Why Invest in Insight Enterprises? | Growth Opportunity

At Insight, we are more than just a technology company.

Over the past decade, Insight has transformed into a new breed of technology partner, building specific capabilities to position us in a unique and advantageous way. Our clients need a partner that can guide them through the complexities of technology choices and deliver results fast. Insight is ahead of the curve in understanding this evolving need, putting us in an enviable market position as we realize our ambition: To become the leading Solutions Integrator, setting the pace and defining a new category in the industry.

Our early investments in cloud, data, AI and cybersecurity position us for success in the fastest growing areas of the market where our clients need the most help. Even in a challenging economic environment, we’re uniquely suited to deliver cost-effective technology solutions and business outcomes for our clients in these areas, which we expect to grow rapidly and play to the strengths of Insight’s strategy.

Why Insight?

Insight’s leading market position in an evolving landscape provides a compelling investment opportunity. We have a proven history of delivering sustainable total shareholder return growth. Discover our strengths:

World-Class Expertise and Technology

Insight has been able to pull together an array of global capabilities and technologies that are unlike any other company in the industry. Our early investments in cloud, data, AI and cybersecurity position us for success in the fastest growing areas of the market where our clients need the most help.

We are not only an expert in today’s technology, but the emerging solutions that will drive the next wave of innovation among businesses.

We help clients drive digital transformation

Our expertise includes:

  • Modern Workplace - Create a productive, flexible and secure workplace.
  • Modern Apps - Create new product experiences and transform legacy applications to drive increased business value.
  • Modern Infrastructure - Architect and modernize multiclous and networking solutions to drive business transformation.
  • Intelligent Edge - Gather and utilize data in the most efficient way possible to enable real-time decision-making and affect pivotal outcomes.
  • Data and AI - Leverage analytics and AI to transform business operations and user experiences.
  • Cybersecurity - Mitigate risks and secure business assets.

Our services includes:

  • Consulting services - Create competitive advantage and improve operations by aligning business goals to IT and product strategies.
  • Hardware, Software and Lifecycle Services - Simplify supply chain and streamline costs across the global hardware and software lifecycle.
  • Managed Services - Eliminate business disruption and strategically align resources.

95+

Patents pending

Gartner™

recognized Insight for our technological leadership in the 2022 Magic Quadrants™ for Software Asset Management Managed Services and Public Cloud IT Transformation Service Providers

13x

Microsoft award winner

Global Scale and Reach

Insight’s global presence enables reach and scale, with access to technology partners all over the world. We can deliver solutions globally, leveraging our teammates in 19 countries and partners around the world. We have time-tested relationships with thousands of customers, some spanning decades.

35 Years

Evolving in dynamic industry

19 Countries

Serving clients around the globe

#373

2022 Fortune 500

13,000+

Teammates Worldwide

6,000+

Software, hardware and cloud partners and publishers

5,700+

skilled, certified consulting and service delivery professionals

Track Record of Financial Strength

Our long, stable history and financial strength make Insight the most consistent and reliable partner in the technology industry. Recent performance metrics include:

$10.4 Billion

FY22 Net Sales
An increase of 11% year over year

$1.6 Billion

FY22 Gross Profit
An increase of 13% year over year

$253 Million

FY22 Core Services Gross Profit
An increase of 14% year over year

$340 Million

FY22 Cloud Gross Profit
An increase of 29% year over year

$467 Million

FY22 Adj. EFO
An increase of 29% year over year

$9.11

FY22 Adj. Diluted EPS
An increase of 28% year over year

Additional financial information available here.

Significant and Achievable Five-Year Financial Targets

Over the next five years, Insight expects to grow faster than the market by over 200 bps, achieving profitable growth and sustainable margin expansion. Additional five-year growth targets include:

6.5% –7.0%

Adjusted EBITDA margin

>25%

Adjusted ROIC

19% - 22%

Adjusted DEPS| 5-year CAGR

16% - 20%

Core services GP| 5-year CAGRs

16% - 20%

Cloud GP | 5-year CAGR

>90%

Adjusted free cash flow as a % of net income

Strong Cash Generation and Value Creation

Our leadership team remains focused on strengthening the Company’s cash generation, boasting significant cash flow while delivering value to shareholders through a disciplined capital allocation strategy. Our specific capital allocation priorities include:

  • Organic growth focused on automation to increase efficiency and capacity, expand scalable IT and service delivery platforms, and grow technical and sales talent capabilities.
  • M&A with cultural, strategic and financial alignment to Insight, with the goal that companies are accretive within the first full year following acquisition and ROIC is 300 bps above WACC at end of year three.
  • Increase cash flow generation and return greater capital to shareholders. We have a $300 million share repurchase authorization over the next five years, with approximately $100 million in the near team.1
  • Limited debt usage, allowing us full capacity to support future M&A.

1 In 1Q23, we repurchased 913,000 shares of stock, at an average price of $128.23 per share for a total cost of $117 million. As of the end of April 2023, we have approximately $100 million remaining under our $300 million share repurchase authorization.

Insight as your next investment opportunity

Just as we’re helping clients achieve their ambitious goals around technology, we’re positioned to deliver meaningful results for our investors. Discover our company profile, fact sheet, filings and more at our investor relations site here.

Ryan Miyasato
Investor Relations
[email protected]

Scott Walters
Media Relations
480.889.9798
[email protected]

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