Insight Enterprises at Oppenheimer Conference: Strategic Growth and AI Focus

On Wednesday, 13 August 2025, Insight Enterprises (NASDAQ:NSIT) presented at the Oppenheimer 28th Annual Technology, Internet & Communications Conference. The company unveiled its strategic focus on high-growth areas such as cloud, data, AI, and cybersecurity while addressing challenges posed by changes in hyperscaler programs. Despite a $70 million headwind in cloud profits, Insight reported robust financial performance and a positive outlook, driven by expanding margins and strategic acquisitions.

Key Takeaways

• Insight’s cloud business faces a $70 million gross profit headwind due to hyperscaler program changes.
• The company reported gross margin expansion, reaching over 21% in the latest quarter.
• Insight’s M&A strategy focuses on strengthening capabilities in Microsoft, Google, and ServiceNow platforms.
• AI is leveraged to enhance labor capacity and reduce costs.
• The company anticipates mid-single-digit growth in hardware for FY25.

Financial Results

• Gross margins expanded from below 15% in 2022 to over 20% TTM, with 21.1% in Q2.
• EBITDA margins increased from 4.7% in 2022 to just over 6%.
• Cash flow is targeted at $300-400 million, exceeding 90% of net income.
• The underlying cloud business grew approximately 17% year-over-year in Q1 and Q2, excluding hyperscaler impacts.
• Hardware growth accelerated in Q2, with expectations of mid-single-digit growth for the year.

Operational Updates

• Insight operates in 26 countries, serving tens of thousands of customers, including most Fortune 5,000 companies.
• The company’s strategy as a solutions integrator combines hardware, software, cloud, and services.
• Recent acquisitions like Amdares, SADA, and InfoCenter aim to enhance cloud capabilities.
• Over 6,000 technical resources support Insight’s global operations.

Future Outlook

• FY25 gross profit is expected to remain flat due to hyperscaler program changes.
• Cloud growth may be flat to slightly down, while hardware growth is anticipated in mid-single digits.
• Gross margins are projected to stay around 20%.
• EPS is forecasted between $9.70 and $10.10.
• Operating expense leverage is a key focus for driving EBITDA margin expansion.
• AI is utilized to improve service delivery and internal operations.

Q&A Highlights

• Hyperscaler program changes are driven by Microsoft and Google’s preference for direct enterprise client management.
• These changes are not expected to persist into the next year.
• AI is actively used to boost skilled labor capacity, reduce costs, and enhance internal operations.

In conclusion, Insight Enterprises showcased its strategic positioning and resilience at the Oppenheimer Conference. For a detailed account, refer to the full transcript below.

Full transcript - Oppenheimer 28th Annual Technology, Internet & Communications Conference:

Dan Lee, Equity Research Product Desk, Oppenheimer: Alright. Good afternoon, everyone. Welcome to Oppenheimer’s technology, Internet, and communications conference. My name is Dan Lee with Equity Research Product Desk. It’s my pleasure to introduce Insight Enterprises.

Presenting from the company is James Morgado, chief financial officer. One housekeeping item. The audience can submit questions via an online portal, and I will ask ask them at the end of the presentation. With that, I’ll turn the call over to James.

James Morgado, Chief Financial Officer, Insight Enterprises: Yeah. Thanks. Thanks, Dan, and, good morning, good afternoon, everyone. Thank you all for attending our presentation today. I want to thank Oppenheimer and Dan for for hosting us.

Appreciate that. Joining me today is also Ryan Miasato, who’s our director of investor relations. I’ll spend the next twenty or thirty minutes or so talking to you about Insight, lay out a bit of the strategy or and our financial performance over time, and then we’ll we’ll reserve plenty of time for q and a if there’s any questions at at at the end. I’m I’m quite excited to describe both our our strategy and what I believe is a is a really compelling story. We’re we’re we’re sharing here the typical disclaimers.

I’m not gonna read them, but they’re available to you for review should you have any questions. So let let’s let’s jump in. First first, solutions integrator. That is that is what Insight laid out as our strategy back in at our Investor Day in 2022. And at that time, what we’re doing is we’re defining a a new category.

And what that is is it combines our historical our historical strength in hardware and software along with the cloud and services expertise that we we’ve built over the the better part of a of a decade. And really it really what that is is at the heart of our strategy is is our customers. And our customers are looking for business outcomes, especially with the backdrop of of AI. The landscape has gotten increasingly complex, and that is the the core of our strategy is we simplify the complex and deliver very outcomes for our customers and and and earn earn the right to do more. When you couple our strength in hardware and software and services and cloud with our large existing customer base of tens of thousands of customers and our deep relationships with the largest technology players in the world like Microsoft and Google, Cisco, NVIDIA, Apple, Adobe, HP, Dell, etcetera, you end up with very few companies who have the the combination of a large customer customer base, deep partnerships in in in the technology landscape, and the and the ability, to combine all of that with, with our services capability.

We’ll talk a little more about the the strategy on, on the next slide. We are focused on on, above market profitable growth. So on on the growth side, you look at where we’re focused. It’s in the fastest growing areas of the market, so cloud, data, AI, cyber edge, etcetera. And then when you look at our our ability to expand margins, particularly gross margins, we have we have demonstrated a strong track record, of that.

If you look back at 2022, I think our gross margins in that year were 14.7%. In the most recent quarter, we were just north of of 20% from a gross margin standpoint. Combination of factors that have led to that. One, we have had a natural tailwind from a mix standpoint, and I think that tailwind continues into the future. But that is around our cloud and services business growing faster than the the other areas of our business, and those have higher margins.

And so it’s accretive from a margin standpoint. So we have that mix factor. But there are also other factors that have driven this. One has been our execution, particularly around our discipline on on our pricing for our products and our services, and and that has been a a big factor over the last several years. We’ve also created leverage.

If you think of our delivery in in our in our projects, we’ve created leverage with our centers of excellence both in India as as well as Eastern Europe and and presence in in The Philippines as as well. And then and then technology is also a big driving force, particularly with AI. It’s it’s a driving force for our services business, but our overall technical capabilities are really strong. We have over a 100 patents that have either been approved or or pending, around, our our IP, our services business, and and the methodologies we use to deliver there. And then lastly, on this slide, we we’ve demonstrated a very strong track record of being able to generate cash.

The last two years have cash flow has been over $600,000,000 in each of the years. That is well over our long term target of greater than 90% of net income. This year, that’s normalizing a bit in the 3 to $400,000,000 range, but still within our long term target of greater than 90% of of net income. We have we have plenty of capacity on our balance sheet to not only manage the operations, but to manage internal investments and to support our capital allocation strategy, which is led for number one by m and a and and number two by opportunistic share repurchases, which we currently have about 224,000,000 remaining on on our current authorization. So overall, really strong.

I think we’re positioned really strong from from a strategic standpoint as a solutions integrator. We can drive above above profitable, growth, and then I think cash flow has been, strong and and quite stable over over our history. The the next slide is really to dive a little bit deeper into into the strategy, and this is a way to simplify a rather complex strategy. So I’m sure there will be some questions in in q and a. But, again, this was this is what we outlined at our Investor Day back in 2022.

And at the time, we’re defining a new category as this solutions integrator, and I’ll talk about how that’s different than than the other categories at at the bottom of the slide. But at the heart of our strategy is really customers, and that is our ability to combine hardware and software and cloud to deliver very specific outcomes cloud and services, I should say, to deliver very specific outcomes for our customer our our customers. This is we have a tremendous asset. I mentioned this. We have tens of thousands of customers in our base.

When you think when you think about that, we we do, you know, at least a dollar of business with most of the Fortune 5,000 companies. So really strong, significant asset there. We we differentiate ourselves through our technical portfolio. So, you know, we have over 6,000 technical resources. This is something that we’ve been building for the better part of of a decade, both organically and and through m and a over time.

Our culture, it’s it’s it’s somewhat strange sometimes to put cultures as a key to our strategy, but it is really a force multiplier for us at at Insight. It is, without a doubt, the the best culture that I have ever worked at in in my career. And this manifests itself in in very interesting and unique ways or even from an economic model standpoint in that we have higher retention rates and we’re ability to and our ability to punch above our weight when it comes to recruiting technical talent, which is which is critical to our to our strategy. When you when you add all this up, this ultimately lands to driving, to driving, better than, a market growth and profitable growth over time. And and you’ll you’ve seen that as I as I described in gross margins.

There’s a slide here to show the coming up to show the financial performance, but it certainly gives us an advantage to drive EBITDA margin as as as well. The bottom of the slide attempts to describe what a solutions integrator is a bit by describing what it is not as well to make sure that we we understand the the differences. So if you first think of a systems integrator, an SI, think of this as the Accenture’s Capgemini’s of the world as as large as larger SIs as an example. We certainly have similar technical capabilities to an SI. So we have the ability to bring, you know, bring data expertise, AI expertise, as as well as, you know, application development, for example, deep cloud migration expertise.

So very similar capabilities that you would see in an SI. We do not do ERP implementations as one difference, but certainly the technical capabilities are are very similar to an SI. There are some distinctions though between us and and and an SI. And, one is our extensive partner network that, that I mentioned earlier that crosses the technology landscape, all of the largest largest players there. We also bring deep supply chain expertise, and that’s kind of the heritage of the company.

And you you typically don’t see that in house in an SI. They would largely rely rely on partners there. And then another big differentiation between us and and an SI is the customer segments that an SI will go after. SIs typically think of them more concentrated in the Fortune 300. We we certainly have we certainly have relationships with the Fortune 300, but their their economic model tends to be really focused on the Fortune 300, which what really becomes interesting for us is corporate and mid market space, so below the Fortune 300, which is not an area that an SI typically reaches down to just because of the project size and the horizontal scale that’s required to go after that number of customer that is in our heritage.

So it gives us a it gives us an advantage to attack that market. Plus that that customer base in in that corporate and mid market space is largely underserved today. It’s it’s served by regional players, and, you know, that that that space of customers also doesn’t have the resident expertise that you would find in a in a in a large enterprise. And so they need partners and and rely on partners, especially to navigate the increasingly complex environment that that exists on the technology landscape that’s evolving even faster now with AI. So it presents an an outsized opportunity for us that at least to date, the SIs have have not reached down into us.

So similar technical capabilities, but difference in terms of where we focus on on the customer segments and our relationships with the the large partners and our historical expertise in the in the product and and software side. We share a lot of similar characteristics to a reseller. And if you think if you think about a reseller, that is the heritage. If you look back at our company where we started, we were more in the reseller space. But for for the greater part of a decade, we’ve really been building out our technical expertise, our expertise around data and AI, application development, cloud migration, cyber, cyber and edge capabilities that you typically don’t see in a in a in a reseller.

You see some resellers attempting to build those capabilities today, but we’ve been we’ve been doing this back since since, you know, 2012, 2015 time frame. And and so this is this now represents a significant portion of our portfolio and certainly represents a significant portion of of our our, employee population now that carry those those technical expertise. So it’s a significant differentiation from what you would see in reseller capabilities. And then lastly, we are not a distributor. Distributors are really important to our model, they’re a partner that we use to hold inventory for us, availability of inventory when we’re building out projects.

But we are we are ourselves not a distributor. Most people realize that we’re not a distributor, but we put this on the slide anyway to make sure that there is a differentiation there. The distributor tends not to have the end customer relationships that we have, and they certainly don’t carry the technical expertise that that that we have. So this slide attempts to to capture our our strategy and where we’re positioned in in the market. The the next slide I only put in here, and I I won’t spend that much time on it, but really to show our our our global scale and and global reach.

We we operate in 26 different countries. We are segmented in three geographies, and you’ll see this in our public filings. We are in North we are in North America, which is largely Canada and and US. We are we are in EMEA, which is which is across Europe with a deep presence in in in The UK, but across Europe. And then lastly, in Asia Pacific with a with a a high degree of focus in Australia and New Zealand.

But we have glow we have global reach, which is increasingly important when you’re when you’re talking to companies who who are multinational in in nature. The next slide is around our financial performance. And before I talk about this one, I think it’s important to preface some of this in in what we’re seeing in this particular year. And we’ve called this out as we exited last year and as I took the reins as as CFO this year. There is there is a transition that’s going on around the hyperscalers.

So think of Google and Microsoft. We’re we’re the we’re the largest partners. We’re one of the largest partners in both from a cloud perspective in go both Google and Microsoft. We have a deep presence in the enterprise space. The corporate and mid market space has been a nice growing aspect of our business in the cloud.

But what Google and Microsoft both both asked their partner both of them asked their partners to do was to focus away from the enterprise as it pertains to resale of cloud and focus and focus more into the corporate and mid market space. We’ve had a nice growing, as I mentioned, nice growing corporate and mid market, business that’s been fueling our growth in the cloud, but we do have a deep presence in the enterprise. And so as we’ve shifted away, as our partners have asked us to shift away from enterprise on the resale side, it’s created an acute impact in this year. And we called out a $70,000,000 gross profit headwind to our cloud business associated with these these hyperscaler program changes, which is what you see in the upper right hand corner with that slowdown in cloud. That’s a we we believe that this impact of that $70,000,000 is more heavily weighted towards the first half and q three.

And as we exit q four, it’s largely behind us. There is some tail of this into f y twenty six, but it is it is relatively small and muted and probably contained more to the Google business than the Microsoft business because of the nature of the length of the contracts that exist there. But what that’s doing is this year, it’s it’s taken our cloud business. As you can see, historically, it’s been in the twenties. Our long term guidance was this would be at 16 to 20% CAGR.

We’ve been outperforming that last year and into 2023. But this year, because of that $70,000,000 acute impact, it’s allowed us to give guidance for cloud to be flat to slightly down for the full year in in this fiscal year. And so you’re seeing that. The underlying growth of the cloud business has been is something we monitor very closely. So if you extract those program changes, how has the cloud business been growing?

And if you look at it in q one and q two, similar numbers, it’s been it’s been 17, a little north of 17% year over year growth in in the first half. So the underlying business is still performing well, but we are working through those program changes in this particular year. It’s most acutely felt, obviously, in the in the cloud gross cloud gross profit growth, but, you know, it’s it’s also muted the impact or the expansion that that we’ve seen on gross margin as well as as well as the EBITDA margins still performing nicely in both of those. As I mentioned, 21.1% in q two for gross margin, still really strong performance, but it’s muted the underlying extra strength that we’ve seen in gross margin and and EBITDA margin. So I thought that was an important preface to to this slide.

But you look at our performance over time, notwithstanding that, it has been very strong. So you see here the in the upper left hand chart, you see our gross margin performance. I mentioned that if you rewound this to to 2022 was was just just south of 15% gross margin. We’ve expanded this to, on a TTM basis, north of 20%, and in the most recent quarter, 21.1%. If you look at the lower left part of of the chart, which the pictures are in my way, so I’m gonna look over what it is.

Oh, EBITDA margins. Our EBITDA margins have also expanded. If you went back to 2022, EBITDA margins were 4.7% for that year. And and, you know, nice expansion to to, just north of of 6%. This has largely been fueled by gross margin, expansion.

As we look at our EBITDA margins into the future, I think there is certainly an opportunity to continue to expand gross margin, perhaps not at the pace that we’ve seen over the last three years, but certainly an opportunity to continue to expand gross margin. But most importantly, I think, OpEx leverage is is is one that you will see us, maniacally focused on in in the next few years. I think we have a great opportunity to to drive operating expense leverage, in the business and and fuel, EBITDA margin expansion. And then I I’ve mentioned the the cash flow generation of the business. We’ve been well over a 100% in in recent years as a percentage of net income.

You you’ll see that I I think in q two, I called this out publicly, that we had some it was really just timing. It was inter quarter working capital. It was really between June and July around some AR AR payments. We’re still holding our guidance for the full year of 3 to $400,000,000 of cash flow cash flow for the business, which would represent greater than 90% of our net income. So very strong cash flow performance for us.

The next slide, I I mentioned our m and a, and m and a has been a critical part of our strategy and will remain an important part of our strategy moving forward. Our capital allocation priorities, obviously, number one is is to make sure we have a sufficient liquidity, to to meet our our, organic and and overall business. Following that would be m and a and followed by opportunistic share repurchases, which if you look back, we’ve done quite a bit of share repurchases over the last eighteen to twenty four months and balance that with with m and a. So I think we’ve been appropriately balanced. We’ll we’ll continue to do that moving forward.

But I show this chart, and and I won’t go through every single acquisition. I’ll I’ll kinda start with a with a pivotal pivotal point pivotal point back in in 2015. We acquired a company called BlueMetal, which really set the basis for our our core services business around the modern services. So think about this, you know, app development, app design, data capabilities. Blue Blue Metal started a bit of we had some organic pieces of this, but it it really accelerated that in 2015.

I bring that one up because it shows that we’ve been on this path for for quite for quite some time. We acquired a company in 2017 called DataLink. That was really around our data center transformation capabilities, both from a solution aid standpoint as well as being able to to architect the the the products that that would go into our customer’s data center. Big big acquisitions that help build those capabilities for us. In 2018, we acquired a company called Cardinal, which further built out our digital services capabilities.

And in 2022, we acquired an India based. It was actually a US based company, but very strong presence in India, which helped build out our services center of excellence in in India. They were also a large Microsoft partner, which helped build our capabilities and relationship with further expand that relationship with with Microsoft. More interestingly, I think beyond that or more recently, I should say, is around the acquisitions that we’ve done over the last couple of years. And we acquired a company named Amdares, and this was a, an EMEA based acquisition.

It was around Microsoft capabilities, so application development in the Microsoft environment. Very strong services company, really to to help serve the the European market, but also gave us capabilities in an Eastern European center of excellence there that we can leverage globally. So very strong acquisition there has performed well. At the 2023, we acquired Sato, which was one of Google’s largest partners from the re you know, brought a significant resale business. But what’s been underweighted in many of the discussions is around the services capabilities that Google that Asada brings in the Google environment.

We have a long heritage in the Microsoft environment and have strong capabilities in Microsoft. This was an important strategic acquisition, particularly when you think about the lens of AI and and, you know, being having strong services capabilities in the two leading AI platforms was was really critical for us, and SADA brings brings that to us. And then the the last one that I’ll point out is InfoCenter was a pure play ServicesNow Services company based in the ServicesNow platform. The ServiceNow is an incredible platform growing incredibly fast, fits in very well to to where we are with our customer bases customer base. And many of the discussions we have around our our customer services now is a platform that is proliferating in in many in many companies.

And and InfoCenter pound for pound is the best services company I’ve ever come across in in my career. Both well managed. The methodology is is excellent. We’re adopting many of the methodology in in our core business, our core services business. So so very strong acquisitions in in recent years.

M and A has been a critical part of our strategy, has remained a critical part in recent years, and and will remain important to us as as we move forward. The the last piece of this, I’ll I’ll talk a little bit about our f y twenty five outlook, and then we can we can open it up for for q and a. This year, we’ve called gross profit to be approximately flat. A couple of dynamics there. One, I mentioned it around the hyperscaler program changes.

So the $70,000,000 gross profit headwind that we’re faced with the hyperscaler programs for this year is muting that cloud growth in one of this one of the areas that have fueled our growth over recent years. So cloud, we’ve called out, would be flat to slightly down, and so that’s factored into this gross profit growth. So that that’s the number one leading dynamic. The second part of this is we look at our our hardware business. Hardware has been a over the last couple years, I think this is a well documented in the industry.

If you strip out the spend that is going to hyperscalers to build out their large data centers and you look at just the core hardware market, last couple of years, hardware has been has been depressed just depressed from a growth rate overall. Devices have not been refreshing, and, you know, it’s been a continued extension delay on on refreshing. And then the infrastructure side on data center build outs for enterprises and corporates, there’s been a period of die digestion following a release of supply chain from, you know, eighteen to twenty four months ago. Both of those are expected to to continually improve as the year progresses, and and we’ve seen that. So in the first half, hardware grew 1% sorry.

In q one, it grew 1% year over year. Q two, that accelerated a little bit, and then that should continue to accelerate as we get into q three and q four, and we’ve seen all the signs that would support that. We think that hardware for the year will grow in the in the mid in the ultimately grow in the mid single digits. And then the third part of this that that is impacting that gross profit to be approximately flat is the services business more related to the services that are attached to infrastructure and specifically around the enterprise side. And I think that is as enterprises have repositioned budgets and are absorbing, or preparing for, to be prudent in terms of the the backdrop of the global macroeconomic environment that has impacted, our services business this year.

And so gross profit, we see growth to be approximately flat. You’ll see that we don’t point to revenue as one of our key metrics. We focus more on gross profit, and that is because over time, what we’ve seen is is from an accounting standard standpoint to more netting going on. So as, customers shift from on prem software to cloud, you see that netting impact. So what we would take in in revenue before now is netted so that there’s no COGS effectively.

There’s there’s revenue equals gross profit. And so that creates noise in the revenue lines. So we we we focus quite a bit on gross profit, so we guide from a gross profit standpoint. Gross margin, you know, approximately 20%. That that’s a a strong we’ve had a strong start to the year on on on gross margin.

This ultimately culminates into EPS at nine seventy to to ten ten ten, and we have held the the EPS guidance through through the first part of of this year. So that’s a bit of context on the f y twenty five outlook. So that I that takes us to the end of at least my prepared remarks, Dan. I I don’t know if there’s any questions, but happy to open this up to to questions.

Dan Lee, Equity Research Product Desk, Oppenheimer: Yes. We actually have a couple questions, in the q and a box. So the first one is what is the reason for the transition with Alphabet and Microsoft? Is this structural change to a lower level, or will the revenue come back?

James Morgado, Chief Financial Officer, Insight Enterprises: Yeah. It’s a great it’s a great question. And a little bit of context because I I mentioned that we work with all of the largest partners in, on the technology side. And so partners change their programs all the time for us where they want us to focus and what they wanna drive. That’s usually something that isn’t an outsized impact one way or the other.

We wouldn’t call out benefits. We wouldn’t typically call out, any headwinds. This is an oversized one, so so we felt important and prudent for our investors to understand. So first part of the backdrop is partners change their programs all the time. Our job is to work with them to make sure we’re focused in the right areas.

Specifically with Microsoft and Google, the focus away on the resale side, they want us to bring our services portfolio to all customers. But specifically on the resale side of cloud is with the largest enterprises, they feel that they have those direct those direct relationships with with the enterprises. And so they feel that they don’t need a partner, in in those when it comes to looking at at the at the cloud, instances that that, that a customer may have. They feel that they have those direct relationships. And but when you get outside of the large enterprises, it is a vast market.

And so, they need partners to economically tap and grow that market. So they’re like, we can touch the large enterprises. We don’t, we don’t really need you in that space. We need you to double down in this wide corp corporate and, and mid market space. So strategy from, you know, when you take a step back makes sense from from what they’ve what they’ve where they’re wanting their partners to focus.

We have obviously the scale to be able to tap corporate and mid market because our business is around, you know, being able to conduct business with a wide number of customers and bring our services portfolio to bear across that as well. So that’s that’s effectively that’s effectively the focus. You know, I’ve been asked the question just to just to preempt this in case this comes up is, hey. Are there additional pro partner program changes that you’re concerned about as it pertains to to Google and Microsoft for the next year? And and the answer to that is no.

There’s from from everything that we in all our discussions with both of them, it’s really about stability into next year and for the foreseeable future with their partner program changes. They really want us focused on that corporate and mid market space and bringing our full services portfolio. So, hopefully, that helps answer that question.

Dan Lee, Equity Research Product Desk, Oppenheimer: Okay. Thank you. Another question. So so this one is more about, is the company using AI to either increase your skilled labor capacity or lower your labor cost? For example, another company at the conference mentioned how they’re able to flatten a four person migration team, to one person plus two AI agents.

James Morgado, Chief Financial Officer, Insight Enterprises: Yeah. A 100%. I can tell you. I was on a call earlier today and somebody asked me that a similar question. The number one discussion and probably one of the highest focus areas internally is around AI.

And there’s a couple of lenses to this. One is how that impacts what we’re selling to our customers and where our customers’ needs are going to shift. A little less when you think about this, when you listen to the AI spend that exists, the largest enterprises are the ones that are putting dollars today into into, you know, internal AI projects. That hasn’t really hit scale in the corporate and mid market space, but in the in the quarters and the years to come, that is certainly going to change. And so how do we position our portfolio?

Because corporate and mid market segment is really critical to us, particularly for our services. How do we make sure that we’re prepared and positioned to be able to provide those services for our customer? That’s a really key discussion internally. I think we are well positioned on that front. The second piece of this is the the kind of the heart of the question that was just asked, which is how do we how do we leverage AI and what we deliver?

And we’re seeing this pretty substantially, in the in the code that we can generate, in the analysis that we can do with data and architecture for us. It’s different than if you think of the large Accenture’s and enterprise and Capgemini’s of the world. Their economic model’s a little bit different for than ours. But what that gives us the ability to do is scale even faster in the corporate and mid market space. And so what you’ll see is, you know, what would have taken us significant hiring to go attack that market over time, we can we can do that at much greater scale.

So it levels the playing field from a scale perspective. I I believe that, obviously, over time, the economics are gonna change and customers are gonna ask for, you know, better and better pricing over time that we won’t be able to accrue all of those benefits to us, but it’s gonna help significantly in scale, particularly in the short term, and we see that in almost every aspect of our services business. The third lens to AI is how we operate, And you and I mentioned earlier that I think we have a great opportunity for operating expense leverage. I think we had that even outside of AI. I think AI presents an even greater opportunity for internally how our back office functions, support our business.

I think there’s a great opportunity to help drive operating expense leverage there and being able to have full agent capabilities in some of the back office. So if you look at internally, strategy is focused on all three of those that I described, what we sell to our customers, how how we deliver on the services side, and then third, the the operating expense infrastructure of the company.

Dan Lee, Equity Research Product Desk, Oppenheimer: Okay. Well, James, I see no other questions in the queue. I think we’re good. Thank you so much.

James Morgado, Chief Financial Officer, Insight Enterprises: Alright. Great. Great, Dan. Thank you, and I appreciate, everybody’s time.

Dan Lee, Equity Research Product Desk, Oppenheimer: Thanks, everyone.

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