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CLMB Nasdaq· Climb Global Solutions Inc
Earnings report Q3 2023

CLMB Reports Increase in Revenue for the Latest Quarter

Segments of Revenue

CLMB reported a total net sales revenue of $78.5 million for the latest quarter, representing a 2.5% increase compared to the same period in the prior year. The company's net sales for the nine months ended September 30, 2023, amounted to $245.2 million, reflecting a 13.9% increase compared to the same period in the prior year.

Strengths

Despite a slight decrease in effective margin, CLMB demonstrated a positive performance in terms of revenue growth. The company's gross profit for the latest quarter increased by $0.8 million to $14.3 million, a 6% increase compared to the same period in the prior year. For the nine months ended September 30, 2023, gross profit increased by $5.2 million to $43.2 million, a 14% increase compared to the same period in the prior year. This growth in gross profit can be attributed to the company's ability to effectively manage costs of sales and increase net sales.

Challenges

CLMB faced a slight decrease in effective margin for both the latest quarter and the nine months ended September 30, 2023. The effective margin decreased to 35.5% for the latest quarter, compared to 36.6% in the same period in the prior year. Similarly, for the nine months ended September 30, 2023, the effective margin decreased to 35.7% compared to 36.2% in the same period in the prior year. This decrease in effective margin indicates potential challenges in managing costs and maintaining profitability.

Noteworthy

It is worth noting that CLMB's net income for the latest quarter amounted to $2.4 million, a slight increase compared to $2.2 million in the same period in the prior year. The company also experienced a foreign currency transaction loss of $140,000 for the latest quarter, which may have impacted its overall financial performance.

Summary

CLMB reported an increase in revenue for the latest quarter, with net sales amounting to $78.5 million. The company demonstrated strengths in managing costs and achieving growth in gross profit. However, challenges were observed in maintaining effective margin. CLMB's net income showed a slight increase, and a foreign currency transaction loss was noted. Overall, CLMB's performance in terms of revenue reflects positive growth, but attention should be given to managing costs and maintaining profitability.

Source documents

Form 10-Q  filed on Nov 02, 2023
85 pages scanned

Reference data

Company financials Q3 revenue 78.5M
Analyst estimates Q3 EPS missed by -21.21%
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