Canadian cloud-based SaaS provider Descartes Systems Q2 revenue beats estimates

Descartes Systems group

03/09/2025 22:08

Overview

Descartes Systems Group fiscal Q2 rev grows 10% yr/yr, beating analyst expectations, per LSEG data

Adjusted EBITDA for fiscal Q2 beats estimates, per LSEG data

Outlook

Company notes challenging market conditions impacting customer pricing decisions

Descartes highlights reliance on its Global Logistics Network amid trade uncertainties

Result Drivers

GLOBAL LOGISTICS NETWORK - Descartes attributes revenue growth to reliance on its Global Logistics Network by shippers, carriers, and logistics services providers amid challenging global trade conditions

SERVICES REVENUES - Services revenues, comprising 93% of total revenues, increased by 14% from Q2FY25, indicating strong demand for Descartes' logistics solutions

CASH FLOW IMPACT - Cash provided by operating activities rose 82% from Q2FY25, despite a $5 mln payment for personnel departures

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$179.80 mln
$175.80 mln (7 Analysts)
Q2 EPS
$0.43
Q2 Net Income
$38 mln
Q2 Adjusted EBITDA
Beat
$80.20 mln
$79.10 mln (8 Analysts)
Q2 Gross Margin
77.0%
Q2 Operating Income
$48.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 56 three months ago

Press Release: ID:nGNX4mdkcD

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)