Global supply chain SaaS provider Descartes reported another record financial performance after the market closed on Wednesday. The company also announced the acquisition of an e-commerce solutions provider.
Descartes (NASDAQ: DSGX ) reported earnings per share of 52 cents for its fiscal fourth quarter ended Jan. 31. The result was 9 cents higher on the year.
Consolidated revenue of $193 million came in 15% higher y/y. Services revenue was also up 15% to $180 million (organic growth in services revenue was approximately 8%, excluding foreign currency changes).
Management said in a phone call Wednesday evening that it continues to help customers navigate the rapidly changing tariff rules. It also said that the Inland Revenue and Recovery Team is already working with customers while a refund mechanism has not been established.
“Our customers face tariff uncertainty, both in the future tariff landscape and the potential reinstatement of some previously paid tariffs,” Descartes CEO Ed Ryan said in a news release. “The rapidly changing geopolitical landscape is also impacting shipping and supply chains,” creating “forecasting, pricing, planning and execution challenges for shippers, carriers and logistics service providers alike.”
He pointed to the company’s global logistics network, which is critical in providing customers with “timely, accurate and reliable information and solutions” to improve decision-making.
The company reported record adjusted earnings before interest, taxes, depreciation and amortization of $89 million in the quarter, which was up 18% y/y. It recorded an adjusted EBITDA margin of 46%, which was up 1 percentage point y/y.
Descartes generated $76 million in cash flow from operations in the quarter, a 25% y/y increase.
The company ended its fiscal year with $357 million in cash and a $350 million line of credit. That said, there are many AI-powered platforms on the market with unique offerings, which many believe are perfect M&A targets.
Descartes also announced Wednesday that it has acquired OrderMine, a UK-based company that provides forecasting and planning tools for e-commerce companies. The purchase price was $2.3 million.
Descartes launched a share buyback plan in December, which allows it to repurchase up to 10% of its outstanding common shares.
Shares of DSGX were down 0.7% in after-hours trading on Wednesday.
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