Less than a month after the merger that spawned it, TD Synnex, a technology distribution company co-headquartered in Largo, is projecting revenues this year that would make it Tampa Bay’s largest public company by a wide, wide margin.
The company, created through a summer merger between Largo’s Tech Data and Fremont, Calif.’s Synnex Corp, estimated Tuesday that it would see revenues of between $15 billion and $16 billion in the fourth quarter of 2021, encompassing October, November and December.
As quarterly earnings go, that would be more than twice the most recent figures posted this summer by St. Petersburg’s Jabil Inc.; five times those posted by Tampa’s Tampa’s Mosaic Co., six times those posted by St. Petersburg’s Raymond James Financial and 14 times those posted by Tampa’s Bloomin’ Brands.
Over a full year, a quarterly projection of at least $15 billion in revenue would be enough to vault TD Synnex well into the Fortune 100 list of America’s largest corporations, possibly into the top 50. The companies last year saw combined revenues of $57 billion.
“We’re very humble about this,” said TD Synnex CEO Rich Hume, who also held that role with Tech Data. “What’s most important to us is customer and vendor experience, as opposed to our size. What really allows you to grow your business is not necessarily the size of your business, but the service you provide to your customers. So I remind all of us not to get over-enamored with regard to our size, but rather focus on the 150,000 customers that allow us to be successful.”
The projections came during the combined company’s first quarterly earnings report on Tuesday. That report only detailed Synnex’s most recent quarter, which ended just before the merger and saw the California company bring in revenues of $5.2 billion. That alone would make it Tampa Bay’s second-largest company by quarterly revenue.
Synnex also posted net income of $148 million, up from $132 million in the same quarter a year ago. For the fourth quarter, executives projected net income for TD Synnex at $38 million to $106 million.
Hume said revenue and income projections for the next quarter are slightly lower than what might be expected due to a supply backup affecting the entire industry. He believes that has a chance to ease up during the back half of 2022.
“Our hope is that although we might be supply-constrained, at minimum, we’ll stay even with our backlog, or maybe it comes down over time,” he said. “And then the supply robustness gets better as we move through the year.”
Last week, TD Synnex announced a deal with a new vendor partner, Zscaler, that would enable customers to purchase products and services directly from the company via a secure cloud platform.
Tuesday’s earnings report marked the first time Tech Data — or a version of it, anyway — had posted a public earnings report since summer 2020, when it went private in a $6 billion sale to New York private equity firm Apollo Global Management. The merger between Synnex and Tech Data was valued at $8.3 billion.
The combined company has 22,000 employees serving 150,000 clients in more than 100 countries. It is the largest technology distribution company in the world.
“Through time, I believe the capacity required to run and manage our business will grow,” Hume said. “There always are ebbs and flows in the interim, but I believe that we’re built to be either at or expand our resource levels throughout the next three to five years.”