TD SYNNEX delivered a solid Q4 2024, with revenue of $15.845 billion, up 9.98% year over year and net revenue of $15.8 billion, up 10% YoY, as demand broadened across endpoint and advanced solutions. Total gross billings reached $21.2 billion, up 7.4% YoY, underscoring improving market conditions and the company’s diversified mix. Non-GAAP net income was $263 million with non-GAAP diluted earnings per share of $3.09, while GAAP net income was $194.8 million and GAAP EPS was negative due to accounting and mix effects. Free cash flow for the quarter was $513 million, contributing to over $1.0 billion of free cash flow for the full year 2024 and a return of roughly 72% of that cash flow to shareholders via buybacks and dividends. Management reinforced a profitable-growth discipline, emphasizing profitable growth through a broadly diversified portfolio and a global footprint, with Hive (the hyperscale infrastructure business) delivering double-digit top-line gains but modest near-term margin headwinds as it lapped a high-margin prior-year quarter.
Key takeaways from the earnings call include: (i) Hive remains a core growth engine with margins accretive to the overall portfolio, (ii) StreamOne and marketplace synergies (Azure, AWS) enhance multi-vendor enablement and recurring revenue opportunities, (iii) a 2025 guidance framework reflecting mid-single-digit gross billings growth, anticipated margin stabilization after Q1 2025, and a free cash flow target of approximately $1.1 billion for the year, (iv) geographic and vertical expansion, including India and Japan, as proof points of vendor/customer ecosystem leverage. Investors should monitor the pace of margin recovery, the deployment of incremental Hive investments, the cadence of cloud/security/data analytics demand, and the speed of IT market normalization in 2025.