Climb Global Solutions, Inc.

Good morning, everyone, and thank you for participating in today's conference call to discuss CLIMB Global Solutions financial results for the first quarter ended March 31st, 2024. Joining us today are CLIMB CEO, Mr. Dale Foster, the company's CFO, Mr. Drew Clark, and the company's investor relations advisor, Mr. Sean Manzori with Elevate IR. By now, everyone should have access to the first quarter 2024 earnings press release which was issued yesterday afternoon at approximately 4 or 5 p.m. Eastern Time. The release is available in the investor relations section of Climb Global Solutions website at www.climbglobalsolutions.com. This call will also be available for webcast replay on the company's website. Following management remarks, we will open the call for your questions. I'd now like to turn the call over to Mr. Mansouri for introductory comments.

Thank you. Before I introduce Dale, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements. Our presentation also includes certain non-GAAP financial measures including adjusted gross billings, adjusted EBITDA, adjusted net income and EPS, and effective margin, as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts and other important information in the earnings press release and Form 8K we furnished to the SEC yesterday. With that, I'll turn the call over to CLIMB CEO, Dale Foster.

Thanks, Sean, and good morning, everyone. We continue to make progress in growing CLIMB and strengthening our customer and vendor relationships in the first quarter as we produce double-digit organic growth in North America, and we benefited from a recent acquisition of data solutions in Europe. Although we generated solid top-line growth, we experienced softer volumes across a key few vendors permanently related to our timing with the timing respect to their sales cycles. This included a key vendor from our acquisition of Data Solutions in October of 2023. While this adversely affected our bottom line in Q1, we expect to return to growth with these vendors over the back half of the year. As many of you are aware, our acquisition of Data Solutions brought a deep network of relationships to CLIMB, as well as a robust recurring revenue base with more than 90% of its fiscal 2023 revenue coming from existing reseller partners. We've already begun to take advantage of cross-selling opportunities between CLIMB U.S. and CLIMB EMEA teams. For example, we signed global agreements with Delinea, SolarWinds, and SUSE to to name a few. Although these synergies are still in the early stages, we expect to uncover additional cross-selling opportunities as well as drive further operating efficiencies as we continue to integrate data solutions into our global operations. During the quarter, we deepened current partnerships while signing new marquee vendors to our line card. We evaluated 32 vendors and signed agreements with only four of them, demonstrating our commitment to participating and partnering with the most innovative, cutting-edge technologies in the market. For example, in Q1, we expanded our partnership with Jamf. They are a leading provider of Apple device management and security software that enables businesses to efficiently manage and secure their Apple devices, ensuring seamless integration, enhanced productivity, and streamlined workflows. Initially, we partnered with Jamf to launch their products in Canada, but based off the strong initial results, we re-evaluated the scope to expand distribution in the United States. exposure through our network of resellers. As we've often said in the past, we strive to build long-standing, meaningful relationships with our partners. As a result, we are seeing increased exposure from targeted media coverage and industry interviews with our global teams, in addition to receiving several notable recognitions from key vendor partners. In the first quarter, Klein was awarded Distributor or Partner of the Year by numerous vendors, including Delinea, Wasabi, Trend Micro, Logigate, to name a few. These awards are an affirmation of our strategic direction and speak to our approach to a limited line card so that we can focus in going deeper with our vendor partners and truly add value to their sales efforts. We are excited to build upon the strong growth we've achieved together. Looking to the remainder of 2024, we have a solid foundation in place to continue driving organic growth with existing vendors while assigning new market-leading technologies to our line cards. We expect to uncover additional synergies and crossing opportunities as we further integrate data solutions onto our operating platforms. Our ERP implementation is also on track to go live this summer. This will enable us to drive further operating efficiencies through our global operations. We will continue to leverage our strong liquidity position to explore new acquisitions that will enhance our offerings and expand our presence in both domestic and international markets. We believe the combination of these initiatives will lead to yet another year of record growth and profitability. With that, I will turn the call over to our CFO, Drew Clark. He will take you through the financial results. Thank you, Drew.