company’s Investor Relations Advisor, Mr. Sean Mansouri, with Elevate IR.

今天加入我們的是 Climb 的執行長 Dale Foster 先生；公司財務長 Drew Clark 先生；以及該公司的投資者關係顧問 Sean Mansouri 先生（Elevate IR）。

By now, everyone should have access to the second quarter 2024 earnings press release, which was issued yesterday afternoon at approximately 4:05 PM.

到目前為止，每個人都應該可以訪問昨天下午 4:05 左右發布的 2024 年第二季度收益新聞稿。

Eastern Time.

東部時間。

The release is available in the Investor Relations section of Climb Global Solutions’ website at www.climbglobalsolutions.com. This call will also be available for webcast replay on the company’s website.

新聞稿可在 Climb Global Solutions™ 網站 www.climbglobalsolutions.com 的投資者關係部分取得。此次電話會議也將在公司網站上進行網路直播重播。

Following management’s remarks, we will open the call for your questions.

在管理層發表講話後，我們將開始電話詢問您的問題。

I would now like to turn the call over to Mr. Mansouri for introductory comments.

我現在想將電話轉給曼蘇裡先生，請其介紹性評論。

Thank you.

謝謝。

Before I introduce Dale, I’d like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995.

在介紹戴爾之前，我想提醒聽眾，根據 1995 年《私人證券訴訟改革法案》，本次電話會議和網路廣播中的某些評論被視為前瞻性陳述。

These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements.

這些前瞻性陳述受到某些已知和未知的風險和不確定性以及可能導致實際結果與這些前瞻性陳述中反映的結果有重大差異的假設的影響。

These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company’s filings with the SEC.

這些前瞻性陳述也受到該公司向 SEC 提交的文件中不時描述的其他風險和不確定性的影響。

Do not place undue reliance on any forward-looking statements, which are being made only as of the date of this call.

請勿過度依賴任何前瞻性陳述，這些陳述僅截至本次電話會議之日作出。

Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements.

除法律要求外，本公司不承擔修改或公開發布任何前瞻性陳述的任何修改結果的義務。

Our presentation also includes certain non-GAAP financial measures, including adjusted gross billings, adjusted EBITDA, adjusted net income and EPS and effective margin as supplemental measures of our performance of our business.

我們的簡報還包括某些非公認會計準則財務指標，包括調整後的總帳單、調整後的 EBITDA、調整後的淨利潤和每股盈餘以及有效利潤率，作為我們業務績效的補充指標。

All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules.

根據 SEC 規則，所有非 GAAP 衡量標準均已與最直接可比較的 GAAP 衡量標準進行了調整。

You’ll find reconciliation charts and other important information in the earnings press release and Form 8-K we furnished to the SEC yesterday.

您可以在我們昨天向 SEC 提供的收益新聞稿和 8-K 表格中找到調節表和其他重要資訊。

I’ll now turn the call over to Climb’s CEO, Dale Foster.

現在我將電話轉給 Climb 的執行長 Dale Foster。

Thank you, Sean, and good morning, everyone.

謝謝肖恩，大家早安。

Our teams produced another great quarter in Q2 as we increased adjusted gross billings, net income and adjusted EBITDA year-over-year.

我們的團隊在第二季度又創造了一個出色的季度，調整後的總帳單、淨利潤和調整後的 EBITDA 年成長。

These results underscore our team’s continued execution of our core strategy.

這些結果強調了我們團隊對核心策略的持續執行。

We continue to grow organically by deepening relationships with existing partners, signing new emerging technology vendors to our line card and delivering on our acquisition goals.

我們透過深化與現有合作夥伴的關係、將新興技術供應商納入我們的產品線以及實現我們的收購目標，持續實現有機成長。

As we have often emphasized our commitment to a focused vendor line card enables us to partner with the most innovative technology companies in the market.

正如我們經常強調的那樣，我們對專注的供應商線路卡的承諾使我們能夠與市場上最具創新性的技術公司合作。

During the second quarter, we evaluated 31 new brands and signed agreements with only three of them.

第二季度，我們評估了 31 個新品牌，僅與其中 3 個簽署了協議。

Let me briefly highlight a couple of these wins.

讓我簡要介紹其中的一些勝利。

First, we launched partnership with Automox, a leading cloud native IoT automation endpoint management solution to our North American partners.

首先，我們與 Automox 建立了合作夥伴關係，Automox 是我們為北美合作夥伴提供的領先的雲原生物聯網自動化端點管理解決方案。

With the addition of Automox, Climb can provide customers the capabilities to save time, eliminate risk and automate the patching configuration and control of all Windows, macOS and Linux endpoint systems with one modern IT platform.

透過 Automox 的加入，Climb 可以為客戶提供節省時間、消除風險以及透過一個現代 IT 平台自動對所有 Windows、macOS 和 Linux 端點系統進行修補配置和控制的功能。

Next, we finalized our agreement with Flashpoint, a globally trusted leader in risk intelligence that includes organizations, and helps organizations protect their most critical assets infrastructure and stakeholders from security risks, as cyber attacks, ransomware, fraud and physical threats.

接下來，我們與Flashpoint 敲定了協議。等安全風險的影響。

We are excited to collaborate with each of these vendors and bring their products to market, building on a mutually beneficial relationship along the way.

我們很高興與這些供應商合作，將他們的產品推向市場，並在過程中建立互惠互利的關係。

Last month, we announced an expansion of our GSA IT-70 contract with the addition of Wasabi Technologies, a market leader in hot cloud storage.

上個月，我們宣布擴大 GSA IT-70 合同，加入了熱雲儲存市場領導者 Wasabi Technologies。

Wasabi delivers low-cost, high-performance secure cloud objective storage for customers who require in-depth defense approach to data protection.

Wasabi 為需要深度資料保護防禦方法的客戶提供低成本、高效能的安全雲端目標儲存。

Climb will also offer Wasabi Surveillance Cloud on our GSA contract, which enables organizations to cost effectively scale and protect video surveillance footage in the cloud.

Climb 還將根據 GSA 合約提供 Wasabi 監控雲，使組織能夠經濟有效地擴展和保護雲端中的視訊監控錄影。

Wasabi’s layered approach to data security ensures customers data is protected by physical and logical elements that meet or exceed critical compliance requirements.

Wasabi 的分層資料安全方法可確保客戶資料受到滿足或超過關鍵合規性要求的實體和邏輯元素的保護。

We’re pleased to offer our partners in the public sector, this innovation solution and look forward to adding further depth to our GSA contract in the future.

我們很高興為公共部門的合作夥伴提供這項創新解決方案，並期待未來進一步深化我們的 GSA 合約。

Now, to some real exciting news.

現在，有一些真正令人興奮的消息。

Last week, we closed the acquisition of Wisconsin-based IT distributor Douglas Stewart Software or DSS, adding complementary scale and expertise to our North American operations.

上週，我們完成了對威斯康辛州 IT 經銷商 Douglas Stewart Software（簡稱 DSS）的收購，為我們的北美業務增添了互補的規模和專業知識。

This acquisition brings more than 20 new vendor partners to Climb including Adobe, GoGuardian and Incident IQ.

此次收購為 Climb 帶來了 20 多家新的供應商合作夥伴，包括 Adob​​e、GoGuardian 和 Incident IQ。

DSS is a proven leader in the education technology channel and provide services to more than 500 value-ad resellers and 250 campus stores across North America in both K-12 and higher education markets.

DSS 是教育科技通路領域公認的領導者，為北美 K-12 和高等教育市場的 500 多家價值廣告經銷商和 250 家校園商店提供服務。

We’re thrilled to welcome Chuck Hulan and his team to the Climb family, and look forward to unlocking synergies and cross-selling opportunities as we integrate DSS into our platforms in the coming months.

我們非常高興地歡迎 Chuck Hulan 和他的團隊加入 Climb 大家庭，並期待在未來幾個月將 DSS 整合到我們的平台中時釋放協同效應和交叉銷售機會。

As I have stated before, the culture and go-to-market strategies we have created a Climb set us apart in the market.

正如我之前所說，我們創建的 Climb 文化和進入市場策略使我們在市場中脫穎而出。

Getting to know Chuck over the past 18 months solidifies this belief as Chuck and his team has built an excellent company that have similar core values and go-to-market plans as we do here at Climb.

在過去 18 個月對 Chuck 的了解更加堅定了這一信念，因為 Chuck 和他的團隊已經建立了一家優秀的公司，該公司與我們在 Climb 擁有相似的核心價值觀和進入市場計劃。

I am pleased to announce also last month that we went live with our ERP system.

我很高興地宣布上個月我們的 ERP 系統已上線。

This new platform will significantly enhance our operations by providing better access to real-time data across finance, sales and other reporting functions.

這個新平台將透過提供更好的財務、銷售和其他報告功能即時數據存取方式，顯著增強我們的營運。

The implementation of the new system represents a major step forward in our ability to drive operational efficiencies, improve decision-making and support our continued growth across our global operation, particularly with new acquisitions that we will onboard to our platform.

新系統的實施代表著我們在提高營運效率、改善決策和支持我們在全球業務中持續成長的能力方面向前邁出了一大步，特別是我們將在我們的平台上進行的新收購。

I would like to personally thank Vito Legrottaglie, our CTO and his entire team that took on this project from the concept phase to a working system and this will only enhance our competitiveness in the market.

我個人要感謝我們的技術長 Vito Legrottaglie 和他的整個團隊，他們承擔了這個專案從概念階段到工作系統的整個過程，這只會增強我們在市場上的競爭力。

As we enter the back half of the year, our solid foundation will enable us to continue driving strong organic growth, while further improving operating leverage through the recent implementation of our ERP system.

進入下半年，我們堅實的基礎將使我們能夠繼續推動強勁的有機成長，同時透過最近實施的 ERP 系統進一步提高營運槓桿。

As we move in 2025, we anticipate the increased amortization expense associated with ERP will be offset through planned operating synergies in our platform.

隨著 2025 年的發展，我們預計與 ERP 相關的攤銷費用增加將透過我們平台中規劃的營運綜效得到抵銷。

With a strong balance sheet and a robust pipeline of M&A targets, we can be patient and selective as we pursue acquisitions that will not only bolster our service and solution offerings, but aligned with our culture and strategic goals.

憑藉強大的資產負債表和強大的併購目標管道，我們在尋求收購時可以保持耐心和選擇性，這不僅會增強我們的服務和解決方案產品，而且會與我們的文化和策略目標保持一致。

The combination of these initiatives will enable us to deliver on both organic and inorganic growth objectives in 2024 and beyond.

這些措施的結合將使我們能夠在 2024 年及以後實現有機和無機成長目標。

With that, I will turn the call over to our CFO, Drew Clark to go through our financial results.

接下來，我會將電話轉給我們的財務長德魯·克拉克 (Drew Clark)，以查看我們的財務表現。

Drew?

德魯？

Thank you, Dale.

謝謝你，戴爾。

Good morning, everyone.

大家早安。

While our second quarter provided some excitement for our company and team members, and it was anything but boring.

雖然我們的第二季為我們的公司和團隊成員帶來了一些興奮，但一點也不無聊。

A quick reminder as we review the financial results for our second quarter, all comparisons and variance commentary refer to the prior year quarter unless otherwise specified.

快速提醒，當我們審查第二季度的財務表現時，除非另有說明，否則所有比較和差異評論均指去年同期。

As reported in our earnings press release, adjusted gross billings or AGB increased 31% to $359.8 million, compared to $274.7 million in the year ago quarter.

正如我們的收益新聞稿中所報導的，調整後的總帳單或 AGB 成長了 31%，達到 3.598 億美元，而去年同期為 2.747 億美元。

Net sales in the second quarter of 2024 increased 13% to $92.1 million, compared to $81.7 million, which reflects organic growth from new and existing vendors as well as a contribution from our acquisition of Data Solutions in October of last year.

2024 年第二季的淨銷售額成長 13%，從 8,170 萬美元增至 9,210 萬美元，這反映了新供應商和現有供應商的有機成長，以及我們去年 10 月收購 Data Solutions 的貢獻。

At the recommendation of our team at Elevate IR who correctly suggested, we will call out Data Solutions versus abbreviating to DS in order to avoid any confusion with our recent acquisition of DSS.

根據 Elevate IR 團隊的正確建議，我們將使用 Data Solutions，而不是縮寫為 DS，以避免與我們最近收購的 DSS 產生任何混淆。

So excluding Data Solutions, AGB increased by $53.5 million or 19.5% for the quarter on an organic basis.

因此，不包括數據解決方案，本季 AGB 有機增長了 5,350 萬美元，即 19.5%。

Data Solutions generated $31.6 million in AGB for the quarter, which was $3 million or 10.6% greater than the prior year’s quarter, both strong indicators of our dual approach to efficiently deploy shareholder capital in our existing business, as well as new acquisitions.

Data Solutions 本季的 AGB 為 3,160 萬美元，比上年同期增加 300 萬美元，即 10.6%，這都是我們在現有業務和新收購中有效部署股東資本的雙重方法的有力指標。

As Dale and I frequently state, we focus on AGB as the true metric of our top line growth as the calculation of net sales is influenced by product mix and the respective adjustment to convert AGB to net sales for financial reporting purposes under GAAP.

正如戴爾和我經常指出的那樣，我們將 AGB 作為收入成長的真正指標，因為淨銷售額的計算受到產品組合以及根據 GAAP 進行財務報告時將 AGB 轉換為淨銷售額的相應調整的影響。

In the second quarter, we had an increase in the sale of security maintenance and cloud products, which are recorded net of related cost of sales, and therefore, leads to a larger adjustment from AGB to net sales.

第二季度，我們的安全維護和雲端產品的銷售額增加，這些產品是扣除相關銷售成本後記錄的，因此導致AGB對淨銷售額的調整幅度較大。

Data Solutions and our Solutions business generate a higher adjustment to AGB to net sales.

數據解決方案和我們的解決方案業務對 AGB 與淨銷售額進行了更高的調整。

Gross profit or GP in the second quarter increased 36% to $18.6 million, compared to $13.7 million.

第二季的毛利或 GP 成長了 36%，達到 1,860 萬美元，而上一季為 1,370 萬美元。

Again the increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as the contribution from Data Solutions.

這一成長同樣是由北美和歐洲新舊供應商的有機成長以及數據解決方案的貢獻所推動的。

Excluding Data Solutions, GP increased by $2.4 million or 17.8% for the quarter.

不包括數據解決方案，本季 GP 成長了 240 萬美元，即 17.8%。

GS generated $2.4 million in GP for the quarter, a significant increase over the prior year’s quarter.

GS 本季的普通股收入為 240 萬美元，比去年同期大幅成長。

Gross profit as a percentage of AGB increased to 5.2% compared to 5%.

毛利佔 AGB 的百分比從 5% 上升至 5.2%。

Moving to the expense side of the income statement.

轉到損益表的費用部分。

SG&A expenses in the second quarter were $13 million compared to $11.6 million for the same period in 2023.

第二季的 SG&A 費用為 1,300 萬美元，而 2023 年同期為 1,160 萬美元。

Data Solutions represented most of the increase at $1.3 million.

數據解決方案佔了成長的大部分，達到 130 萬美元。

SG&A as a percentage of AGB, decreased to 3.6% compared to 4.2% in the year ago period, reflecting the inherent operating leverage in our business model which will further improve with the addition of DSS and global implementation of our ERP.

SG&A 佔 AGB 的百分比從去年同期的 4.2% 下降至 3.6%，反映了我們業務模式中固有的營運槓桿，隨著 DSS 的增加和 ERP 的全球實施，這一槓桿將進一步改善。

Net income in the second quarter of 2024 increased more than 2x to $3.4 million or $0.75 per diluted share compared to $1.4 million or $0.31 per diluted share for the comparable period in 2023.

2024 年第二季的淨利潤成長了兩倍多，達到 340 萬美元，即稀釋後每股收益 0.75 美元，而 2023 年同期淨利潤為 140 萬美元，即稀釋後每股收益 0.31 美元。

Adjusted net income increased 19% to $3.8 million or $0.83 per diluted share compared to $3.2 million or $0.72 per diluted share for the year ago period.

調整後淨利成長 19%，達到 380 萬美元，即稀釋後每股收益 0.83 美元，去年同期淨利為 320 萬美元，即稀釋後每股收益 0.72 美元。

The company’s earnings per diluted share in the second quarter of 2024 were negatively impacted by $0.03 in FX compared to the prior year quarter.

與去年同期相比，該公司 2024 年第二季的攤薄每股收益受到外匯 0.03 美元的負面影響。

Adjusted EBITDA in the second quarter increased 48% to $6.9 million compared to $4.7 million in the prior period.

第二季調整後 EBITDA 成長 48%，達到 690 萬美元，上一季為 470 萬美元。

The increase was primarily driven by the aforementioned organic growth from both new and existing vendors as well as the contribution from data solutions.

這一成長主要是由新供應商和現有供應商的有機成長以及數據解決方案的貢獻所推動的。

Adjusted EBITDA as a percentage of gross profit or effective margin increased 310 basis points to 37.3% compared to 34.2% in the year-ago period.

調整後 EBITDA 佔毛利或有效利潤率的百分比增加了 310 個基點，達到 37.3%，而去年同期為 34.2%。

Turning to our balance sheet.

轉向我們的資產負債表。

Cash and cash equivalents were $48.4 million as of June 30, 2024 compared to $36.3 million on December 31, 2023 while working capital increased by $2.8 million during this period.

截至 2024 年 6 月 30 日，現金及現金等價物為 4,840 萬美元，而 2023 年 12 月 31 日為 3,630 萬美元，而在此期間營運資金增加了 280 萬美元。

The increase in cash was primarily attributed to Data Solutions’ cash balance as well as the timing of receivable collections and vendor payments.

現金的增加主要歸因於 Data Solutions 的現金餘額以及應收帳款催收和供應商付款的時間表。

As of June 30, 2024, we had $1.0 million of outstanding debt with no borrowings outstanding under our $50 million revolving credit facility with JPMorgan Chase.

截至 2024 年 6 月 30 日，我們與摩根大通的 5,000 萬美元循環信貸安排下有 100 萬美元的未償債務，沒有未償還的借款。

In addition, we terminated the invoice discounting facility that Data solutions utilized as a short-term financing vehicle for working capital.

此外，我們終止了資料解決方案用作流動資金短期融資工具的發票貼現機制。

As of August 6, consistent with prior quarters, our Board of Directors declared a quarterly dividend of $0.17 per share of common stock, to shareholders of record as of August 16 and payable on August 22 2024.

截至 8 月 6 日，與前幾季一致，我們的董事會宣布向截至 8 月 16 日登記在冊的股東派發每股普通股 0.17 美元的季度股息，並於 2024 年 8 月 22 日支付。

Building on Dale’s earlier comments we plan to continue driving organic growth with existing partners while adding new innovative vendors to our line card.

基於 Dale 先前的評論，我們計劃繼續推動現有合作夥伴的有機成長，同時在我們的產品線中添加新的創新供應商。

We will also remain diligent in our M&A approach, as we evaluate targets that will be accretive to earnings and fit our strategic direction.

我們也將繼續努力實施併購方法，評估能夠增加收益並符合我們策略方向的目標。

DSS is another example of delivering on our commitment to be good stewards of the capital we’ve been entrusted with.

DSS 是履行我們的承諾的另一個例子，即成為我們所託付的資本的好管家。

As noted in our press release, DSS generated $5.3 million in EBITDA for the trailing 12 months ended June 30.

正如我們在新聞稿中所述，截至 6 月 30 日的過去 12 個月，DSS 產生了 530 萬美元的 EBITDA。

Our expectation is to expand DSS’ top line implement operating expense synergies in the first three to four months post-closing and therefore grow EBITDA.

我們的期望是在交易結束後的前三到四個月內擴大 DSS 的營收，實現營運費用協同效應，從而提高 EBITDA。

We believe these initiatives coupled with our robust liquidity position will enable us to deliver strong growth and profitability in the second half of 2024 into 2025 and beyond.

我們相信，這些措施加上我們強勁的流動性狀況將使我們能夠在 2024 年下半年到 2025 年及以後實現強勁的成長和獲利能力。

This concludes our prepared remarks.

我們準備好的演講到此結束。

We’ll now open it up for questions from those participating in the call.

我們現在將開放電話會議，供參與電話會議的人員提問。

Operator back to you.

接線生回覆您。

Thank you.

謝謝。

(Operator Instructions) Vincent Colicchio, Barrington Research.

（操作員說明）Vincent Colicchio，Barrington Research。

Yeah, Dale, good morning.

是的，戴爾，早安。

Yeah.

是的。

Starting off, it sounds like security and data centers continues to be the core drivers of growth.

首先，聽起來安全和資料中心仍然是成長的核心驅動力。

First of all, am I correct there?

首先，我的說法正確嗎？

And is that what would you expect for the second half of the year?

這是您對下半年的期望嗎？

You are correct, Vince.

你是對的，文斯。

I just actually yesterday came in from a Black Hat event in Vegas which is growing very quickly as a conference.

事實上，我昨天剛參加了在維加斯舉行的黑帽活動，該活動作為一個會議正在迅速發展。

RSA is the premier one, but this one is correct, we have 23 of our security vendors presenting there.

RSA 是第一個，但這個是正確的，我們有 23 家安全供應商在那裡展示。

And then the data center there’s some lag there just because some of the hardware, but not on our side because we’re it’s very focused.

然後，資料中心存在一些滯後，只是因為某些硬件，但我們這邊沒有，因為我們非常專注。

They get the hardware from different places, but it’s really on the software side that we’re delivering on.

他們從不同的地方獲得硬件，但我們實際上提供的是軟體方面的服務。

And was growth broad-based?

成長是否具有廣泛基礎？

Did your top 20 vendors grow in line with the overall business?

您的前 20 名供應商的成長是否與整體業務保持一致？

Yes.

是的。

We saw it across all of our regions as far as growth.

就成長而言，我們在所有地區都看到了這一點。

We have self-defined territories in the US and the teams that can sell any products in our line card and our top 100 that we talk about.

我們在美國有自己定義的區域，團隊可以銷售我們線路卡中的任何產品以及我們談論的前 100 名產品。

And we had growth in Q2 in every territory all of our DMRs, the direct marketers like the [CDWSHI] except for one.

第二季度，我們所有 DMR 的每個地區都實現了成長，像 [CDWSHI] 這樣的直銷商除外。

I think that was more flat but other than that growth all the way for us.

我認為這更加平穩，但除此之外我們一直在成長。

And then on the DSS acquisition, how long do you think it should take before you generate cross-selling synergies here?

然後，關於 DSS 收購，您認為需要多長時間才能產生交叉銷售綜效？

Yeah, it will be pretty quick.

是的，會很快。

I mean we didn’t really sell it out.

我的意思是我們並沒有真正把它賣光。

But I mean they leave with Adobe, because Adobe is so strong in that day through 12 in the higher ed space.

但我的意思是他們選擇了 Adob​​e，因為 Adob​​e 在高等教育領域從 12 月開始就非常強大。

And we have -- so when we talk -- we look at these targets way in advance and get to know them pretty well and Chuck and his team.

因此，當我們交談時，我們會提前研究這些目標，並很好地了解它們以及查克和他的團隊。

And when you look at where they’re selling to, we did our own internal because one thing is about distributors we have great data for years and years of both resellers and end users.

當你查看他們的銷售目標時，我們進行了自己的內部調查，因為有一點與分銷商有關，我們擁有多年來經銷商和最終用戶的大量數據。

So we went back and looked at our EDUs.

所以我們回去查看了我們的 EDU。

And we were selling to something like 15,000 locations, unique locations in that space even though we don’t call it out as a vertical like DSS does we sell that many products already.

我們向大約 15,000 個地點進行銷售，這些地點是該領域的獨特地點，儘管我們不像 DSS 那樣將其稱為垂直領域，但我們已經銷售了這麼多產品。

So I think the cross-selling is very good.

所以我認為交叉銷售非常好。

The other side of it is that they need more vendors just like a lot of the smaller distributors that we acquire they’re looking for vendors that fit into their ecosystem.

另一方面是他們需要更多的供應商，就像我們收購的許多小型分銷商一樣，他們正在尋找適合其生態系統的供應商。

And we did our math with them and saying, hey, we have quite a few that fit in that a lot of this are going to be in the cloud and cloud storage and backup space.

我們和他們一起做了數學計算，然後說，嘿，我們有很多適合的東西，其中很多都將在雲端、雲端儲存和備份空間中。

And then on the Data Solutions side, did you achieve your cross-selling synergies in the quarter?

然後在數據解決方案方面，您在本季度實現了交叉銷售協同效應嗎？

Yes, two things there.

是的，有兩件事。

One is the cross-selling synergies.

一是交叉銷售綜效。

The other side of it is getting our teams aligned between the two groups.

另一方面是讓我們的團隊在兩組之間保持一致。

And we have different heads of both our original acquisition with CDF and Spinnaker and now Data Solutions, those three we have different team members running different aspects of the business.

我們最初收購的 CDF 和 Spinnaker 以及現在的 Data Solutions 都有不同的負責人，這三者我們有不同的團隊成員負責業務的不同方面。

So as far as integration of the teams, that is all done.

就團隊整合而言，這一切都完成了。

And then what we’re finding is in the Irish market, it’s easy to sign vendors and then the tough thing is to get them to expand to the UK market.

然後我們發現在愛爾蘭市場，簽下供應商很容易，但困難的是讓他們擴展到英國市場。

So we’re seeing some of that.

所以我們看到了其中的一些。

Same thing with our vendors moving over from the US, I can name two or three of them that actually have moved over and then we have some success with.

我們的供應商從美國搬過來也是如此，我可以說出其中兩三個實際上已經搬過來的供應商，然後我們取得了一些成功。

So, it will just continue to be an organic flow.

因此，它將繼續成為一個有機的過程。

And most of the time, it’s from the US to the UK.

大多數時候，是從美國到英國。

But like I mentioned in Q1, we’ve had a couple that have come back this way that we actually signed in the US after they were signed in the UK or Ireland.

但就像我在第一季提到的那樣，我們有一對夫婦以這種方式回來，他們在英國或愛爾蘭簽約後，我們實際上在美國簽約了。

Okay and thanks for that and a nice quarter.

好的，謝謝你，這是一個美好的季度。

I'll go back to the queue.

我會回到隊列中。

Thanks, Vincent.

謝謝，文森特。

Bill Dezellem, Tieton Capital.

比爾·德澤勒姆，泰頓資本。

Thank you.

謝謝。

Did you mention, Dale that you’ve been in discussions for 18 months with Douglas Stewart?

戴爾，你有沒有提到你已經與道格拉斯·斯圖爾特討論了 18 個月？

Yeah.

是的。

And any of the prospects and Bill we talked about the targets that are out there and some of the excitement that we have as far as our growth organically is how many vendors are out there that we continue to look at.

任何前景和比爾我們都談到了現有的目標，就我們的有機成長而言，我們感到興奮的是我們繼續關注有多少供應商。

And you can see this quarter, looked at over 30 vendors.

您可以看到本季我們對 30 多家供應商進行了調查。

I was talking -- I was with Charles yesterday, our CMO and when he’s looked at 210, I think in the last eight months.

我正在談論 - 昨天我和我們的首席營銷官 Charles 在一起，當他查看 210 時，我想是在過去八個月裡。

There was that many coming out, and the same thing on the targets of acquisitions.

有很多人出來了，收購目標也有同樣的事情。

Most of them are overseas.

他們大多數都在海外。

We’re looking at Western Europe first.

我們首先關注的是西歐。

But this is one that Drew introduced us to and we started chatting and I knew of Douglas Stewart in my past life but the closer we got to them and I am like this is such a great fit for us.

但這是德魯向我們介紹的，我們開始聊天，我在過去的生活中認識道格拉斯·斯圖爾特，但隨著我們與他們的關係越來越密切，我覺得這對我們來說非常適合。

They do a vertical into the education space.

他們垂直進入教育領域。

When we don’t really call out verticals, we consider our vertical is emerging tech and getting into the market.

當我們沒有真正指出垂直產業時，我們認為我們的垂直產業是新興技術和進入市場。

When they actually have emerging tech and they go into the education space.

當他們真正擁有新興技術時，他們就會進入教育領域。

And you can say well, Adobe is not emerging but a lot of the products and cross several products that we think we can sell around Adobe and build like a coverage industry that’s really what the excitement of them.

你可以說，Adobe 並不是新興的，而是很多產品和交叉產品，我們認為我們可以圍繞 Adob​​e 銷售這些產品，並像覆蓋行業一樣建立起來，這就是他們真正興奮的地方。

But yes, we’ve been talking for quite a while.

但是，是的，我們已經討論了一段時間了。

Thank you for that.

謝謝你。

And would you please detail the earn-out tied with this acquisition?

您能否詳細說明與此次收購相關的收益？

Yeah, I’ll let Drew jump in on that.

是的，我會讓德魯參與其中。

Yes, the earn-out structure around two elements.

是的，收益結構圍繞著兩個要素。

The primary element is a gross profit margin target, Bill.

主要因素是毛利率目標，比爾。

So we looked at a forecast and budget.

所以我們研究了預測和預算。

We increased that by a percentage of growth that we expected DSS to generate and they have several target levels that can get to 85%, 100%, 115% of an earn-out if they achieve those gross profit margin targets.

我們將其提高了預期 DSS 產生的成長百分比，他們有幾個目標水平，如果他們實現了這些毛利率目標，獲利率可以達到 85%、100%、115%。

And then there’s also a component of increasing EBIT, the cash above EBITDA during the 12-month period that also is a component of the earn-out.

此外，還有增加 EBIT 的組合部分，即 12 個月期間高於 EBITDA 的現金，也是盈利的組成部分。

And Thanks Drew, and what's the total dollar amount that that earnout could be?

謝謝德魯，這筆收入的總金額是多少？

What's the maximum?

最大是多少？

So, if you look at the total, the max target would be about $4.2 million, I believe.

因此，如果你看一下總額，我認為最大目標約為 420 萬美元。

Okay, thank you.

好的，謝謝。

And congratulations on the transaction, relative to the ERP implementation, was that in the US only or was that across all geographies?

祝賀這筆交易，相對於 ERP 實施而言，是僅在美國還是在所有地區？

Although I'll let Drew talk about, but we're launching our team is in the UK right now with our second launch and that we have available and coming up with the merger.

雖然我會讓德魯談談，但我們的團隊現在在英國進行第二次發布，我們已經準備好進行合併。

And we have a committed team have done a great job on this one.

我們有一支忠誠的團隊在這方面做得很好。

Yes.

是的。

Thanks, Dale.

謝謝，戴爾。

And again good callout for Vito and the team.

再次對維托和團隊表示讚賞。

So Dale mentioned, Vito and Phil from his team, Vito Legrottaglie, who’s our CIO over a basis.

Dale 提到了他團隊中的 Vito 和 Phil、Vito Legrottaglie，他是我們的資訊長。

They just went live in the UK on Monday.

他們週一剛在英國上線。

It went very well.

進展順利。

Previously we went live in North America on July 15.

此前我們已於 7 月 15 日在北美上線。

We will go live in Ireland, August 5 and then September 5, thank you.

我們將於 8 月 5 日和 9 月 5 日在愛爾蘭上線，謝謝。

And then DSS probably the first week of November we don’t interrupt their strong selling months of September and October obviously August and July are very strong months for DSS.

然後 DSS 可能會在 11 月的第一周，我們不會打斷他們在 9 月和 10 月的強勁銷售，顯然 8 月和 7 月對 DSS 來說是非常強勁的月份。

So by November we’ll be completely on an integrated global platform.

因此，到 11 月，我們將完全處於一個整合的全球平台上。

Great.

偉大的。

Thank you and congratulations on a solid quarter.

謝謝並祝賀您取得了穩定的季度業績。

Thanks, Bill.

謝謝，比爾。

Howard Root, Private Investor.

霍華德·魯特，私人投資者。

Good morning, Dale.

早上好，戴爾。

How are you doing?

你好嗎？

Congratulations to you and the entire client just an outstanding quarter and this looks like probably you maybe your best acquisition yet and we’ll see the results but congrats on that.

恭喜您和整個客戶度過了一個出色的季度，這看起來可能是您迄今為止最好的收購，我們將看到結果，但對此表示祝賀。

Thanks.

謝謝。

Two questions for me.

有兩個問題問我。

First kind of a little things on the DSS acquisition.

首先是關於 DSS 收購的一些小事。

Is it the same -- and maybe I missed this is it about the same gross margins?

是一樣的嗎——也許我錯過了，毛利率是一樣的嗎？

Is anything different than the gross margins or the adjusted gross billings in this business and your existing business kind of on a global on an overall basis?

整體而言，該業務和您現有業務的毛利率或調整後的總帳單有什麼不同嗎？

It’s very similar.

非常相似。

They have some different rebate structures, but because they have a limited number of vendors so the rebates will show a little bit more than ours even though we have vendors that have similar rebates and how we get paid.

他們有一些不同的回扣結構，但由於他們的供應商數量有限，因此即使我們有具有類似回扣和付款方式的供應商，回扣也會比我們多一些。

They have funded heads like we have funded heads with our vendor manager team.

他們資助了負責人，就像我們資助了供應商經理團隊的負責人一樣。

So if you look at them they’re kind of a micro climb and they’re focused like I said in the K-12 sled and non-profit space.

因此，如果你看一下它們，它們就像是一次微小的攀爬，而且它們的重點就像我在 K-12 雪橇和非營利領域所說的那樣。

So we pick up some great team members as we look and say, wow this is people that already do the same thing that we do have a lot of the same mindset with their vendors as they go to market.

因此，我們挑選了一些優秀的團隊成員，當我們觀察並說，哇，這些人已經做了同樣的事情，我們在他們的供應商進入市場時與他們有很多相同的心態。

So you’ll see us amalgamate our teams over the next six months.

因此，您將在接下來的六個月內看到我們合併我們的團隊。

They have some territory.

他們有一些領土。

They don’t have a lot of field representation and similar to what was before Climb -- here.

他們沒有太多的現場代表，與 Climb 之前的情況類似 - 這裡。

And our teams will add that to them right off the bat so they’ll all get paid on that stuff as they take their products to market.

我們的團隊將立即將其添加到他們中，以便他們在將產品推向市場時都能獲得這些東西的報酬。

Okay.

好的。

And as I look at the number you gave is about a little over $5 million in adjusted EBITDA for the trailing 12 months, which looks to me like maybe a little bit around 20% of climbs.

我看一下你給出的數字，過去 12 個月的調整後 EBITDA 大約超過 500 萬美元，在我看來，這可能是 20% 左右的攀升。

Is this about a 20% added to your bottom-line?

這是否會使您的利潤增加 20% 左右？

Is it immediately accretive in that way?

這樣會立即增值嗎？

Or how do you look at it going forward in terms of percentage.

或你如何看待未來的百分比。

It’s immediately accretive to what we’re doing.

它會立即促進我們正在做的事情。

And they run a varying team 36 employees similar to our data solutions in Ireland extremely lean.

他們經營著一個由 36 名員工組成的不同團隊，與我們在愛爾蘭的數據解決方案類似，非常精簡。

They had a leading vendor of Citrix and this is a leading with Adobe.

他們擁有 Citrix 的領先供應商，而 Adob​​e 則是領先的供應商。

But right off the bat you’ll see the results in Q3.

但您很快就會在第三季看到結果。

And I mean, just on a ballpark number, is it around it?

我的意思是，就一個大概數字而言，它是否圍繞著它？

I'm not saying 20% increase your bottom line, but is it about a 20% increase to your adjusted EBITDA with this addition?

我並不是說您的利潤會增加 20%，但您的調整後 EBITDA 是否會因這一增加而增加 20% 左右？

Am I missing something there?

我在那裡錯過了什麼嗎？

No you are right on it.

不，你說得對。

Okay.

好的。

All right.

好的。

Great.

偉大的。

Then my other question kind of as I always ask is looking at the future with the business.

然後，我經常問的另一個問題是展望業務的未來。

I mean a 31% increase in adjusted gross billings, but admittedly second quarter last year wasn’t a great quarter so it was a pretty easy comp for you but still growing mid double-digit growth and really what I look at is in terms of revenue and increasing leverage to the bottom line and now congrats, maybe early congrats, but congrats so far on your ERP implementation, because that’s a big obstacle with I don’t see anything else.

我的意思是調整後的總帳單增長了31%，但不可否認的是，去年第二季度並不是一個出色的季度，所以這對你來說是一個相當簡單的補償，但仍然實現了中兩位數的成長，我真正關注的是收入和增加對底線的槓桿作用，現在恭喜，也許是早期的恭喜，但到目前為止，恭喜您的ERP 實施，因為這是一個很大的障礙，我看不到其他任何東西。

I’m not hearing anything else big in terms of added expenses coming in down the pipeline, which means more drops to the bottom line.

我沒有聽到任何其他重大的額外費用增加的消息，這意味著利潤會進一步下降。

And with a strong market for your products, do you see anything reducing the kind of linear increase that you’ve had in your top line and a little bit better than that increase to your bottom line as we look forward?

隨著您的產品市場強勁，您是否發現任何因素會降低您的收入線性成長，並且比我們預期的利潤成長稍好一些？

I just want to give you an opportunity to talk a little bit about the future without giving any specific guidance.

我只是想給大家一個機會談談未來，但不給任何具體的指導。

Yeah.

是的。

Let me talk, I think, maybe jump to some of the macro stuff, because we track both customers we sell to they are very large and they’re public companies and also some of our competitors that are extremely large.

讓我談談，我想，也許可以跳到一些宏觀的東西，因為我們跟踪我們銷售給他們的客戶，他們是非常大的，他們是上市公司，也是我們的一些非常大的競爭對手。

And I think some people try to put us in those buckets, and we don’t seem to track where they’re tracking because they have such a hardware component of their overall sales.

我認為有些人試圖將我們歸類為這些類別，而我們似乎沒有追蹤他們的追蹤位置，因為他們的整體銷售額中有這樣一個硬體組件。

So when you have, of course, COVID was the logistics issue with hardware.

當然，新冠疫情是硬體的物流問題。

And then you see some slowdown with people buying endpoint from its laptops or servers, but they still continue to buy security, and that is our leader on that side.

然後你會看到人們從筆記型電腦或伺服器購買端點的速度有所放緩，但他們仍然繼續購買安全性，這就是我們在這方面的領導者。

So we don’t -- we have not followed that trend of some of the companies that reported last week.

所以我們沒有——我們沒有遵循上週報告的一些公司的趨勢。

And we have looked at this quarter, after quarter, after quarter.

我們已經研究了這個季度、一個又一個季度、另一個季度。

So if you look at the ebb and flow that we have at Climb, it’s really vendors performance, right?

因此，如果您看看 Climb 的潮起潮落，您會發現這確實是供應商的表現，對嗎？

A large vendor would underperform like Q1 with Sophos.

大型供應商的 Sophos 表現可能會像第一季那樣表現不佳。

We were down with Sophos and they had some challenges with some of their ERP.

我們與 Sophos 合作，他們的一些 ERP 遇到了一些挑戰。

So there’s always some kind of reasons for it, but it’s not typically a market thing.

因此，總是會有某種原因，但這通常不是市場問題。

And here’s what I tell my teams, and I’ll tell our investor community, and that is we have a broad enough portfolio that -- and we have a lot of sales cycles.

這就是我告訴我的團隊和我們的投資者社區的，那就是我們擁有足夠廣泛的投資組合，而且我們有很多銷售週期。

So if we’re not selling in one discipline, we’ll start looking at the other.

因此，如果我們不專注於某一領域的銷售，我們就會開始關注另一個領域。

Our teams are highly compensated on gross profit.

我們的團隊在毛利方面獲得了高額報酬。

So if we’re not bringing in dollars, they don’t get paid.

因此，如果我們不帶來美元，他們就不會得到報酬。

So they’re aggressive that way.

所以他們在這方面很有攻擊性。

And that model has worked for us, Howard.

霍華德，這個模型對我們很有效。

The model of us looking at new vendors and putting the vendors that are not performing at a high level under our Elevate team, so we don’t spend as many sales cycles or energy, and we’ll just keep fine-tuning our model.

我們尋找新供應商並將表現不佳的供應商置於我們的提升團隊之下的模式，這樣我們就不會花費太多的銷售週期或精力，我們將不斷微調我們的供應商模式。

But the other thing is, we’re still extremely small to the market that we sell into.

但另一件事是，對於我們銷售的市場來說，我們的規模仍然很小。

So we can just change rapidly.

所以我們可以迅速改變。

And we keep our ear of the ground as far as, hey, do we need to make some changes here.

我們會密切關注，嘿，我們是否需要在這裡做出一些改變。

We talk about it continually.

我們不斷地談論它。

And we have both sides of it, right, the vendor side and then the, like I said before, the acquisition side.

我們有雙方，對吧，供應商方，然後，就像我之前說的，收購方。

Great.

偉大的。

Thanks for the explanation.

感謝您的解釋。

I mean congrats, and the results have been impressive.

我的意思是恭喜，結果令人印象深刻。

Congrats on a great quarter and keep up the great work.

恭喜這個季度的出色表現，並繼續努力。

Thanks.

謝謝。

Thanks.

謝謝。

Thanks.

謝謝。

Howard.

霍華德.

This will conclude our question-and-answer session.

我們的問答環節到此結束。

I would now like to turn the call back to Mr. Dale Foster for closing remarks.

現在，我想將電話轉回給戴爾·福斯特先生，讓其致閉幕詞。

Thank you, operator.

謝謝你，接線生。

Thank you to all shareholders.

感謝所有股東。

In closing, I want to thank the entire client team.

最後，我要感謝整個客戶團隊。

It’s been, we talked about ERP a couple of years ago, and we finally have implemented it.

幾年前我們就討論過 ERP，現在我們終於實施了。

And like Drew said, we’ll implement it through all our organization and will be complete by the end of this year.

正如德魯所說，我們將在整個組織中實施該計劃，並將於今年年底完成。

But the amount of hours that not only our IT team has put in, but also what we call our SMEs, or subject matter experts in each division have put in those extra time to make sure that it was a successful launch.

但是，不僅我們的 IT 團隊投入了大量的時間，而且我們所說的中小企業或每個部門的主題專家也投入了這些額外的時間，以確保它的成功發布。

I know a lot of people when they hear ERP, they think, wow, this is going to be a mess.

我認識很多人，當他們聽到 ERP 時，他們會想，哇，這會變得一團糟。

Our team has made that a very minimal amount of mess, and we are off and running.

我們的團隊已將混亂程度降到最低，我們已經開始運作了。

So we’ll close out July is the first time on our new system.

因此，我們將在 7 月結束我們新系統的首次使用。

So with that, I appreciate everybody who joined.

因此，我感謝所有加入的人。

Thank you.

謝謝。

And this will conclude today's teleconference.

今天的電話會議到此結束。

Ladies and gentlemen, you may now disconnect.

女士們先生們，你們現在可以斷開連結了。