Descartes grows profits, revenue on logistics software solutions

Canadian firm reports a largely expected 27% jump in net income in the third quarter as revenue increases 19%; CEO lauds “predictable results in an increasingly unpredictable business environment.”

Descartes Systems provides data-driven software solutions for logistics providers. (Photo credit: Jim Allen/FreightWaves)

Descartes Systems Group (NASDAQ:DSGX) reported surges in revenue and profits in the third quarter as the Canadian logistics software firm reaped benefits of demand for data-driven solutions to navigate challenging freight markets.

The Ontario-based company’s net income rose by 27% to $9.7 million, or $0.11 per share, during the third quarter of fiscal year 2020 versus a year earlier. Revenue rose by 19% to $83 million. (Descartes reports financial results in U.S. dollars.)

The results were in line with analysts’ expectations.

“Descartes continues to deliver predictable results in an increasingly unpredictable business environment,” Descartes CEO Edward Ryan said in a statement Dec. 4.

Descartes software services accounted for 87% of the revenue. The firm offers a comprehensive suite of data-driven software solutions for logistics providers in North America and Europe.

“Our customers need access to timely, reliable data from multiple sources via a network to fuel decision-making tools that power their businesses,” Ryan said.


Descartes purchased the U.S. cloud-based transportation system provider BestTransport in August for $11.2 million, the fourth acquisition of the year.

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