LONDON and ATLANTA, March 19, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (NASDAQ:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that the U.K.'s leading kitchen retailer, Wren Kitchens, is using Descartes' dynamic appointment scheduling, route planning and optimisation solution to improve surveyor productivity allowing them to complete 56% more customer appointments and significantly reduce its overall ‘cost per appointment', which has saved the comp ...

HONG KONG and ATLANTA, March 11, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (NASDAQ:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that MSC Air Cargo, the cargo airline launched in 2022 by container shipper MSC Mediterranean Shipping Company (MSC), is using the Descartes Air Messaging™ solution to better manage air freight shipments. The solution helps standardize electronic communication between stakeholders in the air cargo supply chain, including ...

The Descartes Systems Group Inc. (NASDAQ:DSGX) Q4 2024 Earnings Conference Call March 5, 2025 5:30 PM ET Company Participants Scott Pagan - President and COO Ed Ryan - CEO Allan Brett - CFO Conference Call Participants Dylan Becker - William Blair John Campbell - Stephens Inc. Stephanie Price - CIBC Paul Treiber - RBC Capital Markets Kevin Krishnaratne - Scotiabank Cole Couzens - Wolfe Research John Shao - National Bank Mark Schappel - Loop Capital Markets Steven Li - Raymond James Robert Young - Canaccord ...

Financial Performance - Total revenues for fiscal 2024 were $572.9 million, an increase of 17.8% from $486.0 million in fiscal 2023[39]. - Services revenues contributed $520.9 million in fiscal 2024, representing 91% of total revenues, with an incremental growth of $43.6 million from new and existing customers[44]. - The company’s net income for fiscal 2024 was $115.9 million, an increase from $102.2 million in fiscal 2023[38]. - Revenues for the fourth quarter of 2024 reached $148.2 million, up 2.4% from $144.7 million in the third quarter of 2024, primarily due to growth in services revenues[83]. - Cash provided by operating activities increased to $207.7 million in 2024 from $192.4 million in 2023, reflecting strong cash collections from customers[95]. - Total assets increased to $1,474.3 million in fiscal 2024, compared to $1,316.0 million in fiscal 2023[38]. - Operating expenses totaled $209.7 million in 2024, an increase of 18.6% from $176.7 million in 2023, primarily due to acquisitions and increased headcount-related costs[60]. - The effective tax rate for fiscal 2024 was approximately 23%, slightly lower than the expected range of 25% to 30%[159]. Acquisitions and Strategic Initiatives - The company completed two acquisitions in fiscal 2024: GroundCloud for approximately $136.8 million and Localz for approximately $5.9 million, contributing an incremental $37.3 million in revenue[35][36]. - The company is exploring future business combinations and strategic transactions to enhance its market position[9]. - The company plans to explore business combinations to add complementary services and products, focusing on companies targeting the same customers[160]. - The company completed nine acquisitions since the beginning of fiscal 2022, contributing to increased revenues[83]. Market and Industry Trends - The rise of e-commerce has increased challenges in supply chain management, with customers demanding faster fulfillment and real-time delivery updates[16]. - Regulatory initiatives mandating electronic filing of shipment information are driving the need for automation in shipping processes to remain compliant and competitive[19]. - The company anticipates that global economic factors, including inflation and geopolitical tensions, may adversely impact business operations and demand for products and services[139]. - Increased competition in the supply chain technology market is expected, necessitating timely and cost-effective development of new products and services[187]. Revenue Composition and Geographic Performance - Revenues from the United States reached $382.2 million in 2024, a 24.5% increase from $307.1 million in 2023, driven by new and existing customer growth[48]. - EMEA region revenues grew to $137.2 million in 2024, up from $126.9 million in 2023, marking an 8.1% increase[50]. - Canada revenues increased to $35.4 million in 2024, compared to $34.6 million in 2023, reflecting a growth of 2.3%[52]. - Asia Pacific revenues rose to $18.1 million in 2024, up from $17.4 million in 2023, indicating a growth of 4.0%[54]. Operational Efficiency and Cost Management - Gross margin for fiscal 2024 was $434.6 million, up from $372.7 million in fiscal 2023, reflecting improved operational efficiency[38]. - Gross margin percentage for total revenues was 76% in 2024, slightly down from 77% in 2023[55]. - Research and development expenses were $84.1 million in 2024, up from $70.4 million in 2023, representing a 19.5% increase[65]. - Other charges increased significantly to $21.6 million in 2024 from $5.4 million in 2023, primarily due to contingent consideration adjustments[69]. Future Outlook and Projections - The estimated baseline revenues for the first quarter of 2025 are approximately $130.5 million, with baseline operating expenses estimated at $81.0 million, resulting in a baseline calibration of approximately $49.5 million, or 38% of baseline revenues[147]. - The company expects to incur amortization expenses of $57.5 million for existing intangible assets in 2025, decreasing to $23.1 million by 2029[148]. - Stock-based compensation expense for fiscal 2025 is anticipated to be approximately $13.4 million, subject to adjustments from actual forfeitures and foreign exchange fluctuations[149]. Risks and Challenges - The company acknowledges that decreased capital and operational spending by customers could adversely affect demand for its products[169]. - The company may face challenges in identifying, integrating, and growing acquired businesses, which could impact overall performance[171]. - Changes in government filing or screening requirements for global trade may adversely impact the company's regulatory compliance services[179]. - Disruptions in freight movement could negatively impact revenues, as the company generates transaction revenues based on freight movement[180]. - The company relies heavily on its installed customer base for revenue, with significant contracts for ongoing support and maintenance[181]. - Failure of customers to renew service contracts or purchase additional services could lead to decreased revenues and adversely affect operating results[182].

BUENOS AIRES, Argentina and ATLANTA, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (NASDAQ:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that Ecotape, an Argentine auto parts manufacturer, increased international sales by 30% in 2023 using Descartes' global trade intelligence solution, Descartes Datamyne™. The company was able to identify potential buyers based on commodity-level trading volume and value of prospective customers. "We previous ...

ATLANTA and LONDON, Feb. 06, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (NASDAQ:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that Arctic Glacier has improved its distribution network efficiency, its fleet performance and the customer experience by using Descartes' strategic route planning solution to optimize ice distribution from over 100 facilities and 1,000 vehicles to 75,000 customer locations across the U.S. and Canada. "To minimize our opera ...

WATERLOO, Ontario and ATLANTA, Feb. 05, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (TSX:DSG) (NASDAQ:DSGX), the global leader in uniting logistics-intensive businesses in commerce, is scheduled to report its fiscal 2024 fourth-quarter and year-end financial results after market close on Wednesday, March 6, 2024. Descartes' executive management team will hold a conference call to discuss the company's financial results at 5:30 p.m. ET on Wednesday, March 6. Designated numbers are +1 416 764 8658 or +1 ...

Transportation & Warehouse Operations Most Challenged by Resource Shortages ATLANTA, Georgia and LONDON, U.K., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (NASDAQ:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, released findings from its study How Bad Is the Supply Chain and Logistics Workforce Challenge?, which indicates that 76% of the supply chain and logistics leaders surveyed are experiencing notable workforce shortages in their operations. What's ...

Business in Commerce Safe Harbor Statement These forward-looking statements are also subject to risks, uncertainties and assumptions that may cause future results to differ materially from those expected. Factors that may cause such differences include, but are not limited to: our ability to identify and successfully integrate acquired businesses; the impact of network failures, information security breaches or other cyber-security threats, disruptions in the movement of freight and a decline in shipment vo ...

⦠about not reporting on it, is just saying, hey, Iâm reporting on through the end of the quarter, not the first month of the first quarter. And specifically to your question, our calibration this quarter was done as of the first day of the quarter. Scott Group Okay. That makes sense. Okay. I wanted to get your perspective, a year ago, we were talking about just in time is becoming just in case. Iâm wondering is, with much higher rates, are we just -- is that sort of done, are we back to just in time and h ...