Q1 2025 Climb Global Solutions Inc Earnings Call
Our climb CEO, Mr. Dale Foster.
The company's CFO, Mr. Matthew Sullivan.
Speaker Change: And the company's Investor Relations adviser, Mr. Shawn Mansouri with elevate IR.
Speaker Change: By now everyone should have access to the first quarter 2025 earnings press release, which was issued yesterday afternoon at approximately 405 P M Eastern time.
Dale Foster: And it's really adding, you know, we have three large vendors. We want to get, you know, ten large vendors that really will help us in our effective margin, you know, as I drop through and get more official with them. And Dark Trace, we believe, is going to be one of the, they'll probably be a strong number three or four by this time next year.
Speaker Change: The release is available in the Investor Relations section of <unk> Global solutions Web site at Www Dot climbed global solutions dotcom.
Speaker Change: This call will also be available for website webcast replay on the company's website.
Vincent Colicchio: Okay, I'll go back, I'll go into the queue.
Sean Mansouri: Unknown Attendee, Sean Mansouri, Dale Foster, Andrew Clark, Unknown Attendee, Sean Mansouri, Good morning, everyone, and thank you for participating in today's conference call to discuss Climb Global Solutions financial results for the first quarter ended March 31st, 2025.
Speaker Change: Following management's remarks, we'll open the call for your questions.
Dale Foster: Thanks. Nice quarter. Thanks Vince.
Speaker Change: I'd now like to turn the call over to Mr. Mansouri for introductory comments.
Speaker Change: Thank you operator 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 1095.
Operator: It appears we have no further questions at this time.
Dale Foster: I will now turn the program back over to our presenters for any additional remarks. Yeah, thank you, operator. Just in closing, you know, real quick, a big shout out to the Climb team. You know, we've gone through a lot with our ERP over the last, you know, nine months. We're on the other side of it, so there's a lot more smiles in the building, but appreciate everybody's time and commitment to get that done. Now it's really fine-tuning all the things that, you know, we've been working on, and you'll see that over the next couple quarters.
Speaker Change: 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.
Speaker Change: 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.
Dale Foster: So, again, I appreciate the whole Climb team, and that includes even our shareholders and our board. Everything's, you know, going in the right direction, so I appreciate that.
Sean Mansouri: Joining us today are Climb's CEO, Mr. Dale Foster. The company's CFO, Mr. Matthew Sullivan.
Speaker Change: Do not place undue reliance on any forward looking statements, which are being made only as of the date of this call.
Operator: And with that, I'll just say thank you and end the call.
Sean Mansouri: and the company's Investor Relations Advisor, Mr. Sean Mansouri with Elevate IR. By now, everyone should have access to the first quarter 2025 earnings press release, which was issued yesterday afternoon at approximately 4 or 5 p.m. Eastern Time. The release is available in the Investor Relations section of Climb Global Solutions website at www.climbglobalsolutions.com. This call will also be available for webcast replay on the company's website.
Speaker Change: Except as required by law the company undertakes no obligation to revise or publicly release the results of any revision to any forward looking statement.
Operator: This does conclude today's program. Thank you for your participation. You may disconnect at any time.
Speaker Change: 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.
Speaker Change: As supplemental measures of performance of our business.
All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules.
Sean Mansouri: Following management's remarks, we'll open the call for your questions.
Sean Mansouri: I'd now like to turn the call over to Mr. Mansouri for introductory comments.
Speaker Change: You'll find reconciliation charts and other important information in the earnings press release and form 8-K, we furnished to the SEC yesterday.
Sean Mansouri: Thank you, operator.
Sean Mansouri: 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. 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. 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.
I'll now turn the call over to climb CEO Dale Foster.
Dale Foster: Thank you, Sean and good morning, everyone.
Dale Foster: The momentum from our record 2024 was carried into the first quarter, leading us to exceptional growth across all key financial metrics. Our performance was driven by the execution of our core initiatives. Additionally, we generated solid organic growth in both the U S and Europe, demonstrating our ability to deepen relationships with our existing <unk>.
Dale Foster: As well as signing new cutting edge technologies to our line card.
Dale Foster: Yes.
Dale Foster: Throughout the first quarter, we evaluated 50 potential vendor partners and signed agreements with only four of them underscoring our commitment to partnering exclusively with the most innovative strategically align technologies in the market.
Sean Mansouri: Accept as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statement.
Dale Foster: This selective process insurers, we continued to deliver differential differentiated solutions to our customers, while maintaining the high standards that drive long term value across our platform I'd like to quickly highlight one of these wins climb signed and contract with dark trace mid quarter dark traces of cyber security.
Sean Mansouri: 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 margins. as supplemental measures of performance of our business. All non-gap measures have been reconciled to the most directly comparable gap measures in accordance with SEC rules. You'll find reconciliation charts and other important information in the earnings press release and Form 8K we furnished to the SEC yesterday.
Dale Foster: Company that utilizes artificial intelligence to detect and respond to cyber threats.
Dale Foster: AI powered technology allows them to identify threats of traditional systems may Miss.
Dale Foster: Such as insider attacks Leighton vulnerabilities and cloud based threats, while their technologies excellent I'm, even more encouraged by the initial interaction between our sales teams and equip Cui growing pipeline that is already top $30 million in potential gross billings.
Dale Foster: I'll now turn the call over to Climb CEO, Dale Foster. Thank you, Sean. Good morning, everyone. The momentum from our record 2024 is carried into the first quarter, leading us to exceptional growth across all key financial metrics. Our performance was driven by the execution of our core initiatives. Additionally, we generated solid organic growth in both the US and Europe, demonstrating our ability to deepen relationships with our existing partners while signing new cutting-edge technologies to our line card. Throughout the first quarter, we evaluated 50 potential vendor partners and signed agreements with only four of them, underscoring our commitment to partnering exclusively with the most innovative strategically aligned technologies in the market.
Dale Foster: As far as our part of our effort ongoing effort to evaluate and optimize our business, we're making steady progress in the implementation of our new ERP system, which is increasingly contributing to improved efficiency across our global operations.
Dale Foster: We're seeing meaningful gains in transactional speed and process accuracy. We believe we further with further optimization optimization.
Dale Foster: <unk> will enable us to operate more seamlessly at scale unlock deeper data insights and enhanced agility and visibility across the organization.
Dale Foster: <unk>.
Speaker Change: Excuse me in early April we hosted our annual client partner conference in Miami.
Speaker Change: Where we gather top vendor partners and channel partners.
Speaker Change: To align on our strategic priorities priorities for 2025, and spotlight the latest and emerging technologies.
Dale Foster: This selective process ensures we continue to deliver differentiated solutions to our customers while maintaining the high standards that drive long-term value across our platform.
Speaker Change: As part of the event, we were proud to recognize fresh works as our strategic partner of the year Fresh words continues its focus on being a channel first organization agile and collaborative and deeply committed to our partner success.
Dale Foster: I'd like to quickly highlight one of these wins. Climb signed a contract with Darktrace mid-quarter. Darktrace is a cybersecurity company that utilizes artificial intelligence to detect and respond to cyber threats. Their AI-powered technology allows them to identify threats that traditional systems may miss, such as insider attacks, latent vulnerabilities, and cloud-based threats.
Speaker Change: Our partnership is built on trust and shared momentum and we look forward to continuing to drive meaningful growth together.
Speaker Change: Last week, we announced the appointment of apology of occasion to our board of directors. Paul brings over 30 years of experience in private equity corporate governance and board leadership across public and private companies.
Dale Foster: While their technology is excellent, I'm even more encouraged by the initial interaction between our sales teams and a quickly growing pipeline that has already topped $30 million in potential gross billing.
Speaker Change: He currently serves as our lead independent director for TPI Composites, where he previously served as chairman and help lead the companys transformation into the global public enterprise.
Dale Foster: As part of our ongoing effort to evaluate and optimize our business, we're making steady progress in the implementation of our new ERP system, which is increasingly contributing to improved efficiency across our global operations. We are seeing meaningful gains in transactional speed and process accuracy. We believe with further optimization, the system will enable us to operate more seamlessly at scale, unlock deeper data insights, and enhance agility and visibility across the organization.
Speaker Change: <unk> also serves as an independent consulting adviser to advantaged capital management supporting private equity and debt investment strategies and I'm pleased to welcome Paul to the <unk> family and look forward to his contributions as we continue to scale our footprint, both domestically and abroad.
Speaker Change: Looking ahead, we believe we are well positioned to sustain our momentum continue driving organic growth and further enhance our operating leverage on the M&A front, we will continue to remain active and disciplined in evaluating accretive opportunities that can strengthen our offerings and expand our reach in North America and overseas. These.
Dale Foster: In early April, we hosted our annual Climb partner conference in Miami, where we gather top vendor partners and channel partners. to align on our strategic priorities for 2025 and spotlight the latest in emerging technology.
Speaker Change: Initiatives, coupled with our healthy balance sheet will enable us to continue executing on our goals ahead with that I will turn the call over to our CFO, Matt Sullivan and he will take you through the financial results Matt.
Dale Foster: As part of the event, we were proud to recognize Freshworks as our strategic partner of the year. Freshworks continues its focus on being a channel-first organization, agile, collaborative, and deeply committed to our partner's success. Our partnership is built on trust and shared momentum, and we look forward to continuing to drive meaningful growth together.
Matt Sullivan: Thank you Dale and good morning, everyone quicker.
Matt Sullivan: A quick reminder, as we review the financial results for our first quarter, all comparisons and variance commentary refer to the prior year quarter unless otherwise specified.
Matt Sullivan: As reported in our earnings press release gross billings in Q1, 2025 increased 34% to $474 6 million compared to $355 3 million in the year ago quarter.
Dale Foster: Last week, we announced the appointment of Paul Givacchini to our Board of Directors. Paul brings over 30 years of experience in private equity, corporate governance, and board leadership across public and private companies. He currently serves as a lead independent director for TPI Composites, where he previously served as chairman and helped lead the company's transformation into the global public enterprise. Paul also serves as an independent consulting advisor to Advantage Capital Management supporting private equity and debt investment strategy.
Matt Sullivan: Distribution segment gross billings increased 36% to $453 6 million and solutions segment gross billings increased 2% to $21 million.
Matt Sullivan: Net sales in the first quarter of 2025 increased 49% to $138 million compared to $92 4 million, which primarily reflects organic growth from new and existing vendors as well as contribution from our acquisition of DSS in July of last year.
Dale Foster: I'm pleased to welcome Paul to the Climb family and look forward to his contributions as we continue to scale our footprint both domestically and abroad. Looking ahead, we believe we are well positioned to sustain our momentum, continue driving organic growth and further enhance our operating leverage. On the M&A front, we will continue to remain active and disciplined, evaluating creative opportunities that can strengthen our offerings and expand our reach in North America and overseas. These initiatives coupled with our healthy balance sheet will enable us to continue executing on our goals ahead.
Matt Sullivan: Gross profit in the first quarter increased 37% to $23 4 million compared to $17 million in the prior year quarter 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.
Matt Sullivan: Gross profit as a percentage of gross billings increased to four 9% compared to four 8% in the year ago quarter.
Matthew Sullivan: With that, I will turn the call over to our CFO, Matt Sullivan, and he will take you through the financial results. Thank you, Dale, and good morning, everyone. A quick reminder, as we review the financial results for our first quarter, all comparisons and variance commentary refer to the prior year quarter, unless otherwise specified. As reported in our earnings press release, gross billings in Q1 2025 increased 34% to $474.6 million, compared to $355.3 million in the year-ago quarter. Distribution segment gross billings increased 36% to $453.6 million, and solutions segment gross billings increased 2% to $21 million.
Matt Sullivan: SG&A expenses in the first quarter were $16 8 million compared to $12 5 million for the same period in 2024.
Matt Sullivan: SG&A from DSS accounted for $1 1 million of the increase.
Matt Sullivan: SG&A as a percentage of gross billings remained flat at three 5% compared to the year ago period.
Matt Sullivan: Net income in the first quarter of 2025 increased 35% to $3 7 million or <unk> 81 per diluted share compared to $2 7 million or <unk> 60 per diluted share for the comparable period in 2024.
Matt Sullivan: Income tax expense in the first quarter of 2025 decreased 37% to 600000 or an effective tax rate of 13, 3% compared to 900000 or an effective tax rate of 24, 6% the comparable period in 2024.
Matthew Sullivan: Net sales in the first quarter of 2025 increased 49% to 138%. compared to $92.4 million, which primarily reflects organic growth from new and existing vendors as well as contribution from our acquisition of DSS in July of last year. Gross profit in the first quarter increased 37% to $23.4 million, compared to $17 million in the prior year quarter. Again, the increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DSA. Gross profit as a percentage of gross billings increased to 4.9% compared to 4.8% in the year ago quarter.
Matt Sullivan: This decrease in tax expense was driven by a discrete item recognized for the permanent book to tax differences associated with the rise in stock price when equity awards vest as compared to the book stock compensation expense recognized which is based on the grant date fair value.
Matt Sullivan: Adjusted net income increased 39% to $3 9 million or 86 cents per diluted share.
Matt Sullivan: Impaired to $2 8 million or <unk> 62 per diluted share for the year ago period.
Matt Sullivan: Adjusted EBITDA in the first quarter increased 38% to $7 6 million compared to $5 5 million in the prior year quarter.
Matthew Sullivan: SG&A expenses in the first quarter were $16.8 million compared to $12.5 million for the same period in 2021. SG&A from DSS accounted for 1.1 million of the income. SG&A as a percentage of gross billings remained flat at 3.5% compared to the year ago period. Net income in the first quarter of 2025 increased 35% to $3.7 million or $0.81 per diluted share compared to $2.7 million or $0.60 per diluted share for the comparable period in 2020. Income tax expense in the first quarter of 2025 decreased 37% to $600,000 or an effective tax rate of 13.3% compared to $900,000 or an effective tax rate of 24.6% for the comparable period in 2024.
Matt Sullivan: The increase was driven by the aforementioned organic growth from both new and existing vendors as well as contribution from DSS.
Matt Sullivan: Adjusted EBITDA as a percentage of gross profit or effective margin increased 20 basis points to 32, 7% compared to 32, 5% in the year ago period.
Matt Sullivan: Turning to our balance sheet cash and cash equivalents were $32 5 million as of March 31, 2025, compared to $29 8 million on December 31, 2024, while working capital increased by $4 $4 million during the period.
Matt Sullivan: The increase in cash was primarily attributed to the timing of receivable collections and vendor payments.
Matt Sullivan: As of March 31, 2025, we had 600000 of outstanding debt with no borrowings outstanding under our $50 million revolving credit facility with Jpmorgan Chase.
Matthew Sullivan: This decrease in tax expense was driven by a discreet item recognized for the permanent book-to-tax difference associated with the rise in stock price when equity wars fest as compared to the book stock compensation expense recognized, which is based on the grant date fair value. Adjusted net income increased 39% to $3.9 million, or $0.86 per diluted share, compared to $2.8 million, or $0.62 per diluted share for the year ago period. Adjusted EBITDA in the first quarter increased 38% to $7.6 million compared to $5.5 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 DS.
Matt Sullivan: On April 28, 2025, our board of directors declared a quarterly dividend of <unk> 17 per share of our common stock payable on May 16, 2025 to shareholders of record on May 12, 2025.
Matt Sullivan: As Dale mentioned earlier, we will continue to leverage our robust liquidity position to evaluate accretive M&A opportunities to enhance our service and solutions offerings across existing and future markets.
Matt Sullivan: We're incredibly proud of our global team for delivering another quarter of strong performance and we look forward to building on this momentum as we execute against our organic and inorganic growth initiatives throughout 2025.
Matt Sullivan: This concludes our prepared remarks, we will now open it up for questions from those participating in the call operator back to you.
Matthew Sullivan: Adjusted EBITDA as a percentage of gross profit or effective margin increased 20 basis points to 32.7% compared to 32.5% in the year-ago period.
Speaker Change: At this time, if you would like to ask a question. Please press star one on your telephone keypad.
Matt Sullivan: You may remove yourself from the queue at any time by pressing star two.
Matthew Sullivan: Turning to our balance sheet, cash and cash equivalents were $32.5 million as of March 31, 2025, compared to $29.8 million on December 31, 2024, while working capital increased by $4.4 million during the period. The increase in cash was primarily attributed to the timing of receivable collections and vendor As of March 31, 2025, we had $600,000 of outstanding debt with no borrowings outstanding under our $50 million revolving credit facility with JPMorgan Chase.
Matt Sullivan: Once again that is star one to ask a question.
Matt Sullivan: We will pause for a moment to allow questions to queue.
Vincent Colicchio: And we will go first to Vincent Colicchio with Barrington Research.
Vincent Colicchio: Good morning Bill.
Bill: Hey, Vince.
Vincent Colicchio: Do you.
Vincent Colicchio: The organic growth.
Vincent Colicchio: Are there any large deals in the quarter you won't you may want to call out or was it broad based demand.
Vincent Colicchio: It was pretty much broad based we called that one out in Q4 of last year, you know when we had our best.
Matthew Sullivan: On April 28, 2025, our Board of Directors declared a quarterly dividend of 17 cents per share of our common stock payable on May 16, 2025, to shareholders of record on May 12, 2025. As Dale mentioned earlier, we will continue to leverage our robust liquidity position to evaluate accretive M&A opportunities to enhance our service and solutions offerings across existing and future markets. We're incredibly proud of our global team for delivering another quarter of strong performance, and we look forward to building on this momentum as we execute against our organic and inorganic growth initiatives throughout 2025.
Vincent Colicchio: We still have.
Vincent Colicchio: Like we said probably for two and a half years now there'll be lumpy, but nothing that stood out.
Vincent Colicchio: For Q1, we have the additional you know.
Vincent Colicchio: Advantage of DSS, just like we did.
Vincent Colicchio: In Q4, but Q1 is not their strongest as we start moving into DSS is I'm, sorry, DSS and ideas.
Vincent Colicchio: And are the strongest quarters coming into the education space and the end of.
Vincent Colicchio: The state budgets.
Vincent Colicchio: Budgets and in June So we will see those those pickup but no. It's just a good over overall quarter.
Matthew Sullivan: This concludes our prepared remarks. We will now open it up for questions from those participating in the call.
Vincent Colicchio: A lot of our bigger brands are growing at a little higher rate than they haven't before and then.
Operator: Operator, back. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. Once again, that is star one to ask a question.
Vincent Colicchio: <unk>.
Vincent Colicchio: Some of our emerging emerging brands.
Vincent Colicchio: We are doubling down and we're just getting more out of those guys.
Speaker Change: Has there been any change in sentiment given the uncertain economic environment and also can you talk about how tariffs may impact your business.
Operator: We will pause for a moment to allow questions to queue.
Vincent Colicchio: Yes, so we haven't we.
We kind of feel it.
Vincent Colicchio: You know adjacent to us and I will talk about the tariffs first and that is where 80% over 80%.
Vincent Colicchio: And we'll go first to Vincent Colicchio with Barrington Research. Good morning, Dale. Hey, Vince.
Vincent Colicchio: The U S. We buy in U S dollars under our vendor the U S. So you take a look at 80% of it doesn't it doesn't affect US and then we look at overseas, we're still selling a lot of software most of our business overseas is in the U K.
Dale Foster: Do you, the organic growth, was there any large deals in the in the quarter that you want, you may want to call out? Or was it broad based demand? It was pretty much broad based. We called the one out in Q4 of last year, you know, when we had our vast, we still have, you know, like, like we said, probably for two and a half years now, there'll be lumpy, but nothing that stood out. For Q1, we have the additional, you know, advantage of DSS, just like we did in Q4. But, you know, Q1 is not their strongest as we start moving into DSS's, I'm sorry, DSS, not DS, into their strongest quarters coming into the education space in the end, end of, you know, the state's budgets that end in June.
Vincent Colicchio: In Ireland, but not a real impact we don't see that right now.
Vincent Colicchio: Just because of the more insurers in the U S. We deal with the Canadian side of things.
Speaker Change: We deal with are quoting we put our.
Speaker Change: New language on there as far as the tariffs. So we don't quote at any distance.
Speaker Change: Like we do in the U S, where we have a quote that's going from 30 days in Canada is good for five days and we try to get pretty close.
Speaker Change: And are you starting to see some of the synergies you were hoping for.
Speaker Change: In Europe.
Speaker Change: We are.
Dale Foster: So we'll see those those pick up. But no, it's just a good overall quarter. You know, a lot of our bigger brands are growing at a little higher rate than they have before. And then, you know, some of our emerging brands are doubling down, and we're just getting more out of those guys.
Speaker Change: We announced the last call.
Speaker Change: We knew the Citrix, we were losing Citrix, we still took advantage of that in Q1, because we had legacy we still have a little bit that's going to drag on for a couple of years. So the big hole for Citrix is together is starting to fill in Q2, we already have some mitigation that we're doing on new vendors.
Dale Foster: Has there been any change in sentiment given the uncertain economic environment and also can you talk about how tariffs may impact your business? Yeah, you know, so we haven't, you know, see, we kind of feel it, you know, adjacent to us.
Speaker Change: Rewards our team over there their own our systems like we talked about.
Speaker Change: Didn't mention because it wasn't a Q1 event.
Speaker Change: Just as of this past Monday Dsos Douglas Stewart went on our ERP system live. So that's a good thing to know every division every company. We've acquired is all on one ERP all looking at the same numbers and most of the keep enhancing that but.
Dale Foster: And I'll talk about the tariffs first. And that is, you know, we're 80%, over 80% in the US, we buy in US dollars, there are vendors in the US. So you take a look at 80% of it doesn't, doesn't affect us. And then we look at overseas, you know, we're still selling a lot of software. Most of our business overseas is in the UK, and Ireland, but not a real impact, we don't see that right now. You know, just because of the line shares in the US, we deal with the Canadian side of things. You know, we deal with our quoting, we put our, you know, new language on there as far as tariffs.
Speaker Change: Overall earnings everything is positive.
Speaker Change: So in the month of April did you see organic growth trend as it did in Q1.
Speaker Change:
Speaker Change: Yes, I mean as far as we just don't talk about the future stuff as far as April goes, we're just finishing up but.
Speaker Change: So we're.
Speaker Change: I mentioned, our Tres and we kicked off April 1st with them and it's a relationship.
Dale Foster: So we don't quote at any distance. Like we do in the US, where we have a quote that's good for 30 days, and Canada is good for five days. So we track it pretty close.
Speaker Change: What kind of share with the entire group and that is.
Speaker Change: Some of these relationships take a long time to develop to get to the place where you do a contract and then once you get into a contract to actually start executing.
Dale Foster: And are you starting to see some of the synergies you were hoping for in Europe? We are, you know, we announced the last call, you know, that we knew Citrix, we were losing Citrix, we still took advantage of it in Q1, because we had legacy, we still have a little bit that's going to drag on for a couple years. So the big hole for Citrix together is starting to fill in Q2. We already have some mitigations that we're doing on new vendors. We've reworked our team over there. They're all on our systems, like we talked about.
Speaker Change: I was talking to Charles our alliance chief in the week.
Speaker Change: We looked at our first time, we talked to them was over two years ago, we got serious with them in June of last year and here. We're just launching April 1st of this year. So you know the bigger vendor the more opportunity the longer it takes we want to make sure we get it right during that time <unk> got bought by Thoma Bravo.
Speaker Change: So delays and things, but we're super excited about our pipeline is growing very quickly we quickly of them and I had mentioned I think in one of the questions. We had a maybe a question last time as far as what.
Dale Foster: We didn't mention, you know, because it wasn't a Q1 event, but just as of this past Monday, DSS, Douglas Stewart went on our ERP system live. So that's a good thing. So now every division, every company we've acquired is all on one ERP, you know, all looking at the same numbers. And we'll just keep enhancing that. But yeah, overall, everything's positive.
Speaker Change: What really gets you guys to the next next level and it's really adding we have three large vendors, we want to get 10 large vendors that really.
Speaker Change: <unk> will help us in our effective margin drop through and get more efficient with them and dark trades. We believe as we are going to be one of the they'll probably be a strong number three or four by this time next year.
Speaker Change: Okay I'll go back in the queue I'll go into the queue. Thanks nice quarter. Thanks, guys.
Vincent Colicchio: So in the month of April, did you see organic growth trend as it did in the Q1?
Dale Foster: Yeah, I mean, as far as we just don't talk about, you know, the future stuff, as far as April goes, you know, we're just finishing up. But, you know, still, you know, we're I mentioned Dark Trace and we kicked off April 1st with them. And it's a relationship and, you know, I'll kind of share with the entire group and that is, you know, some of these relationships take a long time to develop to get to the place where you do a contract and then once you get to a contract to actually start executing. I was talking to Charles, our alliance chief, and we looked at our first time we talked to them was over two years ago.
Speaker Change: And it appears we have no further questions at this time I will now turn the program back over to our presenters for any additional remarks.
Speaker Change: Yeah. Thank you ever just in closing in a real quick.
Speaker Change: Big Shout out to the to the client team.
Speaker Change: We've gone through a lot with our ERP over the last nine months.
Speaker Change: We're on the other side of it so there's a lot more smiles in the building, but I appreciate everybody's time and commitment to get that done now it's really fine tuning all of the things that.
Speaker Change: We've been working on and you'll see that over the next couple of quarters. So we can appreciate the total quantum team and that includes even our shareholders and our board.
Dale Foster: We got serious with them in June of last year and here we're just launching April 1st of this year. So, you know, the bigger vendor, the more opportunity, the longer it takes. We want to make sure we get it right. During that time, Dark Trace got bought by Tama Bravo, you know, so delays and things, but we're super excited about our pipeline is growing very quickly with them.
Speaker Change: Everything's going.
Speaker Change: We're going in the right direction. So I appreciate that and I'll just say, thank you and Nicole.
Speaker Change: This does conclude today's program. Thank you for your participation you.
Dale Foster: And you know, I mentioned, I think in one of the questions we had, and maybe it was your question last time, Vince, you know, as far as, hey, what really, you know, gets you guys to the next, next level? And it's really adding, you know, we have three large vendors. We want to get, you know, 10 large vendors that really will help us in our effective margin, you know, as I drop through and get more official with them.
Speaker Change: You may disconnect at anytime.
Dale Foster: And Dark Trace, we believe, is going to be one of the, they'll probably be a strong number three or four by this time next year.
Vincent Colicchio: Okay, I'll go back, I'll go into the queue. Thanks. Nice quarter. Thanks Vince.
Operator: It appears we have no further questions at this time.
Dale Foster: I will now turn the program back over to our presenters for any additional remarks. Yeah, thank you, operator. Just in closing, you know, real quick, a big shout out to the, to the Climb team. You know, we've gone through a lot with our ERP over the last, you know, nine months, we're on the other side of it. So there's a lot more smiles in the building, but appreciate everybody's time and commitment to get that done. Now, it's really fine tuning all the things that, you know, we've been working on, and you'll see that over the next couple quarters.
Dale Foster: So, yeah, appreciate to the whole Climb team, and that includes even our shareholders and our board. Everything's going in the right direction. So I appreciate that.
Operator: And with that, I'll just say thank you and end the call. This does conclude today's program. Thank you for your participation. You may disconnect at any time.