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Descartes Q3 Improves Following Purchases

[ December 6, 2024   //   ]

Descartes Systems Group, the Canadian software-as-a-service solutions provider, report strong results for its fiscal third quarter ended Oct. 31, as it assimilates two acquisitions from the previous quarter.
Revenue for the quarter ended Oct. 31, was US$168.8 million, up 3 percent from the third quarter of fiscal year 2024, as income from operations jumped 41 percent to US$45.8 million.
“Our business has grown organically while we’ve added complementary solutions to our Global Logistics Network by way of acquisition,” said Edward J. Ryan, Descartes’ CEO. “We listen to our customers about where best to invest to help them meet the many logistics and supply chain challenges they’re facing, which contributed to us completing two acquisitions this past quarter.”
Descartes acquired Assure Assist Inc., operating as MyCarrierPortal, the risk monitoring solution for the trucking industry, on Sept. 17 for about US$22.5 million net of cash acquired, funded through cash on hand plus up to US$6 million of potential performance-based considerations based on the acquisition achieving revenue-based targets of the first two years of acquisition.
On Oct. 11, Descartes acquired all shares of Sellercloud LLC and certain assets of Sellercloud Europe Ltd., a provider of omnichannel ecommerce solutions, for about US$110.2 million, net of cash acquired, which was funded from cash on hand, plus up to US$20 million in potential performance-based consideration, based on Sellercloud achieving revenue-based targets within the first two years post-acquisition.
Revenue from services rose 2 percent from the year earlier quarter to US$149.7 million, or 89 percent of total revenues. Professional services added US$15.6 million in revenue (9 percent of total) and license revenues of US$3.5 million (2 percent).
For the first nine months of its 2025 fiscal year, Descartes saw revenue increase 14 percent to US$483.5 million, while Income from operations jumped 27 percent to US$134 million.
Looking ahead, Ryan said “the global trade landscape remains highly uncertain and complex for our customers, especially with potential upcoming changes to tariffs and sanctions and the resulting impact on trade.”

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