Allan Brett - CFO Conference Call Participants Paul Treiber - RBC Capital Markets Scott Group - Wolfe Research Raimo Lenschow - Barclays Operator Scott Pagan Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada, including our management's discussion and analysis filed today. We provide forward-looking statements solely for the purpose of providing information about management's current expectations and plans relating to the future. You're cauti ...

The Descartes Systems Group Inc. (NASDAQ:DSGX) Q1 2024 Earnings Conference Call May 31, 2023 5:30 PM ET Company Participants Scott Pagan - President & Chief Operating Officer Ed Ryan - Chief Executive Officer Allan Brett - Chief Financial Officer Conference Call Participants Raimo Lenschow - Barclays Matt Pfau - William Blair Paul Treiber - RBC Capital Markets Justin Long - Stephens Daniel Chan - TD Cowen Robert Young - Canaccord Genuity Steven Li - Raymond James Kevin Krishnaratne - Scotiabank Operator Goo ...

Financial Data and Key Metrics Changes - Total revenues increased by 14% year-over-year, with services revenues up 15% [25][35] - Net income and earnings per share both rose by 18%, while adjusted EBITDA increased by 16% [25] - Cash generated from operations was nearly $200 million, representing 89% of adjusted EBITDA [25] - Record Q4 revenues reached $125.1 million, an 11% increase from $112.4 million in Q4 of the previous year [33] - Adjusted EBITDA for Q4 was a record $55.4 million, up 11% from $50.1 million in the same quarter last year [36] Business Line Data and Key Metrics Changes - Services revenue in Q4 increased by 14% to $113.4 million, up from $99.5 million in the previous year [33] - Professional services and other revenue decreased to $10 million, down from $11.7 million, due to lower hardware revenue and reduced professional service needs [34] - The revenue mix for services increased to 91% of total revenue in Q4, up from 89% in the previous year [34] Market Data and Key Metrics Changes - US ocean container imports are at pre-pandemic levels, with current volumes 15% to 20% lower than pandemic highs [40] - Port transit delays have improved, leading to more efficient movement of containers through ground systems [41] - E-commerce growth continues, although at a slower pace compared to pandemic levels, with a focus on last mile delivery [42] Company Strategy and Development Direction - The company aims for annual adjusted EBITDA growth of 10% to 15%, focusing on both organic growth and acquisitions [44] - Recent acquisitions, including GroundCloud, are driven by customer demand for enhanced logistics and delivery solutions [30][31] - The company is well-capitalized with $276 million in cash and a $350 million credit line available for future acquisitions [36] Management's Comments on Operating Environment and Future Outlook - The management remains cautious about broader economic conditions, including high interest rates and inflation [40] - Customers are looking to replenish inventories cautiously, which may lead to increased shipment volumes as the year progresses [41] - The company is focused on maintaining a predictable and stable business model to ensure long-term growth [44] Other Important Information - The company generated $192.4 million in cash from operations for the year, up from $176.1 million the previous year [36] - Adjusted EBITDA margin for the year was 44.3%, up from 43.7% the previous year [36] - The company plans to incur approximately $5 million to $7 million in capital expenditures for the upcoming fiscal year [39] Q&A Session Summary Question: Impact of macroeconomic conditions on business - Management noted minor impacts on certain business areas but highlighted strong performance in others [48] Question: Financial details regarding GroundCloud acquisition - Management indicated that GroundCloud has a higher mix of professional services, which is expected to be around double the percentage compared to Descartes [54] Question: Inflation impact on pricing and costs - Management acknowledged some impact from inflation and mentioned minor price adjustments were made, which were well-received by customers [57]

| MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 3 | | --- | --- | | OVERVIEW | 5 | | CONSOLIDATED OPERATIONS | 10 | | QUARTERLY OPERATING RESULTS | 17 | | LIQUIDITY AND CAPITAL RESOURCES | 18 | | COMMITMENTS, CONTINGENCIES AND GUARANTEES | 21 | | OUTSTANDING SHARE DATA | 22 | | APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES | 23 | | CHANGE IN / INITIAL ADOPTION OF ACCOUNTING POLICIES | 26 | | CONTROLS AND PROCEDURES | 26 | | TRENDS / BUSINESS OUTLOOK | 26 ...

The Descartes Systems Group Inc. (NASDAQ:DSGX) Q3 2023 Results Conference Call December 7, 2022 5:30 PM ET Company Participants Scott Pagan - President and COO Ed Ryan - CEO Allan Brett - CFO Conference Call Participants Matt Pfau - William Blair Justin Long - Stephens Scott Group - Wolfe Research Jeremy Campbell - Barclays Operator Welcome to The Descartes Systems Group Quarterly Results Call. My name is Daryl and I will be your operator for todayÂ's call. At this time, all participants are in a listen-onl ...

Financial Data and Key Metrics Changes - The company reported record high revenues of $123 million, an increase of 18% from $104.6 million in Q2 of the previous year [10][38] - Net income was $22.9 million, consistent with the previous year's net income of $23.2 million [52] - Adjusted EBITDA reached a record high of $54 million, up 18% from $45.9 million in the same quarter last year [10][46] - Cash generated from operations was $46.4 million, representing 86% of adjusted EBITDA [10][48] - Gross margin for the quarter was 77%, slightly up from 76% in the same quarter last year [43] Business Line Data and Key Metrics Changes - Services revenue increased by 70% to $109.4 million, accounting for 89% of total revenue [40] - License revenue rose to $3.3 million, up from $1.2 million in the same quarter last year [41] - Professional services and other revenue was $10.3 million, or 8% of total revenue [42] Market Data and Key Metrics Changes - The company experienced strong shipping volumes across all modes of transportation, with record ocean imports into the U.S. [62] - There is an increase in shipping capacity, leading to softening freight rates, although logistics infrastructure is struggling to keep up with shipment volumes [63][66] Company Strategy and Development Direction - The company aims to build a consistent, predictable, and sustainable business that is resilient to market changes [13] - Focus areas include customer retention, growth, and advocacy, with investments in customer success and infrastructure [24][26] - Acquisitions remain a core strategy, with three completed in the fiscal year, including the acquisition of XPS, a multi-carrier shipping platform [31][35] Management's Comments on Operating Environment and Future Outlook - The management noted strong demand for logistics solutions despite economic uncertainties, emphasizing the importance of supply chain investments [83] - The geopolitical landscape, including the war in Ukraine and COVID-19 lockdowns in China, continues to create challenges for supply chains [71][72][73] - The company expects to maintain strong cash flow conversion and aims for adjusted EBITDA growth of 10% to 15% annually [77][80] Other Important Information - The company remains debt-free with $189 million in cash and a $350 million undrawn line of credit [12][56] - The income tax expense for the quarter was $8.8 million, or 28% of pre-tax income, significantly higher than the previous year's tax expense [51] Q&A Session Summary Question: Changes in demand and sales cycles - Management indicated that there has been no significant change in demand or lengthening of sales cycles, with strong support from the customer base [83] Question: Sustainability of shipping volumes - Management expressed confidence in the sustainability of shipping volumes, noting that 40% of recurring revenues are tied to transportation transactions [84] Question: Organic growth estimate - The estimated organic growth rate for the quarter was around 12% to 13%, consistent with the previous quarter [89] Question: Impact of potential recession on transaction volumes - Management acknowledged that a recession would impact transaction volumes, but emphasized that the business is well-positioned to grow even in challenging environments [92] Question: Acquisition environment and earnouts - Management noted that while earnouts are being used to bridge price gaps in acquisitions, this is not seen as a new trend [95]

Financial Data and Key Metrics Changes - The company reported record revenues of $108.9 million for Q3 2022, a 24% increase from $87.5 million in Q3 2021 [37] - Net income reached $25.5 million, up 92% from $13.3 million in the same quarter last year [43] - Adjusted EBITDA was $48.2 million, representing a 32% growth compared to $36.4 million in Q3 2021, with an adjusted EBITDA margin of 44% [41][43] - Cash flow from operations was $43.3 million, or 90% of adjusted EBITDA, up 31% from $33.1 million in Q3 2021 [42] Business Line Data and Key Metrics Changes - Service revenue increased by 25% to $97.2 million, consistent at 89% of total revenue [37] - Professional services and other revenue rose to $10.3 million, up almost 11% from $9.3 million in Q3 2021 [38] - Licensed revenue remained less than 1% of total revenue in both periods [38] Market Data and Key Metrics Changes - The company benefited from a favorable foreign exchange impact of just under $1 million due to a weaker U.S. dollar against the Euro, Canadian dollar, and British pound [37] - The logistics and supply chain markets are experiencing unprecedented challenges, with increased demand and supply chain disruptions impacting operations [10][21] Company Strategy and Development Direction - The company plans to grow adjusted EBITDA by 10% to 15% annually through organic growth and acquisitions [48] - Continued investment in technology solutions is emphasized to help customers navigate supply chain challenges [20][52] - The company has completed three acquisitions in the fiscal year and expects to remain active in the acquisition market [52] Management's Comments on Operating Environment and Future Outlook - Management noted that supply chain and logistics challenges are expected to persist, driven by labor shortages and inventory management complexities [31][32] - The company is well-positioned to assist customers in overcoming these challenges, leveraging its technology and expertise [20][21] - The economic recovery is ongoing, but uncertainties remain regarding the pandemic's impact, including new variants [53] Other Important Information - The company reported a gross margin of 76.5%, up from 74.3% in Q3 2021, benefiting from strong customer growth [39] - Cash balances totaled $171 million at the end of October, with an additional $350 million available under the credit facility for future acquisitions [43] Q&A Session Summary Question: Lessons learned from the Delta variant outbreak - Management expressed confidence in the company's ability to navigate future uncertainties, citing strong performance during the pandemic [56][58] Question: Impact of supply-demand balance normalization - Management believes the importance of supply chain logistics will remain high even after the crisis, with continued demand expected [60][61] Question: Opportunities related to labor shortages - Management acknowledged the ongoing labor shortages and indicated interest in expanding solutions in this area through acquisitions or organic investments [63] Question: Organic growth estimates - Organic growth for the quarter was estimated in the mid-teens range, with potential for increased sales and marketing investment if growth continues [65][66] Question: Cash balance and investment opportunities - Management indicated a balanced approach between organic growth and acquisitions, with a preference for acquisitions for entirely new product segments [68][70] Question: Air channel volume and pricing - Air volumes have returned to and exceeded pre-pandemic levels, with increased demand for air shipping due to supply chain pressures [82] Question: E-commerce business outlook - The e-commerce segment remains strong, with retailers increasingly recognizing the need for robust online operations alongside physical stores [86][88]

The Descartes Systems Group Inc. (NASDAQ:DSGX) Q1 2023 Earnings Conference Call June 1, 2022 5:30 PM ET Company Participants Edward Ryan - Chief Executive Officer Allan Brett - Chief Financial Officer John Scott Pagan - Investor Relations Conference Call Participants Matthew Pfau - William Blair Justin Long - Stephens Scott Group - Wolfe Research Nick Agostino - Laurentian Bank Robert Young - Canaccord Genuity Operator Good afternoon, and welcome to the Descartes quarterly results call. My name is Brandon, ...

The Descartes Systems Group Inc (NASDAQ:DSGX) Q2 2022 Earnings Conference Call September 8, 2021 5:00 PM ET Company Participants John Pagan - President and COO Edward Ryan - CEO Allan Brett - CFO Conference Call Participants Matthew Pfau - William Blair Justin Long - Stephens Paul Steep - Scotia Capital Frank Surace - Barclays Paul Treiber - RBC Scott Group - Wolfe Research Robert Young - Canaccord Daniel Chan - TD Securities Operator Welcome to the Descartes' Quarterly Results Call. My name is Adrian and I ...

The Descartes Systems Group Inc. (NASDAQ:DSGX) Q1 2022 Earnings Conference Call June 2, 2021 5:00 PM ET Company Participants John Pagan - President and Chief Operating Officer Edward Ryan - Chief Executive Officer Allan Brett - Chief Financial Officer Conference Call Participants Paul Steep - Scotiabank Global Banking and Markets Paul Treiber - RBC Capital Markets Frank Surace - Barclays Bank PLC Justin Long - Stephens Inc. Robert Salmon - Wolfe Research, LLC Operator Welcome to the Quarterly Results Call. ...