Climb Global Solutions Inc (CLMB) 2025 Q2 法說會逐字稿

(Operator Instructions) Good morning everyone and thank you for participating in today's conference call to discuss Climb Global Solutions financial results for the second quarter ended June 30, 2025. Joining us today are client's CEO, Mr. Dale Foster the Company's Chief Financial Officer, Mr. Matthew Sullivan, and the Company's Investor Relations Advisor, Sean Mansouri with Elevate IR.

（操作員指示）大家早安，感謝您參加今天的電話會議，討論 Climb Global Solutions 截至 2025 年 6 月 30 日的第二季度財務業績。今天與我們一起參加的有客戶執行長 Dale Foster 先生、公司財務長 Matthew Sullivan 先生以及公司投資者關係顧問、Elevate IR 的 Sean Mansouri。

By now everyone should have access to the second quarter 2025 earnings press release, which was issued yesterday afternoon at approximately 4:05 PM eastern time. The release is available in the Investor Relations section of Climb Global Solutions website at www.climbglobalsolutions.com.

現在每個人都應該可以看到 2025 年第二季收益新聞稿，該新聞稿於昨天下午東部時間大約 4:05 發布。新聞稿可在 Climb Global Solutions 網站 www.climbglobalsolutions.com 的投資者關係部分查閱。

This call will also be available for webcast replay on the company's website. Following management remarks, we will open the call for your questions. I would now like to turn the call over to Mr. Mansouri for introductory comments.

本次電話會議也將在公司網站上進行網路直播重播。管理層發言結束後，我們將開始回答您的問題。現在我想請曼蘇裡先生作介紹性發言。

Thank you. 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.

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

這些前瞻性陳述也受到公司向美國證券交易委員會提交的文件中不時描述的其他風險和不確定性的影響。請勿過度依賴截至本次電話會議召開之日所做的任何前瞻性陳述。

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

除法律規定外，本公司不承擔修改任何前瞻性陳述或公開發布修改結果的義務。我們的介紹還包括某些關鍵營運指標和非公認會計準則財務指標，包括總營業額、調整後的 EBITDA、調整後的淨收入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. You'll find reconciliation charts and other important information in the earnings press release and Form 8-K we furnished to the SEC yesterday. I'll now turn the call over to Climb's CEO, Dale Foster.

所有非公認會計準則 (non-GAAP) 指標已根據美國證券交易委員會 (SEC) 規則與最直接可比較的公認會計準則 (GAAP) 指標進行協調。您可以在我們昨天向美國證券交易委員會提供的收益新聞稿和 8-K 表中找到對帳圖表和其他重要資訊。現在我將電話轉給 Climb 的執行長 Dale Foster。

Thank you, Sean, and good morning everyone. As you can see, we had another strong quarter with material increases across all of our key financial metrics. During the quarter, we generated double digit organic growth by strengthening relationships with customers, growing our line card with new innovative vendors, and expanding market share in both the US and Europe.

謝謝你，肖恩，大家早安。如您所見，我們又度過了一個強勁的季度，所有關鍵財務指標均大幅成長。在本季度，我們透過加強與客戶的關係、透過新的創新供應商擴展我們的產品線以及擴大在美國和歐洲的市場份額，實現了兩位數的有機成長。

We also benefited this quarter from the incremental contribution and seasonal strength of our acquisition of Douglas Stewart software or DSS, which typically sees higher demand for education customers as they ramp up ahead of the next school year.

本季度，我們也受惠於收購道格拉斯史都華軟體 (DSS) 帶來的增量貢獻和季節性優勢，通常會看到教育客戶在下一個學年到來之前的需求增加。

Our team continues to identify and align with the most innovative technologies in the market that not only strengthen our vendor ecosystem but also address the increasingly complex challenges our customers face. In Q2 alone, we evaluated 50 potential vendor partnerships and moved forward with just four of them. This discipline approach reflects our commitment to quality over quantity and our focus on delivering differentiated high impact solutions that drive long term value across our platform. Let me take a moment to highlight a few of these wins.

我們的團隊不斷識別和適應市場上最具創新性的技術，這不僅可以加強我們的供應商生態系統，還可以解決客戶面臨的日益複雜的挑戰。僅在第二季度，我們就評估了 50 個潛在的供應商合作夥伴，並最終與其中 4 個達成了合作。這種紀律方法反映了我們對品質而非數量的承諾，以及我們專注於提供差異化的高影響力解決方案，以推動我們平台的長期價值。請允許我花點時間來重點介紹其中的一些勝利。

First, we announced a partnership with Ignite, a leader in secure content, collaboration, intelligence, and governance. This partnership enables us to offer Ignite's cloud native platform to our partners, their customers across the US, reinforcing our commitment to the expanding access of transformative technologies.

首先，我們宣布與安全內容、協作、情報和治理領域的領導者 Ignite 建立合作關係。透過此次合作，我們能夠向我們的合作夥伴及其遍佈美國的客戶提供 Ignite 的雲端原生平台，從而加強我們對擴大變革技術應用的承諾。

By adding Ignite to our line card, we are equip equipping resellers with a trusted scalable platform that fits seamlessly into both SMB and enterprise environments. This partnership underscores our mission to deliver partner first technologies that move with speed of the modern business.

透過將 Ignite 添加到我們的產品線中，我們為經銷商提供了一個值得信賴的可擴展平台，可以無縫融入 SMB 和企業環境。此次合作凸顯了我們的使命，為合作夥伴提供能夠跟上現代商業步伐的優先技術。

In Q2, we also, our Climb UK and Ireland team secured an exclusive distribution agreement with IGEL, a global leader in secure endpoint OS solutions for UK and Ireland. This milestone builds on the partnership that we began in 2016 with Data Solutions out of Ireland, which we acquired in 2023. Our ability to drive lead. Generation and expanded IGEL addressable market in the region led to the sole distribution agreement further validating our strength of our channel, reach, execution, and commitment to Europe.

在第二季度，我們的 Climb 英國和愛爾蘭團隊也與英國和愛爾蘭安全端點作業系統解決方案的全球領導者 IGEL 簽訂了獨家分銷協議。這一里程碑建立在我們於 2016 年與愛爾蘭 Data Solutions 建立的合作夥伴關係的基礎上，我們於 2023 年收購了該公司。我們的驅動能力領先。IGEL 在該地區的目標市場的建立和擴大促成了獨家分銷協議的達成，進一步驗證了我們的通路實力、覆蓋範圍、執行力以及對歐洲的承諾。

We look forward to continuing our partnership with IGEL as we scale together in these key markets. In June, we brought on [Vishal Pushpa], Climb's Chief Information Officer. Vishal is a dynamic IT executive with more than two decades of strategic leadership across high-tech manufacturing, logistics, distribution services.

我們期待與 IGEL 繼續合作，共同在這些關鍵市場擴大規模。6 月份，我們聘請了 [Vishal Pushpa] 擔任 Climb 的資訊長。Vishal 是一位充滿活力的 IT 主管，在高科技製造、物流和分銷服務領域擁有超過二十年的策略領導經驗。

And services Vishal has led large scale ERP, CRM, and HCM transformations and has overseen complex M&A integrations and driven a deployment of cutting edge cloud solutions, AI and automation and enhanced. Infrastructure. He brings a visionary approach to innovation and it's a strong track record of fostering global calibration and anticipating future technology trends. We are pleased to have him join the Climb family and look forward to his invaluable contributions.

在服務方面，Vishal 領導了大規模 ERP、CRM 和 HCM 轉型，監督了複雜的併購整合，並推動了尖端雲端解決方案、人工智慧和自動化的部署和增強。基礎設施。他為創新帶來了富有遠見的方法，並且在促進全球校準和預測未來技術趨勢方面有著良好的記錄。我們很高興他加入 Climb 大家庭，並期待他能做出寶貴的貢獻。

In addition to Vishal’s appointment in May, we announced the promotion of Carlos Rodriguez to our President of North America. Carlos has been a key leader at Klein since 2020, bringing more than 20 years of experience in value-added distribution and a proven track record of driving growth across North America. Since joining Klein, he has played a pivotal role in expanding market share, building high performance sales teams, and strengthening strategic vendor relationships.

除了 5 月對 Vishal 的任命外，我們還宣布提升 Carlos Rodriguez 為北美總裁。卡洛斯自 2020 年起擔任 Klein 的關鍵領導者，擁有 20 多年的增值分銷經驗以及推動北美地區成長的成功經驗。自加入 Klein 以來，他在擴大市場份額、建立高績效銷售團隊和加強策略供應商關係方面發揮了關鍵作用。

In his prior role as Vice President of sales, Carlos led the development of Klein's dedicated vendor management team and has also consistently delivered impactful results through alignment and partner engagement.

在擔任銷售副總裁之前，卡洛斯領導了克萊恩專門供應商管理團隊的發展，並透過協調和合作夥伴參與不斷取得有影響力的成果。

In this new role as President, Carlos will oversee the North American sales with a focus on accelerating growth, deepening vendor and partner success, and further expanding Climb's market presence. We're excited to see Carlos bring his leadership and vision to this new role as we continue to his new role as we continued executing on our growth strategy.

在擔任總裁這一新職位期間，卡洛斯將負責監督北美銷售，重點是加速成長、深化供應商和合作夥伴的成功，並進一步擴大 Climb 的市場影響力。我們很高興看到卡洛斯將他的領導和遠見帶到這個新角色中，我們將繼續他的新角色，繼續執行我們的成長策略。

Looking ahead, we're focused on building on the momentum from the first half of the year by continuing to execute against our strategic priorities. With our ERP system now fully in place, we're beginning to realize the benefits of improved operational efficiency and scalability.

展望未來，我們將繼續致力於延續上半年的勢頭，執行我們的戰略重點。隨著我們的 ERP 系統全面到位，我們開始意識到提高營運效率和可擴展性的好處。

Positioning us to draw stronger operating leverage as we grow. Additionally, we're actively evaluating strategic M&A opportunities in North America and overseas that align with our long-term vision and can expand both our capabilities and geographic reach.

隨著我們的發展，我們將能夠獲得更強大的經營槓桿。此外，我們正在積極評估北美和海外​​的策略併購機會，這些機會符合我們的長期願景，並可以擴大我們的能力和地理覆蓋範圍。

These initiatives, coupled with our robust balance sheet and demonstrate a track record of success will enable us to deliver on both organic and inorganic objectives. In 2025 and beyond, with that, I will turn the call over to our CFO, Matthew Sullivan to take you through our financial results. Matthew.

這些舉措，加上我們強勁的資產負債表和成功的業績記錄，將使我們能夠實現有機和無機目標。在 2025 年及以後，我將把電話交給我們的財務長馬修·沙利文 (Matthew Sullivan)，向你們介紹我們的財務表現。馬修。

Thank you, Dale, and good morning everyone. A quick reminder as we review our second quarter financial results. All comparisons and variance commentary refer to the prior year quarter unless otherwise specified. As reported in our earnings press release, gross billings in Q2, 2025 increased 39% to $500.6 million compared to $359.8 million in a year ago quarter.

謝謝你，戴爾，大家早安。在我們回顧第二季財務表現時，請快速提醒。除非另有說明，否則所有比較和差異評論均指去年同期。正如我們的收益新聞稿中所報導的，2025 年第二季的總營業額與去年同期的 3.598 億美元相比增長了 39%，達到 5.006 億美元。

Distribution segment gross billings increased 40% to $477 million, and solutions segment gross billings increased 19% to $23.5 million.

分銷部門總營業額成長 40% 至 4.77 億美元，解決方案部門總營業額成長 19% 至 2,350 萬美元。

Net sales in the second quarter of '25 increased 73% to $159.3 million compared to $92.1 million, which primarily reflects double digit organic growth from new and existing vendors, as well as contribution from our acquisition of [DSS] in July last year. Gross profit in the second quarter increased 42% to $26.3 million compared to $18.6 million.

25 年第二季淨銷售額成長 73%，達到 1.593 億美元，而去年同期為 9,210 萬美元，這主要反映了新舊供應商的兩位數有機成長，以及去年 7 月收購 [DSS] 的貢獻。第二季毛利從 1,860 萬美元成長 42% 至 2,630 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 contribution from DSS. Gross profit as a percentage of gross billings increased to 5.3% compared to 5.2% in the year ago period.

再次，這一成長是由北美和歐洲新舊供應商的有機成長以及 DSS 的貢獻所推動的。毛利佔總營業額的百分比從去年同期的 5.2% 上升至 5.3%。

SG&A expenses in the second quarter were $16.4 million compared to $1.30 million for the same period in 2024. SG&A from DSS accounted for 900,000 of the increase. SG&A is a percentage of gross billings decreased to 3.3% in Q2 of 2025 compared to 3.6% in the year ago period.

第二季銷售、一般及行政費用為 1,640 萬美元，而 2024 年同期為 130 萬美元。DSS 的銷售、一般及行政費用佔成長金額的 900,000。銷售、一般及行政費用佔總營業收入的百分比在 2025 年第二季下降至 3.3%，去年同期為 3.6%。

Net income in the second quarter of 2025 increased 74% to $6 million or $13 million per diluted share compared to $3.4 million or $0.75 per diluted share for the comparable period in 2024.

2025 年第二季淨收入成長 74%，達到 600 萬美元或每股攤薄收益 1,300 萬美元，而 2024 年同期淨收入為 340 萬美元或每股攤薄收益 0.75 美元。

Net income was impacted by a $400,000 charge related to the change in fair value of acquisition contingent consideration associated with DSS. Adjusted net income increased 68% to $6.4 million or $1.39 per diluted share compared to $3.8 million or $0.83 per diluted share for the year ago period.

淨收入受到與 DSS 相關的收購或有對價的公允價值變動相關的 400,000 美元費用的影響。調整後淨收入成長 68% 至 640 萬美元或每股攤薄收益 1.39 美元，去年同期為 380 萬美元或每股攤薄收益 0.83 美元。

Adjusted EBITDA in the second quarter increased 64% to $11.4 million compared to $6.9 million in the prior year quarter. The increase was driven by the aforementioned organic growth from both new and existing vendors, as well as contribution from DSS.

第二季調整後 EBITDA 成長 64%，達到 1,140 萬美元，去年同期為 690 萬美元。這一成長是由上述新供應商和現有供應商的有機成長以及 DSS 的貢獻所推動的。

Adjusted EBITDA as a percentage of gross profit or effective margin, increased 600 basis points to 43.3% compared to 37.3% in the year ago period. Turning to our balance sheet, cash and cash equivalents were $28.6 million as of June 30, 2025 compared to $29.8 million on December 31 of 2024, while working capital increased by $12.2 million during this period. The decrease in cash was primarily attributed to the timing of receivable collections and vendor payments.

調整後的 EBITDA 佔毛利或有效利潤率的百分比，較去年同期的 37.3% 增加 600 個基點至 43.3%。回顧我們的資產負債表，截至 2025 年 6 月 30 日，現金和現金等價物為 2860 萬美元，而 2024 年 12 月 31 日為 2980 萬美元，而在此期間營運資金增加了 1220 萬美元。現金減少主要歸因於應收帳款收款和供應商付款的時間。

As of June 30, 2025, we have $500,000 outstanding of outstanding debt with no borrowings outstanding under our $50 million revolving credit facility with JPMorgan Chase. On July 29, 2025, our Board of Directors declared a quarterly dividend of $0.17 per share of our common stock payable on August 15, 2025, to shareholders of record on August 11, 2025.

截至 2025 年 6 月 30 日，我們與摩根大通簽訂的 5,000 萬美元循環信貸協議下未償還債務為 50 萬美元，沒有未償還借款。2025 年 7 月 29 日，我們的董事會宣布向 2025 年 8 月 11 日登記在冊的股東派發每股 0.17 美元的季度股息，該股息將於 2025 年 8 月 15 日支付。

To echo Dale's earlier comments, we're continuing to explore strategic acquisitions that align with our high performance culture and strengthen our ability to meet evolving customer needs. With a robust balance sheet, we're well positioned to pursue opportunities that complement our existing portfolio and accelerate growth in key markets.

為了呼應戴爾先前的評論，我們將繼續探索符合我們高績效文化的策略性收購，並加強我們滿足不斷變化的客戶需求的能力。憑藉穩健的資產負債表，我們有能力尋求補充現有投資組合併加速關鍵市場成長的機會。

This momentum is a direct result of our team's hard work and execution, and we're excited to carry that forward as we advance both our organic and inorganic growth initiatives throughout 2025. This concludes our prepared marks. We will now open it up for questions from those participating in the call. Operator, back to you.

這一勢頭直接得益於我們團隊的辛勤工作和執行力，我們很高興能夠在 2025 年推進有機和無機增長計劃的過程中繼續保持這一勢頭。我們的準備標記到此結束。我們現在將開始接受電話會議參與者的提問。接線員，回到你身邊。

Thank you. (Operator Instructions). Vincent Colicchio, Barrington Research.

謝謝。（操作員指令）。文森‧科利奇奧 (Vincent Colicchio)，巴林頓研究公司。

Good morning, Dale, good quarter. My first question is, did security and data center continue to lead growth in the quarter, or is it broadening out somewhat?

早安，戴爾，祝一切順利。我的第一個問題是，安全和資料中心是否繼續引領本季的成長，還是有所擴大？

It has those are our top two and security being the stronger of those two, but yeah, those are leading it and it kind of makes sense, right? I mean the security market continues to heat up and then, in the data center space as we keep bringing in tools that are either data migration tools or storage tools that's going to be our leader for quite some time.

這是我們的前兩名，安全性是其中較強的，但是是的，它們處於領先地位，這很有道理，對吧？我的意思是，安全市場持續升溫，然後在資料中心領域，隨著我們不斷引入資料遷移工具或儲存工具，這些工具將在相當長的一段時間內成為我們的領導者。

And how did your top 20 vendors perform versus the overall business? Are they keeping track with staying at a pace in line?

您的前 20 名供應商與整體業務相比表現如何？他們是否保持著排隊的節奏？

If you take a look at our, when you say the top 20, there's probably like five or six that, at the bottom end of that, from 12 to 20 that are taking, go into the 20, we have some of the other ones jump forward. Some of the ones, we've talked about Darktrace is going to make more of an impact as we go through the rest of this year as we just got started with them and, just got our basically our teams aligned.

如果你看一下我們的排名，當你說前 20 名時，可能有五六個，在最底層，從 12 到 20 個，進入前 20 名，我們還有一些其他的向前跳躍。我們討論過的一些關於 Darktrace 的項目將在今年剩餘時間產生更大的影響，因為我們剛開始使用這些項目，並且基本上讓我們的團隊保持一致。

As we announced it and then you know that is going to be the biggest impact for the second half of the year. But yeah, it's new entrants that can get into that top 20. Nothing really has changed that much in the top 10, but from 10 to 20, yeah, we have dumping ones that are just, performing better in the quarter.

正如我們宣布的那樣，你知道這將是對下半年最大的影響。但是，是的，只有新進入者才能進入前 20 名。前 10 名實際上並沒有發生太大的變化，但是從第 10 名到第 20 名，是的，我們拋棄了那些在本季度表現更好的公司。

And were there any large deals which made this quarter especially strong, which may not necessarily recur in the following quarter?

是否存在一些大型交易使得本季表現尤為強勁，但這些交易在下一季不一定還會再次發生？

Yeah, so what we do is, we talk about this and we argue internally, what we call out vast data because we consider it organic because we've had that company for what, three years now, so we had, we get lumpy with that. We had a vast order that we budgeted for Q3 that got pulled into Q2, so we'll have to make that up in Q3, but so that definitely helped the quarter out to put us over the top, but just organically without that we were still growing at a very good clip.

是的，所以我們所做的就是，我們討論這個問題，我們在內部爭論，我們稱之為海量數據，因為我們認為它是有機的，因為我們已經擁有這家公司三年了，所以我們對此感到困惑。我們有一筆為第三季度預算的巨額訂單，但被拖到了第二季度，所以我們必須在第三季度彌補這筆訂單，但這無疑幫助我們在本季度取得了突破，而且即使沒有這筆訂單，我們仍然保持著非常好的增長速度。

Are you seeing meaningful synergies as of yet from the Douglas Stewart acquisition?

到目前為止，您是否看到了道格拉斯史都華收購帶來的有意義的綜效？

We do so we already announced that they're on our ERP systems and also their lines have moved into our common portfolio of vendors. We still are carving out and calling, hey, we can go after this K-12 and higher ed space and you know this is, just like I said in my comments, this is the growth, the excitement period for that is everybody's going in school year and everybody.

我們這樣做了，我們已經宣布他們已進入我們的 ERP 系統，並且他們的生產線已進入我們共同的供應商組合。我們仍在開拓和呼籲，嘿，我們可以進軍 K-12 和高等教育領域，你知道，就像我在評論中所說的那樣，這是一個成長、令人興奮的時期，每個人都在上學，每個人。

Extinguishing their budgets by the states in the end of June and then, buying new, going into the new school year, but yeah, I mean we have integrated that team into our teams. Our teams, we have 14 teams, regional teams, and then some dedicated teams in North America, and they're already not only quoting processing but also, learning the Douglas Stewart product lines.

各州將在六月底用完他們的預算，然後購買新預算，進入新的學年，但是，是的，我的意思是我們已經將該團隊整合到我們的團隊中了。我們的團隊有 14 個團隊、區域團隊，以及北美的一些專門團隊，他們不僅在引用處理，而且還在學習 Douglas Stewart 產品線。

Okay, I, I'll go into the queue. Thanks.

好的，我去排隊。謝謝。

Thanks, Vincent, good talking to you.

謝謝，文森特，很高興與您交談。

Thank you and (Operator Instructions) [Howard Root], Private Investor.

謝謝您，（操作員指示）[Howard Root]，私人投資者。

Good morning, Dale and Matt. Congratulations. I mean that was just another outstanding quarter. Very little to explain actually in the results. It's kind of hard to find stuff to pick on. But I got a couple of questions, I guess first on a couple of little things on the income statement, I've always looked at it as your gross margin as a percent of gross billings and that as you said, moved up from 5% to 5.3%. And you know it's always that 5% was kind of the target. Is that a trend or is that just a little bouncing around, or how do you see that going forward on gross margin?

早上好，戴爾和馬特。恭喜。我的意思是，這只是另一個出色的季度。結果中其實很少有可解釋的。要找到可以挑剔的東西有點困難。但我有幾個問題，我想首先是關於損益表上的幾個小問題，我一直將其視為毛利率佔總收入的百分比，正如您所說，它從 5% 上升到了 5.3%。你知道，5% 始終是目標。這是一種趨勢嗎？還是只是輕微波動？或者您認為未來毛利率會如何變動？

Yeah, thanks, Howard. That so yes for Q2 of this year we went from 5.2% of Q2 last year to 5.3% for this quarter and you know internally we continue to project it to be in that, 5%, 5.1%. The real driver of that higher percentage, a slightly higher percentage this quarter was the timing of the lumpy transactions that Dale just alluded to. Some have higher margins as their than our typical based business, but that's what really contributed to the higher gross profit as a percentage of gross bills.

是的，謝謝，霍華德。是的，今年第二季度，我們的成長率從去年同期的 5.2% 上升到了 5.3%，我們內部預期成長率將保持在 5% 或 5.1% 左右。本季百分比略高的真正驅動因素是戴爾剛才提到的不規則交易的時機。有些業務的利潤率比我們典型的業務要高，但這才是毛利佔總帳單百分比較高的真正原因。

But your question and thanks for the question, but you know it's not going to be a trend that we're going to continue to see that expand. It'll just be lumpy just like it is before because they're big orders and they have, typically a lot of margin with them. It's something that we look at like Matt said, can we do and we get asked by investors all the time, can we expand our margins? It's going to be with, expanding our solutions team and then as we've talked about, we want to add more services to the company that'll help move that up in the basis point but right now, still continued in that 5% to 5.1% range.

但你的問題，謝謝你的提問，但你知道這不會成為我們將繼續看到的擴大趨勢。它會像以前一樣不穩定，因為它們是大訂單，而且通常有很多利潤。正如馬特所說，這就是我們所關注的事情，我們能做到嗎？投資人也常問我們，我們能擴大利潤率嗎？我們將擴大解決方案團隊，然後正如我們所討論的，我們希望為公司增加更多服務，這將有助於提高基點，但目前，仍保持在 5% 到 5.1% 的範圍內。

Okay, great. And then on SG&A, I mean that jumped up by 28% year over year, but your gross billings went up by 39%. So your percent goes from 3.6% down to 3.3%. And with you implementing ERP and growing and setting the stage, I mean that's all understandable. But how do you see that going forward? Do you see that getting closer to 3% of gross billings? Is that going to be a trend?

好的，太好了。然後就銷售、一般和行政費用而言，我的意思是它同比增長了 28%，但總收入卻增長了 39%。因此您的百分比從 3.6% 下降到 3.3%。隨著您實施 ERP 並不斷發展和奠定基礎，我認為這一切都是可以理解的。但您如何看待未來的發展？您是否認為該數字接近總營業額的 3%？這會成為一種趨勢嗎？

I think the percentage that you saw this quarter is what we expect to see as we move forward. So you know we had a $900,000 contribution, $900,000 contribution of DSS this quarter that we didn't have in the prior year quarter, but that 3.3% range is more consistent with what we expect going forward.

我認為您本季看到的百分比正是我們未來預期看到的。所以你知道我們本季有 90 萬美元的捐款，90 萬美元的 DSS 捐款，這是我們去年同期沒有的，但 3.3% 的範圍與我們未來的預期更加一致。

Yeah, and Howard, so you know DSS wasn't, a comparable from last year because we acquired them in July of last year. So that's the added SG&A. But on a, we've integrated they didn't have a lot of infrastructure. So if you look at, hey, can we clear out some of the back office, it's more about, mending the teams together and then, looking for efficiencies in that play, but that's the biggest thing is the DSS expenses.

是的，霍華德，你知道 DSS 與去年不一樣，因為我們是在去年 7 月收購了他們的。這就是增加的銷售、一般及行政費用。但是，我們已經整合了他們沒有的許多基礎設施。所以，如果你看看，嘿，我們能不能清理一些後台辦公室，這更多的是關於修復團隊，然後在其中尋找效率，但最大的問題是 DSS 費用。

Okay, great. And then kind of on your international side, is there anything material on tariffs or on currency fluctuation that you see right now that could affect things going forward?

好的，太好了。那麼從國際角度來看，您現在看到的關稅或貨幣波動方面有什麼重大因素可能會影響未來的事情嗎？

So we talk about the tariff, we had no real impact, and we have legal entities in the UK and Ireland and some of the other EU countries, so we can play with that as far as where we're dealing with in shipping. So we haven't had an impact on that.

因此，我們談論關稅，我們沒有受到實際影響，我們在英國、愛爾蘭和其他一些歐盟國家擁有法人實體，因此我們可以在處理航運事宜時利用這一點。所以我們對此沒有產生影響。

One thing that we have board meetings of course before these earnings calls and we talk about our FXs and how we deal with that and we're just trying to come up with better schemes to deal with, our currency because most of our vendors were buying in US dollars, so any kind of fluctuation as the dollar got weaker, we're going to have that impact.

當然，在這些收益電話會議之前，我們會召開董事會會議，討論外匯問題以及如何處理這個問題，我們只是想提出更好的方案來處理我們的貨幣問題，因為我們的大多數供應商都是用美元購買的，所以隨著美元走弱，任何波動都會對我們產生影響。

So we're doing some hedging. But we're looking for better strategy because, we have, realized and unrealized gains and you know some one quarter over another, will affect us and then a lot of times we'll get that pick up but it'll be in a quarter or two quarters down.

所以我們正在進行一些對沖。但我們正在尋找更好的策略，因為我們有已實現和未實現的收益，你知道某個季度對另一個季度的影響會對我們產生影響，很多時候我們會得到回升，但會在一個季度或兩個季度內下降。

Yeah, good. So then look bigger picture, I kind of look back. It was that Q3 of 2022, so less than three years ago you crossed over into the $1 billion in gross billings, and now you're crossing $2 billion. And back then on the call I asked, how does this continue? I mean, a billion's a big number. And your response was in your market a billion's still small potatoes, that there's really a lot of area going forward, which you've proved yourself correct over the last two plus years.

是的，很好。那麼從更大的角度來看，我有點回顧過去。那是 2022 年第三季度，不到三年前，你們的總營業額就突破了 10 億美元，而現在你們的總營業額已經突破了 20 億美元。當時在電話裡我問，這種情況會如何持續？我的意思是，十億是一個很大的數字。您的回答是，在您的市場中，十億規模仍然微不足道，未來還有很大的發展空間，在過去兩年多的時間裡，您已經證明了這一點是正確的。

But as you cross the $2 billion, do you still see that? I mean, you still see yourself as a fairly small player in the overall market with the potential to continue this type of growth going forward, or when will you reach kind of a little bit of a limitation, large, the limits of large size numbers?

但當你突破 20 億美元時，你還會看到這種情況嗎？我的意思是，您仍然認為自己在整個市場中是一個相當小的參與者，有潛力繼續保持這種增長，或者什麼時候您會達到某種限制，大，大尺寸數字的極限？

But you're right. I mean, we are still such a small player, and I can just give you some inside baseball. We meet with vendors, we talked about this quarter. We met with 50 different vendors. The vendors have choices, how they want to go to market, and once they choose distribution, they get the big three, right? We got Inger micro, Syntec Data, and Aero, and that is worldwide. Those are the big three. The next largest one, I would say exclusive networks, is in the $5 billion to $6 billion range. They just got taken private in Q1 or the end of Q1.

但你是對的。我的意思是，我們仍然是一個小球員，我只能給你一些內幕棒球。我們與供應商會面，討論了本季的情況。我們會見了 50 家不同的供應商。供應商有選擇，可以選擇如何進入市場，一旦他們選擇了分銷，他們就會得到三大巨頭，對嗎？我們擁有 Inger micro、Syntec Data 和 Aero，並且遍佈全球。這就是三巨頭。我認為下一個最大的網絡，即獨家網絡，價值在 50 億至 60 億美元之間。他們剛剛在第一季或第一季末被私有化。

So we're still extremely small, but when these vendors come in, we talk about these big players, but we're talking about competing them in such a one of their smaller divisions. So you know our headroom between $2 billion and $30 billion, I would say, okay, that that's a big GAAP so we can grow a lot. But if we take a look at where they actually compete against us in software applications, server security, data center only, because we're.

所以我們的規模仍然非常小，但是當這些供應商進來時，我們會談論這些大公司，但我們談論的是在他們的一個較小的部門中與他們競爭。所以你知道我們的空間在 20 億美元到 300 億美元之間，我想說，好的，這是一個很大的 GAAP，所以我們可以實現很大的成長。但如果我們看看他們在軟體應用程式、伺服器安全、資料中心方面與我們的實際競爭情況，因為我們是。

So different in that space. We still have, I would say, it's $2 billion to $20 billion so compare it that way. It's it's a lot of headroom that we can go before we'd be disruptive we're disruptive to them where they would say hey we need to make some kind of move and we're just not that disruptive to them. We think we can. Still grow under that, umbrella of being that emerging, high touch, faster market, channel partner.

那個空間如此不同。我想說，我們仍然有 20 億美元到 200 億美元，所以可以這樣比較。在我們對他們造成乾擾之前，我們有很大的發展空間，他們會說，嘿，我們需要採取某種行動，但我們不會對他們造成太大的干擾。我們認為我們可以。仍在這保護傘下成長，成為新興的、高接觸的、更快的市場、通路夥伴。

Right. I mean, it's just so unusual for me that it's just kind of a little bit hard to believe, but you've proven proven me wrong.

正確的。我的意思是，這對我來說太不尋常了，有點難以置信，但你已經證明我錯了。

Well, Howard, if you, and we've talked about this, if you look at our market, all the roll up of distributors in the United States happened, ended up in, 2013. So there's nobody, right? We have these three massive ones that are worldwide, but, really focused in North America and then us, and there's some other ones that are on the adjacent market space, but nothing that's directly competitive and like Charles, our CMO loves to say, hey, there could be two or three more limbs in our space and we still would have that many vendors to look at and that many vendors on board.

好吧，霍華德，如果你，我們已經討論過這個問題，如果你看看我們的市場，美國所有分銷商的整合都發生在 2013 年。所以沒人，對嗎？我們有三個大型的全球性公司，但真正專注於北美，然後才是我們自己，還有一些其他公司在相鄰的市場空間，但沒有直接的競爭對手，就像我們的首席營銷官查爾斯喜歡說的那樣，嘿，我們的空間裡可能還有兩三個分支，我們仍然會考慮那麼多供應商，並且仍然會有很多供應商加入。

It's shocking how many $100 million ARR staff vendors are out there that we even haven't touched yet. The ones we touched, maybe they're not ready for us. Maybe they're not we're not ready for them. But there's a lot of them to choose from, and that's the excitement of our market. A lot of good acquisition targets overseas and a lot of good vendors coming into our space.

令人震驚的是，有多少價值 1 億美元的 ARR 員工供應商我們甚至還沒有接觸過。那些被我們碰過的人，也許還沒準備好接受我們。也許我們還沒做好準備。但有很多可供選擇，這就是我們市場令人興奮的地方。很多海外的優秀收購目標和許多優秀的供應商進入了我們的領域。

Great. I appreciate it and final question for me is just a little bit if you could talk a little bit about your acquisition process and what you see out there in terms of the market for potential acquisitions and the valuation that you're seeing and then how you view currency to do the acquisition. What you've done so far has been cash and so a little bit of debt, which you've done a great job of making it creative almost immediately and paying off the debt. But how do you see it going forward because I assume you're looking at a couple of bigger things as well as more things like what you've done already.

偉大的。我很感激，最後一個問題是，您能否稍微談談您的收購過程，以及您對潛在收購市場的看法，以及您所看到的估值，以及您如何看待貨幣來進行收購。到目前為止，您所做的就是現金和少量債務，您幾乎立即完成了創意工作並償還了債務。但是您如何看待它的未來發展，因為我認為您正在考慮一些更大的事情以及更多類似於您已經做過的事情。

Yeah, correct. So this year, Howard, we're looking at ones that we would just use cash for. They're not that big, but they're, they would be strategic for us. So we look at it we have a strategic plan as far as acquisitions, we're looking at services companies because we want to add that, and there's two reasons for that. We like the margin profile.

是的，正確。因此，霍華德，今年我們正在考慮那些可以用現金購買的東西。它們並不是那麼大，但對我們來說卻具有戰略意義。因此，我們認為我們有一個收購策略計劃，我們正在關注服務公司，因為我們想增加這一點，這有兩個原因。我們喜歡這個利潤率概況。

We want to become more sticky with vendors that we currently have. And if we have services and if you look at the vendors, right, they're making 80% of margins selling their product. Why would Have an internal services team just for customer sat when they're only making 30%.

我們希望與現有的供應商建立更緊密的合作關係。如果我們提供服務，如果你看看供應商，你會發現，他們透過銷售產品賺取了 80% 的利潤。如果他們只賺 30%，為什麼還要成立專門負責客戶服務的內部服務團隊？

So if they can all flat back to the channel, that's perfect for us. We won't compete with our customer base, but when they don't have those capabilities and the vendor wants us to do that, that's what I want to build into the company. So there's a couple small ones we're looking at there.

因此，如果他們都能回到頻道，對我們來說就完美了。我們不會與我們的客戶群競爭，但是當他們不具備這些能力並且供應商希望我們這樣做時，這就是我想在公司中建立的。我們正在觀察幾個小的。

And then outside of that 2026 spot on like we can really move the needle for Climb if it's not strategic. It's going to have to be much more sizable, and that'll be a 2026 into the 2027 play for us. But yeah, we have a lot of good targets out there, but we would do cash on anything this year.

然後，除了 2026 年這個時間點之外，如果它不具有戰略意義，我們真的可以推動 Climb 的發展。它的規模必須更大，對我們來說，這將是 2026 年至 2027 年的比賽。但是的，我們有很多好的目標，但今年我們會對任何事情都投入現金。

And valuations on those targets that changed at all, or is it a strong market.

這些目標的估值是否發生了變化，或者市場是否強勁。

Here's how we start with. Yeah, here's how we start, Howard, and it's funny because, we're being rewarded in the market for being, a differentiator as our go to markets are, our multiples are a lot higher, but we still start in that seven to nine multiple, and then it all depends, if you look at Douglas Stuart, it was a much lower margin, multiple because, they were so concentrated with one vendor.

我們從這裡開始。是的，霍華德，我們就是這樣開始的，這很有趣，因為我們在市場上獲得了回報，因為我們進入的市場與眾不同，我們的倍數要高得多，但我們仍然從七到九的倍數開始，然後一切都取決於，如果你看看道格拉斯·斯圖爾特，它的利潤率要低得多，倍數是因為他們過於集中於一個供應商。

We also look at the acquisitions as far as what vendors they bring in because we think that's the lifeblood of, what we have inside of climate and what we take out to the market, but we just started that and then it's the give and take that, what is that company really going to bring to us and can we actually expand, can we actually get it to all of our territories depending on what they bring but we started that and if we paid more than the multiple we're trading at no, we have not so. I know it's not a perfect answer, but the answer depends.

我們也會關注收購，看看他們能帶來哪些供應商，因為我們認為這是我們的命脈，我們在氣候領域擁有什麼，我們能把什麼推向市場，但我們才剛剛開始，然後就是付出和收穫，這家公司真正能給我們帶來什麼，我們能否真正擴張，我們能否根據他們帶來的東西把它推廣到我們所有的地區，但我們已經開始了，如果我們支付的價格我們就不會這樣做了。我知道這不是一個完美的答案，但答案取決於具體情況。

Now that's very helpful so yeah so you know congratulations once again to to you guys and to the whole Climb team and another outstanding quarter just great job.

現在這非常有幫助，所以是的，你知道再次祝賀你們和整個攀登團隊，又一個出色的季度，幹得好。

Thanks, Howard. Good talking to you.

謝謝，霍華德。很高興和你聊天。

Thank you, and we do have a follow up from Vincent Colicchio, Barrington Research.

謝謝，我們確實收到了 Barrington Research 的 Vincent Colicchio 的後續回覆。

Yeah, Dale, so obviously the business appears quite robust, but I am wondering. Any signs of economic headwinds, any delays, anything of that nature?

是的，戴爾，顯然業務看起來相當強勁，但我很懷疑。有任何經濟逆風跡象、任何延誤或類似情況嗎？

We do not see it, Vince, and I think it goes back to Howard's remarks that, we are extremely small in our space and you can say, hey, we're going to, go to the $2 billion mark, but we're still small in our space and if you look at we've spent some time with the Canalys team, which is, an analyst group, and if you look at the overall IT market or IT services, we're talking a $1 trillion to $2 trillion space. So a lot of new entrants.

我們沒有看到這一點，文斯，我認為這可以追溯到霍華德的言論，我們在我們的領域中非常小，你可以說，嘿，我們將達到 20 億美元大關，但我們在我們的領域中仍然很小，如​​果你看看我們花了一些時間與 Canalys 團隊（一個分析師團隊）在一起，如果你看看整個 IT 市場或你看看我們花了一些時間與 Canalys 團隊（一個分析師團隊）在一起，如果你看看整個 IT 市場或你看看整個 IT 市場或 IT 1 到因此有很多新進入者。

We still see money flowing from the VCs into a lot of startups, we're still having a huge pipeline of vendors coming toward us, and I've talked about this in the past, but we've had to go and find them and over the last 18 months it's they're finding us, so we don't and I'll just talk you know about the downside for Q2, we lost Citrix. We announced that, in Q1 of our Ireland group when we acquired data solutions.

我們仍然看到資金從創投公司流入許多新創公司，我們仍然有大量的供應商向我們湧來，我過去也談過這個問題，但我們必須去尋找他們，在過去的 18 個月裡，他們一直在尋找我們，所以我們沒有，我只想談談第二季度的不利因素，我們失去了 Citrix。我們宣布，在我們愛爾蘭集團第一季收購數據解決方案時。

The team was tracking very well in Q1 because we still had that, but in Q2 that was where the hole and here's what I'll say sales teams have sales cycles and they have a lot of tools in their bag. If they're not selling Citrix, they're selling something else. We feel and we did not change our budget going into this knowing that this was coming. That we think we can fill that hole as well. So, kudos to our overall teams performing and, looking at, hey, okay, I don't have this to sell anymore, I'm going to take this new product into my customer base.

因為我們仍然有這個，所以團隊在第一季的追蹤情況非常好，但在第二季度，這就是漏洞所在，我想說的是，銷售團隊有銷售週期，他們的包裡有很多工具。如果他們不銷售 Citrix，他們就會銷售其他產品。我們感覺到了這一點，我們並沒有改變我們的預算，因為我們知道這種情況會發生。我們認為我們也可以填補這個空缺。因此，我們要對我們整個團隊的表現表示讚賞，看看，嘿，好吧，我沒有這個可以賣了，我要把這個新產品帶給我的客戶群。

Okay. That's it for me. Thank You. Thanks, Vince.

好的。對我來說就是這樣。謝謝。謝謝，文斯。

Thank you. And this conclude our Q&A session. I will now turn the call over to Mr. Dale Foster for closing remarks.

謝謝。我們的問答環節到此結束。現在我將把發言時間交給戴爾福斯特先生，請他作最後發言。

Thanks, operator. Once again, thanks to all of our shareholders for supporting us and also to the greater Climb team on their excellent performance, they've been continued to focus on growing Climb, and that will end the call. Thank you.

謝謝，接線生。再次感謝所有股東對我們的支持，也感謝更大的 Climb 團隊的出色表現，他們一直專注於發展 Climb，電話會議就此結束。謝謝。

Thank you, and this does conclude today's program. Thank you for your participation. You may disconnect at any time.

謝謝大家，今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。