Watsco, Inc. (NYSE:WSO) Q2 2024 Earnings Conference Call July 30, 2024 10:00 AM ET
Company Participants
Al Nahmad - Chairman and CEO
Paul Johnston – EVP
Barry Logan – EVP
A.J. Nahmad – President
Rick Gomez - VP
Conference Call Participants
Jeffrey Hammond - KeyBanc Capital Markets Inc.
Tommy Moll - Stephens Inc.
Ryan Merkel - William Blair
Brett Linzey - Mizuho
Patrick Baumann – J.P. Morgan
David Manthey – Baird
Nigel Coe - Wolfe Research
Operator
Good day, and welcome to the Watsco Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Al Nahmad, Chairman and CEO. Please go ahead.
Al Nahmad
Good morning, everyone. Welcome to our second quarter earnings call. This is Al Nahmad, Chairman and CEO and with me is A.J. Nahmad, President; Paul Johnston, Barry Logan and Rick Gomez. In this call, I have asked these executives to join in anytime they wish with their thoughts so that all of you can get the views from multiple people in the company.
Before we start, I will state our cautionary statement. This conference call has forward-looking statements as defined by SEC laws and regulations that are made pursuant to the safe harbor provisions of these various laws. Ultimate results may differ materially from the forward-looking statements.
Watsco delivered another strong quarter. We achieved record sales, reflecting strengths in both residential and commercial markets. Operating efficiency improved during the quarter as evidenced by lower SG&A as a percentage of sales. We generated strong cash flow and our balance sheet remains in pristine condition to enable most any size investment to grow our business. Simply put, Watsco's entrepreneurial culture, which empowers local leaders to make local decisions continue to perform well.
Technology continues to have an impact and we are fortunate to have served such a large and growing number of contractors with the industry's most innovative technologies. Greater adoption and use of our platforms by a growing number of contractors has produced growth and market share gains.
Annualized e-commerce sales now exceeds $2.5 billion and our active users continue to grow faster than non-users. OnCall Air, Watsco's consumer facing sales platform that helps contractors do business continues to grow and expand.
Thus far in 2024, contractors presented quotes to approximately 160,000 households, an 18% increase and generated $743 million of sales for our contractors, a 27% increase over last year. We are actively updating our technology platforms to optimize the launch of new low GWP A2L systems. This presents another important federal regulatory change providing the opportunity for growth in the coming years.