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  5. DSG: Your thoughts on their 1/4 please. [Descartes Systems Group Inc. (The)]
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Q: Your thoughts on their 1/4 please.

Thanks
Asked by Greg on June 01, 2023
5i Research Answer:

EPS of $0.4622 beat estimates of $0.4463 and revenues of $185.7M beat estimates of $180.64M. Sales grew by 17% for the quarter and its services revenues (91% of total revenues), saw a 21% increase from the prior year. Adjusted EBITDA grew by 13%, and its Adjusted EBITDA margin contracted slightly. The company's cash balance shrunk slightly due to its acquisitions of GroundCloud and Localz. These were good results from DSG, although it did see some margin contraction for the quarter across its Adjusted EBITDA and gross margins, its net profit margin expanded against the prior year. Its balance sheet remains strong, and sales growth continues to trend at a high rate. We continue to consider DSG as one of the stronger names in the Canadian tech space.