Record Revenues and Income from Operations
WATERLOO, Ontario, Sept. 08, 2021 (GLOBE NEWSWIRE) -- The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2022 second quarter (Q2FY22). 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).
“We continue to focus on helping our customers thrive in the face of an increasingly dynamic, complex global trade landscape, and in turn our customers continue to trust us with more of their business” said Edward J. Ryan, Descartes’ CEO. “The challenges and opportunities faced by our customers can vary for shippers, carriers, logistics service providers and customs authorities, but all parties need to connect and collaborate in real-time. Our Global Logistics Network does just that, helping our customers seamlessly exchange information and leverage data with a growing number of tailored, value-added applications for each participant to manage the lifecycle of shipments.”
Q2FY22 Financial Results
As described in more detail below, key financial highlights for Q2FY22 included:
- Revenues of $104.6 million, up 25% from $84.0 million in the second quarter of fiscal 2021 (Q2FY21) and up 6% from $98.8 million in the previous quarter (Q1FY22);
- Revenues were comprised of services revenues of $93.5 million (89% of total revenues), professional services and other revenues of $9.9 million (10% of total revenues) and license revenues of $1.2 million (1% of total revenues). Services revenues were up 24% from $75.3 million in Q2FY21 and up 6% from $88.3 million in Q1FY22;
- Cash provided by operating activities of $46.4 million, up 36% from $34.1 million in Q2FY21 and up 13% from $40.9 million in Q1FY22;
- Income from operations of $26.1 million, up 74% from $15.0 million in Q2FY21 and up 12% from $23.4 million in Q1FY22;
- Net income of $23.2 million, up 121% from $10.5 million in Q2FY21 and up 26% from $18.4 million in Q1FY22;
- Earnings per share on a diluted basis of $0.27, up 125% from $0.12 in Q2FY21 and up 29% from $0.21 in Q1FY22; and
- Adjusted EBITDA of $45.9 million, up 35% from $34.0 million in Q2FY21 and up 11% from $41.5 million in Q1FY22. Adjusted EBITDA as a percentage of revenues was 44%, compared to 40% in Q2FY21 and 42% in Q1FY22.
Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges and acquisition-related expenses). These items are considered by management to be outside Descartes' ongoing operational results. We define Adjusted EBITDA as a percentage of revenues as the quotient, expressed as a percentage, from dividing Adjusted EBITDA for a period by revenues for the corresponding period. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release.
https://www.globenewswire.com/news-release/2021/09/08/2293798/9197/en/Descartes-Announces-Fiscal-2022-Second-Quarter-Financial-Results.html