Supply chain software provider Descartes again reported record quarterly results, noting it’s “picking up a bunch of business from competitors.”
Descartes (NASDAQ: DSGX) reported consolidated revenue of $148.2 million, a 19% year-over-year (y/y) increase, for its 2024 fiscal fourth quarter ended Jan. 31. Services revenue was up 20% to $135.7 million. The period benefitted from prior acquisitions of final-mile solutions providers GroundCloud and Localz. Excluding the impact of those deals in addition to changes in foreign exchanges rates, revenue was 10% higher on a same-store basis.
Earnings per share increased 3 cents y/y to 37 cents within the quarter.
“Complexity and alter is an enormous growth driver for us in our business and I feel that’s why you’ve seen us outperform the logistics transportation market over the past yr,” CEO Ed Ryan told analysts on a Wednesday evening call.
He said multiple conflicts across the globe have put more firms on sanctioned parties’ lists. There have also been quite a few changes in tariffs and duties, providing additional growth opportunities as operators seek best-in-class platforms to make sure trade compliance.
“During tough times I feel people are likely to flock to a protected and reliable source,” Ryan said.
![](https://www.freightwaves.com/wp-content/uploads/2024/03/06/Descartes-kpi-table.jpg)
The Canada-based company reported adjusted earnings before interest, taxes, depreciation and amortization of $65.7 million, a 19% y/y increase. For fiscal full yr 2024 adjusted EBITDA was $247.5 million, 15% higher y/y.
Looking forward, the corporate forecast revenue of $130.5 million and adjusted EBITDA of $49.5 million for its fiscal first quarter ending Apr. 30.
“The entire world has realized that offer chain and logistics is more necessary … the primary place they [make] investments is into technology since it gives them the fastest return on investment and it’s probably the most visible for his or her customers,” Ryan continued. “I see no end in sight to that.”
The corporate generated $50.8 million in money flow from operations within the quarter. The result included a $12.6 million negative impact from higher-than-expected earnout payments on past acquisitions.
Descartes ended the quarter with $321 million in money and an untapped $350 million line of credit.
More FreightWaves articles by Todd Maiden
- XPO provides favorable February update
- Old Dominion Freight Line still waiting for market to show
- Transportation prices up in February but capability grows faster
The post Descartes sees ‘no end in sight’ for elevated supply chain investments appeared first on FreightWaves.