QV Alert – Climb Global Solutions (CLMB)

An important ‘something new’ at Climb Global was the arrival of Dale Foster as CEO.

“Since Mr. Foster was appointed CEO in January 2020, he has led the Company through a period of significant growth and profitability, while instilling business discipline and a culture of success across the Company,” said Board Chair Jeff Geygan. “He has demonstrated great leadership and vision to guide the Company through challenging and uncertain times over these past few years. On behalf of the entire Board of Directors, we are pleased to award this grant to Mr. Foster in recognition of his accomplishments and contributions to creating shareholder value.”

Press release, Climb Global Solutions, 24 April 2023

Since this guy arrived the shares have arisen some 10-fold.

The growth of the business is impressive.

Q3 marked another exceptional period of growth and profitability for Climb as we generated record levels across all of our key financial metrics, while delivering on our acquisition objectives. Our strong performance was driven by the continued execution of our core initiatives and the integration of Douglas Stewart Software, or DSS, and DataSolutions Ireland onto our operating platforms. Also in Q3, we rebranded DataSolutions Ireland to Climb Channel Solutions with a great evening on September 5 in Dublin sharing our launch to – with Climb team and the vendors and customers. Additionally, we generated double-digit organic growth in both the U.S. and Europe as we strengthened relationships with existing partners, while signing new disruptive vendors to our Line Card.

Dale Foster, CEO, Climb Global Solutions, Q3 2024, 31 October 2024

The growth is indeed exceptional.

As reported in our earnings press release, adjusted gross billings, or AGB, increased 65pc to $465.2m compared to $281.9m in the year-ago quarter. Net sales in the third quarter of 2024 increased 52pc to $119.3m compared to $78.5m, which grew at a lower rate than AGB due to a greater percentage of sales recognized on a net basis in the quarter.

Growth in AGB was attributed to organic growth from new and existing vendors as well as the contribution from our acquisitions of DSS on July 31 and DataSolutions on October 6 of last year. DataSolutions and DSS combined for $81.3m or 44pc of the growth in AGB, while our core business grew by $102m, representing 50pc – 56pc of the increase and year-over-year growth of 36pc, which was positively impacted by several VAST orders in the quarter.

Gross profit, or GP, in the third quarter increased 70pc to $24.3m compared to $14.3m. Again, the increase was driven by organic growth from new and existing vendors in both North America and Europe, representing $6m or 60pc of the increase, as well as the contributions from DSS and DataSolutions, which represented $40m – $4m or 40pc of the growth. Gross profit as a percentage of adjusted gross billings increased to 5.2pc compared to 5.1pc.

Drew Clark, CFO, Climb Global Solutions, Q3 2024, 31 October 2024

Share Recommendations (22 November 2024)

Climb Global Solutions. CLMB

I notice there were just two analysts on the call for the latest results. There is huge room for the crowd following these shares to grow.