Descartes announces first quarter fiscal 2021 financial results

The Descartes Systems Group Inc. announced its financial results for its fiscal 2021 first quarter (Q1FY21). 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).

“Customers depend on us to help them move goods and manage assets. This is even more important when complex supply chains meet rapid swings in global demand, regulation and restrictions,” said Edward J. Ryan, Descartes’ CEO. “We have some customers who are struggling to keep up with demand in their business, while others have seen sharp drops. Regardless of the market dynamics they face, our Global Logistics Network is proving essential to helping them connect and collaborate to better manage the lifecycle of shipments. Recognizing this, we’ve calibrated our business so we remain in a strong position to continue to deliver superior results for our customers and other stakeholders.”

Q1FY21 Financial Results
As described in more detail below, key financial highlights for Q1FY21 included:
• Revenues of $83.7 million, up 7% from $78.0 million in the first quarter of fiscal 2020 (Q1FY20) and down from $84.2 million in the previous quarter (Q4FY20);
• Revenues were comprised of services revenues of $74.1 million (89% of total revenues), professional services and other revenues of $7.8 million (9% of total revenues) and license revenues of $1.8 million (2% of total revenues). Services revenues were up 11% from $67.0 million in Q1FY20 and up 1% from $73.7 million in Q4FY20;
• Cash provided by operating activities of $27.5 million, up 18% from $23.4 million in Q1FY20 and up 4% from $26.4 million in Q4FY20;
• Income from operations of $15.7 million, up 32% from $11.9 million in Q1FY20 and up 15% from $13.6 million in Q4FY20;
• Net income of $11.0 million, up 51% from $7.3 million in Q1FY20 and down from $11.4 million in Q4FY20;
• Earnings per share on a diluted basis of $0.13, up 44% from $0.09 in Q1FY20 and consistent with $0.13 in Q4FY20; and
• Adjusted EBITDA of $33.0 million, up 15% from $28.7 million in Q1FY20 and up 2% from $32.2 million in Q4FY20. Adjusted EBITDA as a percentage of revenues was 39%, compared to 37% in Q1FY20 and 38% in Q4FY20.

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.