Descartes Investor Contact Laurie McCauley(519) 746-2969investor@descartes.com Cautionary Statement Regarding Forward-Looking Statements This release may contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relates to Descartes' expectations concerning future revenues and earnings, and our projections for any future reductions in expenses or growth in margins and generation of cash; our assessment of the potential impact of geopolitical events, such as the ongoing conflict between Russia and Ukraine (the "Russia-Ukraine Conflict”), and between Israel and Hamas ("Israel-Hamas Conflict”), or other potentially catastrophic events, on our business, results of operations and financial condition; continued growth and acquisitions including our assessment of any increased opportunity for our products and services as a result of trends in the logistics and supply chain industries; rate of profitable growth and Adjusted EBITDA margin operating range; demand for Descartes' solutions; growth of Descartes' Global Logistics Network ("GLN”); customer buying patterns; customer expectations of Descartes; development of the GLN and the benefits thereof to customers; and other matters.
The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our audited Consolidated Statements of Operations for FY25 and FY24, which we believe is the most directly comparable GAAP measure.(US dollars in millions)FY25 FY24 Net income, as reported on Consolidated Statements of Operations143.3 115.9 Adjustments to reconcile to Adjusted EBITDA: Interest expense1.0 1.4 Investment income(11.5)(9.7)Income tax expense48.3 35.2 Depreciation expense5.6 5.5 Amortization of intangible assets69.4 60.5 Stock-based compensation and related taxes21.1 17.1 Other charges7.5 21.6 Adjusted EBITDA284.7 247.5 Revenues651.0 572.9 Net income as % of revenues22%20%Adjusted EBITDA as % of revenues44%43% The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our unaudited Consolidated Statements of Operations for Q4FY25, Q3FY25, Q2FY25, Q1FY25, and Q4FY24, which we believe is the most directly comparable GAAP measure.(US dollars in millions)Q4FY25 Q3FY25 Q2FY25 Q1FY25 Q4FY24 Net income, as reported on Consolidated Statements of Operations37.4 36.6 34.7 34.7 31.8 Adjustments to reconcile to Adjusted EBITDA: Interest expense0.2 0.2 0.2 0.3 0.3 Investment income(1.9)(2.9)(2.7)(4.1)(3.4)Income tax expense11.4 11.9 13.6 11.5 8.3 Depreciation expense1.5 1.4 1.4 1.4 1.4 Amortization of intangible assets19.4 17.5 17.4 15.0 15.1 Stock-based compensation and related taxes5.4 5.6 5.8 4.3 4.7 Other charges1.6 1.8 0.2 3.9 7.5 Adjusted EBITDA75.0 72.1 70.6 67.0 65.7 Revenues167.5 168.8 163.4 151.3 148.2 Net income as % of revenues22%22%21%23%21%Adjusted EBITDA as % of revenues45%43%43%44%44% The Descartes Systems Group Inc.
The following table summarizes Descartes’ results in the categories specified below over FY25 and FY24 (dollar amounts in millions): FY25 FY24 Revenues651.0 572.9 Services revenues590.2 520.9 Gross margin76%76%Cash provided by operating activities*219.3 207.7 Income from operations181.1 142.8 Net income143.3 115.9 Net income as a % of revenues22%20%Earnings per diluted share1.64 1.34 Adjusted EBITDA284.7 247.5 Adjusted EBITDA as a % of revenues44%43% (*) FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition Q4FY25 Financial ResultsAs described in more detail below, key financial highlights for Q4FY25 included: Revenues of $167.5 million, up 13% from $148.2 million in the fourth quarter of fiscal 2024 (Q4FY24) and down from $168.8 million in the previous quarter (Q3FY25);Revenues were comprised of services revenues of $156.5 million (93% of total revenues), professional services and other revenues of $10.7 million (6% of total revenues) and license revenues of $0.3 million (1% of total revenues).
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Author / Journalist: The Descartes Systems Group Inc
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