In terms of areas of focus, for the 7th consecutive year, real-time transportation visibility held the top spot for greatest transportation IT investment. Visibility was cited as the priority technology investment by 36% of respondents and was closely followed by order management at 35% in the 2nd spot. Jumping into the 3rd spot, fleet routing was noted by 29% of respondents as an important technology investment, compared to being 8th in 2023. Carrier sourcing continued to decline as an IT investment area f ...

In terms of areas of focus, for the 7th consecutive year, real-time transportation visibility held the top spot for greatest transportation IT investment. Visibility was cited as the priority technology investment by 36% of respondents and was closely followed by order management at 35% in the 2nd spot. Jumping into the 3rd spot, fleet routing was noted by 29% of respondents as an important technology investment, compared to being 8th in 2023. Carrier sourcing continued to decline as an IT investment area f ...

Based in the UK, BoxTop helps LSPs digitize their operations and connect to the wider logistics community to manage the lifecycle of shipments. LSPs use the BoxTop platform to manage the secure and efficient movement of goods from quoting through to routing, booking, and final delivery. BoxTop is an existing Descartes partner, leveraging the Descartes Global Logistics Network ("GLN") to help their clients gain visibility into shipments across multiple modes of transportation and to complete electronic custo ...

Core Insights - Descartes Systems Group has acquired BoxTop Technologies Limited, enhancing its shipment management solutions for small- to mid-sized logistics services providers [1][2] - The acquisition cost approximately £10.25 million ($13 million), funded through cash on hand [2] - BoxTop's platform aids logistics services providers in digitizing operations and managing the shipment lifecycle efficiently [5][6] Company Overview - Descartes is a leader in providing software-as-a-service solutions aimed at improving productivity, security, and sustainability in logistics [3] - The company operates a collaborative multimodal logistics community, offering various services including shipment planning, tracking, and customs documentation [3] Strategic Implications - The acquisition is expected to integrate BoxTop's solutions with Descartes' Global Logistics Network, expanding service offerings and geographic reach in Europe [2][5] - Descartes aims to ensure that small- to mid-sized logistics services providers have access to comprehensive solutions for secure and efficient shipment management [6]

Descartes Systems (DSGX) recently announced that Yellow Diamond Logistics, a noted third-party logistics company certified with the Transportation Security Administration is embracing Descartes technology to streamline its operations and boost AI-powered capacity sourcing. The Descartes Aljex solution has been instrumental in enhancing operational efficiency by automating and simplifying key freight broker activities. From order entry, lane rate comparison, covering loads and rate confirmation to carrier ac ...

ATLANTA and LONDON, June 04, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (NASDAQ:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that Yellow Diamond Logistics, a leading Transportation Security Administration (TSA)-certified third-party logistics (3PL) company, is using Descartes technology for transportation management, real-time freight visibility and AI-driven capacity sourcing. By using the Descartes Aljex™ transportation management system (TMS), ...

Descartes Systems (DSGX) reported first-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 40 cents, which missed the Zacks Consensus Estimate of 42 cents. The bottom line increased 18% year over year. Revenues in the quarter totaled $151.3 million, beating the Zacks Consensus Estimate by 0.9%. The top line grew 11% year over year. Synergies arising from the acquisition of OCR and Thyme ASD in the fiscal first quarter, along with healthy momentum in services revenues, led to the expansion. Also, acqui ...

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $153.1 million, an increase of approximately 11% from $136.6 million in Q1 of the previous year [41] - Adjusted EBITDA grew by 16% to $67.0 million, representing 44.3% of revenue, up from 42.2% in the same quarter last year [11][14] - Gross margins improved slightly to 77% from 76% year-over-year, driven by operating leverage from business growth [10] - Net income increased by 18% to $34.7 million compared to $29.4 million in the first quarter of last year [14] - Cash flow from operations was $63.7 million, up 30% from $48.9 million in Q1 last year, representing approximately 95% of adjusted EBITDA [14] Business Line Data and Key Metrics Changes - License revenue decreased to $500,000 from $1.4 million year-over-year, while professional services revenue increased by 17% to $13.0 million, accounting for 9% of total revenue [9] - Services revenue increased by 11% to $137.8 million, consistent at 91% of total revenue [42] Market Data and Key Metrics Changes - The company noted a pickup in ocean volumes, which is expected to translate into increases in domestic volumes in the coming months [5][24] - Logistics service providers expressed optimism about international ocean and air shipments despite some weakness in U.S. domestic truck and parcel volumes [24][38] Company Strategy and Development Direction - The company aims for annual adjusted EBITDA growth of 10% to 15%, focusing on both organic growth and acquisitions [25] - The recent acquisitions of OCR and ASD are expected to enhance the company's global trade intelligence and customs services, with plans to integrate these businesses effectively [65][67] - The company maintains a strong capital structure with $239 million in cash and $350 million available under its credit facility for future acquisitions [16][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acquisition environment, noting many opportunities for future deals [8] - The company remains focused on delivering predictable and consistent growth, emphasizing the importance of stability for customers and stakeholders [25] - Management acknowledged challenges in the logistics environment but highlighted the resilience of the business and the potential for growth as conditions improve [38][40] Other Important Information - The company expects to incur approximately $4 million to $5 million in additional capital expenditures for the remainder of the year, maintaining a non-capital-intensive business model [17] - The tax rate for Q1 was 24.9%, slightly lower than the expected range, with expectations to trend closer to 25% to 30% for the remainder of the year [18] Q&A Session Summary Question: What drove the moderation in organic growth? - Management noted that organic growth was solid in the mid-8% range, with some adjustments from the previous year impacting the growth rate slightly [45] Question: What impact will the acquisitions have on margins? - Management indicated that both acquisitions are currently below the company's margin levels but expressed optimism about raising them over time [50] Question: How does the company view the current logistics environment? - Management acknowledged some weakness in domestic volumes but noted increased optimism from logistics service providers regarding future shipping volumes [38] Question: What is the outlook for e-commerce growth? - Management highlighted strong performance in the e-commerce sector, particularly among small- and medium-sized retailers, and expects continued growth in this area [118]

This quarterly report represents an earnings surprise of -4.76%. A quarter ago, it was expected that this logistics provider would post earnings of $0.30 per share when it actually produced earnings of $0.37, delivering a surprise of 23.33%. Descartes Systems (DSGX) came out with quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items. There are no easy answers ...

Record Revenues and Income from Operations WATERLOO, Ontario and ATLANTA, May 29, 2024 (GLOBE NEWSWIRE) -- The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2025 first quarter (Q1FY25). All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP). "Global trade is complex and constantly evolving. Supply chains and logistics operati ...