TD SYNNEX Corporation

Relations. Liz, you may begin.

Thank you. Good morning, everyone, and thank you for joining us for today's call. With me today are Rich Hume, our CEO, and Marshall Witt, our CFO. Before we continue, let me remind you that today's discussion contains forward-looking statements within the meaning of the federal securities laws, including predictions, estimates, projections, or other statements about future events. including statements about demand, cash flow, our debt structure, and shareholder return, as well as our expectations for future fiscal periods. Actual results may differ materially from those mentioned in these forward-looking statements as a result of risks and uncertainties discussed in today's earnings release, in the Form 8-K we filed today, and in the risk factors section of our Form 10-K and our other reports and filings with the SEC. We do not intend to update any forward-looking statements. Also during this call, we will reference certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP results are included in our earnings press release and the related Form 8K, available on our Investor Relations website, ir.tdsinex.com. This conference call is the property of TD Sinex and may not be recorded or rebroadcast without our permission. I'll now turn the call over to Rich. Rich?

Thank you, Liz. Good morning, everyone, and thank you for joining us today. We had a strong start to the fiscal year with an improving IT spending environment generating record margins, EPS at the upper end of our expectations, healthy free cash flow, and continued strong capital returns to shareholders. Across the organization, we are poised to capitalize on a stabilizing demand environment for our core business while continuing to advance our strategy to expand our capabilities in strategic technology areas. Importantly, we believe that the IT spending environment will continue to improve throughout the year and believe we will return to positive year-over-year gross billings growth next quarter, bolstered in part by the introduction and growth of infrastructure, components, and services to support escalating AI-enabled workloads and applications. We remain committed to returning excess free cash flow beyond dividends and M&As to shareholders via share repurchases, while also managing our leverage ratio. And today, we announced that our board of directors has approved a new additional $2 billion share repurchase authorization. For our first fiscal quarter, revenue and gross billings were largely in line with our guidance ranges, with the backdrop of a recovering market and continued progress on our strategic portfolio diversification and global line card expanding efforts. From a regional perspective, trends in our markets played out as we had expected. In the Americas, we saw improving year-over-year trends in PCs and a record quarter in Latin America. Europe similarly experienced positive momentum in the PC market, but faced challenging year-over-year comparisons in advanced solutions, given last year's record performance. Asia Pacific Japan continued to experience year-over-year growth in constant currency, fueled by strength in advanced solutions across multiple countries, including emerging markets. Looking at our results by technology, Within endpoint solutions, as anticipated, we saw slight growth on a year-over-year basis in PCs. We anticipate seeing continued improvement in the PC market as 2024 progresses, aligned with what several OEMs and industry participants have described as a second-half weighted spending pattern. We believe this will be driven by several factors, including the new mid-year launches of AI-enabled PCs, More customary refresh cycles associated with age devices and operating system upgrades. This should also drive increased demand for some of our other PC-adjacent categories, like peripheral and endpoint software. Strength in the PC market was offset by softness in demand for mobile devices and some components, which weighted down our results overall in endpoint solutions. Consistent with expectations, advanced solutions year-over-year comparisons were challenged given the elevated demand and backlog drawdown dynamics we saw in the first half of 2023. Regardless, we had a solid quarter in advanced solutions. In addition, we see the beginnings of AI offerings emerging in the portfolio. As an example, we had a very successful launch of Microsoft Copilot, where we enabled more than 2,000 partners with our launch campaign. Overall, we are well positioned to take advantage of the fast-growing AI market. Our strategic vendor partnerships and enablement programs are helping us to create industry-leading aggregated solutions and serve as a destination for AI solutions in the channel. Momentum is clearly evident in building in this area. Last month, we announced an expanded collaboration with NVIDIA in North America, where we are distributing their full line of products, including GPUs, helping users and partners to access AI augmented applications, model training and development, professional graphics, engineering, and digital twin applications. We were also honored to be recognized last week by the NVIDIA Partner Network, as the Distribution Partner of the Year in the Americas, and look forward to our continued partnership. Additionally, we showcased our next-generation AI lifecycle solutions from Hive at NVIDIA's GTC AI Conference in San Jose last week. These products are tailored to the demands of AI data centers, hybrid cloud and edge deployments, and include the design of liquid-cooled servers and racks. Beyond these accomplishments, we continue to execute on our goals to expand in the strategic technology areas and increase the value we bring to our partners. In our strategic technology areas, we experience solid year-over-year growth in data, AI, IoT, cloud, and security. Including Hive, these technologies represented 23% of our total growth fillings in Q1. Underpinning these strong results are a multitude of programs and offerings designed to help our partners. To highlight a couple, first, we launched TD Cinex Cloud Labs as a solution aimed at accelerating the go-to-market process for our vendors. This virtualized environment facilitates proof-of-concept demonstrations that are flexible, scalable, and cost-efficient. This helps our vendors to bring solutions to market faster and more effectively. Second, we continue to invest in our Stream 1 platform, adding several new application programming interfaces, or APIs, and launch new professional services automation, or PSA connectors, particularly used by managed service providers, and which provide an increased ease and synchronization of products, customers, and order changes. We believe now more than ever that our organization is well positioned across both our core and strategic technology portfolios. The challenge market environment over the past year has provided us an opportunity to showcase the strength and resilience of our business model, portfolio, and capabilities. Despite the headwinds in the market, we've pivoted to areas of growth and improved our business and margin mix towards strategic technologies. and have also generated significant free cash flow, the majority of which we have returned to shareholders. We believe we have emerged even stronger from this period of market volatility and look forward to capitalizing on an improving IT spending environment, which we believe will allow us to deliver revenue growth, increased earnings per share, and significant free cash flow generation, driving strong returns for our shareholders. I will now pass it over to Marshall so that he can provide additional details on our financial performance and outlook. Marshall?