ePlus inc. (NASDAQ: PLUS) is a technology solutions provider offering a comprehensive range of IT products and services, including hardware, software, managed services, and financing solutions. Founded in 1990 and headquartered in Herndon, Virginia, ePlus serves a diverse clientele across various industries.
Company Overview
ePlus operates through two primary segments:
1. Technology Segment: This segment provides a wide array of IT solutions, encompassing hardware, software, maintenance, and both internally provided and outsourced services. It also offers managed services such as infrastructure and cloud solutions, enhanced maintenance support, service desk operations, storage-as-a-service, cloud-hosted and managed services, and managed security services. Additionally, ePlus delivers professional services, staff augmentation, cloud consulting, and security services.
2. Financing Segment: This segment focuses on financing arrangements, including sales-type and operating leases, loans, and consumption-based financing. It also manages the underwriting, management, and disposal of IT equipment and assets. The financing operations primarily cater to IT, communication-related, and medical equipment, as well as industrial machinery, office furniture, transportation equipment, and other general business equipment.
The company's clientele spans commercial entities, state and local governments, government contractors, healthcare organizations, and educational institutions. ePlus has a significant presence in the United States and extends its services to select international markets, including the United Kingdom, the European Union, India, Singapore, and Israel.
Financial Performance
For the fiscal year ending March 31, 2023, ePlus reported net sales of $2.07 billion, marking a 13.5% increase from the previous year. The technology segment accounted for 97% of net sales and 84% of operating income, while the financing segment contributed 3% of net sales and 16% of operating income. The company's gross profit stood at $517.5 million, with an operating income of $166.1 million. Net earnings were reported at $119.4 million, reflecting a 13% increase from the prior year.
Market Position and Strategy
ePlus has established a strong foothold in the IT solutions market by focusing on several key strategies:
- Multi-Cloud Strategy: The company assists clients in aligning cloud strategies with business objectives, creating enterprise cloud foundations, enabling multi-cloud capabilities, accelerating cloud migrations, modernizing data centers, and optimizing cloud deployments for cost and security.
- Comprehensive IT Lifecycle Services: ePlus offers end-to-end solutions covering procurement, products, services, software, and financing, providing upfront assessments, design and configuration, installation and implementation, and ongoing support.
- Diverse Customer Base: With a broad and diverse customer base of approximately 4,300 clients across various end-markets—including education, financial services, healthcare, media and entertainment, state and local government, technology, and telecommunications—ePlus mitigates risks associated with market fluctuations.
- Acquisition Strategy: The company actively pursues acquisitions to expand its global footprint and enhance its service offerings, integrating acquired firms into the ePlus platform to maintain customer and vendor relationships and retain key employees.
Competitive Landscape
ePlus operates in a competitive market alongside other IT solutions providers. Its ability to offer a comprehensive suite of services, combined with its financing capabilities, positions it uniquely in the market. The company's focus on multi-cloud strategies and end-to-end IT lifecycle services differentiates it from competitors who may offer more limited solutions.
Recent Developments
In recent years, ePlus has continued to expand its service offerings and market reach. The company's emphasis on cloud solutions and managed services aligns with the growing demand for digital transformation across industries. Additionally, ePlus's strategic acquisitions have bolstered its capabilities and market presence.
