So gross billings of $1.26 billion and you look at a lot of disties now saying in their earnings release, the public ones at least, just telling you what their gross billings are. Tech Data came out and said, hey, there are $80 billion in billings before the netting. You know how much headroom we have? We could double, triple the size of the business and not really run into them and not being seen because we’re competing inside such a small fraction division inside of some of these big disties. Charles, our CMO, was saying to our teams last week saying, there could be two or three competitors like Climb in our marketplace and we still would have so much opportunity. So I’ll leave that there and then Drew can tone me down a little bit. But here’s what our goal is, and that is our goal is to double the business in by 2026.
And can we do that? Yes, we can do that. Through some acquisitions and organic growth like we’re doing currently, it’s going to be that combination. But if you want to know what we’re doing, just look at what we’ve done in the last few years. We’re going to do much of the same thing. There’s still a lot of targets, there’s still a lot of vendors and there’s still the vendors that are really Climb vendors. Like they look like they’re part of Climb. When you come to our meetings and stuff, they’re like, they just act like they’re strategizing with my team. So, it’s a very different look and feel than it was three years ago. Yeah.
Drew Clark: And I think Dale’s — as we’ve said Howard, we believe that between the organic growth and our acquisition strategy, we can double the size of this business and in theory continue to be more effective with leverage and then have increased drop through of that gross profit that we grow ourselves or we acquire and then continue to augment and grow. Ireland and the DataSolutions acquisition will be a really great case study for us to be able to share with the investors as we move forward throughout 2024 about how well we’ve integrated the sales teams, the cross-selling vendors, Citrix and Microsoft pair up really nicely. So we think, look organically we — again you’re correct we’re not providing guidance and we’re not really even providing guardrails on sort of trends.
But we think if you look at our historical results, we think we can continue to perform at those historical levels in terms of organic growth. On an annual basis, we are going to have some cyclicality in quarters. DataSolutions typically Q2 of the calendar year is their weakest quarter. So we’ll expect that. We’ll see some pullback on a consolidated basis in Q2, but growth over the prior year Q2 most likely that there is a little bit of cyclicality in the business based on geographies and vendors and partners. But as we look forward, as Dale said, lots of activity in the pipeline for us to continue to grow through the acquisition strategy and also organically. And at some point, we may provide a little bit more detail as we move into the quarters ahead, but hopefully that gives you a little bit of perspective and some level of indication of where we think the business will go.
Dale Foster: And just to add to Howard, we’ve all talked about in the past, we haven’t brought it up on this call yet and it’s probably been overused inside the company. But our ERP is going to go live in Q2. We’ve talked about it for couple of years now. We are ready to do that. Our teams have been working double time because they’ve had to do their regular jobs every day and then do all the testing. So, if you’re our sales rep or you’re sitting in finance, you’re going to do all your stuff on our existing ERP and then you’re going to spend the hours doing in the new system. We’re comfortable with that. We know we can platform companies a lot faster. The DataSolutions team, when we acquired them October 6th, we restructured all sales and marketing together.
As I mentioned, Kim’s on board and she did that on the marketing side. On the sales team, I just came back from Europe two weeks ago. We’ve got all the sales structures fully, integrated with each other, and then phase 2 is when we go ERP live, all the insight teams will be integrated together as well. So look at us in the end of June, we’ll have everybody on the same ERP system speaking the same language no matter where you live.
Howard Root: Great. That’s very helpful. And congrats again on the very exciting quarter that you had again for the year. Thanks.
Operator: Our next question comes from Vince Colicchio from Barrington Research.
Vince Colicchio: Yes. Just one last one for me. Dale, I’m curious, securities, obviously, the key driver here for your business for some time. Has it been proven in any other segments in the quarter?
Dale Foster: The reason I’m going — the security, of course, it’s there, it’s strong. It’s very diverse if you look at the top vendors. And this is something I didn’t mention, Vince, that kind of triggered me, and that is as far as what I want to put out there, so when we look back three years, we’ve if you look at our top 70 vendors, they make up 96% of our overall sales. Of those top 70 vendors, 36 of them have been brought on since 2020. So, you can see we have a very robust way to bring vendors in. They get into our top group. The 70th vendor with us transact about $4 million. So that’s kind of our limited threshold, because we’d love to be able — I’d love to have 50 vendors doing 90% and really have more of a focus on our team and have our Climb Elevate team do the rest of it as far as the Clutter piece of it goes.
So that’s the one segment. The other segment that we’re seeing more, of course, everybody is saying the word AI, but what our team what our vendors are doing is they’re building AI into their products. So, there’s two or three that we’re looking at that I think will probably start an AI division. If their true application is gonna be more than 50% of what they do. Right? They can’t just be, hey. You know, we’re a backup that uses AI to do some kind of hierarchical storage management of software or of your backups. So that’ll be another pillar that we probably add or amount that we had to our group. Outside of that, it’s really the Linux, the SUSE business, the data management with Adobe, things like that. But it’s always around security data center and then it’s everybody that supports that.
Operator: This concludes our question-and-answer session. I would like to turn the floor back over to Dale Foster for closing comments.
A – Dale Foster: Thank you, operator, and thank you for everybody for joining today. Just want to have a big thank you for 2023, all the stakeholders that are watching Climb, supporting Climb and all the teams that we have internally. Just a lot of energy going into 2024. Like I said, we’re coming off of our sales kick off. It’s one of the best ones as we do our surveys with our teams and our vendors that we think Climb has ever had. And like I said, opportunity going to that and we appreciate and everybody keep an eye on what we’re doing in Q1, Q2.
Operator: This concludes your conference call for today. [Operator Closing Remarks].
