Financial Performance - For the quarter ended January 2025, Descartes Systems (DSGX) reported revenue of $167.5 million, which is a 13% increase compared to the same period last year [1] - The earnings per share (EPS) for the quarter was $0.43, up from $0.37 in the year-ago quarter [1] - The reported revenue exceeded the Zacks Consensus Estimate of $166.6 million by 0.54% [1] Revenue Breakdown - Revenue from Services was $156.50 million, surpassing the average estimate of $152.13 million based on two analysts [4] - Revenue from Licenses was $0.30 million, significantly below the average estimate of $1.36 million based on two analysts [4] - Revenue from Professional Services and Other was $10.70 million, also below the average estimate of $12.44 million based on two analysts, representing a year-over-year change of -3.6% [4] Stock Performance - Shares of Descartes Systems have returned -6% over the past month, compared to the Zacks S&P 500 composite's -4.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it may perform in line with the broader market in the near term [3]

Core Insights - Descartes Systems (DSGX) reported quarterly earnings of $0.43 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.37 per share a year ago [1] - The company achieved revenues of $167.5 million for the quarter ended January 2025, exceeding the Zacks Consensus Estimate by 0.54% and up from $148.2 million year-over-year [2] - The stock has underperformed the market, losing about 4.2% since the beginning of the year compared to the S&P 500's decline of 1.8% [3] Financial Performance - Earnings per share (EPS) for the last quarter was $0.43, consistent with estimates, while the previous quarter's expected EPS was $0.44, with actual earnings of $0.42, resulting in a surprise of -4.55% [1] - The company has consistently surpassed consensus revenue estimates over the last four quarters [2] - Current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $167.1 million, and for the current fiscal year, it is $1.95 on revenues of $717.17 million [7] Market Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] - The Zacks Rank for Descartes Systems is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The Computer - Software industry is currently ranked in the bottom 44% of over 250 Zacks industries, which may impact stock performance [8]

Table of Contents Exhibit 99.1 DESCARTES THE DESCARTES SYSTEMS GROUP INC. ANNUAL REPORT US GAAP FINANCIAL RESULTS FOR THE 2025 FISCAL YEAR Table of Contents TABLE OF CONTENTS | | | | | | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF | | | | --- | --- | --- | --- | --- | --- | --- | --- | | OPERATIONS | | | | | | | 3 | | OVERVIEW | | | | | | | 5 | | CONSOLIDATED | OPERATIONS | | | | | | 9 | | QUARTERLY | OPERATING | RESULTS | | | | | 16 | | LIQUIDITY | AND CAPITAL | | RESOURCES | ...

Core Insights - Descartes Systems Group Inc. reported strong financial growth for fiscal year 2025, with significant increases in revenues, net income, and adjusted EBITDA, reflecting the company's successful expansion and investment in its Global Logistics Network [2][4][5]. Financial Performance - Total revenues for FY25 reached $651.0 million, a 14% increase from $572.9 million in FY24 [4][5]. - Service revenues accounted for $590.2 million, representing 91% of total revenues, and increased by 13% from $520.9 million in FY24 [5]. - Net income rose to $143.3 million, up 24% from $115.9 million in FY24, with net income as a percentage of revenues increasing to 22% from 20% [4][5]. - Adjusted EBITDA for FY25 was $284.7 million, a 15% increase from $247.5 million in FY24, with adjusted EBITDA as a percentage of revenues at 44%, up from 43% [4][5]. Quarterly Performance - In Q4FY25, revenues were $167.5 million, a 13% increase from $148.2 million in Q4FY24, although slightly down from $168.8 million in Q3FY25 [6][8]. - Q4FY25 net income was $37.4 million, up 18% from $31.8 million in Q4FY24, maintaining a net income percentage of 22% [6][8]. - Adjusted EBITDA for Q4FY25 was $75.0 million, a 14% increase from $65.7 million in Q4FY24, with adjusted EBITDA as a percentage of revenues at 45% [6][8]. Cash Flow and Position - Cash provided by operating activities for FY25 was $219.3 million, a 6% increase from $207.7 million in FY24, impacted by a $25.0 million payment for contingent acquisition consideration [5][6]. - As of January 31, 2025, the company had $236.1 million in cash, reflecting an increase of $54.8 million in Q4FY25 [7][9]. Strategic Outlook - The CEO emphasized the importance of the company's investments in enhancing services to help clients navigate the complexities of global trade, indicating a focus on adapting to changing market conditions [2].

Core Insights - Descartes Systems Group's GlobalEASE solution is being utilized by Defense Trade Solutions (DTS) to enhance export compliance for the defense industry, aiming to reduce compliance costs and improve confidence in meeting global regulations [1][2] - DTS integrates Descartes GlobalEASE into its managed service delivery model, providing defense contractors with automation tools to navigate ITAR and EAR regulations more efficiently [2][3] - Descartes GlobalEASE is a centralized platform that manages end-to-end trade compliance, helping organizations mitigate risks and avoid penalties while making informed business decisions [2][3] Company Overview - Defense Trade Solutions (DTS) specializes in export compliance and global trade services for the defense sector, focusing on Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) [4] - Descartes Systems Group is a leader in software-as-a-service solutions aimed at improving logistics productivity, security, and sustainability, with a global presence and a wide range of logistics services [5]

Core Insights - Descartes Systems Group is set to showcase technology innovations in its global trade intelligence software suite at the Innovation Forum in Washington, DC on February 11-12, 2025, aimed at enhancing cross-border trade management amid increasing compliance requirements and geopolitical challenges [1][2] Company Innovations - The company is focusing on AI-enabled solutions to streamline compliance operations, including screening for restricted parties and accelerating import/export classification, which helps manage high-volume tasks efficiently [5] - An AI-based agent will assist users in querying global trade intelligence, providing insights into historical trade patterns and emerging trends, thus making trade data more accessible and actionable [5] - Enhanced analytics using Microsoft Power BI will aggregate data from various sources, offering a comprehensive view of compliance activities without the need for complex integrations [5] - Expanded capabilities for managing export controls and license management will include compliance checks for East Asian countries and improved workflows for complex controlled goods businesses [5] Event Significance - The Innovation Forum serves as a platform for Descartes customers and partners to connect, share best practices, and provide feedback on product development, enhancing operational efficiency through the use of Descartes' technologies [3]

Core Points - Descartes Systems Group is set to report its fiscal 2024 fourth-quarter and year-end financial results on March 5, 2025, after market close [1] - An executive management conference call will be held at 5:30 PM ET on the same day to discuss the financial results [2] - The company provides software-as-a-service solutions aimed at enhancing productivity, security, and sustainability for logistics-intensive businesses [4] Financial Reporting - The financial results will be available after market close on March 5, 2025 [1] - A conference call will take place to discuss these results, with designated numbers provided for participants [2] Company Overview - Descartes is recognized as a global leader in logistics solutions, offering a range of services including routing, tracking, shipment planning, and customs documentation [4] - The company operates a collaborative multimodal logistics community, enhancing various logistics processes for its customers [4]

Core Insights - The study by Descartes Systems Group reveals that 74% of supply chain and logistics leaders view technology as fundamental to their growth strategy amid global trade challenges, increasing to 88% for companies expecting over 15% growth in the next two years [1][5] - 59% of respondents consider technology extremely important for gaining a competitive advantage in international trade [1] Technology Capabilities - Global trade intelligence is identified as the top technology capability expected to deliver the greatest value in the next two years, cited by 36% of respondents [2] - Global trade analytics follows at 27%, and supply chain mapping at 26% [2] Industry Perspectives - Across various sectors, global trade intelligence is recognized as the leading technology capability, with specific percentages: manufacturing (40%), wholesale and distribution (44%), finance and insurance (38%), and retail (30%) [4] Research Methodology - The survey conducted by Descartes and SAPIO Research included 978 supply chain intelligence leaders from key trading nations across Europe, North and South America, and Asia-Pacific [5] - The aim was to understand strategies, tactics, and technologies used by companies in international trade to gain a competitive edge and ensure business growth [5]

Core Insights - Descartes Systems Group Inc. (DSGX) has partnered with Giltner Logistics to implement its Aljex transportation management system (TMS), which integrates with Upwell's accounts receivable technology to enhance cash flow management and expedite payments [1][2] - The Aljex TMS is a scalable cloud-based solution designed to improve productivity, earnings, and customer service for freight brokers and third-party logistics providers [2] - Descartes emphasizes the importance of timely customer payments for maintaining liquidity and sustainable growth, leveraging its technology platform to simplify financial management and enhance profitability [3] Company Performance - In the last reported quarter, DSGX's revenues rose by 17% year over year to $168.8 million, surpassing the Zacks Consensus Estimate by 3.5% [6] - The company achieved 10% organic growth in the fiscal third quarter and expanded its solution portfolio through five acquisitions in 2024, including MCP and Sellercloud [6] - GroundCloud contributed $3.5 million in low-margin revenues by providing AI cameras following a FedEx contractor mandate [6] Industry Trends - The logistics sector is evolving, with TMS solutions like Descartes' playing a crucial role in enhancing efficiency, sustainability, and growth for businesses globally [5] - Descartes has strengthened its partnership with IDS to optimize operations and improve customer experience, indicating a trend towards collaboration in the logistics industry [4] - Nynas AB's adoption of the TMS software highlights the increasing need for automation in managing customer order lifecycles and improving coordination across various stakeholders in the logistics chain [5] Stock Performance - DSGX currently holds a Zacks Rank of 4 (Sell), with its shares increasing by 8.3% over the past six months, contrasting with a 2.8% decline in the industry [8]

Core Insights - Descartes Systems Group announced that Giltner Logistics is enhancing its accounts receivable workflow and cash flow management through the integration of Descartes Aljex™ TMS and Upwell's AR technology [1][2][3] Company Overview - Giltner Logistics is a leading asset-backed third-party logistics provider in North America, known for delivering competitive freight solutions while maintaining high service standards [4] - Upwell specializes in automating accounts receivable for transportation and logistics companies using artificial intelligence, aiming to improve cash flow and streamline financial processes [5] - Descartes is a global leader in providing software-as-a-service solutions for logistics-intensive businesses, focusing on productivity, security, and sustainability [6] Technology Integration - The integration of Descartes Aljex TMS with Upwell's AR technology automates customer invoicing and enhances workflows, resulting in reduced manual work and improved cash flow metrics [2][3] - The solution aims to lower days-to-pay and days-sales-outstanding metrics, which are critical for sustainable growth in the logistics sector [2][3] Operational Efficiency - The scalable, cloud-based Descartes Aljex TMS helps freight brokers enhance operational efficiency by automating daily brokerage activities, thereby maximizing margins and improving customer service [2] - The combined solution allows 3PLs to shorten their cash cycle, ensuring quicker payments and reducing administrative workloads [2][3]