CDW Financials And 2023 Downturn Examined
For the past decade, CDW has grown significantly, reaching over $20 billion in annual revenue but this year saw a significant downturn, raising questions about the company's prospects.
Inside this report, IPVM examines:
- Background/Scale/Comparison
- CDW Financial Overview
- Competitor Performances Comparison
- Notebook/Mobile Device Slump
- Security Sector
- Professional Services
- Services is One of CDW's Three Growth Strategy
- Channel Controversies
- Layoffs at CDW
- 2023 Outlook
Executive *******
*** ********* ****** ** ** ****, leading ** ******* ** *% ** its ********* (**-*** ***** **** ***). The ******* ********** **** ******** ** a ******** ** ****** ****** ****** the *******. ***'* ***********, ********* ** Synnex *** ******, **** *********** * weak **. *******, ***** ******* *** less **** **** ** ****.
**********/*****/**********
******** ***** ** ******** ******** *********, Vernon *****, ********-***** *** *** ***** into * ***** *.*. ******** ** technology ******** *** ******** ** ***** and ***** **********, *******, **********, *** government *******. *** ******* ** * major ***** ******* ******* *** **** and ******** ********* *** ****** ********** IT *** ******** *********, ********* ******** and ********. *** ** ***** ********* in *** **** * ***** ****** different ****** ******** ** ***** *****:
********** ***** **** ** ~**% *** corporate ***** **** ** **% ** CDW's ***** *****. *** ******* **** has ********** ** *** ** *** Canada. ** ************ ************ ************ ******** ** ******** ****** ** a *****-***** ******** ** * ****** integrator, ******** ** ***** ***** **** subcontractors *** ***********.
Financial *********** ********
*** ******** ~$* ******* ** *** sales ** **, ****, * -**% YoY **** ***** * +**% *** full-year *** ***** ****** ** ****. However, ***'***** **** *********** ** ******, * *****-***** ** ********* **********, brought ** *** ***** ***** ~*/* of ***'* **** ***** ******. **** means **** **** ** ***'* +**% 2022 ***** ****** *** *** *** own ********' ******* ******.
****** ** ******** ****, *** *********, *** & ***************** *************** *** ******* ** **** ** demand *** ********* ******* ** ****:
*** ************ ****** ** *** *********** miss ** *** *********** *** *** sharp ****** ** ******* *** ******* that ** *** **** *** ********** customers ** ******** *********** *********** ******* the ******* *** *** ********** ********* in ******** ******, ************ ******* *** large ********** ********* ** * ******. And **** ********** **** ** ******** impact ** ******* ***** *** ******** size ** *** ********** ********.
****** ** *** *******'* ****** ******* of ****, ****** ******* ***** *** offset *** ***** *******, ***** ****.
***'* ***** ******* ****** ** *** past *****,********* ** *** **** ****** ******. *******, ***** ***'* ~$* ******* revenue ******** **** **** ** ****, most **** *********** ** *** *********** of ******, *** **** ~$* ******* in *** ***** ** ****.
***'* ****** ************** ** ** ~$** billion. ***** ******** ****** ******* **** year ** ******** ** * ****** 2022, *** *******'* ***** ***** (******:***) **** ******* ** ***** ** analyst ************ ** * ****** **. It *** *** ******* ** **** to *** ***** ****** *** ****.
***** ********* ** ********* *** ********* demand ** **** ******, ****** **** the ****** ********* *** ***** **** forecast *** **** ******** ******** *** sales ****** **** **** ********:
** *****, ****** *** ****** **** anticipated ** *** ********** ********. **** we ****** ****, *** ******** ****** for * ******** ********* ** ** demand ** **** *** * ***-******-***** year-over-year ******* ** *****-******* *****. ** the ******* **********, ** ****** ******** more **** ******** ** * ********** of ****** *********** ******* ********** ******** concerns *** ********* *****.
**** *** ** * ****** ***** shift ** ******** ********, **** ******* in *** ***** ********** *********. ******** that ***** **** *********, ************, *** financial ******* **** ***********. ******* ************* and ****** ******** ***** *** ***. And ******** ***** **** *** ********, sales ****** *********, ******* ***** ******, and **** ***** **********.
Competitor ************ **********
***'* ********-****** *********** **** ********* ********** in **, **** *** ** * weak ** ******, *** *** ** bad ** ***. *** *******, **** CDW ***** ***********, ********* ****** *****, are ********* **** ** ** ** not ******* *****.
** ******, ***'* ******** ****** ********** ** ~36% ** ***'* ****** **************, ******** a*% *** ******* ********* ** **** *** ***% *** ******* ********* ** ****. **** *** ***** it ******** $** ******* ** ****** revenue ** ****, **% *** ******.
******* ***********, ***'* ******** ****** ********** ** ~1/5 ** *** ****** **************, ******** a-**% *** *** ***** ****** **, ****, ***** **+**% *** ****** *** ***** ******** ****.
**********(******** ** **********, ***.), ******* ***'* publicly ****** ********** ** **% ** its ****** **************, ******** *-*% *** *** ***** ****** **, ****, ***** *+*% *** ****** *** ***** ******** ****.
CDW's *&**
*** ** ** *********** *******. ** made ** ***** * ************ ** the **** * *****. *** ******* among **** ** ***$*.* ******* *********** ** ****** ******** Solutions ** ****, ***** ******** *** ********* *****-**** and ********* *** ******** ****,***** **** ** ** ******** ****.
** ************* *****, *** **** **** the ********* ************ ** *** **** 5 ***** ******* ******:
- ** ******** *** ********** ************* ********* ** ****
- ******* ******** ********* ************ ** ****
- ** ******** *** ********** **************** ** ** ****
- ************* ******** ************* ***** **** **** ** ****
- *********** ******** & ***** ********* ************* ** ****
- *** ***** ******** **************** ** ****
Notebook/Mobile *****
* ***** ******* ***** *** * global ***** ** ******** *****, ********** notebooks, *** ****** *******. ****-****-**** ***** were **** ****** *** ** ***'* primary ***** ********, ********* *********, ***** business, *** ****** *******.
** *** **-*, *** ******* ********** ******* ******* for *** ***** ********** ** "********* Net ***** ** *********/****** *******.
******** **** ** ****, ******** ******* was **** **** **** **%. (**** gathered **** ***'* **-*'*.)
** *** ******** **********, *********/****** ******* showed *** ******* **** ** ****** 38%.
*** ****** *** ********** **** * broader ***** ** *** ********. ********, PC ********* ******* ** ***** * third ** ** ****,********* ** **********. ******** ********** *** ****-*** ** a ****** *****.
* *********** ******* ** *** ********* upgraded ******** ****** *** ******** ** employees **** ******. ********** ******** **** machines ********* **** *-* *****, *** companies *** ******* **** **** **** off ** ****** ***-****** ********* ******* of ******* ***** * ******* *******.
Security ******
********* ** *****, *** ******** ****** remained * "*** ***** **** *** customers" ******* ********* ****** **********, ********* fears, *** * ******* *** ** demand. *******, ******** ***** ***** "******** slightly" *** *** ** * ***** in ******* ****** ** ***** ********** customers.
*****'* ******** ********* ******** ********* *** company's ************* *** ******** ******** *********. She ***** **** ***'* ******* "** wrap ******** ****** ************ *** ******** security ***** ********* ******** ***********" ** education. *******, *** ****:
*********** ****** ** ******** **********, ********** access **********, ********* *********, *** **** and ********** *** ****** ** ******** in *********. *** ******* ******** ** also **** ** ****** ******* ** physical ****** ** *** ********* ** customers' *********.
*******, ******** ****** ******** **** ****** in ***** **********. **** *****, *** cloud *** * ********** *********** ** performance **** ******-***** ******** ******** *** gross ****** *********, *** ** ********, platform, *** ************.
***** **** ******** ********* *** ***** spending **** *** ********** ******* ***'* security *****. *** *****:
********** **** *** ****** *******, ********* made ** **** ***** ******* ****** devices, *** ****** ****** ******** *********. For *********, ***** ****** ** ****** was **** **** ****** ** *** year-over-year ******** ** *-** *** ******* sales ******** **%.
****** ** ********* *** ***** ****** of ******** ******* ******* ******** **** to ******* **********. ***** ******** ******* on ********* ********, ****** ************, *** delivering ******** **** **** *********** ******* double-digit ****** ****** *****, *******, *******, software, *** ********.
The **** ** ************ ******** ****** ***
*** ** ** ** *********** ******* ********* ****** ** * ****** integrator, ********* "************ ********," ********* ***-**** services *** ************, *** "******* ********," including ******* ********* ***********. (****, ***'* professional *** ******* ******** *** *** limited ** ******** ******** *** ***** multiple *********.)
*** *** ******** ****** ** **** sector. ***** ********* *** *********** ** detail:
***** *** ***** *** ******-***** ****** in ********* ********* *** ****'* ******* in ******* ********* ******* ****** **** through ******** ******** ** **** ** professional ******** ***********.
******** ** ******* ******** ****** *** solid *** ************ ******** ******** ** grow, ****** *** ******* ****** ** full ***** ** *********** *** ********.
*** ** ****** ****** ********* ******* to *** *** ******** ***** **** provide **** ****-********* ********* **** ******, according ** *****:
**'** ****** ***** ********* *** *** optimizing *** ****, ************ ** **** environment ** **** ************ *** ********* opportunity *** *** **** *** ************ services *** *** ***** ******** *** things **** ** *** ***** ** our ********* ** **** **** ** exactly **** *** **** *********** ******* that **** ******* ******** ***** *******.
Services ** *** ** ***'* ***** ****** ********
***** ****** **** ************ ******** *** managed ******** *** *** ********** ******* as *** ******* ******* ******:
********* *********** ** *** ********* *** services ************ ****** *** ** *** three-part ******** *** ******, ** ********* catalyst *** *** *********** ** *** profitability *** ****** *****.
Channel *************
***** *** ***** *** ************ ********, integrators **** ********** ********* **** *** and ***** ******** ** ******** ************* about ***'* ********* ********. *** *******,******* ******** ********** ******** *************' *********** **** ***, ***** Genetec **** ** ********* *** ** just ******* **********.
Layoffs ** ***
********* * ******** **, *** ********* layoffs ** ***** ***-*,*** ********* ****** the *******'* **,***+ *********,*** ********. ******** *** *********/****** ********* ****** on ******, ********, *** ********* ***** the ******:
2023 *******
*** ******* * ***-******-***** ******* *** for ****. *** *** ** ** 2023, *** ********* "********** ***** ****** of ***-******-****** ** ** ******* ***** sales *****."
No ******** **** ***
*** *** *** ******* ** ****'* request *** ******* ** *** ********* performance *** *** **** ** *** physical ******** ********.