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 31, 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 Mansouri, with Elevate IR. By now, everyone should have access to the first quarter 2024 earnings press release, which was issued yesterday afternoon at approximately 4:05 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 eEffective 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 in Form 8-K we furnished to the SEC yesterday. With that, I'll turn the call over to Climb's 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've produced double-digit organic growth in North America, and we benefited from a recent acquisition of DataSolutions in Europe. Although we generated solid top-line growth, we experienced softer volumes across a key few vendors, primarily related to the timing with respect to their sales cycles. This included a key vendor from our acquisition of DataSolutions in October 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 DataSolutions 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 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 DataSolutions into our global operations. During the quarter, we deepened current partnerships with while signing new marquee vendors to our line card. We evaluated 32 vendors and signed agreements with only 4 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 reevaluated the scope to expand distribution in the United States, demonstrating our ability to successfully launch products and offer additional geographic exposure through our network of resellers. As we've often said in the past, we strive to build longstanding, 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, Climb was awarded Distributor or Partner of the Year by numerous vendors, including Delinea, Wasabi, Trend Micro, LogicGate, 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 have achieved together. Looking to the remainder of 2024, we have a solid foundation in place to continue driving organic growth with existing vendors while signing new market-leading technologies to our line card. We expect to uncover additional synergies and cross-sell opportunities as we further integrate DataSolutions 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, and he will take you through the financial results. Thank you. Drew? Thank you, Dale. Good morning, everyone. Quick reminder, as we review the financial results for our first quarter, all comparisons in the variance commentary refer to the prior year quarter, unless otherwise specified. Before we jump into the results, let me reiterate Dale's comments about our positive outlook for the balance of 2024 and beyond, despite the low expectation operating results for the first quarter. As reported in our earnings press release, Adjusted Gross Billings, or AGB, which is a non-GAAP measure, increased to 16%, which is $355.3 million for the quarter, compared to $306.7 million in the year-ago quarter. Net sales in the first quarter of 2024 increased 9% to $92.4 million, compared to $85 million, which primarily reflects organic growth from new and existing vendors, as well as the contribution for our acquisition of DataSolutions in October of last year. Again, as we have previously stated, we focus on AGB as the true metric of our top-line growth, as the calculation of net sales is influenced by product mix and the respective adjustment to convert AGB to net sales for financial reporting purposes under GAAP. In the first quarter, we had an increase in the sale of security, maintenance, and cloud products, which are recorded net of related cost of sales and therefore leads to a larger adjustment from AGB to net sales. DataSolutions also has a higher adjustment of AGB to net sales, and their net sales were 31% for the quarter compared to our consolidated 26%. Gross profit in the first quarter increased 12% to $17 million, compared to $15.2 million. Again, the increase was primarily driven by organic growth from new and existing vendors in both North America and Europe, as well as contributions from DataSolutions. Gross profit as a percentage of Adjusted Gross Billings was 4.8% compared to 5.0%, driven by a decline in our solutions business GP and related margin percentage, and early pay in North America. SG&A expenses in the first quarter were $12.5 million, compared to $10.2 million for the same period in 2023. SG&A was in line with our internal budget and sequentially from the fourth quarter. SG&A, as a percentage of Adjusted Gross Billings, was 3.5%, compared to 3.3% in the year-ago period. The increase was primarily driven by expenses from DataSolutions, which we expect to reduce as we further integrate their business into our financial and operating systems and their sales rebound in the second half of the year. Net income in the first quarter of 2024 was $2.7 million, or $0.60 per diluted share, compared to $3.3 million, or $0.74 per diluted share for the comparable period in 2023. As mentioned in our earnings press release, earnings per diluted share in the first quarter of 2024 was negatively impacted by $0.01 in FX and $0.04 in acquisition fees, a portion of which related to carryover of the DataSolutions transaction, as well as prospective opportunities. Adjusted EBITDA in the first quarter was $5.5 million, compared to $5.7 million. The decrease was primarily driven by increased SG&A expenses related to DataSolutions and lower gross profit generated in the quarter relative to expectations that we expect to return in the back half of the year. Adjusted EBITDA as a percentage of gross profit or effective margin was 32.5%, compared to 37.4% in the year-ago period. Clearly an unacceptable achievement, we were confident to return to target levels in the future quarters. Turning to our balance sheet, cash and cash equivalents were $43.6 million as of March 31, 2024, compared to $36.3 million at December 31, 2023. While working capital remained flat during this period, the increase in cash was primarily attributed to the timing of receivable collections and vendor payments. As of March 31, 2024, we had $1.2 million of outstanding debt, with no borrowings outstanding under our $50 million revolving credit facility. On April 29, consistent with prior quarters, our board of directors declared a quarterly dividend of $0.17 per share of our common stock to shareholders of record as of May 13, 2024, and payable on May 17, 2024. To echo Dale's earlier comments, our strong balance sheet provides us with great flexibility to evaluate M&A opportunities, both domestically and abroad, to enhance our service and solution offerings across existing and future geographies. We will continue to maintain a limited and very focused line card to ensure we are partnering with the most innovative vendors in the market, while also taking advantage of some scale opportunities. Our ERP implementation, coupled with the further integration of DataSolutions and our U.K. operations, will enable us to drive operating efficiencies throughout our global footprint. We believe these initiatives will enable us to grow Adjusted EBITDA at a rate that exceeds our increase in Adjusted Gross Billings. So we will keep on climbing. This concludes our prepared remarks. We'll now open it up for questions from those participating on the call. Operator, back to you. Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Thank you. Our first question comes from Vincent Colicchio from Barrington Research. Please proceed. Yeah, Dale, so to be clear, was the light volume with certain key vendors a timing issue, or was it a lengthening of their sales cycles? ... Yeah, a couple things, Vince, and that is, you know, if we look at the quarter, we have vendors that finish up their, their fiscal years in, in different sections. You know, we have some of the bigger ones that, you know, actually end of the March, sometimes they, they leak over. And, and it's funny, we have two or three of them that are going through different ERP implementations as well, so they get kind of stuck up in that. But we had some vendor stuff that pulled into Q4, some that are pushing into Q2. So, you know, if we look at it, and then we, we had a large, you know, deal with our Spinnakar acquisition a year ago that, you know, didn't reoccur in Q1. So just if you look at the puts and takes on it, it was just back and forth, but nothing underlying. And, you know, we, we were talking about as a team, you know, of our, of our top 20 vendors, 16 of them grew in Q1. Of our top, 20 customers, 17 of them grew in Q1. So the underlying end piece is still very strong. It's just the, the timing of quite a few of them. So, where you saw the volume softness, do you expect for the year to be on budget with those clients? We do. As Drew mentioned in his comments, I mean, we think we're going to have a strong back half of the year. Some of it's already coming in, you know, into our Q2 stuff that we didn't see in Q1. And we don't, you know, just to be, you know, open, we don't push to, you know, bring things into a certain queue to make an exact number. Our vendors do, and we do, you know, favors for them as far as, hey, when they need to do as far as timing goes. So, hey, the numbers are what they are, and, you know, some of them drift into the next queue, some of them, you know, get pulled forward on that side. Okay. And then, the outside of the aforementioned vendors where there was volume within your top 20, are you growing in line with the rest of the business? Better? What does that look like? Yeah, we are. I mean, of course, the newer the vendor, and depending on their life cycle, you know, they're growing at a faster rate. That's when we talk about, you know, hey, we wanna really try to get double-digit gross growth, because that's where, you know, the emerging vendors are. As the vendor becomes more mature, you know, their growth slows down, in just almost every industry. So we have some larger vendors that, you know, they're in the single digit growth, and we make up for it with, you know, the emerging ones. So that combination, you know, is what we talked about as a management team to focus and get, you know, to that over 10% rate. But if you looked at the numbers, you know, our top line grew, you know, overall, so we had the revenues, and, and it just depends on the vendor mix and then the margin profile per vendor. So there's a lot of little, little moving parts, but that's, you know, that's how we deal with quarter by quarter. Has there been any change in areas of segment strength, technology and data center? Do those continue to be the key drivers? Yeah, our two, our two main ones or, or, our pillars, you know, are security and the data center space. So we mentioned it in the, in previous call that, you know, hey, we, we won the contract with CDW for the VAST business. So it's the first time we've had a real big vendor move to the US that started with Spinnakar in the UK, our Climb UK teams. So we'll, we'll see that pick up in the second half of the year. We're just getting going. We're just getting our first orders with that, but that's in the data center space. And then we'll build just like we do in security, when you have somebody like Sophos in the monitoring space, SolarWinds, we'll build a cottage industry of vendors around them that support them and that are cross-sellable. Okay, I'll go back in the queue. Thank you. Thanks, Vince. Our next question comes from Howard Root, from Climb Global Solutions. Please proceed. I'm not from Climb Global Solutions, individual investor, but thanks for taking my question. I, two small ones and then a more general one for Dale. First, you know, the Adjusted Gross Billings, I think, went up $48 million Q1 versus Q1 a year ago, 16%. Can you give us a breakdown of how much of that is organic and versus how much of that is from DataSolutions or any other acquisitions? Yeah, I'll let Drew jump in. I mean, he's got the exact numbers, but it's, I think it's, well, sort of out there, it's probably split 50/50 or close to that. Yeah, that's correct, Howard. A little more DataSolutions generated approximately $29 million in the quarter for us. Again, as Dale mentioned in his response to Vince, that was lower than our expectation. Ahead of their prior year quarter, about flat really with 2023. But one of their large vendors had some significant pull-through in Q4, which obviously gave us a very strong fourth quarter result and exceeded our expectations, but unfortunately, that detracted from Q1. But DataSolutions is performing on par, so we're excited about that. And, you know, their contribution was very meaningful in Q4 and not as impactful in Q1. Okay. So and then, why, why do you say second half rebound rather than a Q2 rebound? And I, I assume that applies to the, the DataSolutions key vendor mainly. Yeah, DataSolutions tends. Their second quarter is their weakest quarter, historically. And then, as you know, if you look at our historical trends, Q2 tends to be one of our lower quarters as well, in terms of both, top line as well as gross profit. So Q2 will be solid, but we'll see a bigger rebound with some of those vendors, especially the DataSolutions portfolio and the Spinnakar vendors that we acquired in Q3 and Q4. Dale, you have other thoughts?... No, yeah, we're on track with the DataSolutions team. And just to add to that, Howard, we, you know, we integrated the sales teams early January for DataSolutions, and some of their, you know, managers are running now our Climb UK team. So that team is pretty integrated. That's step one. The next part of the integration is upcoming. It'll be in line with our ERP that's gonna, you know, roll out in July, August time frame. And we believe by the end of this year, we'll have every company, you know, we have a lot of them on our systems right now, but everything we've acquired in the last two years will all be under one. Drew is running the project, but the focus is by the end of Q3, so that we have a true Q4 on one ERP for reporting. And you can imagine, you know, just from three different disparate systems, you know, trying to pull those all together, it's not like we're special. Every company goes through it, but, you know, we wanna get through it in Q3. Yeah. Well, yeah, good luck with that one. We all know how hard that is to pull off, but it has to be done. Second question, kind of, I've always modeled it, kind of, keeping it simple, like, you know, 5% gross profit, 5% of Adjusted Gross Billings, then SG&A below 3%, so net income's above 2%. And this quarter, I think, somewhat because of the acquisition and cost there, you're at 4.8% on gross profit, 3.5% on just G&A, so net income is down at 0.8%. Are, are those realistic targets for the business, the 5, 3, 2, or how do you look at that? Or am I off on my assessment of where the numbers should be? Yeah, I think your first modeling is more accurate. You know, like we said, we had a little soft in Q1 on some of the margin profile of some of our bigger vendors, but we don't see that. We don't see the trend, and we know as these vendors get bigger, you know, it's the larger the vendor, there's two parts that happen. They expect there's less work to be done in the channel, so they try to reduce the margin profile, not only to us, but also to our reseller partners. But on the other flip side of that, you know, as a distributor and reseller partner, as they grow and it gets wider of their business, we're more efficient in actually transacting it, so we save the dollars on that, so it kind of goes for a one for one. But that's a pretty good way to look at it. And if you look over the last couple of years, we have enough emerging vendors coming in that have a higher margin profile than that to make up for these larger ones. And, you know, we—I can just tell you, it's nonstop. We talked about, you know, evaluating 42. There's probably another 10 or 15 that we talked to that we're just, you know, don't even get to the next phase because they're just not ready even to have a channel talk yet. So if it wasn't for that robust vendors just coming out of the startup phase, you know, I would say, "Okay, it's gonna slow down a little bit." We don't see that at all. Okay, great. And then just more general, and I always like to do this, kind of, pulling it up to 30,000 feet. Dale, how do you see the sales environment and trajectory, in particular, you know, the economy and interest rates? Does any of the macro effects going on worldwide affect you and your business in any way? And how would you see that going forward the next year, 18 months? Yeah, I, I'm not that smart, Howard. So, on the macro side, we look at it, and we're like: It has to have some kind of impact on us. But here's what I would, you know, say, is we are so small in our market space with our peers, right? If you take a look at the big three distributors, they're all $40 billion plus. They do a lot more hardware than we do. We are software, software, so we compete with divisions inside of each of those big guys. What we're seeing, though, is the larger they get and some of their vendors, you know, because if you look at their top 10 vendors are bringing in, you know, 90% of their revenues. As soon as you get down the line card, those vendors are not getting the care and targeted approach that we provide. So we're seeing share shift from, you know, our competitors to us in, in a pretty big way. You know, if you—if I look at just the ones we talked about, you know, that we won awards for, if you take a look at those vendors, the share shift that they're pushing to us because they're just getting a much higher touch, white glove service, to sell, to sell their products out to the market. So on the, on the positive side, our teams are really taking advantage of that, but we don't see, you know, the effect, you know, because, because we're looking at a much smaller target audience. You know, we're not selling to 30,000 resellers, we're selling to 7,000 globally, where our competitors are doing that. So it's... We just don't see it as much. And we think we can, you know, we have a lot of levers we can pull. We have a great balance sheet. So we will just go and say, "Hey, this is where we're gonna target now." We can move very quickly and put a sales team like we have on a specific vendor and capture a bunch of their business and then do the same thing. So it's much more of a tactical approach there. Okay, great. So the good news is the economy doesn't really affect you. The bad news is it's all on you, so success and failure is on your execution. That's right. That's the good news. It's all on us. I mean, we can make those choices, so, yeah, we'll take all the blame of that as well. But we feel that, you know, we have enough feelers out there, where we can actually know a little better than putting your finger in the wind and saying, "Hey, yeah, we're gonna go after this market." Or the vendors are approaching us and saying, "Hey, can you guys help us in this situation? Because we've had budget cuts, and we can actually fund you through the channel via margin." And we're like, "Yeah, we'll double down on that." We've built a team with Delinea, and they've just been a great partner for us, and you'll see those numbers continue to grow with Delinea. Okay, great. Well, congrats on the quarter. The 16% revenue growth, great overall year-over-year, and, you know, challenges come up, but you guys are addressing it. Thanks again. Thanks, Howard. Our next question comes from Bill Dezellem from Tieton Capital Management. Please proceed. Thank you. A couple of questions. First of all, allow me to circle back to your February twentieth press release, referencing Global Technologies. That release seemed a little bit different than your typical release. Would you please talk about that relationship and, you know, what it means or does not mean? ... Yeah, thanks, Bill. Yeah, so Global Technologies, you know, they're diverse supply, and we're getting asked more and more from our customer base and some of our vendors that we will have a partnership or, you know, a division that does, you know, for a diverse and a secure supply chain. So we, we've done this. We've known the founders of Global Technologies. They're actually also our vendors. So it's early stages, but it's you know we have big customers that need that. We're looking at a government side of that as well, if you're familiar with the 8(a) program. So my background, you know, is the Fed space, so it's the government contracts are key to that. So nothing that I can report right now that, hey, we've had all these big wins, but it's definitely another component of Climb that we need to have as a diverse supplier, and that's why we, we built—we, you know, put that relationship together. So you broke up in part of that answer, but essentially, this isn't a joint venture, it's not an acquisition, but you're working together, specifically for the federal space. Is that the essence? No, the federal piece will come. Right now, it's really in our larger partners as we have a diverse supply chain. But yeah, it's early on those. But, you know, I'm saying we're gonna take advantage of the federal side of it as well, but it still can be state and local. It's with our customer base and our vendors that are looking for a diversity partner. Great, thank you. And then, relative to your line card, I know in this type of a business, you've experienced it before, and, as have other firms, you just end up with a vendor or a few vendors that take off in the marketplace, and it and you end up being a big beneficiary of their success. So the question is, how many vendors on your line card today do you see that you think could explode, and in a good way, revenues just jumping in the next year or two? Yeah. If I opened it up to my management team, we would argue over those top five or six. And here's what we do. Just like when we pick a vendor, we bet on the jockeys that are running that vendor, what their go-to market is for the channel. The same thing as far as them expanding, 'cause we've seen what they've done in the past. But then there's a lot of outside factors. If you look at the majority of our vendors are not probably cash flow positive, right? They're out of the startup phase. They're still taking in dollars to grow out their channel teams. So it depends on where we get them in their life cycle. I would say right now, if it was, you know, Dale Foster, I'm gonna put my money on three vendors, you know, I would pick three of our vendors, that would take off on that side, and one of my sales leaders would pick three other ones, probably. So we do have a pretty good robust pipeline where we think, you know, "Hey, we're gonna see some real expansion." The quickest thing in distribution is, like I said earlier, like a share shift piece of it, and we're seeing that happen. And it's just good when, you know, these bigger, you know, behemoth distributors, you know, just move in a little different direction or it gets messy, all the advantages come to us where they need somebody that's much more of a targeted team. Great. Thank you. Appreciate the help. Thanks, Bill. Our next question comes from Vincent Colicchio from Barrington Research. Please proceed. Yeah, one more for me. The share gain you're seeing with certain software vendors from distributors, large distributors, are they largely quite small emerging companies, or are they, some of them, you know, decent size? I guess it depends on what you mean by that, Vince. I mean, decent size, you know, we look at a vendor, if they can get to, you know, $100 million, that's, that would be, you know, a mid to large vendor for us. You know, if you look at, you know, Sophos, $800 million, SolarWinds, $400 million-$500 million, so some sizable vendors on that side. But, that's what I would consider as some of the larger ones. And, you know, we're seeing more of those. And here's what happens in our market typically, and that is, as these customers or, I'm sorry, vendors get larger, they look for more efficient ways to get to the market, and then the key word is, how do they scale it, right? How do they scale their business? We're talking to one right now that says: Hey, we need to scale, and we can't do it by adding another 80 sales reps. The channel already exists, so you have, you know, these thousands of resellers. You've got, you know, a handful of distributors. If we use the channel and leverage the channel, we can scale, and we don't have to, you know, keep dumping the dollars into it, so we're just getting a one-for-one. We actually are getting a, you know, a 3x on the investment we put into the channel. So that's where we want to be. You know, that's where the inflection point is for these vendors, and we try to get, early on with them, have a deeper relationship with them, so when they go that way, we're ready to go. And some of them, they were just still prospects for us, so we haven't even signed yet, but we see where they're going, and we're saying, "Hey, we're a good fit for you guys." If you look at the gap between where we sit as a, you know, Adjusted Gross Billings distributor of $1 billion and the next one at, you know, $20 billion, it's a big gap for us to grow, in there without really being, seen as that much of a competitor to the, to the larger teams. Thank you for responding. Yeah. Thanks, Vince. This concludes our question and answer session. I would like to turn the floor back over to Dale Foster for closing comments. Thank you, Operator. I'd like to say thank you to all the stakeholders, you know, that we continue to work with and really focus on the channel. We have a great team, and we're gonna continue to, you know, execute our strategic plan for the benefit of all our shareholders. With that, I appreciate everybody joining us today. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.