Global supply chain SaaS provider Descartes reported another record financial performance Wednesday after the market closed. 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 January 31.
The result was 9 cents higher year over 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 exchange fluctuations).
Management said on a Wednesday evening call that it continues to help customers navigate rapidly changing tariff rules. It also said an internal tariff duty and recovery team is already working with clients even though a refunding mechanism hasn’t been established. “Our customers continue to face tariff uncertainty, both in the future tariff landscape and the potential recovery of some previously-paid tariffs,” said Descartes CEO Ed Ryan in a news release.
” He touted the company’s Global Logistics Network, which has been critical in providing customers with “timely, accurate and reliable data and solutions” to enhance decision making. Table: Descartes’ key performance indicators The company reported record adjusted earnings before interest, taxes, depreciation and amortization of $89 million in the quarter, which was 18% higher y/y. It recorded an adjusted EBITDA margin of 46%, which was 1 percentage point higher 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 an untapped $350 million line of credit. It said there are numerous AI-powered platforms with unique offerings in the market, many of which it believes are suitable M&A targets.
Descartes also announced Wednesday that it acquired OrderMine, a UK-based company providing forecasting and planning tools for e-commerce companies. 3 million. Descartes commenced a share buyback plan in December, allowing it to repurchase up to 10% of its outstanding common shares.
7% in after-hours trading on Wednesday.
