Record-Breaking Financial Performance
Total revenues reached a record high of $187.7 million, up 11% from a year ago. Record net income increased by 20%, and record income from operations grew by 24% from a year ago. Adjusted EBITDA rose by 19%, with a margin increase of 3 points to 46%.
Strong Cash Position and Acquisition Strategy
Generated a record high of $73 million in cash from operations, up 22% from a year ago. Ended the quarter with $279 million in cash and a debt-free status with an undrawn $350 million line of credit.
Growth in Key Segments
Services revenue increased by 16%, driven by strong performance in global trade intelligence, e-commerce customs filing, and transportation management solutions.
AI as a Positive Driver
Artificial intelligence is becoming a significant part of Descartes' business, increasing demand for data and decision-making tools, and enabling new services and operational efficiencies.
Successful Acquisition Integration
The acquisition of Finale inventory in Q3, which is already contributing positively, and the company's ongoing strategy for growth through acquisitions.