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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  November 3, 2022
nsit-20221103_g1.jpg
INSIGHT ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
_____________________________
Delaware 0-25092 86-0766246
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
2701 East Insight Way,
Chandler, Arizona 85286
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(480) 333-3000
Not Applicable
(Former name or former address, if changed since last report)
_____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common stock, par value $0.01 NSIT The NASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐


Item 2.02    Results of Operations and Financial Condition.
On November 3, 2022, Insight Enterprises, Inc. announced by press release its results of operations for the third quarter ended September 30, 2022. A copy of the press release and accompanying investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein.  The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number
 Description
99.1
99.2
104 Cover Page Interactive Data File (formatted as Inline XBRL).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Insight Enterprises, Inc.
Date: November 3, 2022 By: /s/ Rachael A. Crump
Rachael A. Crump
Principal Accounting Officer

EX-99.1 2 nsit-20221103xerx8kex991.htm EX-99.1 Document
EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
NASDAQ: NSIT
INSIGHT ENTERPRISES, INC. REPORTS
THIRD QUARTER 2022 RESULTS
CHANDLER, AZ – November 3, 2022 – Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter ended September 30, 2022.  Highlights include:
•Gross profit increased 10% year over year to $399.3 million
•Earnings from operations increased 9% year over year to $90.3 million
•Adjusted earnings from operations increased 14% year over year to $107.1 million
•Diluted earnings per share of $1.58 increased 5% year over year
•Adjusted diluted earnings per share of $1.99 increased 6% year over year

In the third quarter of 2022, net sales increased 4%, year over year. Gross profit increased 10% while gross margin expanded 90 basis points to 15.8% compared to the third quarter of 2021.  Earnings from operations of $90.3 million increased 9% compared to $83.2 million in the third quarter of 2021. Adjusted earnings from operations of $107.1 million increased 14% compared to $93.5 million in the third quarter of 2021.  Diluted earnings per share for the quarter was $1.58, up 5%, year over year. Adjusted diluted earnings per share was $1.99, up 6% year over year, despite being negatively impacted by both foreign currency exchange rates and the impact of higher interest rates on interest expense in the current quarter.

“I am pleased to report that we delivered another quarter of solid results driven by double-digit gross profit growth and continued strength in cloud solutions which grew 27%,” stated Joyce Mullen, President and Chief Executive Officer.  “We are focused on our strategy and the year is shaping up as we expected, despite the economic volatility,” stated Mullen.
KEY HIGHLIGHTS

Results for the Quarter:
•Consolidated net sales for the third quarter of 2022 of $2.53 billion increased 4%, year over year, when compared to the third quarter of 2021. Product net sales increased 2%, year over year and services net sales increased 13%, year over year.
•Net sales in North America increased 4%, year over year, to $2.10 billion;
◦Product net sales increased 3%, year over year, to $1.80 billion;
◦Services net sales increased 14%, year over year, to $298.7 million;
•Net sales in EMEA was relatively flat, year to year, at $379.6 million; and
•Net sales in APAC increased 19%, year over year, to $54.9 million.
•Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales were up 6%, year over year, with growth in net sales in North America, EMEA and APAC of 4%, 16% and 27%, respectively, year over year.
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958

•Consolidated gross profit increased to $399.3 million, an increase of 10% compared to the third quarter of 2021, with consolidated gross margin expanding 90 basis points to 15.8% of net sales. Product gross profit increased 9%, year over year, and services gross profit increased 10%, year over year.
•Gross profit in North America increased 12%, year over year, to $332.7 million (15.8% gross margin);
•Gross profit in EMEA decreased 7%, year to year, to $51.8 million (13.6% gross margin); and
•Gross profit in APAC increased 13%, year over year, to $14.8 million (26.9% gross margin).
•Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit was up 11%, year over year, with gross profit growth in North America, EMEA and APAC of 13%, 9% and 21%, respectively, year over year.
•Consolidated earnings from operations increased 9% compared to the third quarter of 2021 to $90.3 million, or 3.6% of net sales.
•Earnings from operations in North America increased 11%, year over year, to $82.3 million, or 3.9% of net sales;
•Earnings from operations in EMEA decreased 16%, year to year, to $4.2 million, or 1.1% of net sales; and
•Earnings from operations in APAC decreased 2%, year to year, to $3.8 million, or 6.9% of net sales.
•Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations were up 10%, year over year, with increased earnings from operations in North America and APAC of 11% and 5%, year over year, respectively, partially offset by decreased earnings from operations in EMEA of 2%, year to year.
•Adjusted earnings from operations increased 14% compared to the third quarter of 2021 to $107.1 million, or 4.2% of net sales.
•Adjusted earnings from operations in North America increased 18%, year over year, to $98.5 million, or 4.7% of net sales;
•Adjusted earnings from operations in EMEA decreased 21%, year to year, to $4.6 million, or 1.2% of net sales; and
•Adjusted earnings from operations in APAC decreased 2%, year to year, to $3.9 million, or 7.1% of net sales.
•Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations were up 16%, year over year, with increased Adjusted earnings from operations in North America and APAC of 18% and 5%, respectively, year over year, partially offset by decreased Adjusted earnings from operations in EMEA of 8%, year to year.
•Consolidated net earnings and diluted earnings per share for the third quarter of 2022 were $57.3 million and $1.58, respectively, at an effective tax rate of 25.3%.
•Adjusted consolidated net earnings and Adjusted diluted earnings per share for the third quarter of 2022 were $69.8 million and $1.99, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share was up 8%, year over year.
In discussing financial results for the three and nine months ended September 30, 2022 and 2021 in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”).  When referring to non-GAAP measures, the Company refers to them as “Adjusted.”  See “Use of Non-GAAP Financial Measures” for additional information.  A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.
In some instances, the Company refers to changes in net sales, gross profit, earnings from operations and Adjusted diluted earnings per share on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates.  In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period.
The tax effect of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions.
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958

GUIDANCE
For the full year 2022, the Company expects to deliver low double digit net sales growth and Adjusted diluted earnings per share is expected to be between $8.65 and $8.75.
This outlook assumes
•interest expense between $35 and $40 million;
•an effective tax rate of 25% to 26% for the full year 2022;
•capital expenditures of $65 to $70 million; and
•an average share count for the full year of 35.1 to 35.2 million shares after an estimated partial completion of our planned repurchase under our current authorization.
This outlook excludes acquisition-related intangibles amortization expense of approximately $33 million, assumes no acquisition or integration related, transformation or severance and restructuring expenses, and no significant change in our debt instruments.  Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings, diluted earnings per share and selling and administrative expenses, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings, diluted earnings per share and selling and administrative expenses.  Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2022 forecast.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and live web cast today at 9:00 a.m. ET to discuss third quarter 2022 results of operations.  A live web cast of the conference call (in listen-only mode) will be available on the Company’s web site at http://investor.insight.com/, and a replay of the web cast will be available on the Company’s web site for a limited time following the call.  To access the live conference call, please register in advance using this event link.  Upon registering, participants will receive dial-in information via email, as well as a unique registrant ID, event passcode, and detailed instructions regarding how to join the call.
USE OF NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures are referred to as “Adjusted”.  Adjusted earnings from operations, Adjusted net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, and (vi) the tax effects of each of these items, as applicable. Adjusted net earnings and Adjusted diluted earnings per share for the three and nine months ended September 30, 2021 also exclude amortization of debt discount and issuance costs associated with the issuance of the Company’s convertible senior notes due 2025. Effective January 1, 2022, the Company adopted ASU 2020-06 and no longer records amortization of debt discount associated with the convertible senior notes. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company’s operating segments.  Adjusted diluted earnings per share also includes the impact of the benefit from the note hedge where the Company’s average stock price for the third quarter of 2022 was in excess of $68.32, which is the initial conversion price of the convertible senior notes.  Adjusted EBITDA includes (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization of property and equipment, (iv) amortization of intangible assets, (v) severance and restructuring expenses (vi) certain executive recruitment and hiring related expenses, (vii) transformation costs and (viii) certain acquisition and integration related expenses. Adjusted return on invested capital (“ROIC”) excludes (i) severance and restructuring expenses, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses and (vi) the tax effects of each of these items, as applicable.  Adjusted ROIC for the twelve months ended September 30, 2022 also excludes (i) impairment of construction in progress, (ii) loss on sale of property, (iii) litigation settlement proceeds, and (iv) the tax effects of each of these items, as applicable.
These non-GAAP measures are used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors.  The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company’s competitors’ results and assist in forecasting performance for future periods.  These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies.  Non-GAAP
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958

financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958
FINANCIAL SUMMARY TABLE
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2022 2021 change 2022 2021 change
Insight Enterprises, Inc.
Net sales:
Products $ 2,169,197 $ 2,124,239 2% $ 6,828,726 $ 5,906,437 16%
Services $ 365,157 $ 323,282 13% $ 1,099,855 $ 963,653 14%
Total net sales $ 2,534,354 $ 2,447,521 4% $ 7,928,581 $ 6,870,090 15%
Gross profit $ 399,258 $ 364,545 10% $ 1,216,008 $ 1,062,702 14%
Gross margin 15.8% 14.9% 90 bps 15.3% 15.5% (20 bps)
Selling and administrative expenses $ 308,253 $ 278,998 10% $ 911,894 $ 827,275 10%
Severance and restructuring expenses $ 720 $ 2,396 (70%) $ 2,784 $ (3,217) > 100%
Acquisition and integration related expenses $ 6 $ — * $ 1,646 —  *
Earnings from operations $ 90,279 $ 83,151 9% $ 299,684 $ 238,644 26%
Net earnings $ 57,316 $ 55,483 3% $ 203,131 $ 157,212 29%
Diluted earnings per share $ 1.58 $ 1.51 5% $ 5.53 $ 4.27 30%
North America
Net sales:
Products $ 1,801,128 $ 1,756,775 3% $ 5,530,475 $ 4,675,581 18%
Services $ 298,709 $ 263,101 14% $ 881,311 $ 758,705 16%
Total net sales $ 2,099,837 $ 2,019,876 4% $ 6,411,786 $ 5,434,286 18%
Gross profit $ 332,696 $ 295,982 12% $ 983,046 $ 828,368 19%
Gross margin 15.8% 14.7% 110 bps 15.3% 15.2% 10 bps
Selling and administrative expenses $ 249,745 $ 219,714 14% $ 728,833 $ 640,420 14%
Severance and restructuring expenses $ 683 $ 1,999 (66%) $ 1,472 $ (4,361) > 100%
Acquisition and integration related expenses $ 6 $ — * $ 1,646 $ — *
Earnings from operations $ 82,262 $ 74,269 11% $ 251,095 $ 192,309 31%
Sales Mix **
Hardware 67  % 70  % (1%) 69  % 68  % 19%
Software 19  % 17  % 17% 17  % 18  % 14%
Services 14  % 13  % 14% 14  % 14  % 16%
100  % 100  % 4% 100  % 100  % 18%
EMEA
Net sales:
Products $ 335,866 $ 339,513 (1%) $ 1,187,272 $ 1,125,299 6%
Services $ 43,708 $ 41,935 4% $ 150,066 $ 152,359 (2%)
Total net sales $ 379,574 $ 381,448 —% $ 1,337,338 $ 1,277,658 5%
Gross profit $ 51,772 $ 55,447 (7%) $ 186,089 $ 195,011 (5%)
Gross margin 13.6% 14.5% (90 bps) 13.9% 15.3% (140 bps)
Selling and administrative expenses $ 47,527 $ 50,062 (5%) $ 151,225 $ 159,466 (5%)
Severance and restructuring expenses $ 35 $ 397 (91%) $ 1,310 $ 1,135 15%
Earnings from operations $ 4,210 $ 4,988 (16%) $ 33,554 $ 34,410 (2%)
Sales Mix **
Hardware 40  % 42  % (6%) 39  % 41  % (2%)
Software 49  % 47  % 3% 50  % 47  % 12%
Services 11  % 11  % 4% 11  % 12  % (2%)
100  % 100  % —% 100  % 100  % 5%
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958
FINANCIAL SUMMARY TABLE (CONTINUED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2022 2021 change 2022 2021 change
APAC
Net sales:
Products $ 32,203 $ 27,951 15% $ 110,979 $ 105,557 5%
Services $ 22,740 $ 18,246 25% $ 68,478 $ 52,589 30%
Total net sales $ 54,943 $ 46,197 19% $ 179,457 $ 158,146 13%
Gross profit $ 14,790 $ 13,116 13% $ 46,873 $ 39,323 19%
Gross margin 26.9% 28.4% (150 bps) 26.1% 24.9% 120 bps
Selling and administrative expenses $ 10,981 $ 9,222 19% $ 31,836 $ 27,389 16%
Severance and restructuring expenses $ 2 $ — * $ 2 $ 9 (78%)
Earnings from operations $ 3,807 $ 3,894 (2%) $ 15,035 $ 11,925 26%
Sales Mix **
Hardware 30  % 29  % 23% 25  % 22  % 28%
Software 29  % 31  % 8% 37  % 45  % (6%)
Services 41  % 40  % 25% 38  % 33  % 30%
100  % 100  % 19% 100  % 100  % 13%
*    Percentage change not considered meaningful.
**    Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958

FORWARD-LOOKING INFORMATION
Certain statements in this release and the related conference call, web cast and presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements, including those related to the Company’s future responses to and the potential impact of coronavirus strain COVID-19 (“COVID-19”) on the Company, the Company’s future financial performance and results of operations, including net sales growth, Adjusted diluted earnings per share, and Adjusted selling and administrative expenses, the Company’s anticipated effective tax rate, capital expenditures, and expected average share count, the Company’s expectations that note holders will not convert the Company’s convertible senior notes in the near term, the Company’s expectations regarding cash flow, the Company’s expectations regarding current supply constraints and shipment of backlog, future trends in the IT market, the Company’s business strategy and strategic initiatives, which are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified.  Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.  There can be no assurances that the results discussed by the forward-looking statements will be achieved, and actual results may differ materially from those set forth in the forward-looking statements.  Some of the important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements include, but are not limited to, the following, which are discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and in “Risk Factors” in Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022:
•actions of the Company’s competitors, including manufacturers and publishers of products the Company sells;
•the Company’s reliance on its partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can change significantly in the amounts made available and in the requirements year over year;
•the Company’s ability to keep pace with rapidly evolving technological advances and the evolving competitive marketplace;
•the duration and severity of the COVID-19 pandemic and its effects on the Company’s business, results of operations and financial condition, as well as the widespread outbreak of any other illnesses or communicable diseases;
•general economic conditions, economic uncertainties and changes in geopolitical conditions including the possibility of a recession or as a result of Russia’s invasion of Ukraine;
•changes in the IT industry and/or rapid changes in technology;
•supply constraints for hardware, including devices, and the potential impact on our inventory management and warehouse operations relating to the easing of these constraints;
•accounts receivable risks, including increased credit loss experience or extended payment terms with the Company’s clients;
•the Company’s reliance on independent shipping companies;
•the risks associated with the Company’s international operations;
•natural disasters or other adverse occurrences;
•disruptions in the Company’s IT systems and voice and data networks;
•cyberattacks or breaches of data privacy and security regulations;
•intellectual property infringement claims and challenges to the Company’s registered trademarks and trade names;
•legal proceedings, client audits and failure to comply with laws and regulations;
•failure to comply with the terms and conditions of the Company’s commercial and public sector contracts;
•exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;
•the Company’s potential to draw down a substantial amount of indebtedness;
•the conditional conversion feature of the Company’s convertible senior notes, which has historically been triggered, may adversely affect the Company’s financial condition and operating results;
•the Company is subject to counterparty risk with respect to certain hedge and warrant transactions entered into in connection with the issuance of the convertible senior notes;
•risks associated with the discontinuation of LIBOR as a benchmark rate;
•increased debt and interest expense and the possibility of decreased availability of funds under the Company’s financing facilities;
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958

•possible significant fluctuations in the Company’s future operating results as well as seasonality and variability in client demands;
•the Company’s dependence on certain key personnel and the Company’s ability to attract, train and retain skilled teammates;
•risks associated with the integration and operation of acquired businesses, including the achievement of expected synergies and benefits; and
•future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock.
Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the SEC.  Any forward-looking statements in this release, the related conference call, webcast and presentation speak only as of the date on which they are made and should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others.  The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements.  The Company does not endorse any projections regarding future performance that may be made by third parties.
CONTACT:
GLYNIS BRYAN
CHIEF FINANCIAL OFFICER
TEL.  480.333.3390
EMAIL glynis.bryan@insight.com
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2022 2021 2022 2021
Net sales:
Products $ 2,169,197  $ 2,124,239  $ 6,828,726  $ 5,906,437 
Services 365,157  323,282  1,099,855  963,653 
Total net sales 2,534,354  2,447,521  7,928,581  6,870,090 
Costs of goods sold:
Products 1,956,679  1,930,096  6,199,783  5,367,083 
Services 178,417  152,880  512,790  440,305 
Total costs of goods sold 2,135,096  2,082,976  6,712,573  5,807,388 
Gross profit 399,258  364,545  1,216,008  1,062,702 
Operating expenses:
Selling and administrative expenses 308,253  278,998  911,894  827,275 
Severance and restructuring expenses, net 720  2,396  2,784  (3,217)
Acquisition and integration related expenses 6  —  1,646  — 
Earnings from operations 90,279  83,151  299,684  238,644 
Non-operating (income) expense:
Interest expense, net 11,713  10,332  29,164  29,884 
Other expense (income), net 1,790  (1,589) (741) (855)
Earnings before income taxes 76,776  74,408  271,261  209,615 
Income tax expense 19,460  18,925  68,130  52,403 
Net earnings $ 57,316  $ 55,483  $ 203,131  $ 157,212 
Net earnings per share:
Basic $ 1.64  $ 1.59  $ 5.80  $ 4.49 
Diluted $ 1.58  $ 1.51  $ 5.53  $ 4.27 
Shares used in per share calculations:
Basic 34,952  34,855  35,003  35,050 
Diluted 36,340  36,745  36,714  36,860 
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In THOUSANDS)
(UNAUDITED)
September 30,
2022		 December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents $ 136,653  $ 103,840 
Accounts receivable, net 3,047,739  2,936,732 
Inventories 367,913  328,101 
Other current assets 232,355  199,638 
Total current assets 3,784,660  3,568,311 
Property and equipment, net 201,269  176,263 
Goodwill 493,618  428,346 
Intangible assets, net 211,806  214,788 
Other assets 306,361  301,372 
$ 4,997,714  $ 4,689,080 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable – trade $ 1,525,638  $ 1,779,854 
Accounts payable – inventory financing facilities 331,982  311,878 
Accrued expenses and other current liabilities 414,822  423,489 
Current portion of long-term debt 594  36 
Total current liabilities 2,273,036  2,515,257 
Long-term debt 783,723  361,570 
Deferred income taxes 36,723  47,073 
Other liabilities 283,441  255,953 
3,376,923  3,179,853 
Stockholders’ equity:
Preferred stock —  — 
Common stock 348  349 
Additional paid-in capital 330,726  368,282 
Retained earnings 1,366,124  1,167,690 
Accumulated other comprehensive loss – foreign currency translation adjustments
 (76,407) (27,094)
Total stockholders’ equity 1,620,791  1,509,227 
$ 4,997,714  $ 4,689,080 
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
Nine Months Ended
September 30,
2022 2021
Cash flows from operating activities:
Net earnings $ 203,131  $ 157,212 
Adjustments to reconcile net earnings to net cash (used in) operating activities:
Depreciation and amortization 42,204  42,151 
Provision for losses on accounts receivable 4,295  5,781 
Non-cash stock-based compensation 16,524  13,950 
Deferred income taxes (5,554) 3,374 
Amortization of debt discount and issuance costs 4,894  12,615 
Other adjustments 933  (4,753)
Changes in assets and liabilities:
Increase in accounts receivable (230,049) (85,853)
Increase in inventories (51,526) (88,119)
Increase in other assets (14,926) (20,844)
Decrease in accounts payable (171,257) (119,525)
Decrease in accrued expenses and other liabilities (4,554) (33,777)
Net cash (used in) operating activities: (205,885) (117,788)
Cash flows from investing activities:
Proceeds from sale of assets 1,318  29,221 
Purchases of property and equipment (59,270) (28,011)
Acquisitions, net of cash and cash equivalents acquired (68,248) — 
Net cash (used in) provided by investing activities: (126,200) 1,210 
Cash flows from financing activities:
Borrowings on ABL revolving credit facility 3,825,923  3,167,044 
Repayments on ABL revolving credit facility (3,433,629) (3,085,044)
Net borrowings under inventory financing facilities 23,017  76,422 
Repurchases of common stock (25,008) (50,000)
Other payments (12,798) (9,330)
Net cash provided by financing activities: 377,505  99,092 
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances (12,710) (3,601)
Increase (decrease) in cash, cash equivalents and restricted cash 32,710  (21,087)
Cash, cash equivalents and restricted cash at beginning of period 105,977  130,582 
Cash, cash equivalents and restricted cash at end of period $ 138,687  $ 109,495 
 - MORE -
Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
September 30,		 Nine Months Ended September 30,
2022 2021 2022 2021
Adjusted Consolidated Earnings from Operations:
GAAP consolidated EFO $ 90,279 $ 83,151 $ 299,684 $ 238,644
Amortization of intangible assets 8,986 7,988 24,815 24,097
Other 7,829 2,396 13,846 (3,217)
Adjusted non-GAAP consolidated EFO $ 107,094 $ 93,535 $ 338,345 $ 259,524
GAAP EFO as a percentage of net sales 3.6% 3.4% 3.8% 3.5%
Adjusted non-GAAP EFO as a percentage of net sales 4.2% 3.8% 4.3% 3.8%
Adjusted Consolidated Net Earnings:
GAAP consolidated net earnings $ 57,316 $ 55,483 $ 203,131 $ 157,212
Amortization of intangible assets 8,986 7,988 24,815 24,097
Amortization of debt discount and issuance costs — 3,049 — 9,045
Other 7,829 2,396 13,846 (3,217)
Income taxes on non-GAAP adjustments (4,295) (3,172) (9,773) (7,133)
Adjusted non-GAAP consolidated net earnings $ 69,836 $ 65,744 $ 232,019 $ 180,004
Adjusted Diluted Earnings Per Share:
GAAP diluted EPS $ 1.58  $ 1.51  $ 5.53  $ 4.27 
Amortization of intangible assets 0.25  0.22  0.68  0.65 
Amortization of debt discount and issuance costs —  0.08  —  0.25 
Other 0.22  0.07  0.38  (0.09)
Income taxes on non-GAAP adjustments (0.12) (0.09) (0.27) (0.19)
Impact of benefit from note hedge 0.06  0.08  0.26  0.19 
Adjusted non-GAAP diluted EPS $ 1.99  $ 1.87  $ 6.58  $ 5.08 
Shares used in diluted EPS calculation 36,340 36,745 36,714 36,860
Impact of benefit from note hedge (1,187) (1,509) (1,468) (1,403)
Shares used in Adjusted non-GAAP diluted EPS calculation 35,153 35,236 35,246 35,457
Adjusted North America Earnings from Operations:
GAAP EFO from North America segment $ 82,262  $ 74,269  $ 251,095  $ 192,309 
Amortization of intangible assets 8,468  7,372  23,172  22,229 
Other 7,792  1,999  12,534  (4,361)
Adjusted non-GAAP EFO from North America segment $ 98,522  $ 83,640  $ 286,801  $ 210,177 
GAAP EFO as a percentage of net sales 3.9  % 3.7  % 3.9  % 3.5  %
Adjusted non-GAAP EFO as a percentage of net sales 4.7  % 4.1  % 4.5  % 3.9  %
 - MORE -
Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
September 30,		 Nine Months Ended September 30,
2022 2021 2022 2021
Adjusted EMEA Earnings from Operations:
GAAP EFO from EMEA segment $ 4,210  $ 4,988  $ 33,554  $ 34,410 
Amortization of intangible assets 404  494  1,291  1,491 
Other 35  397  1,310  1,135 
Adjusted non-GAAP EFO from EMEA segment $ 4,649  $ 5,879  $ 36,155  $ 37,036 
GAAP EFO as a percentage of net sales 1.1  % 1.3  % 2.5  % 2.7  %
Adjusted non-GAAP EFO as a percentage of net sales 1.2  % 1.5  % 2.7  % 2.9  %
Adjusted APAC Earnings from Operations:
GAAP EFO from APAC segment $ 3,807  $ 3,894  $ 15,035  $ 11,925 
Amortization of intangible assets 114  122  352  377 
Other 2  —  2  9 
Adjusted non-GAAP EFO from APAC segment $ 3,923  $ 4,016  $ 15,389  $ 12,311 
GAAP EFO as a percentage of net sales 6.9  % 8.4  % 8.4  % 7.5  %
Adjusted non-GAAP EFO as a percentage of net sales 7.1  % 8.7  % 8.6  % 7.8  %
Adjusted EBITDA:
GAAP consolidated net earnings $ 57,316 $ 55,483 $ 203,131 $ 157,212
Interest expense 12,376 10,529 30,306 30,291
Income tax expense 19,460 18,925 68,130 52,403
Depreciation and amortization of property and equipment 6,449 5,665 17,389 18,054
Amortization of intangible assets 8,986 7,988 24,815 24,097
Other 7,829 2,396 13,846 (3,217)
Adjusted non-GAAP EBITDA $ 112,416 $ 100,986 $ 357,617 $ 278,840
GAAP consolidated net earnings as a percentage of net sales 2.3% 2.3% 2.6% 2.3%
Adjusted non-GAAP EBITDA as a percentage of net sales 4.4% 4.1% 4.5% 4.1%
 - MORE -
Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Twelve Months Ended
September 30,
2022 2021
Adjusted return on invested capital:
GAAP consolidated EFO $ 393,101 $ 321,686
Amortization of intangible assets 32,763 32,077
Other 15,429 (2,096)
Adjusted non-GAAP consolidated EFO* 441,293 351,667
Income tax expense** 114,736 91,433
Adjusted non-GAAP consolidated EFO, net of tax $ 326,557 $ 260,234
Average stockholders’ equity*** $ 1,546,245 $ 1,367,940
Average debt*** 757,603 432,693
Average cash*** (120,026) (111,493)
Invested Capital $ 2,183,822 $ 1,689,140
Adjusted non-GAAP ROIC (from GAAP consolidated EFO) **** 13.32  % 14.09  %
Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO) *****
 14.95  % 15.41  %
*The adjusted non-GAAP consolidated EFO amount used for the Adjusted non-GAAP ROIC calculation excludes amortization of intangible assets. This calculation remains consistent with the metric utilized in management’s compensation plan.
**    Assumed tax rate of 26.0%.
***    Average of previous five quarters.
****    Computed as GAAP consolidated EFO, net of tax of $102,206 and $83,638 for the twelve months ended September 30, 2022 and 2021, respectively, divided by invested capital.
*****    Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital.
###
EX-99.2 3 q32022-earningspresentat.htm EX-99.2 q32022-earningspresentat
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 1 Insight Enterprises, Inc. Third Quarter 2022 Earnings Conference Call and Webcast

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 2 Disclosures ◦ Safe harbor statement This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 related to Insight’s plans and expectations. Statements that are not historical facts, including those related to coronavirus strain COVID-19 (“COVID-19”), our future responses to and the impact of COVID-19 on our Company, our expectations about future financial results, our expectations regarding current supply constraints, our expectations regarding backlog shipments, future expected trends in the IT market and our opportunities for growth, are forward-looking statements. These forward-looking statements are subject to assumptions, risks and uncertainties which could cause actual results or future events to differ materially from such statements. The Company undertakes no obligation to update publicly or revise any of the forward-looking statements, except as otherwise required by law. More detailed information about forward-looking statements and risk factors is included in today’s press release and discussed in the Company’s most recently filed periodic reports and subsequent filings with the Securities and Exchange Commission. ◦ Non-GAAP measures This presentation will reference certain non-GAAP financial information as ‘Adjusted’. A reconciliation of non-GAAP financial measures presented in this document to our actual GAAP results is attached to the back of this presentation and included in the press release issued today, which you may find on the Investor Relations section of our website at investor.insight.com. These non-GAAP measures are used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company’s competitors’ results and assist in forecasting performance for future periods. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. ◦ Constant currency In some instances, the Company refers to changes in net sales, gross profit and earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 3 Table of Contents ◦ Solutions Integrator Strategy ◦ Areas of Expertise ◦ 2027 KPIs for Success ◦ Solutions at Work ◦ Third Quarter 2022 Highlights and Performance ◦ Liquidity and Debt Covenants ◦ 2022 Outlook ◦ Appendix

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 4 Our strategy is to become THE leading SOLUTIONS INTEGRATOR The pillars of our strategy are: Captivate Clients Sell Solutions Deliver Differentiation Champion our Culture Solutions Integrator Systems Integrator Reseller Distributor ≠

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 5 Well Positioned to Help Organizations

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 6 2027 KPIs for Success KPIs 2027 Existing: EBITDA Margin* 6.5% - 7.0% ROIC* >25% New Metrics: Core services GP | 5-year CAGR 16% - 20% Cloud GP | 5-year CAGR 16% - 20% Adjusted DEPS* | 5-year CAGR 19% - 22% Free cash flow as % Adjusted net income* >90% *Adjusted non-GAAP basis excludes (i) severance and restructuring expenses, (ii) certain recruitment and hiring-related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration-related expenses, (vi) debt discount amortization, and (vii) the tax effects of each of these items, as applicable. Note: Insight Core services is defined as services we deliver and manage. Free cash flow is defined as cash flow from operations minus capital expenditures.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 7 Innovation for Large Grocer Fuels Digital Growth The challenge: The results: • Optimize data so it can be monetized • Alleviate labor intensive tasks • Support goal to drive 50% of growth through digital sources • Support corporate initiative to introduce health clinics The solution: • Develop real time digital pricing to respond to changes in supply and demand • Utilize sensors to remotely adjust freezer temperatures and automatically adjust lighting • Develop a Mobile health application to support customer engagement in new health clinics • Significant time savings related to price updates • Contribution to digital growth • Improved sustainability • Improved customer engagement and experience

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 8 Fire Department Cuts Emergency Response Times in Half with Real-Time Data The challenge: The results: • Shift legacy data system to cloud- based infrastructure • Solution capable to manage hundreds of millions of pieces of incoming data • Develop a unified view of all incoming data with real-time reporting to support decision- making The solution: • Build solution around modern tools – Data Bricks, PowerBI • Utilize Insight developed IP (LENS) to ingest data from multiple sources, rapidly centralizing and structuring data to consume in business outcomes • Develop dashboard to see all vehicles and personnel in real time • Optimize staging of 15,000 vehicles and assets • 2X faster emergency response times • Improve safety and service for 4 million+ major metropolitan population • Real-time data supporting 3,000+ uniformed personnel

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 9 Q3 2022 Performance (Changes against prior year period) * See Appendix for reconciliation of non-GAAP measures ** Reference “Constant currency” section on slide 2 of this presentation *** For the twelve months ended September 30, 2022 $2.5B NET SALES increase of 4% constant currency up 6%** MARGINS & METRICS GROSS MARGIN 15.8% up 90 bps ADJUSTED SG&A* AS A PERCENT OF NET SALES 11.5% up 40 bps GAAP 12.2%, up 80 bps ADJUSTED SG&A* AS A PERCENT OF GROSS PROFIT 73.2% down 110 bps GAAP 77.2%, up 70 bps ADJUSTED EFO* MARGIN 4.2% up 40 bps GAAP 3.6%, up 20 bps $399M GROSS PROFIT increase of 10% 48% services as a percent of total gross profit*** 19% cloud as a percent of total gross profit*** SERVICE DELIVERY SCALE HEADCOUNT Consulting, Managed, Prof & Lifecycle >5,500 CASH FLOWS AND CASH CYCLE CASH CONVERSION CYCLE 46 DAYS up 9 days NET CASH FROM OPERATIONS Days sales outstanding (DSO) 7 days Days inventory outstanding (DIO) 4 days Days purchases outstanding (DPO) -2 days EARNINGS ADJUSTED EARNINGS FROM OPERATIONS (EFO)* $107M increase of 14% GAAP $90M, up 9% ADJUSTED DILUTED EARNINGS PER SHARE (DEPS)* $1.99 increase of 6% GAAP $1.58, up 5% SEGMENTS NORTH AMERICA EMEA** APAC** $2.1B increase of 4% NET SALES ADJUSTED EFO*GROSS PROFIT $380M increase of 12% $333M increase of 16% $99M increase of 18% $52M increase of 5% $55M increase of 21% $15M increase of 9% $4M decrease of 8% $5M increase of 27% $236M QTD/ $(206)M YTD

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 10 Trailing twelve months $2.5B NET SALES increase of 4% y/y constant currency up 6%** $399M GROSS PROFIT increase of 10% y/y $10.5B* increase of 15% y/y * For the twelve months ended September 30, 2022 ** Reference “Constant currency” section on slide 2 of this presentation $1.6B* increase of 14% y/y Trailing twelve months $2.4B $2.6B $2.7B $2.7B $2.5B Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 $8.3B $9.2B $9.4B $9.9B $10.4B $10.5B 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 $365M $385M $379M $438M $399M Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 $1.3B $1.4B $1.4B $1.5B $1.6B $1.6B 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 14.9% 15.0% 14.3% 16.0% 15.8% 15.6% 15.3% 15.3% 15.1% 15.0% 15.3% Gross Margin

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 11 Trailing twelve months $365M SERVICES NET SALES increase of 13% y/y $187M SERVICES GROSS PROFIT increase of 10% y/y $1.5B* increase of 15% y/y * For the twelve months ended September 30, 2022 $772M* increase of 13% y/y Trailing twelve months $323M $352M $341M $394M $365M Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 $170M $185M $176M $225M $187M Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 $625M $685M $708M $724M $756M $772M 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 $1,168M $1,266M $1,316M $1,357M $1,410M $1,452M 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 53% 53% 52% 57% 51% Gross Margin 53% 54% 54% 53% 54% 53%

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 12 Trailing twelve months $59M INSIGHT CORE SERVICES GROSS PROFIT increase of 9% y/y $82M CLOUD GROSS PROFIT increase of 27% y/y $246M* increase of 14% y/y * For the twelve months ended September 30, 2022 Note: Insight Core services is defined as services we deliver and manage. $312M* increase of 23% y/y Trailing twelve months $55M $58M $61M $67M $59M Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 $196M $215M $221M $231M $241M $246M 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 $65M $63M $64M $103M $82M Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 $218M $254M $264M $270M $294M $312M 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 26% 26% 27% 28% 25% Gross Margin 27% 27% 27% 27% 27% 27%

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 13 Trailing twelve months $107M EARNINGS increase of 14% y/y $1.99 ADJUSTED DILUTED EARNINGS PER SHARE** increase of 6% y/y $441M* increase of 25% y/y $8.61* increase of 26% y/y Trailing twelve months $94M $103M $90M $142M $107M Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 $322M $352M $362M $384M $428M $441M 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 $1.87 $2.03 $1.81 $2.78 $1.99 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 $6.19 $6.83 $7.10 $7.61 $8.49 $8.61 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 * For the twelve months ended September 30, 2022 ** See Appendix for reconciliation of non-GAAP measures ADJUSTED EARNINGS FROM OPERATIONS (EFO)**

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 14 Liquidity and Debt Covenants Twelve Months Ended September 30, US Dollars in $000s 2022 2021 Adjusted Consolidated EBITDA Net income $ 265,264 $ 210,600 Interest expense 41,213 40,838 Taxes 88,939 70,930 Depreciation and amortization of property and equipment 22,711 24,259 Amortization of intangible assets 32,763 32,077 Other* 15,429 (2,096) Adjusted consolidated EBITDA $ 466,319 $ 376,608 Add: Non-cash stock-based compensation 20,775 19,923 Less: Capital expenditures (83,338) (31,507) Adjusted consolidated EBITDAS for FCCR Ratio $ 403,756 $ 365,024 Taxes and interest** $ 109,181 $ 87,380 Fixed Charge Coverage Ratio 3.7 4.2 Fixed Charge Coverage $403,756 $109,181 EBITDA-Dividends-CAPEX Fixed Charges $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 Total Leverage Ratio $784,317 $487,094 Consolidated Funded Indebtedness Adjusted Consolidated EBITDAS $— $300,000 $600,000 $900,000 $1,200,000 * “Other” includes (i) severance and restructuring expenses, (ii) certain executive recruitment and hiring related expenses, (iii) transformation costs, and (iv) certain acquisition and integration related expenses. ** Tax Expense plus Interest Expense less non-cash imputed interest under the Company’s inventory financing facilities and the Company’s convertible notes. 3.7x 1.61x

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 15 2027 KPIs for Success KPIs TTM 9.30.2022 2027 Existing: EBITDA Margin* 4.4% 6.5% - 7.0% ROIC* 15.0% >25% New Metrics: Core services GP | 5-year CAGR 14% 16% - 20% Cloud GP | 5-year CAGR 30% 16% - 20% Adjusted DEPS* | 5-year CAGR 20% 19% - 22% Free cash flow as % Adjusted net income* Not meaningful >90% *Adjusted non-GAAP basis excludes (i) severance and restructuring expenses, (ii) certain recruitment and hiring-related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration-related expenses, (vi) debt discount amortization, and (vii) the tax effects of each of these items, as applicable. Note: Insight Core services is defined as services we deliver and manage. Free cash flow is defined as cash flow from operations minus capital expenditures.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 16 Full Year 2022 Outlook Assumptions: As of November 3, 2022 As of August 4, 2022 Full year net sales growth % change over prior year Low double digit Low double digit Interest expense $35 - $40 million $30 - $35 million Effective tax rate 25% - 26% 25% - 26% Adjusted diluted EPS* $8.65 - $8.75 $8.55 - $8.75 Average share count 35.1 to 35.2 million 35.4 million Capital expenditures $65 - $70 million $65 - $70 million Other Exclusions and Assumptions: • Excludes acquisition-related intangibles amortization expense of approximately $33 million (posted on website) • Assumes no acquisition or integration-related, transformation or severance and restructuring expenses • Assumes no significant change in our debt instruments * Adjusted diluted earnings per share excludes severance and restructuring expense and other unique items as well as amortization expense related to acquired intangibles. Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings and diluted earnings per share, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings and diluted earnings per share. Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2022 forecast.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 17 Appendix

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 18 Q3 2022 YTD | Financial Performance Nine Months Ended September 30, US Dollars in $000s, unless highlighted as constant currency* 2022 2021 Change Consolidated IEI Net sales $7,928,581 $6,870,090 15 % Net sales, constant currency 20 % Product net sales $6,828,726 $5,906,437 16 % Services net sales $1,099,855 $963,653 14 % Gross profit $1,216,008 $1,062,702 14 % Gross margin 15.3 % 15.5 % (20 bps) Gross profit, constant currency 15 % Product gross profit $628,943 $539,354 17 % Services gross profit $587,065 $523,348 12 % Selling, general, and administrative expenses $911,894 $827,275 10 % Selling, general, and administrative expenses, constant currency 13 % Adjusted selling, general, and administrative expenses** $877,663 $803,178 9 % Adjusted selling, general, and administrative expenses, constant currency** 12 % GAAP earnings from operations $299,684 $238,644 26 % Adjusted earnings from operations** $338,345 $259,524 30 % GAAP diluted earnings per share $5.53 $4.27 30 % Adjusted diluted earnings per share** $6.58 $5.08 30 % * Reference “Constant currency” section on slide 2 of this presentation ** See Appendix for reconciliation of non-GAAP measures

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 19 * See Appendix for reconciliation of non-GAAP measures Consolidated IEI Financial Metrics Three Months Ended Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Net Sales YoY 26 % 12 % 21 % 23 % 4 % Gross margin 14.9 % 15.0 % 14.3 % 16.0 % 15.8 % GAAP EFO $83.2M $93.4M $79.8M $129.6M $90.3M GAAP EFO YoY 35 % 12 % 19 % 46 % 9 % GAAP EFO Margin 3.4 % 3.6 % 3.0 % 4.7 % 3.6 % Adjusted EFO* $93.5M $102.9M $89.6M $141.7M $107.1M Adjusted EFO* YoY 30 % 12 % 31 % 45 % 14 % Adjusted EFO* Margin 3.8 % 4.0 % 3.4 % 5.2 % 4.2 % GAAP Diluted EPS $1.51 $1.69 $1.53 $2.42 $1.58 GAAP Diluted EPS YoY 37 % 13 % 30 % 53 % 5 % Adjusted Diluted EPS* $1.87 $2.03 $1.81 $2.78 $1.99 Adjusted Diluted EPS* YoY 36 % 15 % 39 % 46 % 6 % Trailing Twelve Months 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 Net Sales YoY 8 % 10 % 13 % 18 % 20 % 15 % Gross margin 15.6 % 15.3 % 15.3 % 15.1 % 15.0 % 15.3 % GAAP EFO $271.6M $321.7M $332.1M $344.9M $386.0M $393.1M GAAP EFO YoY 13 % 26 % 22 % 21 % 29 % 22 % GAAP EFO Margin 3.3 % 3.5 % 3.5 % 3.5 % 3.7 % 3.7 % Adjusted EFO* $322.4M $351.7M $362.5M $383.7M $427.7M $441.3M Adjusted EFO* YoY 14 % 13 % 12 % 18 % 30 % 25 % Adjusted EFO* Margin 3.9 % 3.8 % 3.8 % 3.9 % 4.1 % 4.2 % GAAP Diluted EPS $4.87 $5.77 $5.95 $6.30 $7.15 $7.22 GAAP Diluted EPS YoY 10 % 26 % 22 % 24 % 33 % 25 % Adjusted Diluted EPS* $6.19 $6.83 $7.10 $7.61 $8.49 $8.61 Adjusted Diluted EPS* YoY 14 % 14 % 15 % 23 % 34 % 26 %

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 20 Services Financial Metrics Three Months Ended Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Services Revenue $323M $352M $341M $394M $365M Services Revenue YoY 18% 17% 14% 16% 13% Services Gross Profit $170M $185M $176M $225M $187M Insight Core Services Gross Profit $55M $58M $61M $67M $59M Agent Services* Gross Profit $116M $127M $115M $157M $127M Services Gross Profit YoY 16% 14% 10% 16% 10% Insight Core Services Gross Profit YoY 19% 12% 20% 18% 9% Agent Services * Gross Profit YoY 15% 15% 6% 16% 10% Services Gross Margin 53% 53% 52% 57% 51% Insight Core Services Margin 26% 26% 27% 28% 25% Agent Services* Margin 100% 99% 100% 100% 100% Trailing Twelve Months 2020 Q3-21 2021 Q1-22 Q2-22 Q3-22 Services Revenue $1,168M $1,266M $1,316M $1,357M $1,410M $1,452M Services Revenue YoY 17% 9% 13% 16% 16% 15% Services Gross Profit $625M $685M $708M $724M $756M $772M Insight Core Services Gross Profit $196M $215M $221M $231M $241M $246M Agent Services* Gross Profit $429M $470M $487M $493M $514M $526M Services Gross Profit YoY 18% 13% 13% 14% 14% 13% Insight Core Services Gross Profit YoY 17% 5% 13% 18% 17% 14% Agent Services* Gross Profit YoY 18% 16% 14% 12% 13% 12% Services Gross Margin 53% 54% 54% 53% 54% 53% Insight Core Services Margin 27% 27% 27% 27% 27% 27% Agent Services* Margin 100% 100% 100% 100% 100% 100% Note 1: Insight Core services is defined as services we deliver and manage. Note 2: Numbers may not foot due to immaterial rounding. * Represents agent services other than those included in Insight Core services.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 21 Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended September 30, Nine Months Ended September 30, US Dollars in $000s, except per share data 2022 2021 2020 2022 2021 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 90,279 $ 83,151 $ 61,482 299,684 $ 238,644 Amortization of intangible assets 8,986 7,988 9,433 24,815 24,097 Other 7,829 2,396 926 13,846 (3,217) Adjusted non-GAAP consolidated EFO $ 107,094 $ 93,535 $ 71,841 $ 338,345 $ 259,524 GAAP EFO as a percentage of net sales 3.6 % 3.4 % 3.1 % 3.8 % 3.5 % Adjusted non-GAAP EFO as a percentage of net sales 4.2 % 3.8 % 3.7 % 4.3 % 3.8 % Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 57,316 $ 55,483 $ 38,906 $ 203,131 $ 157,212 Amortization of intangible assets 8,986 7,988 9,433 24,815 24,097 Amortization of debt discount and issuance costs — 3,049 2,919 — 9,045 Other 7,829 2,396 926 13,846 (3,217) Income taxes on non-GAAP adjustments (4,295) (3,172) (3,335) (9,773) (7,133) Adjusted non-GAAP consolidated net earnings $ 69,836 $ 65,744 $ 48,849 $ 232,019 $ 180,004 Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 1.58 $ 1.51 $ 1.10 $ 5.53 $ 4.27 Amortization of intangible assets 0.25 0.22 0.27 0.68 0.65 Amortization of debt discount and issuance costs — 0.08 0.08 — 0.25 Other 0.22 0.07 0.02 0.38 (0.09) Income taxes on non-GAAP adjustments (0.12) (0.09) (0.09) (0.27) (0.19) Impact of benefit from note hedge 0.06 0.08 — 0.26 0.19 Adjusted non-GAAP diluted EPS $ 1.99 $ 1.87 $ 1.38 $ 6.58 $ 5.08 Shares used in diluted EPS calculation 36,340 36,745 35,348 36,714 36,860 Impact of benefit from note hedge (1,187) (1,509) — (1,468) (1,403) Shares used in Adjusted non-GAAP diluted EPS calculation 35,153 35,236 35,348 35,246 35,457 * The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, (ii) certain executive recruitment and hiring-related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration-related expenses, (vi) debt discount amortization, and (vii) the tax effects of each of these items, as applicable.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 22 Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended September 30, US Dollars in $000s 2022 2021 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 82,262 $ 74,269 Amortization of intangible assets 8,468 7,372 Other 7,792 1,999 Adjusted non-GAAP EFO from North America segment $ 98,522 $ 83,640 Adjusted EMEA Earnings from Operations: GAAP EFO from EMEA segment $ 4,210 $ 4,988 Amortization of intangible assets 404 494 Other 35 397 Adjusted non-GAAP EFO from EMEA segment $ 4,649 $ 5,879 Adjusted APAC Earnings from Operations: GAAP EFO from APAC segment $ 3,807 $ 3,894 Amortization of intangible assets 114 122 Other 2 — Adjusted non-GAAP EFO from APAC segment $ 3,923 $ 4,016 * Adjusted earnings from operations excludes (i) severance and restructuring expenses, (ii) certain executive recruitment and hiring-related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration-related expenses, and (vi) the tax effects of each of these items, as applicable.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 23 Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) * The adjusted non-GAAP consolidated EFO amount used for the Adjusted non-GAAP ROIC calculation excludes amortization of intangible assets. This calculation remains consistent with the metric utilized in management’s compensation plan. ** Assumed tax rate of 26.0%. *** Average of previous five quarters. **** Computed as GAAP consolidated EFO, net of tax of $102,206 and $83,638 for the twelve months ended September 30, 2022 and September 30, 2021, respectively, divided by invested capital. ***** Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital. Twelve Months Ended September 30, US Dollars in $000s 2022 2021 Return on invested capital: GAAP consolidated EFO $ 393,101 $ 321,686 Amortization of intangible assets 32,763 32,077 Other 15,429 (2,096) Adjusted non-GAAP consolidated EFO * $ 441,293 $ 351,667 Income tax expense** 114,736 91,433 Adjusted non-GAAP consolidated EFO, net of tax $ 326,557 $ 260,234 Average stockholders’ equity*** $ 1,546,245 $ 1,367,940 Average debt*** 757,603 432,693 Average cash*** (120,026) (111,493) Invested Capital $ 2,183,822 $ 1,689,140 Adjusted non-GAAP ROIC (from GAAP consolidated EFO) **** 13.32 % 14.09 % Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO) ***** 14.95 % 15.41 %

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 24 Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Three Months Ended September 30, Nine Months Ended September 30, US Dollars in $000s 2022 2021 2022 2021 Adjusted Consolidated Selling and Administrative Expenses: GAAP selling and administrative expenses $ 308,253 $ 278,998 $ 911,894 $ 827,275 Less: Other* 16,089 7,988 34,231 24,097 Adjusted non-GAAP selling and administrative expenses $ 292,164 $ 271,010 $ 877,663 $ 803,178 GAAP selling and adminstrative expenses 12.2 % 11.4 % 11.5 % 12.1 % Adjusted non-GAAP selling and administrative expenses 11.5 % 11.1 % 11.1 % 11.7 % $ 7,928,581 $ 6,870,090 Adjusted North America Selling and Administrative Expenses: GAAP selling and administrative expenses $ 249,745 $ 219,714 $ 728,833 $ 640,420 Less: Other* 15,571 7,372 32,588 22,229 Adjusted non-GAAP selling and administrative expenses $ 234,174 $ 212,342 $ 696,245 $ 618,191 GAAP selling and adminstrative expenses 11.9 % 10.9 % 11.4 % 11.8 % Adjusted non-GAAP selling and administrative expenses 11.2 % 10.5 % 10.9 % 11.4 % $ 4,311,949 $ 5,434,286 * “Other” includes (i) amortization of intangible assets, (ii) certain executive recruitment and hiring-related expenses, and (iii) transformation costs.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 25 Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Three Months Ended September 30, Nine Months Ended September 30, US Dollars in $000s 2022 2021 2022 2021 Adjusted EMEA Selling and Administrative Expenses: GAAP selling and administrative expenses $ 47,527 $ 50,062 $ 151,225 $ 159,466 Less: Other* 404 494 1,291 1,491 Adjusted non-GAAP selling and administrative expenses $ 47,123 $ 49,568 $ 149,934 $ 157,975 GAAP selling and adminstrative expenses 12.5 % 13.1 % 11.3 % 12.5 % Adjusted non-GAAP selling and administrative expenses 12.4 % 13.0 % 11.2 % 12.4 % $ 1,337,338,000 $ 1,277,658,000 Adjusted APAC Selling and Administrative Expenses: GAAP selling and administrative expenses $ 10,981 $ 9,222 31,836 27,389 Less: Other* 114 122 352 377 Adjusted non-GAAP selling and administrative expenses $ 10,867 $ 9,100 $ 31,484 $ 27,012 GAAP selling and adminstrative expenses 20.0 % 20.0 % 17.7 % 17.3 % Adjusted non-GAAP selling and administrative expenses 19.8 % 19.7 % 17.5 % 17.1 % $ 124,514 $ 158,146 * “Other” includes amortization of intangible assets.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 26 Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended December 31, Three Months Ended March 31, Three Months Ended June 30, US Dollars in $000s, except per share data 2020 2021 2021 2022 2021 2022 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 83,042 $ 93,417 $ 67,024 $ 79,849 $ 88,469 $ 129,556 Amortization of intangible assets 7,980 7,948 8,041 7,925 8,068 7,904 Other 1,121 1,583 (6,740) 1,783 1,127 4,234 Adjusted non-GAAP consolidated EFO $ 92,143 $ 102,948 $ 68,325 $ 89,557 $ 97,664 $ 141,694 GAAP EFO as a percentage of net sales 3.6 % 3.6 % 3.1 % 3.0 % 4.0% 4.7% Adjusted non-GAAP EFO as a percentage of net sales 4.0 % 4.0 % 3.1 % 3.4 % 4.4% 5.2% Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 53,388 $ 62,133 $ 43,168 $ 56,631 $ 58,561 $ 89,184 Amortization of intangible assets 7,980 7,948 8,041 7,925 8,068 7,904 Amortization of debt discount and issuance costs 2,949 3,079 2,983 — 3,013 — Other 1,121 1,583 (6,740) 1,783 1,127 4,234 Income taxes on non-GAAP adjustments (3,021) (3,192) (919) (2,400) (3,042) (3,079) Adjusted non-GAAP consolidated net earnings $ 62,417 $ 71,551 $ 46,533 $ 63,939 $ 67,727 $ 98,243 Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 1.50 $ 1.69 $ 1.18 $ 1.53 $ 1.58 $ 2.42 Amortization of intangible assets 0.23 0.22 0.22 0.21 0.21 0.21 Amortization of debt discount and issuance costs 0.08 0.08 0.08 — 0.08 — Other 0.03 0.04 (0.18) 0.05 0.03 0.11 Income taxes on non-GAAP adjustments (0.08) (0.09) (0.03) (0.06) (0.08) (0.08) Impact of benefit from note hedge — 0.09 0.03 0.08 0.09 0.12 Adjusted non-GAAP diluted EPS $ 1.76 $ 2.03 $ 1.30 $ 1.81 $ 1.91 $ 2.78 Shares used in diluted EPS calculation 35,523 36,871 36,699 36,981 37,135 36,821 Impact of benefit from note hedge — (1,604) (1,039) (1,677) (1,660) (1,539) Shares used in Adjusted non-GAAP diluted EPS calculation 35,523 35,267 35,660 35,304 35,475 35,282 * The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, (ii) certain executive recruitment and hiring-related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration-related expenses, (vi) debt discount amortization, and (vii) the tax effects of each of these items, as applicable.

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 27 Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) * The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, (ii) certain executive recruitment and hiring-related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration-related expenses, (vi) debt discount amortization, and (vii) the tax effects of each of these items, as applicable. US Dollars in $000s, except per share data 2019 TTM Q3-20 2020 TTM Q1-21 TTM Q2-21 TTM Q3-21 2021 TTM Q1-22 TTM Q2-22 TTM Q3-22 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 240,594 $ 255,549 $ 271,575 $ 285,736 $ 300,017 $ 321,686 $ 332,061 $ 344,886 $ 385,973 $ 393,101 Amortization of intangible assets 22,985 38,950 37,535 35,468 33,522 32,077 32,045 31,929 31,765 32,763 Other 18,268 17,654 13,278 2,928 (3,566) (2,096) (1,634) 6,889 9,996 15,429 Adjusted non-GAAP consolidated EFO $ 281,847 $ 312,153 $ 322,388 $ 324,132 $ 329,973 $ 351,667 $ 362,472 $ 383,704 $ 427,734 $ 441,293 GAAP EFO as a percentage of net sales 3.1 % 3.1 % 3.3 % 3.4 % 3.5 % 3.5 % 3.5 % 3.5 % 3.7 % 3.7 % Adjusted non-GAAP EFO as a percentage of net sales 3.6 % 3.7 % 3.9 % 3.9 % 3.8 % 3.8 % 3.8 % 3.9 % 4.1 % 4.2 % Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 159,407 $ 162,202 $ 172,640 $ 181,847 $ 194,023 $ 210,600 $ 219,345 $ 232,808 $ 263,431 $ 265,264 Amortization of intangible assets 22,985 38,950 37,535 35,468 33,522 32,077 32,045 31,929 31,765 32,763 Amortization of debt discount and issuance costs 4,223 11,461 11,585 11,737 11,864 11,994 12,124 9,141 6,128 3,079 Other 18,268 17,654 13,278 2,928 (3,566) (2,096) (1,634) 6,889 9,996 15,429 Income taxes on non-GAAP adjustments (10,073) (17,075) (15,583) (12,342) (10,317) (10,154) (10,325) (11,806) (11,843) (12,966) Adjusted non-GAAP consolidated net earnings $ 194,810 $ 213,192 $ 219,455 $ 219,638 $ 225,526 $ 242,421 $ 251,555 $ 268,961 $ 299,477 $ 303,569 Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 4.43 $ 4.57 $ 4.87 $ 5.09 $ 5.36 $ 5.77 $ 5.95 $ 6.30 $ 7.15 $ 7.22 Amortization of intangible assets 0.64 1.10 1.06 0.99 0.93 0.88 0.87 0.86 0.86 0.89 Amortization of debt discount and issuance costs 0.12 0.32 0.33 0.33 0.33 0.33 0.33 0.25 0.17 0.08 Other 0.51 0.50 0.37 0.08 (0.10) (0.06) (0.04) 0.19 0.27 0.42 Income taxes on non-GAAP adjustments (0.28) (0.48) (0.44) (0.35) (0.29) (0.28) (0.28) (0.32) (0.32) (0.35) Impact of benefit from note hedge — — — 0.06 0.12 0.19 0.27 0.33 0.36 0.35 Adjusted non-GAAP diluted EPS $ 5.42 $ 6.01 $ 6.19 $ 6.20 $ 6.35 $ 6.83 $ 7.10 $ 7.61 $ 8.49 $ 8.61 Shares used in diluted EPS calculation 35,959 35,502 35,444 35,708 36,176 36,526 36,863 36,933 36,855 36,753 Impact of benefit from note hedge — — — (260) (674) (1,052) (1,453) (1,612) (1,583) (1,501) Shares used in Adjusted non-GAAP diluted EPS calculation 35,959 35,502 35,444 35,448 35,502 35,474 35,410 35,321 35,272 35,252

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 28 Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures* * The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, (ii) certain executive recruitment and hiring- related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration-related expenses, (vi) debt discount amortization, and (vii) the tax effects of each of these items, as applicable. US Dollars in $000s, except per share data 2017 Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 90,683 Amortization of intangible assets 16,812 Amortization of debt discount and issuance costs — Other 15,977 Income taxes on non-GAAP adjustments (8,946) Tax expense related to U.S. federal tax reform 13,363 Adjusted non-GAAP consolidated net earnings $ 127,889 Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 2.50 Amortization of intangible assets 0.47 Amortization of debt discount and issuance costs — Other 0.44 Income taxes on non-GAAP adjustments (0.25) Impact of benefit from note hedge — Tax expense related to U.S. federal tax reform 0.37 Adjusted non-GAAP diluted EPS $ 3.53 Shares used in diluted EPS calculation 36,207 Impact of benefit from note hedge — Shares used in Adjusted non-GAAP diluted EPS calculation 36,207

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 29 Financial Results by Offering Category US Dollars in $000s Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Q3-22 Consolidated IEI by Offering Category Hardware $ 1,173,151 $ 1,399,661 $ 5,068,073 $ 1,315,025 $ 1,350,944 $ 1,592,495 $ 1,631,046 $ 5,889,510 $ 1,673,588 $ 1,731,116 $ 1,572,275 Software 488,417 589,677 2,104,082 577,995 538,234 531,744 582,644 2,230,617 636,699 618,126 596,922 Total Products 1,661,568 1,989,338 7,172,155 1,893,020 1,889,178 2,124,239 2,213,690 8,120,127 2,310,287 2,349,242 2,169,197 Agent Services 107,061 117,617 456,746 119,587 142,955 122,632 136,513 521,687 126,049 168,373 138,617 Insight Delivered Services 167,849 184,360 711,678 180,461 197,368 200,650 215,820 794,299 214,514 225,762 226,540 Total Services 274,910 301,977 1,168,424 300,048 340,323 323,282 352,333 1,315,986 340,563 394,135 365,157 Total Net Sales $ 1,936,478 $ 2,291,315 $ 8,340,579 $ 2,193,068 $ 2,229,501 $ 2,447,521 $ 2,566,023 $ 9,436,113 $ 2,650,850 $ 2,743,377 $ 2,534,354 Product Cost $ 1,500,312 $ 1,808,504 $ 6,497,001 $ 1,721,258 $ 1,715,729 $ 1,930,096 $ 2,013,825 $ 7,380,908 $ 2,107,209 $ 2,135,895 $ 1,956,679 Services Cost 128,603 140,157 543,636 140,336 147,089 152,880 167,343 607,648 164,780 169,593 $ 178,417 Total Cost of Goods Sold $ 1,628,915 $ 1,948,661 $ 7,040,637 $ 1,861,594 $ 1,862,818 $ 2,082,976 $ 2,181,168 $ 7,988,556 $ 2,271,989 $ 2,305,488 $ 2,135,096 Product Gross Profit $ 161,256 $ 180,834 $ 675,154 $ 171,762 $ 173,449 $ 194,143 $ 199,865 $ 739,219 $ 203,078 $ 213,347 $ 212,518 Services Gross Profit 146,307 161,820 624,788 159,712 193,234 170,402 184,990 708,338 175,783 224,542 $ 186,740 Total Gross Profit $ 307,563 $ 342,654 $ 1,299,942 $ 331,474 $ 366,683 $ 364,545 $ 384,855 $ 1,447,557 $ 378,861 $ 437,889 $ 399,258 % of Total Net Sales Hardware 61 % 61 % 61 % 60 % 61 % 65 % 64 % 62 % 63 % 63 % 62 % Software 25 % 26 % 25 % 26 % 24 % 22 % 23 % 24 % 24 % 23 % 24 % Total Products 86 % 87 % 86 % 86 % 85 % 87 % 86 % 86 % 87 % 86 % 86 % Agent Services 6 % 5 % 5 % 5 % 6 % 5 % 5 % 6 % 5 % 6 % 5 % Insight Delivered Services 9 % 8 % 9 % 8 % 9 % 8 % 8 % 8 % 8 % 8 % 9 % Total Services 14 % 13 % 14 % 14 % 15 % 13 % 14 % 14 % 13 % 14 % 14 % % of Total Services Net Sales Agent Services 39 % 39 % 39 % 40 % 42 % 38 % 39 % 40 % 37 % 43 % 38 % Insight Delivered Services 61 % 61 % 61 % 60 % 58 % 62 % 61 % 60 % 63 % 57 % 62 % Note: Numbers may not foot due to immaterial rounding

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 30 Appendix - Convertible Senior Notes Insight is required to settle the convertible notes principal/par value in cash with the excess being settled in shares resulting in dilution in GAAP reported Diluted Earnings Per Share (“DEPS”). The DEPS incremental shares for GAAP reporting purposes are not issued at the time of reporting and are a non-GAAP exclusion for the Company (up to the strike price of the warrants of $103.12). The bond hedge effectively raises the potential dilution point of the convertible notes and call spread from $68.32 up to $103.12, as illustrated below: Diluted Earnings Per Share (DEPS) incremental number of shares for various NSIT stock price examples:

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 31 Appendix - Convertible Senior Notes * No automatic redemption trigger, expect convertible notes will remain outstanding for foreseeable future. GAAP diluted earnings per share (DEPS) are for reporting purposes only, no incremental shares were actually issued. ** Principal amount would be settled in cash and only premium above $103.12 would result in actual shares being issued Insight Convertible Senior Notes - $350 Million Relevant NSIT stock prices: • Price at issuance - $51.56 • Conversion ratio price equivalent - $68.32 • Sales price conversion trigger - $88.82 • Bond hedge strike price - $68.32 • Warrants strike price - $103.12 Potential dilution to existing shareholders** Triggered potential additional shares in GAAP DEPS*