Core Insights - Descartes Systems Group has acquired 3GTMS for approximately US $115 million, enhancing its transportation management capabilities for shippers and logistics service providers [1][3][4] - 3GTMS offers modern cloud-based transportation management solutions that improve costs, customer satisfaction, and efficiency for domestic over-the-road shipments [2][3] - The acquisition expands Descartes' carrier network in North America, particularly in truckload, less-than-truckload (LTL), and parcel modes, providing a comprehensive solution for logistics management [3][4] Company Overview - Descartes is a leader in providing software-as-a-service solutions aimed at improving productivity, security, and sustainability for logistics-intensive businesses [4] - The company operates a collaborative multimodal logistics community, offering various services including shipment planning, tracking, and customs documentation [4] Acquisition Details - The acquisition of 3GTMS was financed using cash on hand, with legal and financial advisory support from Gibson, Dunn & Crutcher LLP and Lincoln International LLC for 3GTMS, and Morgan, Lewis & Bockius LLP and Centerview Partners LLC for Descartes [3]

Core Insights - The study by Descartes Systems Group highlights that 39% of fast-growing companies view trade compliance as a competitive advantage, compared to 22% of slower-growing companies [1] - Technology is deemed very or extremely important for competitive advantage in trade compliance strategies by 57% of surveyed companies, with 72% of fast-growing companies affirming its significance [2][3] - Fast-growing companies allocate an average of eight personnel to trade compliance activities, while those expecting limited or no growth allocate an average of six [4] Technology and Trade Compliance - 86% of fast-growing companies consider technology fundamental or highly important to their growth strategies [3] - 47% of fast-growing companies invest in technology as the primary method to address international trade challenges, in contrast to 18% of companies anticipating limited or no growth [3] Compliance Team Structure - Companies with over 15% expected growth in the next two years have a more robust compliance team, averaging eight members dedicated to trade compliance [4] - The emphasis on building a well-resourced compliance team is a strategic move for higher-growth companies to leverage trade compliance as a competitive advantage [5] Survey Details - The study surveyed 887 corporate decision-makers in international trade compliance across various countries, aiming to understand strategies and technologies that provide competitive advantages [5]

Core Insights - Descartes Systems (DSGX) reported fourth-quarter fiscal 2025 non-GAAP EPS of 43 cents, meeting the Zacks Consensus Estimate, with a year-over-year increase of 16% and a sequential increase of 2% [1] - Revenues for the quarter reached $167.5 million, surpassing the Zacks Consensus Estimate by 0.5%, and reflecting a 13% year-over-year growth driven by strong domestic logistics and supply chain performance [2] - The company's MacroPoint solution, integrated into the Global Logistics Network, was a significant growth driver, alongside strength in global trade intelligence [2] Financial Performance - Services revenues accounted for 93% of total revenues, amounting to $156.5 million, a 15% increase year over year, despite foreign exchange challenges [5] - License revenues were $0.3 million, down from $1.4 million in the prior-year quarter, while professional services and other revenues fell 3.6% year over year to $10.7 million due to declining hardware sales [5] - The gross margin for the quarter was 76%, unchanged from the previous year, and adjusted EBITDA rose 14% year over year to $75 million, with an adjusted EBITDA margin of 45% [6] Cash Flow and Liquidity - DSGX generated $60.7 million in cash from operating activities during the quarter, compared to $50.8 million in the prior-year quarter [7] - As of January 31, 2025, the company had $236.1 million in cash, an increase from $181.3 million as of October 31, 2024 [9] Market Reaction - Following the earnings report, DSGX shares increased by 2%, closing at $110.92 on March 5, with a 21.1% gain over the past year compared to the Zacks Computer - Software industry's growth of 1.8% [4]

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]