The Descartes Systems Group Inc (DSGX) investors enjoying 20% revenue growth in Q2, 2020

The Descartes Systems Group Inc (NASDAQ: DSGX) stock identified change of 54.35% away from 52-week low price and recently located move of -6.54% off 52-week high price. It has market worth of $3220.82M and dividend yield of # ref. DSGX stock has been recorded -0.15% away from 50 day moving average and 4.88% away from 200 day moving average. Moving closer, we can see that shares have been trading -1.45% off 20-day moving average.

The Descartes Systems Group Inc (NASDAQ: DSGX) reported its financial results for its fiscal 2020 second quarter.

As described in more detail below, key financial highlights for Descartes’ Q2FY20 included:

  • Revenues of $80.5M, up 20% from $67.1M in the second quarter of fiscal 2019 (Q2FY19) and up 3% from $78.0M in the previous quarter.
  • Revenues were comprised of services revenues of $71.4M (89% of total revenues), professional services and other revenues of $8.0M (10% of total revenues) and license revenues of $1.1M (1% of total revenues). Services revenues were up 20% from $59.7M in Q2FY19 and up 7% from $67.0M in Q1FY20;
  • Cash provided by operating activities of $26.9M, up 48% from $18.2M in Q2FY19 and up 15% from $23.4M in Q1FY20;
  • Income from operations of $13.1M, up 30% from $10.1M in Q2FY19 and up 10% from $11.9M in Q1FY20;
  • Net income of $8.6M, up 1% from $8.5M in Q2FY19 and up 18% from $7.3M in Q1FY20;
  • Earnings per share on a diluted basis of $0.10, contrast to $0.11 in Q2FY19 and $0.09 in Q1FY20; and
  • Adjusted EBITDA of $30.2M, up 32% from $22.8M in Q2FY19 and up 5% from $28.7M in Q1FY20. Adjusted EBITDA as a percentage of revenues was 38%, contrast to 34% in Q2FY19 and 37% in Q1FY20.

Year-to-Date Financial Results

As described in more detail below, key financial highlights for Descartes’ six-month period ended July 31, 2019 (1HFY20) included:

  • Revenues of $158.5M, up 18% from $134.1M in the same period a year ago (1HFY19).
  • Revenues were comprised of services revenues of $138.4M (87% of total revenues), professional services and other revenues of $16.7M (11% of total revenues) and license revenues of $3.4M (2% of total revenues). Services revenues were up 18% from $117.5M in 1HFY19.
  • Cash provided by operating activities of $50.4M, up 36% from $37.1M in 1HFY19.
  • Income from operations of $25.0M, up 26% from $19.9M in 1HFY19.
  • Net income of $15.9M, up 3% from $15.5M in 1HFY19. Net income as a percentage of revenues was 10%, contrast to 12% in 1HFY19.
  • Earnings per share on a diluted basis of $0.20, consistent with 1HFY19; and
  • Adjusted EBITDA of $58.9M, up 31% from $44.9M in 1HFY19. Adjusted EBITDA as a percentage of revenues was 37%, contrast to 33% in 1HFY19.

Cash Position
At July 31, 2019, Descartes had $27.4M in cash. Cash reduced $2.1M in Q2FY20 and increased $0.1M in 1HFY20.

The Technology sector company, The Descartes Systems Group Inc noticed change of -2.31% to $38.88 along volume of 82666 shares in recent session compared to an average volume of 79.95K. The stock observed return of -0.82% in 5 days trading activity. The stock was at -1.82% over one month performance. DSGX’s shares are at 13.95% for the quarter and driving a 26.98% return over the course of the past year and is now at 46.94% since this point in 2018.   The average volatility for the week at 1.70% and for month was at 1.72%. There are 82.84M shares outstanding and 82.84M shares are floated in market. Right now the stock beta is 0.67.

Alicia Gainey

Alicia Gainey–Technology and Energy My name is Alicia Gainey, and I am 31 years of age who is an industrialist rather than a writer. I need to grab the eye of my group of readers without sounding excessively dry and boring. I am that kind of individual who treasures his extra time by composing my contemplations and thoughts for my group of readers. My writing areas of interests are not kept to a particular field, I composed on numerous themes, however, technology and business articles are forever my top pick. I love to communicate through inventive modes, for example, drawing, singing, and composing. I love to invest my relaxation time with my adored cat, rest or by playing my preferred computer games.

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