Descartes Systems Group Inc (NASDAQ:DSGX) stock rose 5.43% (As on March 7, 11:27:04 AM UTC-4, Source: Google Finance) after the company beats the topline expectations for the fourth quarter of FY 23. Revenues were comprised of services revenues of $135.7 million (92% of total revenues), professional services and other revenues of $11.1 million (7% of total revenues) and license revenues of $1.4 million (1% of total revenues). Services revenues were up 20% from $113.4 million in Q4FY23 and up 4% from $130.4 million in Q3FY24. Cash provided by operating activities of $50.8 million, consistent with $50.6 million in Q4FY23 and down from $56.1 million in Q3FY24. Cash provided by operating activities was negatively impacted by $12.6 million in Q4FY24 related to contingent consideration payments due to better-than-expected performance from recent acquisitions. Income from operations of $37.0 million, up 10% from $33.6 million in Q4FY23 and up 14% from $32.4 million in Q3FY24. Net income of $31.8 million, up 7% from $29.8 million in Q4FY23 and up 20% from $26.6 million in Q3FY24. Net income as a percentage of revenues was 21%, compared to 24% in Q4FY23 and 18% in Q3FY24. Adjusted EBITDA of $65.7 million, up 19% from $55.4 million in Q4FY23 and up 3% from $63.5 million in Q3FY24. Adjusted EBITDA as a percentage of revenues was 44%, consistent with Q4FY23 and Q3FY24. At January 31, 2024, Descartes had $321.0 million in cash. Cash increased by $41.4 million in Q4FY24 and $44.6 million in FY24. The facility is a $350.0 million revolving operating credit facility to be available for general corporate purposes, including the financing of ongoing working capital needs and acquisitions. As at January 31, 2024, the working capital surplus (current assets less current liabilities) was $214.6 million.

DSGX in the fourth quarter of FY 23 has reported the adjusted earnings per share of 37 cents, which matches the analysts’ estimates for the adjusted earnings per share of 37 cents. The company had reported the adjusted revenue growth of 18 percent to $148.2 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $146.5 million. Revenues increased in the fourth quarter of 2024 compared to the third quarter of 2024 primarily due to the growth in services revenues from new and existing customers, which contributed an incremental $5.6 million in revenues, partially offset by a decrease in professional services and other revenues.