Descartes Systems Group (NASDAQ:DSGX) reported a 22% increase in net income in its second-quarter financial results Wednesday as the Canadian supply chain software provider pushed its profits higher on steady revenue growth.
Descartes had net income of $10.5 million, or 12 cents per share, on $84 million in revenue. The company’s revenue increased by 4% compared to a year earlier. The results were in line with analysts’ expectations, according to Yahoo Finance.
The results suggest demand for Descartes’ supply chain visibility products is outpacing strains on some customers during the COVID-19 pandemic.
“We had a great quarter,” Descartes CEO Edward Ryan told financial analysts during a conference call Wednesday evening.
Descartes saw an uptick in sales during the latter part of the quarter as global trade volumes recovered. But Ryan noted that some sectors continue to lag.
“Air cargo still has a way to go,” Ryan said.
The Waterloo, Ontario-based software-as-a-service (SaaS) provider is continuing to look for acquisition opportunities, following its purchases of Peoplevox and Kontainers.
“Lots of things are for sale right now,” Ryan said.
Ryan noted that valuations were high and the company would be cautious about paying a large premium on an acquisition target.
Descartes, meanwhile, is continuing with its global restructuring. The company is reducing its global workforce by 5% and eliminating certain locations to cut costs.
Click for more FreightWaves articles by Nate Tabak
How Walmart solved carrier payment woes in Canada with blockchain
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now