On this page of StockholderLetter.com we present the latest annual shareholder letter from PC CONNECTION INC — ticker symbol CNXN. Reading current and past CNXN letters to shareholders can bring important insights into the investment thesis.
2024 ANNUAL REPORT
Dear Shareholders, Customers, Industry Partners, and Co-workers, As technology transforms human capabilities, it signi cantly boosts productivity, ef ciency, and agility leading the way toward unprecedented opportunities for growth and innovation. Connection is dedicated to empowering our customers to con dently and clearly navigate this rapidly evolving IT landscape, ensuring their success, and strengthening our value proposition with integrated solutions. 2024 was a year of planning, preparation, and strategic alignment for our organization. Building on our bedrock foundation of exceptional customer service, we invested in the talent, resources, and partnerships to level up our capabilities and help organizations ready their data, infrastructure, and workforces for a new generation of AI-powered devices and workloads. Our continued focus on advanced technologies helped Connection achieve record gross margin of 18.6% in 2024, a 60-basis-point increase year over year. The Company generated annual net sales of $2.8 billion, a decrease of 1.7% year over year. Connection Business Solutions, our SMBfocused subsidiary, achieved net sales of $1.0 billion, Connection Enterprise Solutions recognized net sales of $1.2 billion, and Connection Public Sector Solutions generated net sales of $0.6 billion. Our diluted earnings per share were $3.29, up 4.4% year over year. This performance enabled Connection to return a total of $10.5 million to shareholders in the form of four quarterly $0.10 per share cash dividends. We generated positive operating cash ow of approximately $173.9 million and ended the year with no debt and a healthy cash, cash equivalent, and short-term investment balance of $442.6 million. Executing on our long-term strategy to expand and enhance our portfolio of advanced technologies, we invested in our services organization to recruit talent, integrate new tools, and realize greater operational ef ciency. A restructuring of our Technology Solutions and Services organization enabled Connection to more closely align technical specialists with sales teams and deliver unparalleled value and support to our customers. Highlighting our commitment to outpacing the competition, we developed a new catalog of solutions and services that will enable our team to ful ll the technology needs of today s organizations across Data Center, Digital Workspace, Multicloud, Managed Services, and Cybersecurity. Connection made strategic investments in our internal architecture, systems, and applications throughout 2024, integrating a uni ed Customer Relationship Management platform, introducing employee-facing AI tools, and optimizing the storage, management, and delivery of our data during the initial stages of our ongoing data fabric initiative. These improvements will enable us to better engage customers, realize new ef ciencies in our sales motions, and accelerate decision making with data-driven insights and faster, more secure access to centralized information. Our Technology Integration and Distribution Center (TIDC) achieved System and Organization Controls 2 (SOC 2 ) certi cation and multiple ISO certi cations as part of our ongoing efforts to deliver unsurpassed performance and security. These certi cations enable our TIDC and Account Teams to establish deeper levels of trust with customers and provide a unique differentiator as IT decision makers evaluate supply chain and logistics services partners. Leveraging a growing portfolio of AI solutions and services, our CNXN Helix Center for Applied AI and Robotics continues to help customers bridge the gap between theory and real-world implementation of arti cial intelligence. In 2024, CNXN Helix launched an expanded website, enhanced our sales-facing Helix Pro training and certi cation program, and hosted a series of high-pro le events bringing top customers together with industry-leading partners and AI luminaries from across the country. Re ecting the team s impressive technical expertise and capabilities, CNXN Helix was awarded a rst-place prize as part of the Naval Information Warfare Center (NIWC) Atlantic Palmetto Tech Bridge s prize challenge for developing a Secure Commercially-Based Arti cial Intelligence Environment for Real-World Naval Applications. We will continue to drive this success by developing state-ofthe-art AI solutions and services and leveraging partnerships with cutting-edge vendors to deliver even greater value and innovation to our customers. Our performance in 2024 was recognized with several awards, including being named HP U.S. Personal Systems 2024 National Solutions Provider Partner of the Year, Dell Technologies 2024 Federal Rising Star Partner of the Year, and ServiceNow 2024 Americas Reseller Partner of the Year. Connection was also honored on TIME s inaugural list of America s Best Mid-Size Companies, Newsweek s 2024 list of Most Trustworthy Companies in America, Newsweek s 2024 list of World s Most Trustworthy Companies, and Forbes America s Best Employers list ranked #13 out of 400 of America s Best Midsize Employers. We were proud to be recognized as a Gold NH Veteran-Friendly Business by the Department of Military Affairs & Veterans Services and NH Employment Security. Connection achieved our highest Net Promoter Score to date, re ecting our steadfast commitment to exceptional service and our focus on customer loyalty. We are excited to build on our success and to lead the industry as we deliver new offerings and expertly predict how businesses, government entities, caregivers, students, and educators will deploy and consume technology. We are con dent Connection is well positioned to reach new heights, outpace the competition, and create long-term value for our investors. With our deepest appreciation for our employees, partners, customers, and you our shareholders. Timothy McGrath Patricia Gallup Board Chair President and Chief Executive Of cer
 • shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
 • stockholder letter icon 4/7/2023 CNXN Stockholder Letter
 • stockholder letter icon 3/29/2024 CNXN Stockholder Letter
 • stockholder letter icon More "Information Technology Services" Category Stockholder Letters
 • Benford's Law Stocks icon CNXN Benford's Law Stock Score = 94


CNXN Shareholder/Stockholder Letter Transcript:

2024
ANNUAL
REPORT

Dear Shareholders, Customers, Industry Partners, and Co-workers,
As technology transforms human capabilities, it signi   cantly
boosts productivity, ef   ciency, and agility   leading the
way toward unprecedented opportunities for growth and
innovation. Connection is dedicated to empowering our
customers to con   dently and clearly navigate this rapidly
evolving IT landscape, ensuring their success, and strengthening
our value proposition with integrated solutions. 2024 was a
year of planning, preparation, and strategic alignment for our
organization. Building on our bedrock foundation of exceptional
customer service, we invested in the talent, resources, and
partnerships to level up our capabilities and help organizations
ready their data, infrastructure, and workforces for a new
generation of AI-powered devices and workloads.
Our continued focus on advanced technologies helped
Connection achieve record gross margin of 18.6% in 2024,
a 60-basis-point increase year over year. The Company
generated annual net sales of $2.8 billion, a decrease of 1.7%
year over year. Connection Business Solutions, our SMBfocused subsidiary, achieved net sales of $1.0 billion, Connection
Enterprise Solutions recognized net sales of $1.2 billion, and
Connection Public Sector Solutions generated net sales of $0.6
billion. Our diluted earnings per share were $3.29, up 4.4%
year over year. This performance enabled Connection to return
a total of $10.5 million to shareholders in the form of four
quarterly $0.10 per share cash dividends. We generated positive
operating cash    ow of approximately $173.9 million and ended
the year with no debt and a healthy cash, cash equivalent, and
short-term investment balance of $442.6 million.
Executing on our long-term strategy to expand and enhance
our portfolio of advanced technologies, we invested in our
services organization to recruit talent, integrate new tools,
and realize greater operational ef   ciency. A restructuring of
our Technology Solutions and Services organization enabled
Connection to more closely align technical specialists with
sales teams and deliver unparalleled value and support to our
customers. Highlighting our commitment to outpacing the
competition, we developed a new catalog of solutions and
services that will enable our team to ful   ll the technology
needs of today   s organizations across Data Center, Digital
Workspace, Multicloud, Managed Services, and Cybersecurity.
Connection made strategic investments in our internal
architecture, systems, and applications throughout 2024,
integrating a uni   ed Customer Relationship Management
platform, introducing employee-facing AI tools, and optimizing
the storage, management, and delivery of our data during
the initial stages of our ongoing data fabric initiative. These
improvements will enable us to better engage customers,
realize new ef   ciencies in our sales motions, and accelerate
decision making with data-driven insights and faster, more
secure access to centralized information.
Our Technology Integration and Distribution Center (TIDC)
achieved System and Organization Controls 2 (SOC 2  )
certi   cation and multiple ISO certi   cations as part of our
ongoing efforts to deliver unsurpassed performance and
security. These certi   cations enable our TIDC and Account
Teams to establish deeper levels of trust with customers and
provide a unique differentiator as IT decision makers evaluate
supply chain and logistics services partners.
Leveraging a growing portfolio of AI solutions and services,
our CNXN Helix Center for Applied AI and Robotics continues
to help customers bridge the gap between theory and
real-world implementation of arti   cial intelligence. In 2024,
CNXN Helix launched an expanded website, enhanced our
sales-facing Helix Pro training and certi   cation program, and
hosted a series of high-pro   le events   bringing top customers
together with industry-leading partners and AI luminaries
from across the country. Re   ecting the team   s impressive
technical expertise and capabilities, CNXN Helix was awarded
a    rst-place prize as part of the Naval Information Warfare
Center (NIWC) Atlantic Palmetto Tech Bridge   s prize challenge
for developing a    Secure Commercially-Based Arti   cial
Intelligence Environment for Real-World Naval Applications.   
We will continue to drive this success by developing state-ofthe-art AI solutions and services and leveraging partnerships
with cutting-edge vendors to deliver even greater value and
innovation to our customers.
Our performance in 2024 was recognized with several
awards, including being named HP U.S. Personal Systems
2024 National Solutions Provider Partner of the Year, Dell
Technologies 2024 Federal Rising Star Partner of the Year,
and ServiceNow 2024 Americas Reseller Partner of the Year.
Connection was also honored on TIME   s inaugural list of
America   s Best Mid-Size Companies, Newsweek   s 2024 list
of Most Trustworthy Companies in America, Newsweek   s
2024 list of World   s Most Trustworthy Companies, and
Forbes America   s Best Employers list   ranked #13 out of 400
of America   s Best Midsize Employers. We were proud to be
recognized as a Gold NH Veteran-Friendly Business by the
Department of Military Affairs & Veterans Services and NH
Employment Security. Connection achieved our highest Net
Promoter Score to date, re   ecting our steadfast commitment
to exceptional service and our focus on customer loyalty.
We are excited to build on our success   and to lead the
industry as we deliver new offerings and expertly predict
how businesses, government entities, caregivers, students,
and educators will deploy and consume technology. We are
con   dent Connection is well positioned to reach new heights,
outpace the competition, and create long-term value for our
investors. With our deepest appreciation for our employees,
partners, customers, and you   our shareholders.
Timothy McGrath
Patricia Gallup
Board Chair
President and
Chief Executive Of   cer



shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
 

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