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0000932696false00009326962023-08-032023-08-03

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):  August 3, 2023
Image_0.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 August 3, 2023, Insight Enterprises, Inc. announced by press release its results of operations for the second quarter ended June 30, 2023. 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: August 3, 2023 By: /s/ Rachael A. Crump
Rachael A. Crump
Global Corporate Controller

EX-99.1 2 nsit-20230803xerx8kex991.htm EX-99.1 Document
EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
NASDAQ: NSIT
INSIGHT ENTERPRISES, INC. REPORTS
SECOND QUARTER RESULTS
CHANDLER, AZ – August 3, 2023 – Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter ended June 30, 2023.  Highlights include:

•Gross profit decreased 1% year to year to $433.2 million with gross margin expanding 240 basis points to a record 18.4%
•Insight Core Services gross profit grew 7% and Cloud gross profit grew 12%
•Earnings from operations decreased 8% year to year to $118.6 million
•Adjusted earnings from operations decreased 8% year to year to $129.7 million
•Diluted earnings per share of $2.17 decreased 10% year to year
•Adjusted diluted earnings per share of $2.56 decreased 8% year to year
•Cash flows provided by operating activities were $27.8 million and $188.0 million for the three and six months ended June 30, 2023, respectively

In the second quarter of 2023, gross profit decreased 1% and net sales were down 14%, year to year, while gross margin expanded 240 basis points compared to the second quarter of 2022 to a record 18.4%.  Earnings from operations of $118.6 million decreased 8% compared to $129.6 million in the second quarter of 2022. Consolidated net earnings were $80.5 million or 3.4% of net sales. Adjusted consolidated net earnings were $88.5 million or 3.8% of net sales. Diluted earnings per share for the quarter was $2.17, down 10%, year to year and Adjusted diluted earnings per share was $2.56, down 8%, year to year.

“The second quarter was more challenging than expected.” stated Joyce Mullen, President and Chief Executive Officer. “Although we did not achieve the overall results we anticipated, we are pleased with many of our key performance indicators that confirm we are making progress on our strategic and financial goals, including record gross margin, continued growth in Insight Core services and Cloud gross profit, and record Adjusted EBITDA margin of 5.9%” Mullen stated.

KEY HIGHLIGHTS

Results for the Quarter:
•Consolidated net sales for the second quarter of 2023 of $2.3 billion decreased 14%, year to year, when compared to the second quarter of 2022. Product net sales decreased 17%, year to year, and services net sales increased 2%, year over year.
•Net sales in North America decreased 16%, year to year, to $1.9 billion;
◦Product net sales decreased 18%, year to year, to $1.6 billion;
◦Services net sales increased 1%, year over year, to $314.7 million;
•Net sales in EMEA decreased 8%, year to year, to $391.7 million; and
•Net sales in APAC decreased 13%, year to year, to $60.7 million.
•Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales decreased 14%, year to year, with declines in net sales in North America, EMEA and APAC of 15%, 8% and 8%, year to year, respectively.
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958

•Consolidated gross profit decreased 1% compared to the second quarter of 2022 to $433.2 million, with consolidated gross margin expanding 240 basis points to a record 18.4% of net sales. Product gross profit decreased 8%, year to year, and services gross profit increased 6%, year over year. Cloud gross profit grew 12%, year over year and Insight core services gross profit increased 7%, year over year. By segment, gross profit:
•decreased 2% in North America, year to year, to $343.1 million (18.1% gross margin);
•increased 4% in EMEA, year over year, to $72.0 million (18.4% gross margin); and
•was flat in APAC, year to year, at $18.0 million (29.7% gross margin).
•Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit was down 1%, year to year, with gross profit decline in North America of 2%, year to year, partially offset by gross profit growth in EMEA and APAC of 3% and 5%, respectively, year over year.
•Consolidated earnings from operations decreased 8% compared to the second quarter of 2022 to $118.6 million, or a record 5.0% of net sales. By segment, earnings from operations:
•decreased 8% in North America, year to year, to $95.4 million, or 5.0% of net sales;
•decreased 9% in EMEA, year to year, to $16.3 million, or 4.2% of net sales; and
•decreased 6% in APAC, year to year, to $6.9 million, or 11.4% of net sales.
•Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations were down 8%, year to year, with decreased earnings from operations in North America, EMEA and APAC of 8%, 11% and 2%, year to year, respectively.
•Adjusted earnings from operations decreased 8% compared to the second quarter of 2022 to $129.7 million, or a record 5.5% of net sales. By segment, adjusted earnings from operations:
•decreased 9% in North America, year to year, to $105.0 million, or 5.5% of net sales;
•decreased 5% in EMEA, year to year, to $17.7 million, or 4.5% of net sales; and
•decreased 5% in APAC, year to year, to $7.1 million, or 11.6% of net sales.
•Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations were down 8%, year to year, with decreased Adjusted earnings from operations in North America, EMEA and APAC of 9%, 7% and 1%, respectively, year to year.
•Consolidated net earnings and diluted earnings per share for the second quarter of 2023 were $80.5 million and $2.17, respectively, at an effective tax rate of 26.3%.
•Adjusted consolidated net earnings and Adjusted diluted earnings per share for the second quarter of 2023 were $88.5 million and $2.56, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share decreased 8% year to year.
In discussing financial results for the three and six months ended June 30, 2023 and 2022 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 earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In addition, the Company refers to changes in Adjusted diluted earnings per share on a consolidated basis 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 2023, the Company now expects Adjusted diluted earnings per share to be between $9.40 and $9.60. We expect to deliver gross profit growth in the low to mid single digit range.
This outlook assumes:
•interest expense of $46 to $48 million;
•an effective tax rate of 26% for the full year;
•capital expenditures of $45 to $50 million; and
•an average share count for the full year of 34.8 million shares including estimated potential dilution from the warrants relating to the Call Spread Transactions (as defined below), net of share repurchases completed in the first six months of 2023.
This outlook excludes acquisition-related intangibles amortization expense of approximately $32 million, assumes no acquisition or integration related expenses, transformation or severance and restructuring expenses, net 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 2023 forecast.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and live webcast today at 9:00 a.m. ET to discuss second quarter 2023 results of operations.  A live webcast 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 webcast 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 the event link on the Company's web site.  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, net, (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. Transformation costs represent costs we are incurring to transform our business, to help us achieve our strategic objectives, including becoming a leading solutions integrator. 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 second quarter of 2023 was in excess of $68.32, which is the initial conversion price of the convertible senior notes.  Adjusted EBITDA excludes (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, net, (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, net, (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.  
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.
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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
June 30,		 Six Months Ended
June 30,
2023 2022 change 2023 2022 change
Insight Enterprises, Inc.
Net sales:
Products $ 1,945,609 $ 2,349,242 (17%) $ 3,913,254 $ 4,659,529 (16%)
Services $ 403,987 $ 394,135 2% $ 760,289 $ 734,698 3%
Total net sales $ 2,349,596 $ 2,743,377 (14%) $ 4,673,543 $ 5,394,227 (13%)
Gross profit $ 433,190 $ 437,889 (1%) $ 824,505 $ 816,750 1%
Gross margin 18.4% 16.0% 240 bps 17.6% 15.1% 250 bps
Selling and administrative expenses $ 318,243 $ 306,001 4% $ 628,244 $ 603,641 4%
Severance and restructuring expenses, net $ (3,770) $ 692 (> 100%) $ 32 $ 2,064 (> 100%)
Acquisition and integration related expenses $ 106 $ 1,640 (94%) $ 157 $ 1,640  (90%)
Earnings from operations $ 118,611 $ 129,556 (8%) $ 196,072 $ 209,405 (6%)
Net earnings $ 80,482 $ 89,184 (10%) $ 130,454 $ 145,815 (11%)
Diluted earnings per share $ 2.17 $ 2.42 (10%) $ 3.51 $ 3.95 (11%)
North America
Net sales:
Products $ 1,582,454 $ 1,936,481 (18%) $ 3,132,890 $ 3,729,347 (16%)
Services $ 314,712 $ 310,963 1% $ 598,240 $ 582,602 3%
Total net sales $ 1,897,166 $ 2,247,444 (16%) $ 3,731,130 $ 4,311,949 (13%)
Gross profit $ 343,142 $ 350,266 (2%) $ 658,286 $ 650,350 1%
Gross margin 18.1% 15.6% 250 bps 17.6% 15.1% 250 bps
Selling and administrative expenses $ 252,285 $ 243,868 3% $ 501,105 $ 479,088 5%
Severance and restructuring expenses, net $ (4,685) $ 485 (> 100%) $ (1,598) $ 789 (> 100%)
Acquisition and integration related expenses $ 106 $ 1,640 (94%) $ 157 $ 1,640 (90%)
Earnings from operations $ 95,436 $ 104,273 (8%) $ 158,622 $ 168,833 (6%)
Sales Mix **
Hardware 61  % 69  % (25%) 62  % 69  % (23%)
Software 22  % 17  % 11% 22  % 17  % 13%
Services 17  % 14  % 1% 16  % 14  % 3%
100  % 100  % (16%) 100  % 100  % (13%)
EMEA
Net sales:
Products $ 328,280 $ 368,381 (11%) $ 705,731 $ 851,406 (17%)
Services $ 63,446 $ 57,950 9% $ 112,999 $ 106,358 6%
Total net sales $ 391,726 $ 426,331 (8%) $ 818,730 $ 957,764 (15%)
Gross profit $ 72,047 $ 69,547 4% $ 132,935 $ 134,317 (1%)
Gross margin 18.4% 16.3% 210 bps 16.2% 14.0% 220 bps
Selling and administrative expenses $ 54,913 $ 51,372 7% $ 104,818 $ 103,698 1%
Severance and restructuring expenses $ 867 $ 207 > 100% $ 1,569 $ 1,275 23%
Earnings from operations $ 16,267 $ 17,968 (9%) $ 26,548 $ 29,344 (10%)
Sales Mix **
Hardware 34  % 36  % (15%) 36  % 38  % (19%)
Software 50  % 50  % (8%) 50  % 51  % (15%)
Services 16  % 14  % 9% 14  % 11  % 6%
100  % 100  % (8%) 100  % 100  % (15%)
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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
June 30,		 Six Months Ended
June 30,
2023 2022 change 2023 2022 change
APAC
Net sales:
Products $ 34,875 $ 44,380 (21%) $ 74,633 $ 78,776 (5%)
Services $ 25,829 $ 25,222 2% $ 49,050 $ 45,738 7%
Total net sales $ 60,704 $ 69,602 (13%) $ 123,683 $ 124,514 (1%)
Gross profit $ 18,001 $ 18,076 —% $ 33,284 $ 32,083 4%
Gross margin 29.7% 26.0% 370 bps 26.9% 25.8% 110 bps
Selling and administrative expenses $ 11,045 $ 10,761 3% $ 22,321 $ 20,855 7%
Severance and restructuring expenses $ 48 $ — * $ 61 $ — *
Earnings from operations $ 6,908 $ 7,315 (6%) $ 10,902 $ 11,228 (3%)
Sales Mix **
Hardware 21  % 23  % (20%) 19  % 22  % (17)%
Software 36  % 41  % (22%) 41  % 41  % 1%
Services 43  % 36  % 2% 40  % 37  % 7%
100  % 100  % (13%) 100  % 100  % (1%)
*    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, webcast 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 impact of inflation and higher interest rates, the Company’s future financial performance and results of operations, including gross profit 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 including our expectations for future planned share repurchases in 2023, the Company’s expectations that note holders will not convert the Company’s convertible senior notes (the “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 the “Risk Factors” sections of the Company’s most recently filed annual report on Form 10-K:
•actions of our competitors, including manufacturers and publishers of products we sell;
•our reliance on our 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;
•our ability to keep pace with rapidly evolving technological advances and the evolving competitive marketplace;
•general economic conditions, economic uncertainties and changes in geopolitical conditions, including the possibility of a recession or as a result of the ongoing war between Russia and Ukraine;
•changes in the IT industry and/or rapid changes in technology;
•our ability to provide high quality services to our clients;
•accounts receivable risks, including increased credit loss experience or extended payment terms with our clients;
•our reliance on independent shipping companies;
•the risks associated with our international operations;
•supply constraints for products;
•the duration and severity of the coronavirus strain COVID-19 pandemic and its effects on our business, results of operations and financial condition, as well as the widespread outbreak of any other illnesses or communicable diseases;
•natural disasters or other adverse occurrences;
•disruptions in our IT systems and voice and data networks;
•cyberattacks or breaches of data privacy and security regulations;
•intellectual property infringement claims and challenges to our 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 our commercial and public sector contracts;
•exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;
•our potential to draw down a substantial amount of indebtedness;
•the conditional conversion feature of the Notes, which has 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 notes (the "Call Spread Transactions");
•increased debt and interest expense and the possibility of decreased availability of funds under our financing facilities;
•possible significant fluctuations in our future operating results as well as seasonality and variability in client demands;
•our dependence on certain key personnel and our ability to attract, train and retain skilled teammates;
•risks associated with the integration and operation of acquired businesses, including achievement of expected synergies and benefits; and
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Insight Enterprises, Inc. 2701 E. Insight Way Chandler, Arizona 85286 800.467.4448 FAX 480.760.8958

•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
June 30,		 Six Months Ended
June 30,
2023 2022 2023 2022
Net sales:
Products $ 1,945,609  $ 2,349,242  $ 3,913,254  $ 4,659,529 
Services 403,987  394,135  760,289  734,698 
Total net sales 2,349,596  2,743,377  4,673,543  5,394,227 
Costs of goods sold:
Products 1,749,448  2,135,895  3,522,177  4,243,104 
Services 166,958  169,593  326,861  334,373 
Total costs of goods sold 1,916,406  2,305,488  3,849,038  4,577,477 
Gross profit 433,190  437,889  824,505  816,750 
Operating expenses:
Selling and administrative expenses 318,243  306,001  628,244  603,641 
Severance and restructuring expenses, net (3,770) 692  32  2,064 
Acquisition and integration related expenses 106  1,640  157  1,640 
Earnings from operations 118,611  129,556  196,072  209,405 
Non-operating (income) expense:
Interest expense, net 9,405  9,383  19,753  17,451 
Other (income) expense, net (60) 312  692  (2,531)
Earnings before income taxes 109,266  119,861  175,627  194,485 
Income tax expense 28,784  30,677  45,173  48,670 
Net earnings $ 80,482  $ 89,184  $ 130,454  $ 145,815 
Net earnings per share:
Basic $ 2.43  $ 2.54  $ 3.91  $ 4.16 
Diluted $ 2.17  $ 2.42  $ 3.51  $ 3.95 
Shares used in per share calculations:
Basic 33,101  35,083  33,403  35,028 
Diluted 37,039  36,821  37,123  36,901 
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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)
June 30,
2023		 December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents $ 195,954  $ 163,637 
Accounts receivable, net 3,666,077  3,272,371 
Inventories 248,188  265,154 
Other current assets 229,556  199,506 
Total current assets 4,339,775  3,900,668 
Property and equipment, net 201,646  204,260 
Goodwill 494,979  493,033 
Intangible assets, net 189,383  204,998 
Other assets 316,548  309,622 
$ 5,542,331  $ 5,112,581 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable – trade $ 2,224,378  $ 1,785,076 
Accounts payable – inventory financing facilities 333,096  301,314 
Accrued expenses and other current liabilities 408,645  433,789 
Current portion of long-term debt 347,115  346,228 
Total current liabilities 3,313,234  2,866,407 
Long-term debt 337,950  291,672 
Deferred income taxes 32,194  32,844 
Other liabilities 289,998  283,590 
3,973,376  3,474,513 
Stockholders’ equity:
Preferred stock —  — 
Common stock 326  340 
Additional paid-in capital 318,078  327,872 
Retained earnings 1,297,558  1,368,658 
Accumulated other comprehensive loss – foreign currency translation adjustments
 (47,007) (58,802)
Total stockholders’ equity 1,568,955  1,638,068 
$ 5,542,331  $ 5,112,581 
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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)
Six Months Ended
June 30,
2023 2022
Cash flows from operating activities:
Net earnings $ 130,454  $ 145,815 
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization 29,148  26,769 
Provision for losses on accounts receivable 2,585  2,743 
Non-cash stock-based compensation 16,663  10,434 
Deferred income taxes (1,231) (575)
Amortization of debt issuance costs 2,430  3,268 
Other adjustments (2,801) 1,810 
Changes in assets and liabilities:
Increase in accounts receivable (368,612) (734,971)
Decrease (increase) in inventories 14,596  (56,811)
Increase in other assets (34,877) (53,802)
Increase in accounts payable 420,349  223,198 
Decrease in accrued expenses and other liabilities (20,744) (9,875)
Net cash provided by (used in) operating activities: 187,960  (441,997)
Cash flows from investing activities:
Proceeds from sale of assets 15,515  1,350 
Purchases of property and equipment (13,202) (47,256)
Acquisitions, net of cash and cash equivalents acquired —  (68,248)
Net cash provided by (used in) investing activities: 2,313  (114,154)
Cash flows from financing activities:
Borrowings on ABL revolving credit facility 2,259,356  2,592,440 
Repayments on ABL revolving credit facility (2,214,246) (1,924,965)
Net borrowings (repayments) under inventory financing facilities 30,848  (62,119)
Repurchases of common stock (217,108) — 
Earn out payments (10,748) — 
Other payments (9,161) (6,938)
Net cash (used in) provided by financing activities: (161,059) 598,418 
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances 3,050  (8,606)
Increase in cash, cash equivalents and restricted cash 32,264  33,661 
Cash, cash equivalents and restricted cash at beginning of period 165,718  105,977 
Cash, cash equivalents and restricted cash at end of period $ 197,982  $ 139,638 
 - 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
June 30,		 Six Months Ended
June 30,
2023 2022 2023 2022
Adjusted Consolidated Earnings from Operations:
GAAP consolidated EFO $ 118,611 $ 129,556 $ 196,072 $ 209,405
Amortization of intangible assets 8,285 7,904 16,595 15,829
Other* 2,812 4,234 10,998 6,017
Adjusted non-GAAP consolidated EFO $ 129,708 $ 141,694 $ 223,665 $ 231,251
GAAP EFO as a percentage of net sales 5.0% 4.7% 4.2% 3.9%
Adjusted non-GAAP EFO as a percentage of net sales 5.5% 5.2% 4.8% 4.3%
Adjusted Consolidated Net Earnings:
GAAP consolidated net earnings $ 80,482 $ 89,184 $ 130,454 $ 145,815
Amortization of intangible assets 8,285 7,904 16,595 15,829
Other* 2,812 4,234 10,998 6,017
Income taxes on non-GAAP adjustments (3,032) (3,078) (7,233) (5,478)
Adjusted non-GAAP consolidated net earnings $ 88,547 $ 98,244 $ 150,814 $ 162,183
Adjusted Diluted Earnings Per Share:
GAAP diluted EPS $ 2.17  $ 2.42  $ 3.51  $ 3.95 
Amortization of intangible assets 0.22  0.21  0.45  0.43 
Other 0.08  0.11  0.30  0.16 
Income taxes on non-GAAP adjustments (0.08) (0.08) (0.19) (0.15)
Impact of benefit from note hedge 0.17  0.12  0.27  0.21 
Adjusted non-GAAP diluted EPS $ 2.56  $ 2.78  $ 4.34  $ 4.60 
Shares used in diluted EPS calculation 37,039 36,821 37,123 36,901
Impact of benefit from note hedge (2,516) (1,539) (2,413) (1,608)
Shares used in Adjusted non-GAAP diluted EPS calculation 34,523 35,282 34,710 35,293
Adjusted North America Earnings from Operations:
GAAP EFO from North America segment $ 95,436  $ 104,273  $ 158,622  $ 168,833 
Amortization of intangible assets 7,766  7,356  15,551  14,704 
Other* 1,757  4,027  9,094  4,742 
Adjusted non-GAAP EFO from North America segment $ 104,959  $ 115,656  $ 183,267  $ 188,279 
GAAP EFO as a percentage of net sales 5.0  % 4.6  % 4.3  % 3.9  %
Adjusted non-GAAP EFO as a percentage of net sales 5.5  % 5.1  % 4.9  % 4.4  %
 - 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
June 30,		 Six Months Ended
June 30,
2023 2022 2023 2022
Adjusted EMEA Earnings from Operations:
GAAP EFO from EMEA segment $ 16,267  $ 17,968  $ 26,548  $ 29,344 
Amortization of intangible assets 408  430  820  887 
Other 1,007  207  1,843  1,275 
Adjusted non-GAAP EFO from EMEA segment $ 17,682  $ 18,605  $ 29,211  $ 31,506 
GAAP EFO as a percentage of net sales 4.2  % 4.2  % 3.2  % 3.1  %
Adjusted non-GAAP EFO as a percentage of net sales 4.5  % 4.4  % 3.6  % 3.3  %
Adjusted APAC Earnings from Operations:
GAAP EFO from APAC segment $ 6,908  $ 7,315  $ 10,902  $ 11,228 
Amortization of intangible assets 111  118  224  238 
Other 48  —  61  — 
Adjusted non-GAAP EFO from APAC segment $ 7,067  $ 7,433  $ 11,187  $ 11,466 
GAAP EFO as a percentage of net sales 11.4  % 10.5  % 8.8  % 9.0  %
Adjusted non-GAAP EFO as a percentage of net sales 11.6  % 10.7  % 9.0  % 9.2  %
Adjusted EBITDA:
GAAP consolidated net earnings $ 80,482 $ 89,184 $ 130,454 $ 145,815
Interest expense 11,056 9,582 22,744 17,930
Income tax expense 28,784 30,677 45,173 48,670
Depreciation and amortization of property and equipment 6,200 5,551 12,553 10,940
Amortization of intangible assets 8,285 7,904 16,595 15,829
Other* 2,812 4,234 10,998 6,017
Adjusted non-GAAP EBITDA $ 137,619 $ 147,132 $ 238,517 $ 245,201
GAAP consolidated net earnings as a percentage of net sales 3.4% 3.3% 2.8% 2.7%
Adjusted non-GAAP EBITDA as a percentage of net sales 5.9% 5.4% 5.1% 4.5%

*    Includes transformation costs of $6.2 million and $1.6 million for the three months ended June 30, 2023 and 2022, respectively, and $10.3 million and $1.6 million for the six months ended June 30, 2023 and 2022, respectively.
 - 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
June 30,
2023 2022
Adjusted return on invested capital:
GAAP consolidated EFO $ 400,367 $ 385,973
Amortization of intangible assets 33,658 31,765
Other5
 24,999 9,996
Adjusted non-GAAP consolidated EFO 459,024 427,734
Income tax expense1
 119,346 111,211
Adjusted non-GAAP consolidated EFO, net of tax $ 339,678 $ 316,523
Average stockholders’ equity2
 $ 1,602,902 $ 1,502,453
Average debt2
 737,496 631,123
Average cash2
 (161,900) (114,258)
Invested Capital $ 2,178,498 $ 2,019,318
Adjusted non-GAAP ROIC (from GAAP consolidated EFO)3
 13.60  % 14.14  %
Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO)4
 15.59  % 15.67  %
1 Assumed tax rate of 26.0%.
2 Average of previous five quarters.
3 Computed as GAAP consolidated EFO, net of tax of $104,095 and $100,353 for the twelve months ended June 30, 2023 and 2022, respectively, divided by invested capital.
4 Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital.
5 Includes transformation costs of $21.1 million and $1.6 million for the twelve months ended June 30, 2023 and 2022, respectively.
###
EX-99.2 3 ex-992xearningspresentat.htm EX-99.2 ex-992xearningspresentat
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2023 Insight Direct USA, Inc. All Rights Reserved. 1 Insight Enterprises, Inc. Second Quarter 2023 Earnings Conference Call and Webcast

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 23 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 our expectations about future financial results and the assumptions related thereto, our expectations regarding current supply constraints, our expectations regarding backlog shipments, our expectations relating to repurchases of our common stock, 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. Insight Enterprises, Inc. (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, earnings from operations and Adjusted earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In addition, the Company refers to changes in Adjusted diluted earnings per share on a consolidated basis 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. 33 Table of Contents ◦ Solutions Integrator Strategy ◦ Areas of Expertise ◦ Solutions at Work ◦ Industry and Partner Recognitions ◦ Second Quarter 2023 Highlights and Performance ◦ 2027 KPIs for Success ◦ Adjusted EBITDA and Debt Covenants ◦ 2023 Outlook ◦ Appendix

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 43 Our strategy is to become THE leading SOLUTIONS INTEGRATOR The pillars of our strategy are: Solutions Integrator Systems Integrator Reseller Distributor ≠ Captivate Clients Sell Solutions Deliver Differentiation Champion our Culture

 
5Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2023 Insight Direct USA, Inc. All Rights Reserved. Our services Managed Services Eliminate business disruption and strategically align resources Consulting Services Create competitive advantages and improve operations by aligning business goals to IT and product strategies Hardware, Software and Lifecycle Services Simplify supply chain and streamline costs across the global hardware and software lifecycle Intelligent Edge Gather and utilize data in the most efficient way possible to enable real-time decision- making and affect pivotal outcomes Data and Al Leverage analytics and Al to transform business operations and user experiences Modern Infrastructure Architect and modernize multicloud and networking solutions to drive business transformation Modern Apps Create new product experiences and transform legacy applications to drive increased business value Modern Workplace Create a productive, flexible and secure workplace Cybersecurity Mitigate risks and secure business assets Well Positioned to Help Organizations Our expertise

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 63 Early AI Client Stories • A recruiting firm wants to augment its recruiting process to retrieve job postings and other hiring metadata to reduce time to match candidates to roles • A technology distributor wants to take their proof- of-concept OpenAI conversational agent to production Information Synthesis for Faster Hiring: Conversational Agent: • Insight Lens for GenAI will be deployed to quickly design, build and deploy infrastructure to support the platform • Insight will provide recommendations and technical plans for their GenAI roadmap to improve efficiencies in information retrieval optimization and security management The challenge: The solution:

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 73 Machine Learning Brings New Hope for Better Patient Outcomes The challenge: The results: • A healthcare service provider wanted targeted treatment recommendations for patients with high blood pressure • The recommendations needed to be based on unique data, including patients' symptoms, medications and risk factors • Significantly improved predictive accuracy with ~800 patient data points informing ML model • More personalized care, improved patient quality of life • Healthcare cost savings and improved treatments for the hypertension patient population • Insight engaged to conduct a viability and workflow assessment of current hypertension treatments and use of Machine Learning (ML) in the environment • To improve predictive accuracy nearly 800 patient data points were used or engineered for every patient encounter • These data points were designed and assembled into a comprehensive Electronic Health Record data model The solution:

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 83 Industry and Partner Recognitions U.S. Best Places to Work International Best Places to Work No. 1 | Inland Northwest No. 2 | Phoenix Business Journal No. 4 | Columbus CEO Magazine No. 7 | Triangle Business Journal No. 9 | Phoenix Healthiest Employers No. 16 | Best Tech Internships No. 24 | Forbes Best Employers – Ohio No. 50 | Forbes Best Employers – Arizona No. 1 | Hong Kong Best Workplaces No. 1 | Singapore Best Workplaces in Tech No. 4 | Austria Best Workplaces No. 7 | Italy Best Workplaces No. 11 | UK Best Workplaces No. 11 | Australia Best Workplaces No. 12 | Italy Best for Diversity, Equity & Inclusion No. 13 | Spain Best Workplaces No. 16 | UK Best Workplaces for Wellbeing No. 22 | Best Workplaces in Europe No. 27 | UK Best Workplaces for Women Certified | Philippines Great Place to Work Certified | China Great Place to Work Certified | New Zealand Great Place to Work Canada | Montreal Gazette Top 100 Employers Canada | 50 Most Engaged Workplaces: Elite 8 • U.S. Azure Cloud Native App Development Partner of the Year • U.S. Retail & Consumer Goods Partner of the Year • Australia Partner of the Year • Hong Kong Partner of the Year • Western Europe Managed Service Provider Partner of the Year • EMEA Surface Reseller Partner of the Year • Canada Inclusion Changemaker Impact Award • Canada Modern Marketing Impact Award No. 379

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 93 Q2 2023 Performance (Changes against prior year period) NET SALES $2.3B decrease of 14% GROSS PROFIT $433M decrease of 1% 51% services gross profit as a % of total gross profit***, including 23% from cloud EARNINGS EARNINGS FROM OPERATIONS $119M decrease of 8% DILUTED EARNINGS PER SHARE $2.17 decrease of 10% SEGMENTS HEADCOUNT Skilled, certified consulting and service delivery professionals 5,300+ SERVICE DELIVERY SCALE ADJUSTED EARNINGS FROM OPERATIONS* $130M decrease of 8% ADJUSTED DILUTED EARNINGS PER SHARE* $2.56 decrease of 8% MARGINS RECORD GROSS MARGIN 18.4% up 240 bps RECORD EFO MARGIN 5.0% up 30 bps RECORD ADJUSTED EFO* MARGIN 5.5% up 30 bps CASH CONVERSION CYCLE 32 DAYS down 16 days Days sales outstanding (DSO) +21 days Days inventory outstanding (DIO) -3 days Days purchases outstanding (DPO) +(34) days NET CASH FROM OPERATIONS $28M Q2 2023 / $188M H1 2023 NET SALES GROSS PROFIT EFO ADJUSTED EFO* NORTH AMERICA $1.9B $343M $95M $105M decrease of 16% decrease of 2% decrease of 8% decrease of 9% EMEA $392M $72M $16M $18M decrease of 8% increase of 4% decrease of 9% decrease of 5% decrease of 8%** increase of 3%** decrease of 11%** decrease of 7%** APAC $61M $18M $7M $7M decrease of 13% flat YoY decrease of 6% decrease of 5% decrease of 8%** increase of 5%** decrease of 2%** decrease of 1%** CASH FLOWS AND CASH CYCLE * See Appendix for reconciliation of non-GAAP measures ** Reference “Constant currency” section on slide 2 of this presentation *** For the twelve months ended June 30, 2023

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 103 2027 KPIs for Success KPIs TTM Q2 2023 2027 Adjusted EBITDA Margin* 5.0% 6.5% - 7.0% Adjusted ROIC* 15.6% >25% Core services GP | 5-year CAGR** 13% 16% - 20% Cloud GP | 5-year CAGR** 23% 16% - 20% Adjusted DEPS* | 5-year CAGR** 12% 19% - 22% Adjusted free cash flow as % of Adjusted net earnings* 224% >90% *Adjusted non-GAAP basis excludes (i) severance and restructuring expenses, net, (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. Due to the inherent difficulty of forecasting these adjustments, which impact net earnings, diluted earnings per share, adjusted free cash flow, ROIC and EBITDA margin, the Company is unable to reasonably estimate the impact of such adjustments, if any, to net earnings, diluted earnings per share, adjusted free cash flow, ROIC and EBITDA. Accordingly, the Company is unable to provide a reconciliation for the 2027 forecast of GAAP to non-GAAP net earnings, diluted earnings per share, adjusted free cash flow, ROIC and EBITDA margin. See Appendix and elsewhere in this presentation for reconciliation of historical non-GAAP measures ** Baseline year for 2027 CAGR is 2022. Baseline year for TTM Q2 2023 CAGR is 2018 Note: Insight Core services is defined as services Insight delivers and manages. Adjusted 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. 113 $2.3B NET SALES decrease of 14% y/y $433M GROSS PROFIT decrease of 1% y/y $9.7B* decrease of 7% y/y * For the twelve months ended June 30, 2023 $1.6B* increase of 5% y/y $2.7B $2.5B $2.5B $2.3B $2.3B Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $9.9B $10.4B $10.5B $10.4B $10.1B $9.7B Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 $438M $399M $421M $391M $433M Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $1.5B $1.6B $1.6B $1.6B $1.6B $1.6B Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 16.0% 15.8% 16.8% 16.8% 18.4% 15.1% 15.0% 15.3% 15.7% 16.3% 16.9% Gross Margin Trailing twelve months Trailing twelve months

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 123 $833M* $404M SERVICES NET SALES increase of 2% y/y $237M SERVICES GROSS PROFIT increase of 6% y/y $1.5B* increase of 7% y/y * For the twelve months ended June 30, 2023 increase of 10% y/y $394M $365M $384M $356M $404M Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $225M $187M $213M $196M $237M Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $724M $756M $772M $800M $821M $833M Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 $1,357M $1,410M $1,452M $1,483M $1,499M $1,509M Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 57% 51% 56% 55% 59% Gross Margin 53% 54% 53% 54% 55% 55% Trailing twelve months Trailing twelve months

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 133 $72M INSIGHT CORE SERVICES GROSS PROFIT $115M CLOUD GROSS PROFIT increase of 12% y/y $257M* increase of 6% y/y * For the twelve months ended June 30, 2023 Note: Insight Core services is defined as services Insight delivers and manages $376M* increase of 28% y/y $67M $59M $65M $61M $72M Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $231M $241M $246M $253M $252M $257M Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 $103M $82M $91M $88M $115M Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $270M $294M $312M $340M $364M $376M Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 28% 25% 28% 28% 30% Gross Margin 27% 27% 27% 27% 27% 28% Trailing twelve months Trailing twelve months increase of 7% y/y

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 143 EARNINGS FROM OPERATIONS decrease of 8% y/y ADJUSTED EARNINGS FROM OPERATIONS** $400M* $142M $107M $128M $94M $130M Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $384M $428M $441M $467M $471M $459M Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 * For the twelve months ended June 30, 2023 ** See Appendix for reconciliation of non-GAAP measures $130M decrease of 8% y/y $459M* increase of 7% y/y $119M $130M $90M $114M $77M $119M Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 increase of 4% y/y $345M $386M $393M $414M $411M $400M Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 Trailing twelve months Trailing twelve months

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 153 DILUTED EARNINGS PER SHARE decrease of 10% y/y ADJUSTED DILUTED EARNINGS PER SHARE** $7.22* $2.78 $1.99 $2.53 $1.78 $2.56 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $7.61 $8.49 $8.61 $9.11 $9.09 $8.86 Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 * For the twelve months ended June 30, 2023 ** See Appendix for reconciliation of non-GAAP measures $2.56 decrease of 8% y/y $8.86* increase of 4% y/y $2.17 $2.42 $1.58 $2.13 $1.34 $2.17 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 increase of 1% y/y $6.30 $7.15 $7.22 $7.66 $7.47 $7.22 Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 Trailing twelve months Trailing twelve months

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 163 Adjusted EBITDA and Debt Covenants Twelve Months Ended June 30, US Dollars in $000s 2023 2022 Adjusted Consolidated EBITDA Net earnings $ 265,247 $ 263,431 Interest expense 46,391 39,366 Taxes 90,328 88,404 Depreciation and amortization of property and equipment 25,335 21,927 Amortization of intangible assets 33,658 31,765 Other* 24,999 9,996 Adjusted consolidated EBITDA $ 485,958 $ 454,889 Net earnings as a % of net sales 2.7 % 2.5 % Adjusted consolidated EBITDA margin 5.0 % 4.4 % Add: Non-cash stock-based compensation 28,939 19,260 Less: Capital expenditures (36,885) (82,498) Adjusted consolidated EBITDAS for FCCR Ratio $ 478,012 $ 391,651 Taxes and interest** $ 120,022 $ 104,012 Fixed Charge Coverage Ratio 4.0 3.8 Fixed Charge Coverage $478,012 $120,022 EBITDA-Dividends-CAPEX Fixed Charges $— $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Total Leverage Ratio $685,065 $514,897 Consolidated Funded Indebtedness Adjusted Consolidated EBITDAS $— $300,000 $600,000 $900,000 $1,200,000 * “Other” includes (i) severance and restructuring expenses, net, (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 3.98x 1.33x

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 173 Full Year 2023 Outlook Assumptions: As of August 3, 2023 As of May 2, 2023 Gross profit growth low to mid single digit mid single digit Adjusted diluted EPS* $9.40 - $9.60 $9.90 - $10.10 Interest expense $46 - $48 million $46 - $50 million Effective tax rate 26% 25% - 26% Capital expenditures $45 - $50 million $55 - $60 million Average share count 34.8 million 34.8 million Other Exclusions and Assumptions: • Average share count for the full year of 34.8 million shares includes estimated potential dilution from the warrants relating to the Call Spread Transactions, net of share repurchases completed in the first six months of 2023 • Excludes acquisition-related intangibles amortization expense of approximately $32 million (posted on website) • Assumes no acquisition or integration-related, transformation or severance and restructuring expenses, net • Assumes no significant change in our debt instruments * Adjusted diluted earnings per share excludes severance and restructuring expense, net 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, 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 2023 forecast

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2023 Insight Direct USA, Inc. All Rights Reserved. 18 Appendix

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 193 Q2 2023 YTD | Financial Performance Six Months Ended June 30, US Dollars in $000s, except for per share data 2023 2022 Change Consolidated IEI Net sales $4,673,543 $5,394,227 (13) % Net sales, constant currency* (12) % Product net sales $3,913,254 $4,659,529 (16) % Services net sales $760,289 $734,698 3 % Gross profit $824,505 $816,750 1 % Gross margin 17.6 % 15.1 % 250 bps Gross profit, constant currency* 2 % Product gross profit $391,077 $416,425 (6) % Services gross profit $433,428 $400,325 8 % GAAP earnings from operations $196,072 $209,405 (6) % Adjusted earnings from operations** $223,665 $231,251 (3) % GAAP diluted earnings per share $3.51 $3.95 (11) % Adjusted diluted earnings per share** $4.34 $4.60 (6) % * 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. 203 * See Appendix for reconciliation of non-GAAP measures Consolidated IEI Financial Metrics Three Months Ended Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Net Sales YoY 23 % 4 % (2) % (12) % (14) % Gross Margin 16.0 % 15.8 % 16.8 % 16.8 % 18.4 % GAAP EFO $129.6M $90.3M $114.0M $77.5M $118.6M GAAP EFO YoY 46 % 9 % 22 % (3) % (8) % GAAP EFO Margin 4.7 % 3.6 % 4.6 % 3.3 % 5.0 % Adjusted EFO* $141.7M $107.1M $128.3M $94.0M $129.7M Adjusted EFO* YoY 45 % 14 % 25 % 5 % (8) % Adjusted EFO* Margin 5.2 % 4.2 % 5.1 % 4.0 % 5.5 % GAAP Diluted EPS $2.42 $1.58 $2.13 $1.34 $2.17 GAAP Diluted EPS YoY 53 % 5 % 26 % (12) % (10) % Adjusted Diluted EPS* $2.78 $1.99 $2.53 $1.78 $2.56 Adjusted Diluted EPS* YoY 46 % 6 % 25 % (2) % (8) % Twelve Months Ended Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 Net Sales YoY 18 % 20 % 15 % 11 % 2 % (7) % Gross Margin 15.1 % 15.0 % 15.3 % 15.7 % 16.3 % 16.9 % GAAP EFO $344.9M $386.0M $393.1M $413.7M $411.3M $400.4M GAAP EFO YoY 21 % 29 % 22 % 25 % 19 % 4 % GAAP EFO Margin 3.5 % 3.7 % 3.7 % 4.0 % 4.1 % 4.1 % Adjusted EFO* $383.7M $427.7M $441.3M $466.6M $471.0M $459.0M Adjusted EFO* YoY 18 % 30 % 25 % 29 % 23 % 7 % Adjusted EFO* Margin 3.9 % 4.1 % 4.2 % 4.5 % 4.7 % 4.7 % GAAP Diluted EPS $6.30 $7.15 $7.22 $7.66 $7.47 $7.22 GAAP Diluted EPS YoY 24 % 33 % 25 % 29 % 19 % 1 % Adjusted Diluted EPS* $7.61 $8.49 $8.61 $9.11 $9.09 $8.86 Adjusted Diluted EPS* YoY 23 % 34 % 26 % 28 % 19 % 4 %

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 213 Services Financial Metrics Three Months Ended Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Services Revenue $394M $365M $384M $356M $404M Services Revenue YoY 16% 13% 9% 5% 2% Services Gross Profit $225M $187M $213M $196M $237M Insight Core Services Gross Profit $67M $59M $65M $61M $72M Agent Services* Gross Profit $157M $127M $148M $136M $165M Services Gross Profit YoY 16% 10% 15% 12% 6% Insight Core Services Gross Profit YoY 18% 9% 11% —% 7% Agent Services* Gross Profit YoY 16% 10% 17% 18% 5% Services Gross Margin 57% 51% 56% 55% 59% Insight Core Services Gross Margin 28% 25% 28% 28% 30% Agent Services* Gross Margin 100% 100% 100% 100% 100% Twelve Months Ended Q1-22 Q2-22 Q3-22 2022 Q1-23 Q2-23 Services Revenue $1,357M $1,410M $1,452M $1,483M $1,499M $1,509M Services Revenue YoY 16% 16% 15% 13% 11% 7% Services Gross Profit $724M $756M $772M $800M $821M $833M Insight Core Services Gross Profit $231M $241M $246M $253M $252M $257M Agent Services* Gross Profit $493M $514M $526M $547M $568M $576M Services Gross Profit YoY 14% 14% 13% 13% 13% 10% Insight Core Services Gross Profit YoY 18% 17% 14% 14% 9% 6% Agent Services* Gross Profit YoY 12% 13% 12% 12% 15% 12% Services Gross Margin 53% 54% 53% 54% 55% 55% Insight Core Services Gross Margin 27% 27% 27% 27% 27% 28% Agent Services* Gross Margin 100% 100% 100% 100% 100% 100% * Represents agent services other than those included in Insight Core services Note 1: Insight Core services is defined as services Insight delivers and manages Note 2: Numbers may not foot due to immaterial rounding

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 223 Reconciliation of GAAP to Non-GAAP Financial Measures* Three Months Ended June 30, Six Months Ended June 30, US Dollars in $000s, except per share data 2023 2022 2021 2023 2022 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 118,611 $ 129,556 $ 88,469 196,072 $ 209,405 Amortization of intangible assets 8,285 7,904 8,068 16,595 15,829 Other 2,812 4,234 1,127 10,998 6,017 Adjusted non-GAAP consolidated EFO $ 129,708 $ 141,694 $ 97,664 $ 223,665 $ 231,251 GAAP EFO as a percentage of net sales 5.0 % 4.7 % 4.0 % 4.2 % 3.9 % Adjusted non-GAAP EFO as a percentage of net sales 5.5 % 5.2 % 4.4 % 4.8 % 4.3 % Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 80,482 $ 89,184 $ 58,561 $ 130,454 $ 145,815 Amortization of intangible assets 8,285 7,904 8,068 16,595 15,829 Amortization of debt discount and issuance costs — — 3,013 — — Other 2,812 4,234 1,127 10,998 6,017 Income taxes on non-GAAP adjustments (3,032) (3,078) (3,042) (7,233) (5,478) Adjusted non-GAAP consolidated net earnings $ 88,547 $ 98,244 $ 67,727 $ 150,814 $ 162,183 Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 2.17 $ 2.42 $ 1.58 $ 3.51 $ 3.95 Amortization of intangible assets 0.22 0.21 0.21 0.45 0.43 Amortization of debt discount and issuance costs — — 0.08 — — Other 0.08 0.11 0.03 0.30 0.16 Income taxes on non-GAAP adjustments (0.08) (0.08) (0.08) (0.19) (0.15) Impact of benefit from note hedge 0.17 0.12 0.09 0.27 0.21 Adjusted non-GAAP diluted EPS $ 2.56 $ 2.78 $ 1.91 $ 4.34 $ 4.60 Shares used in diluted EPS calculation 37,039 36,821 37,135 37,123 36,901 Impact of benefit from note hedge (2,516) (1,539) (1,660) (2,413) (1,608) Shares used in Adjusted non-GAAP diluted EPS calculation 34,523 35,282 35,475 34,710 35,293 * 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, net, (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. 233 Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended June 30, US Dollars in $000s 2023 2022 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 95,436 $ 104,273 Amortization of intangible assets 7,766 7,356 Other 1,757 4,027 Adjusted non-GAAP EFO from North America segment $ 104,959 $ 115,656 Adjusted EMEA Earnings from Operations: GAAP EFO from EMEA segment $ 16,267 $ 17,968 Amortization of intangible assets 408 430 Other 1,007 207 Adjusted non-GAAP EFO from EMEA segment $ 17,682 $ 18,605 Adjusted APAC Earnings from Operations: GAAP EFO from APAC segment $ 6,908 $ 7,315 Amortization of intangible assets 111 118 Other 48 — Adjusted non-GAAP EFO from APAC segment $ 7,067 $ 7,433 * Adjusted earnings from operations excludes (i) severance and restructuring expenses, net, (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. 243 Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Twelve Months Ended June 30, US Dollars in $000s 2023 Adjusted Free Cash Flow: Net cash provided by operating activities $ 728,063 Less: Purchases of property and equipment 36,885 Adjusted non-GAAP free cash flow $ 691,178 Net cash used in investing activities $ (21,374) Net cash used in financing activities $ (645,470) Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 265,247 Amortization of intangible assets 33,658 Other 24,999 Income taxes on non-GAAP adjustments (15,061) Adjusted non-GAAP consolidated net earnings $ 308,843 Net cash provided by operating activities as % net earnings 274 % Adjusted free cash flow as % of adjusted net earnings 224 % * 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, net, (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. 253 Reconciliation of GAAP to Non-GAAP Financial Measures (continued) 1 Assumed tax rate of 26.0% 2 Average of previous five quarters 3 Computed as GAAP consolidated EFO, net of tax of $104,095 and $100,353 for the twelve months ended June 30, 2023 and 2022, respectively, divided by invested capital 4 Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital 5 Includes transformation costs of $21.1 million and $1.6 million for the twelve months ended June 30, 2023 and 2022, respectively Twelve Months Ended June 30, US Dollars in $000s 2023 2022 Return on Invested Capital: GAAP consolidated EFO $ 400,367 $ 385,973 Amortization of intangible assets 33,658 31,765 Other5 24,999 9,996 Adjusted non-GAAP consolidated EFO $ 459,024 $ 427,734 Income tax expense1 119,346 111,211 Adjusted non-GAAP consolidated EFO, net of tax $ 339,678 $ 316,523 Average stockholders’ equity2 $ 1,602,902 $ 1,502,453 Average debt2 737,496 631,123 Average cash2 (161,900) (114,258) Invested Capital $ 2,178,498 $ 2,019,318 Adjusted non-GAAP ROIC (from GAAP consolidated EFO)3 13.6 % 14.1 % Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO)4 15.6 % 15.7 %

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 263 Reconciliation of GAAP to Non-GAAP Financial Measures* (continued) Three Months Ended Three Months Ended Three Months Ended September 30, December 31, March 31, US Dollars in $000s, except per share data 2022 2021 2022 2021 2023 2022 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 90,279 $ 83,151 $ 114,016 $ 93,417 $ 77,461 $ 79,849 Amortization of intangible assets 8,986 7,988 8,077 7,948 8,310 7,925 Other 7,829 2,396 6,172 1,583 8,186 1,783 Adjusted non-GAAP consolidated EFO $ 107,094 $ 93,535 $ 128,265 $ 102,948 $ 93,957 $ 89,557 GAAP EFO as a percentage of net sales 3.6 % 3.4 % 4.6 % 3.6 % 3.3% 3.0% Adjusted non-GAAP EFO as a percentage of net sales 4.2 % 3.8 % 5.1 % 4.0 % 4.0% 3.4% Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 57,316 $ 55,483 $ 77,477 $ 62,133 $ 49,972 $ 56,631 Amortization of intangible assets 8,986 7,988 8,077 7,948 8,310 7,925 Amortization of debt discount and issuance costs — 3,049 — 3,079 — — Other 7,829 2,396 6,172 1,583 8,186 1,783 Income taxes on non-GAAP adjustments (4,295) (3,172) (3,533) (3,192) (4,201) (2,400) Adjusted non-GAAP consolidated net earnings $ 69,836 $ 65,744 $ 88,193 $ 71,551 $ 62,267 $ 63,939 Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 1.58 $ 1.51 $ 2.13 $ 1.69 $ 1.34 $ 1.53 Amortization of intangible assets 0.25 0.22 0.22 0.22 0.22 0.21 Amortization of debt discount and issuance costs — 0.08 — 0.08 — — Other 0.22 0.07 0.17 0.04 0.22 0.05 Income taxes on non-GAAP adjustments (0.12) (0.09) (0.10) (0.09) (0.11) (0.06) Impact of benefit from note hedge 0.06 0.08 0.11 0.09 0.11 0.08 Adjusted non-GAAP diluted EPS $ 1.99 $ 1.87 $ 2.53 $ 2.03 $ 1.78 $ 1.81 Shares used in diluted EPS calculation 36,340 36,745 36,336 36,871 37,207 36,981 Impact of benefit from note hedge (1,187) (1,509) (1,459) (1,604) (2,310) (1,677) Shares used in Adjusted non-GAAP diluted EPS calculation 35,153 35,236 34,877 35,267 34,897 35,304 * 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, net, (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. 273 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, net, (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 TTM Q1-21 TTM Q2-21 TTM Q3-21 2021 TTM Q1-22 TTM Q2-22 TTM Q3-22 2022 TTM Q1-23 TTM Q2-23 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 285,736 $ 300,017 $ 321,686 $ 332,061 $ 344,886 $ 385,973 $ 393,101 $ 413,700 $ 411,312 $ 400,367 Amortization of intangible assets 35,468 33,522 32,077 32,045 31,929 31,765 32,763 32,892 33,277 33,658 Other 2,928 (3,566) (2,096) (1,634) 6,889 9,996 15,429 20,018 26,421 24,999 Adjusted non-GAAP consolidated EFO $ 324,132 $ 329,973 $ 351,667 $ 362,472 $ 383,704 $ 427,734 $ 441,293 $ 466,610 $ 471,010 $ 459,024 GAAP EFO as a percentage of net sales 3.4 % 3.5 % 3.5 % 3.5 % 3.5 % 3.7 % 3.7 % 4.0 % 4.1 % 4.1 % Adjusted non-GAAP EFO as a percentage of net sales 3.9 % 3.8 % 3.8 % 3.8 % 3.9 % 4.1 % 4.2 % 4.5 % 4.7 % 4.7 % Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 181,847 $ 194,023 $ 210,600 $ 219,345 $ 232,808 $ 263,431 $ 265,264 $ 280,608 $ 273,949 $ 265,247 Amortization of intangible assets 35,468 33,522 32,077 32,045 31,929 31,765 32,763 32,892 33,277 33,658 Amortization of debt discount and issuance costs 11,737 11,864 11,994 12,124 9,141 6,128 3,079 — — — Other 2,928 (3,566) (2,096) (1,634) 6,889 9,996 15,429 20,018 26,421 24,999 Income taxes on non-GAAP adjustments (12,342) (10,317) (10,154) (10,325) (11,806) (11,843) (12,966) (13,306) (15,107) (15,061) Adjusted non-GAAP consolidated net earnings $ 219,638 $ 225,526 $ 242,421 $ 251,555 $ 268,961 $ 299,477 $ 303,569 $ 320,212 $ 318,540 $ 308,843 Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 5.09 $ 5.36 $ 5.77 $ 5.95 $ 6.30 $ 7.15 $ 7.22 $ 7.66 $ 7.47 $ 7.22 Amortization of intangible assets 0.99 0.93 0.88 0.87 0.86 0.86 0.89 0.90 0.91 0.92 Amortization of debt discount and issuance costs 0.33 0.33 0.33 0.33 0.25 0.17 0.08 — — — Other 0.08 (0.10) (0.06) (0.04) 0.19 0.27 0.42 0.55 0.72 0.68 Income taxes on non-GAAP adjustments (0.35) (0.29) (0.28) (0.28) (0.32) (0.32) (0.35) (0.36) (0.41) (0.41) Impact of benefit from note hedge 0.06 0.12 0.19 0.27 0.33 0.36 0.35 0.36 0.40 0.45 Adjusted non-GAAP diluted EPS $ 6.20 $ 6.35 $ 6.83 $ 7.10 $ 7.61 $ 8.49 $ 8.61 $ 9.11 $ 9.09 $ 8.86 Shares used in diluted EPS calculation 35,708 36,176 36,526 36,863 36,933 36,855 36,753 36,620 36,676 36,731 Impact of benefit from note hedge (260) (674) (1,052) (1,453) (1,612) (1,583) (1,501) (1,466) (1,624) (1,868) Shares used in Adjusted non-GAAP diluted EPS calculation 35,448 35,502 35,474 35,410 35,321 35,272 35,252 35,154 35,052 34,863

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 283 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, net, (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 US Dollars in $000s, except per share data 2018 Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 163,677 Amortization of intangible assets 15,737 Other 3,706 Income taxes on non-GAAP adjustments (4,767) Adjusted non-GAAP consolidated net earnings $ 178,353 Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 4.55 Amortization of intangible assets 0.43 Other 0.10 Income taxes on non-GAAP adjustments (0.13) Impact of benefit from note hedge — Adjusted non-GAAP diluted EPS $ 4.95 Shares used in diluted EPS calculation 36,009 Impact of benefit from note hedge — Shares used in Adjusted non-GAAP diluted EPS calculation 36,009

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 293 Financial Results by Offering Category US Dollars in $000s Q2-21 Q3-21 Q4-21 FY 2021 Q1-22 Q2-22 Q3-22 Q4-22 FY 2022 Q1-23 Q2-23 Consolidated IEI by Offering Category Hardware $ 1,350,944 $ 1,592,495 $ 1,631,046 $ 5,889,510 $ 1,673,588 $ 1,731,116 $ 1,572,275 $ 1,473,916 $ 6,450,895 $ 1,328,845 $ 1,310,273 Software 538,234 531,744 582,644 2,230,617 636,699 618,126 596,922 645,145 2,496,892 638,800 635,336 Total Products 1,889,178 2,124,239 2,213,690 8,120,127 2,310,287 2,349,242 2,169,197 2,119,061 8,947,787 1,967,645 1,945,609 Agent Services 142,955 122,632 136,513 521,687 126,049 168,373 138,617 159,546 592,585 143,543 178,948 Insight Delivered Services 197,368 200,650 215,820 794,299 214,514 225,762 226,540 224,003 890,819 212,759 225,039 Total Services 340,323 323,282 352,333 1,315,986 340,563 394,135 365,157 383,549 1,483,404 356,302 403,987 Total Net Sales $ 2,229,501 $ 2,447,521 $ 2,566,023 $ 9,436,113 $ 2,650,850 $ 2,743,377 $ 2,534,354 $ 2,502,610 $ 10,431,191 $ 2,323,947 $ 2,349,596 Product Cost $ 1,715,729 $ 1,930,096 $ 2,013,825 $ 7,380,908 $ 2,107,209 $ 2,135,895 $ 1,956,679 $ 1,911,469 $ 8,111,252 $ 1,772,729 $ 1,749,448 Services Cost 147,089 152,880 167,343 607,648 164,780 169,593 178,417 170,582 683,372 159,903 166,958 Total Cost of Goods Sold $ 1,862,818 $ 2,082,976 $ 2,181,168 $ 7,988,556 $ 2,271,989 $ 2,305,488 $ 2,135,096 $ 2,082,051 $ 8,794,624 $ 1,932,632 $ 1,916,406 Product Gross Profit $ 173,449 $ 194,143 $ 199,865 $ 739,219 $ 203,078 $ 213,347 $ 212,518 $ 207,592 $ 836,535 $ 194,916 $ 196,161 Services Gross Profit 193,234 170,402 184,990 708,338 175,783 224,542 186,740 212,967 800,032 196,399 237,029 Total Gross Profit $ 366,683 $ 364,545 $ 384,855 $ 1,447,557 $ 378,861 $ 437,889 $ 399,258 $ 420,559 $ 1,636,567 $ 391,315 $ 433,190 % of Total Net Sales Hardware 61 % 65 % 64 % 62 % 63 % 63 % 62 % 59 % 62 % 57 % 56 % Software 24 % 22 % 23 % 24 % 24 % 23 % 24 % 26 % 24 % 27 % 27 % Total Products 85 % 87 % 86 % 86 % 87 % 86 % 86 % 85 % 86 % 85 % 83 % Agent Services 6 % 5 % 5 % 6 % 5 % 6 % 5 % 6 % 6 % 6 % 8 % Insight Delivered Services 9 % 8 % 8 % 8 % 8 % 8 % 9 % 9 % 9 % 9 % 10 % Total Services 15 % 13 % 14 % 14 % 13 % 14 % 14 % 15 % 14 % 15 % 17 % % of Total Services Net Sales Agent Services 42 % 38 % 39 % 40 % 37 % 43 % 38 % 42 % 40 % 40 % 44 % Insight Delivered Services 58 % 62 % 61 % 60 % 63 % 57 % 62 % 58 % 60 % 60 % 56 % Note: Numbers may not foot or cross foot due to immaterial rounding

 
Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2022 Insight Direct USA, Inc. All Rights Reserved. 303 Convertible Senior Notes • Insight Convertible Senior Notes - $350 million principal • Required to settle the convertible notes principal/par value in cash • Excess required to be settled in shares resulting in dilution in GAAP reported Diluted Earnings Per Share (“DEPS”) • 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: NSIT stock price Relevance of stock price Net shares owed on Convertible Notes Net shares received from bond hedge Net shares owed on Warrants GAAP additional dilution * Non-GAAP additional dilution * $ 51.56 Price at issuance of Notes — — — — — $ 68.32 Conversion price of Notes — — — — — $ 88.82 Market trigger price 1,182,606 (1,182,606) — 1,182,606 — $ 103.12 Warrants strike price 1,729,056 (1,729,056) — 1,729,056 — $ 120.00 Example average quarterly stock price 2,206,493 (2,206,493) 720,658 2,927,151 720,658 $ 140.00 Example average quarterly stock price 2,623,160 (2,623,160) 1,349,587 3,972,747 1,349,587 $ 150.00 Example average quarterly stock price 2,789,827 (2,789,827) 1,601,158 4,390,985 1,601,158 Example calculation - net shares owed on Warrants Warrants issued [a] Excess ave. share price [b] Value of excess [c = a x b] Dilutive shares [d = c / $120] $120 average share price for quarter 5,123,160 $ 16.88 $ 86,478,941 720,658 *Additional shares to be included in our weighted average shares outstanding calculation for each quarter