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DESCARTES Descartes Announces Fiscal 2022 First Quarter Financial Results Record Revenues and Income from Operations WATERLOO , Ontario , June 02 , 2021 ( GLOBE NEWSWIRE ) The Descartes Systems Group Inc. ( TSX : DSG ) ( Nasdaq : DSGX ) announced its financial results for its fiscal 2022 first quarter ( Q1FY22 ) . All financial results referenced are in United States ( US ) currency and , unless otherwise indicated , are determined in accordance with US Generally Accepted Accounting Principles ( GAAP ) . " We believe that by helping our customers succeed , Descartes will succeed . The financial results we've reported today reflect that , " said Edward J. Ryan , Descartes ' CEO . " Our customers face complex multi - party , multi - process supply chain and logistics challenges . This is even more so in recent times where our customers have faced rapid changes in supply , demand and trade regulations . Our Global Logistics Network is designed for these complex scenarios , helping shippers , carriers , customs authorities and logistics services providers connect and collaborate to execute the full lifecycle of shipments . We continue to innovate to help our customers prepare for tomorrow's challenges , and we continue to add more solutions and trading partners to our network . As a result , our customers have trusted us with more of their business . " Q1FY22 Financial Results As described in more detail below , key financial highlights for Q1FY22 included : • Revenues of $ 98.8 million , up 18 % from $ 83.7 million in the first quarter of fiscal 2021 ( Q1FY21 ) and up 6 % from $ 93.4 million in the previous quarter ( Q4FY21 ) ; • Revenues were comprised of services revenues of $ 88.3 million ( 90 % of total revenues ) , professional services and other revenues of $ 9.2 million ( 9 % of total revenues ) and license revenues of $ 1.3 million ( 1 % of total revenues ) . Services revenues were up 19 % from $ 74.1 million in Q1FY21 and up 7 % from $ 82.7 million in Q4FY21 ; • Cash provided by operating activities of $ 40.9 million , up 49 % from $ 27.5 million in Q1FY21 and up 12 % from $ 36.5 million in Q4FY21 ; • Income from operations of $ 23.4 million , up 49 % from $ 15.7 million in Q1FY21 and up 7 % from $ 21.9 million in Q4FY21 ; • Net income of $ 18.4 million , up 67 % from $ 11.0 million in Q1FY21 and up 7 % from $ 17.2 million in Q4FY21 ; ● Earnings per share on a diluted basis of $ 0.21 , up 62 % from $ 0.13 in Q1FY21 and up 5 % from $ 0.20 in Q4FY21 ; and Adjusted EBITDA of $ 41.5 million , up 26 % from $ 33.0 million in Q1FY21 and up 8 % from $ 38.6 million in Q4FY21 . Adjusted EBITDA as a percentage of revenues was 42 % , compared to 39 % in Q1FY21 and 41 % in Q4FY21 . Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non - GAAP financial measures provided as a complement to financial results presented in accordance with GAAP . We define Adjusted EBITDA as earnings before interest , taxes , depreciation , amortization , stock - based compensation ( for which we include related fees and taxes ) and other charges ( for which we include restructuring charges and acquisition - related expenses ) . These items are considered by management to be outside Descartes ' ongoing operational results . We define Adjusted EBITDA as a percentage of revenues as the quotient , expressed as a percentage , from dividing Adjusted EBITDA for a period by revenues for the corresponding period . A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release . The following table summarizes Descartes ' results in the categories specified below over the past 5 fiscal quarters ( unaudited ; dollar amounts , other than per share amounts , in millions ) : Revenues Services revenues Gross margin Cash provided by operating activities Income from operations Net income Net income as a % of revenues Earnings per diluted share Adjusted EBITDA Adjusted EBITDA as a % of revenues Q1 FY22 98.8 88.3 76 % 40.9 23.4 18.4 19 % 0.21 41.5 42 % Q4 FY21 93.4 82.7 75 % 36.5 21.9 17.2 18 % 0.20 38.6 41 % Q3 FY21 87.5 77.6 74 % 33.1 18.8 13.3 15 % 0.15 36.4 42 % Q2 FY21 84.0 75.3 73 % 34.1 15.0 10.5 13 % 0.12 34.0 40 % Q1 FY21 83.7 74.1 74 % 27.5 15.7 11.0 13 % 0.13 33.0 39 % Cash Position At April 30 , 2021 , Descartes had $ 138.1 million in cash . Cash increased $ 4.4 million in Q1FY22 . The table set forth below provides a summary of cash flows for Q1FY22 : Q1FY22