VERNON HILLS, Ill., May 1, 2024 - CDW Corporation (Nasdaq: CDW), a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced first quarter 2024 results. CDW also announced the approval by its Board of Directors of a quarterly cash dividend of $0.62 per share to be paid on June 11, 2024 to all stockholders of record as of the close of business on May 24, 2024.

"Within a persistently challenging environment, our strong gross margin reinforces the significant progress we continue to make executing our long-term strategy," said Christine A. Leahy, chair and chief executive officer, CDW. "During this time, the need for a trusted advisor has never been greater and our teams are helping customers navigate complexity and maximize return on their IT investments."

"First quarter IT market conditions were weaker than expected, with caution, concern, and complexity adversely impacting customers' capital investment decisions and elongating customer decision-making. The resulting decline in solutions spend was partially offset by demand for client devices," said Albert J. Miralles, chief financial officer, CDW. "In 2024, we will continue to optimize our cash flow generation through effective management of our working capital, providing strategic flexibility across our capital priorities including strategic M&A and share repurchases."

"Customers continue to turn to CDW to address their mission-critical IT and operational needs across the full IT solutions stack and lifecycle. We remain well-positioned to attain our target of exceeding US IT market growth by 200 to 300 basis points on a constant currency basis. To achieve this, we remain laser focused on meeting the needs of our more than 250,000 customers around the globe and remaining the partner of choice for more than 1,000 leading and emerging technology brands as the IT market continues to evolve," concluded Leahy.

First Quarter of 2024 Highlights:

Net sales in the first quarter of 2024 were $4,873 million, compared to $5,103 million in the first quarter of 2023, a decrease of 4.5 percent. There were 64 selling days for both the three months ended March 31, 2024 and 2023. Net sales on a constant currency basis decreased 4.9 percent. Continued economic uncertainty has led customers to be cautious and measured in their approach to technology spending, resulting in a reduction or delay in their spend. The first quarter Net sales performance included:

•Corporate segment Net sales of $2,136 million, 3.1 percent lower than 2023.

•Small Business segment Net sales of $381 million, 7.4 percent lower than 2023.

•Public segment Net sales of $1,725 million, 4.9 percent lower than 2023. Public results were primarily driven by a decrease in Net sales to Education customers of 10.4 percent.

•Net sales for CDW's UK and Canadian operations, combined as "Other" for financial reporting purposes, were $631 million, 6.5 percent lower than 2023.

Gross profit in the first quarter of 2024 was $1,063 million, compared to $1,089 million for 2023, representing a decrease of 2.4 percent. Gross profit margin was 21.8 percent in the first quarter of 2024 versus 21.3 percent for 2023. The increase in Gross profit margin was primarily driven by a more favorable contribution of netted down revenue, primarily software as a service, partially offset by lower product margin due to a higher mix of notebooks/mobile devices.

Selling and administrative expenses were $735 million in the first quarter of 2024, compared to $734 million in the first quarter of 2023, representing an increase of 0.2 percent, primarily due to workplace optimization costs, partially offset by lower performance-based compensation.

Operating income was $328 million in the first quarter of 2024, compared to $355 million in the first quarter of 2023, representing a decrease of 7.7 percent. Non-GAAP operating income was $404 million in the first quarter of 2024, compared to $434 million in the first quarter of 2023, representing a decrease of 7.1 percent. Operating income margin and Non-GAAP operating income margin were 6.7 percent and 8.3 percent, respectively, for the first quarter of 2024 versus 7.0 percent and 8.5 percent for the first quarter of 2023.

Interest expense, net includes interest expense and interest income. Interest expense, net was $51 million for the first quarter of 2024, compared to $58 million for the first quarter of 2023. The decrease was primarily due to higher interest income earned on cash balances and lower debt levels, partially offset by a higher variable interest rate on the senior unsecured term loan.

The effective tax rate was 21.9 percent in the first quarter of 2024, compared to 22.3 percent in the first quarter of 2023, which resulted in tax expense of $61 million and $66 million, respectively. The decrease in effective tax rate was primarily attributable to higher excess tax benefits on equity-based compensation.

Net income was $216 million in the first quarter of 2024, compared to $230 million in the first quarter of 2023, representing a decrease of 6.1 percent. Non-GAAP net income was $261 million for the first quarter of 2024, compared to $279 million in the first quarter of 2023, representing a decrease of 6.4 percent.

Weighted average diluted shares outstanding were 136 million for the first quarter of 2024, compared to 137 million for the first quarter of 2023. Net income per diluted share for the first quarter of 2024 was $1.59, compared to $1.68 for 2023, representing a decrease of 5.2 percent. Non-GAAP net income per diluted share for the first quarter of 2024 was $1.92, compared to $2.03 for 2023, representing a decrease of 5.5 percent.

This release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-looking statements. These statements relate to analyses and other information, which are based on forecasts of future results or events and estimates of amounts not yet determinable. These statements also relate to our future prospects, growth, developments and business strategies. We claim the protection of The Private Securities Litigation Reform Act of 1995 for all forward-looking statements in this release.

These forward-looking statements are identified by the use of terms and phrases such as "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "potential," "predict," "project," "target" and similar terms and phrases or future or conditional verbs such as "could," "may," "should," "will," and "would." However, these words are not the exclusive means of identifying such statements. Although we believe that our plans, intentions and other expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that we will achieve those plans, intentions or expectations. All forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those that we expected.

Important factors that could cause actual results or events to differ materially from our expectations, or cautionary statements, are disclosed under the sections entitled "Risk Factors" and "Trends and Key Factors Affecting our Financial Performance" included in our Annual Report on Form 10-K for the year ended December 31, 2023 and from time to time in our subsequent Quarterly Reports on Form 10-Q and our other US Securities and Exchange Commission ("SEC") filings and public communications. These factors include, among others, inflationary pressures; level of interest rates; CDW's relationships with vendor partners and terms of their agreements; continued innovations in technology by CDW's vendor partners; the use or capabilities of artificial intelligence; substantial competition that could reduce CDW's market share; the continuing development, maintenance and operation of CDW's information technology systems; potential breaches of data security and failure to protect our information technology systems from cybersecurity threats; potential failures to provide high-quality services to CDW's customers; potential losses of any key personnel, significant increases in labor costs or ineffective workforce management; potential adverse occurrences at one of CDW's primary facilities or third-party data centers, including as a result of climate change; increases in the cost of commercial delivery services or disruptions of those services; CDW's exposure to accounts receivable and inventory risks; future acquisitions or alliances; fluctuations in CDW's operating results; fluctuations in foreign currency; global and regional economic and political conditions, including the impact of pandemics such as COVID-19 and armed conflicts; potential interruptions of the flow of products from suppliers; decreases in spending on technology products and services, including impacts of adverse change in government spending policies; potential failures to comply with Public segment contracts or applicable laws and regulations; current and future legal proceedings, investigations and audits, including intellectual property infringement claims; changes in laws, including regulations or interpretations thereof, or the potential failure to meet stakeholder expectations on environmental sustainability and corporate responsibility matters; CDW's level of indebtedness; restrictions imposed by agreements relating to CDW's indebtedness on its operations and liquidity; failure to maintain the ratings assigned to CDW's debt securities by rating agencies; changes in, or the discontinuation of, CDW's share repurchase program or dividend payments; and other risk factors or uncertainties identified from time to time in CDW's filings with the SEC. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by those cautionary statements as well as other cautionary statements that are made from time to time in our other SEC filings and public communications. You should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties.

We caution you that the important factors referenced above may not reflect all of the factors that could cause actual results or events to differ from our expectations. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Generally, a non-GAAP financial measure is a numerical measure of a company's performance or financial condition that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with US GAAP. Non-GAAP measures used by management may differ from similar measures used by other companies, even when similar terms are used to identify such measures.

Our non-GAAP performance measures include Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP net income, Non-GAAP net income per diluted share and Net sales on a constant currency basis, and our non-GAAP financial condition measures include Free cash flow and Adjusted free cash flow. These non-GAAP performance measures and non-GAAP financial condition measures are collectively referred to as "non-GAAP financial measures".

Non-GAAP operating income excludes, among other things, charges related to the amortization of acquisition-related intangible assets, equity-based compensation and the associated payroll taxes, acquisition and integration expenses, transformation initiatives and workplace optimization. Non-GAAP operating income margin is defined as Non-GAAP operating income as a percentage of Net sales. Non-GAAP net income and Non-GAAP net income per diluted share excludes, among other things, charges related to acquisition-related intangible asset amortization, equity-based compensation, acquisition and integration expenses, transformation initiatives, workplace optimization and the associated tax effects of each. Net sales on a constant currency basis is defined as Net sales excluding the impact of foreign currency translation on Net sales. Free cash flow is defined as cash flows provided by operating activities less capital expenditures. Adjusted free cash flow is defined as Free cash flow adjusted to include certain cash flows from financing activities incurred in the normal course of operations or as capital expenditures.

We believe our non-GAAP performance measures provide analysts, investors and management with useful information regarding the underlying operating performance of our business, as they remove the impact of items that management believes are not reflective of underlying operating performance. Management uses these measures to evaluate period-over-period performance as management believes they provide a more comparable measure of the underlying business. We also present non-GAAP financial condition measures as we believe they provide analysts, investors and management with more information regarding our liquidity and capital resources. Certain non-GAAP financial measures are also used to determine certain components of performance-based compensation.

Our outlook includes non-GAAP financial measures because certain reconciling items are dependent on future events that either cannot be controlled, such as currency impacts or interest rates, or reliably predicted because they are not part of our routine activities, such as refinancing activities or acquisition and integration expenses.

The financial statement tables that accompany this press release include a reconciliation of non-GAAP financial measures to the applicable most comparable US GAAP financial measures.

About CDW

CDW Corporation (Nasdaq: CDW) is a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada. A Fortune 500 company and member of the S&P 500 Index, CDW helps its customers to navigate an increasingly complex IT market and maximize return on their technology investments. For more information about CDW, please visit www.CDW.com.

Webcast

CDW Corporation will hold a conference call today, May 1, 2024 at 7:30 a.m. CT/8:30 a.m. ET to discuss its first quarter financial results. The conference call, which will be broadcast live via the Internet, and a copy of this press release along with supplemental slides used during the call, can be accessed on CDW’s website at investor.cdw.com. For those unable to participate in the live call, a replay of the webcast will be available at investor.cdw.com approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year.

Investor Inquiries			Media Inquires
Steven O’Brien			Sara Granack
Vice President, Investor Relations			Vice President, Corporate Communications
(847) 968-0238			(847) 419-7411
investorrelations@cdw.com			mediarelations@cdw.com

CDWPR-FI

(unaudited)

(unaudited)

(i)There were 64 selling days for both the three months ended March 31, 2024 and 2023. Average Daily Sales is defined as Net sales divided by the number of selling days.

(unaudited)

(unaudited)

(i)Based on a rolling three-month average.

(unaudited)

CDW has included reconciliations of Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP net income, Non-GAAP net income per diluted share and Net sales on a constant currency basis for the three months ended March 31, 2024 and 2023 below. In addition, a reconciliation of Free cash flow and Adjusted free cash flow is included for the three months ended March 31, 2024 and 2023.

(unaudited)

(i)Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names.

(ii)Includes costs related to strategic transformation initiatives focused on optimizing various operations and systems.

(iii)Includes costs related to the workforce reduction program and charges related to the reduction of our real estate lease portfolio.

(unaudited)

(i)Income tax on non-GAAP adjustments includes excess tax benefits associated with equity-based compensation.

(ii)Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names.

(iii)Includes costs related to strategic transformation initiatives focused on optimizing various operations and systems.

(iv)Includes costs related to the workforce reduction program and charges related to the reduction of our real estate lease portfolio.

(unaudited)

(i)There were 64 selling days for both the three months ended March 31, 2024 and 2023. Average daily sales is defined as Net sales divided by the number of selling days.

(ii)Represents the effect of translating the prior year results of CDW UK and CDW Canada at the average exchange rates applicable in the current year.

(unaudited)

(i)Defined as Net cash provided by operating activities less capital expenditures, adjusted to include cash flows from financing activities that relate to the purchase of inventory.

VERNON HILLS, Ill., May 1, 2024 -- CDW Corporation (Nasdaq: CDW), a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced that its Board of Directors has declared a quarterly cash dividend of $0.62 per common share to be paid on June 11, 2024 to all stockholders of record as of the close of business on May 24, 2024. Future dividends will be subject to Board of Director approval.

"Dividends and share repurchases continue to be an important part of our capital allocation priorities, along with strategic M&A and managing our capital structure," said Albert J. Miralles, chief financial officer, CDW. "Since our IPO in June 2013, our dividend has increased nearly fifteen-fold and we have returned approximately $6.5 billion to stockholders through share repurchases and dividends. Our capital allocation strategy has enabled us to deliver value to our stockholders, just as we have delivered value to our customers and partners for 40 years."

CDW Corporation is a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada. A Fortune 500 company and member of the S&P 500 Index, CDW helps its customers to navigate an increasingly complex IT market and maximize return on their technology investments. For more information about CDW, please visit www.CDW.com.

Statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the future dividends, earnings growth, capital allocation and other strategic plans of CDW. These forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those described in such statements. Although CDW believes that its plans, intentions and other expectations reflected in or suggested by such forward-looking statements are reasonable, it can give no assurance that it will achieve those plans, intentions or expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Forward-Looking Statements" and "Risk Factors" in CDW's Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent filings with the SEC. CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Inquiries			Media Inquires
Steven O’Brien			Sara Granack
Vice President, Investor Relations			Vice President, Corporate Communications
(847) 968-0238			(847) 419-7411
investorrelations@cdw.com			mediarelations@cdw.com

CDWPR-FI