The IT spending environment “is anticipated to rebound” in 2024, TD Synnex’s CEO stressed, even as he unveiled another quarterly revenue drop.
Having fallen by 9.1% in Q3, the distribution hulk’s revenues were down even more sharply in its final quarter of 2023 – namely by 11.3% year on year to $14.4bn.
The contraction was “primarily” driven by a decline in endpoint sales “as the industry continued to see post-pandemic declines in demand for PC ecosystem products”, TD Synnex said.
The Q4 total was made to look worse by a shift in its product mix that meant the broadliner recognised more of its revenues on a net basis, however.
That put an artificial 6% dent in TD Synnex’s top line.
The $14.4bn haul was also within its previously provided outlook of $14bn- $15bn.
Anticipated rebound
TD Synnex CEO Rich Hume (pictured top) characterised it as a “challenging market”.
“We are well-positioned to capitalise on the growth opportunities we expect in 2024, as the IT spending environment is anticipated to rebound,” he added, however.
TD Synnex’s Americas business did most of the damage, with Q4 revenues down 16.8% to $8.4bn. Europe held up slightly better, as revenues here fell 3% to $5.2bn (that total was flattered by favourable currency effects, however).
TD Synnex’s total 2023 revenues slid 7.7% to $57.6bn.
The world’s largest IT distributor expects Q1 2024 revenues to sit between $14bn and $14.7bn (down by between 3% and 7% on the $15.1bn revenue it logged in Q1 2023).
Dell COO Jeff Clarke recently described the eight quarters of negative growth in the PC industry as “the longest I can recollect”, adding, however, that the market is “ripe for a refresh”.
“There will be 300 million PCs turning four years old next year. That’s typically a tipping point for upgrading in commercial,” he said as Dell unveiled a 10% revenue drop in its latest quarter.
