FREMONT, Calif. & CLEARWATER, Fla. - TD (TSX:TD) SYNNEX (NYSE: NYSE:SNX), a prominent IT distributor and solutions aggregator, announced the appointment of Tanuj Raja as the new Senior Vice President for North America Hyperscaler and Marketplace. Raja, an industry veteran with a notable tenure at Google (NASDAQ:GOOGL), brings extensive experience in marketplace strategies, digital transformation, and Telecom (BCBA:TECO2m) and Edge ecosystems to the role.
Raja's appointment comes at a time when TD SYNNEX has reported a significant increase in digital platform adoption and new digital routes-to-market among its cloud resellers and Managed Service Providers (MSPs) in North America. The company highlighted that over 8,000 North American resellers are now transacting cloud consumption and Software (ETR:SOWGn) as a Service (SaaS) sales through its StreamOne platform. Additionally, more than 500 resellers have integrated StreamOne with their primary Professional Services Automation (PSA) platforms, including ConnectWise and Autotask.
The StreamOne Marketplace catalog has seen a threefold expansion in the last year, offering a broad range of solutions from established vendors to emerging startups. TD SYNNEX is also set to introduce new customer-centric capabilities for its global cloud platform, aimed at empowering partners to flourish in the evolving digital landscape.
Raja's background includes roles such as Global Director of Strategic Partnerships and Global Head of Cloud Commerce at Google, as well as advisory positions on the boards of cloud-based organizations. His expertise is expected to bolster TD SYNNEX's go-to-market strategies and enhance partner enablement resources.
The company also noted a 500% year-to-year increase in third-party software sales through private offers on major cloud marketplaces, reflecting the growing importance of strategic hyperscaler relationships and an extensive partner ecosystem. TD SYNNEX's SaaS expand syndication features are designed to simplify onboarding, optimize investments, and accelerate market entry for reselling partners.
Anthony D'Ambrosi, CEO of Abacus Group, commented on the collaboration with TD SYNNEX, emphasizing the importance of their partnership in his company's global growth agenda.
This announcement is based on a press release statement from TD SYNNEX. The company continues to focus on driving technology investments and unlocking growth opportunities for over 150,000 customers in more than 100 countries.
In other recent news, TD Synnex has been experiencing positive growth, as reported in its recent earnings for the August quarter. The company's gross billing and revenue increased by 9% and 5% respectively, with its Strategic Technologies sector driving this growth. Loop Capital maintained a Buy rating on TD Synnex shares, reflecting confidence in the company's market position. However, TD Synnex's gross margin has seen some decline due to increased investments in Hyve's capabilities, particularly in next-generation AI servers.
In other developments, TD Synnex recently adopted amendments to its corporate bylaws and hinted at a proposal to alter its certificate of incorporation. These changes adjust the voting threshold required for the board and shareholders to adopt, amend, or repeal bylaws.
On the analyst front, Goldman Sachs (NYSE:GS) also maintained a Buy rating on TD Synnex, projecting an 8% increase in revenue growth for the company in fiscal 2025. This is driven by the anticipated recovery in PC sales and networking growth. TD Synnex expects Q4 gross billings to range between $20.5 billion and $21.5 billion, with a projected non-GAAP diluted EPS of $2.80 to $3.30. These recent developments highlight TD Synnex's strategic growth plans and its focus on enhancing value across multiple technology categories.
InvestingPro Insights
TD SYNNEX's strategic appointment of Tanuj Raja and its focus on digital platform adoption align well with its current financial performance and market position. According to InvestingPro data, TD SYNNEX boasts a market capitalization of $10.62 billion, reflecting its significant presence in the IT distribution and solutions sector.
The company's P/E ratio of 16.09 suggests a reasonable valuation relative to its earnings, which is particularly noteworthy given the company's strong performance. InvestingPro Tips highlight that TD SYNNEX has delivered a high return over the last decade and maintained a strong return over the past five years, indicating consistent long-term value creation for shareholders.
TD SYNNEX's commitment to shareholder returns is further evidenced by its dividend policy. An InvestingPro Tip reveals that the company has raised its dividend for 4 consecutive years, with a current dividend yield of 1.29%. This demonstrates a balance between reinvesting in growth initiatives, such as the expansion of its StreamOne platform, and rewarding shareholders.
The company's focus on expanding its digital offerings and partnerships appears to be paying off. Despite a slight revenue decline of 4.01% in the last twelve months, TD SYNNEX reported a quarterly revenue growth of 5.19%, suggesting a potential turnaround. This growth is particularly important as the company continues to invest in its cloud and marketplace strategies.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for TD SYNNEX, providing deeper insights into the company's financial health and market position.
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