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DESCARTES Descartes Announces Fiscal 2022 Second Quarter Financial Results Record Revenues and Income from Operations WATERLOO , Ontario , Sept. 08 , 2021 ( GLOBE NEWSWIRE ) -- The Descartes Systems Group Inc. ( TSX : DSG ) ( Nasdaq : DSGX ) announced its financial results for its fiscal 2022 second quarter ( Q2FY22 ) . 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 continue to focus on helping our customers thrive in the face of an increasingly dynamic , complex global trade landscape , and in turn our customers continue to trust us with more of their business " said Edward J. Ryan , Descartes ' CEO . " The challenges and opportunities faced by our customers can vary for shippers , carriers , logistics service providers and customs authorities , but all parties need to connect and collaborate in real - time . Our Global Logistics Network does just that , helping our customers seamlessly exchange information and leverage data with a growing number of tailored , value - added applications for each participant to manage the lifecycle of shipments . " Q2FY22 Financial Results As described in more detail below , key financial highlights for Q2FY22 included : • Revenues of $ 104.6 million , up 25 % from $ 84.0 million in the second quarter of fiscal 2021 ( Q2FY21 ) and up 6 % from $ 98.8 million in the previous quarter ( Q1FY22 ) ; • Revenues were comprised of services revenues of $ 93.5 million ( 89 % of total revenues ) , professional services and other revenues of $ 9.9 million ( 10 % of total revenues ) and license revenues of $ 1.2 million ( 1 % of total revenues ) . Services revenues were up 24 % from $ 75.3 million in Q2FY21 and up 6 % from $ 88.3 million in Q1FY22 ; • Cash provided by operating activities of $ 46.4 million , up 36 % from $ 34.1 million in Q2FY21 and up 13 % from $ 40.9 million in Q1FY22 ; • Income from operations of $ 26.1 million , up 74 % from $ 15.0 million in Q2FY21 and up 12 % from $ 23.4 million in Q1FY22 ; • • Net income of $ 23.2 million , up 121 % from $ 10.5 million in Q2FY21 and up 26 % from $ 18.4 million in Q1FY22 ; Earnings per share on a diluted basis of $ 0.27 , up 125 % from $ 0.12 in Q2FY21 and up 29 % from $ 0.21 in Q1FY22 ; and Adjusted EBITDA of $ 45.9 million , up 35 % from $ 34.0 million in Q2FY21 and up 11 % from $ 41.5 million in Q1FY22 . Adjusted EBITDA as a percentage of revenues was 44 % , compared to 40 % in Q2FY21 and 42 % in Q1FY22 . 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 Year - to - Date Financial Results Q2 Q1 Q4 Q3 Q2 FY22 FY22 FY21 FY21 FY21 104.6 98.8 93.4 87.5 84.0 93.5 88.3 82.7 77.6 75.3 76 % 76 % 75 % 74 % 73 % 46.4 40.9 36.5 33.1 34.1 26.1 23.4 21.9 18.8 15.0 23.2 18.4 17.2 13.3 10.5 22 % 19 % 18 % 15 % 13 % 0.27 0.21 0.20 0.15 0.12 45.9 41.5 38.6 36.4 34.0 44 % 42 % 41 % 42 % 40 % As described in more detail below , key financial highlights for Descartes ' six - month period ended July 31 , 2021 ( 1HFY22 ) included : • Revenues of $ 203.4 million , up 21 % from $ 167.7 million in the same period a year ago ( 1HFY21 ) ; Revenues were comprised of services revenues of $ 181.8 million ( 89 % of total revenues ) , professional services and