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.