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DESCARTES Descartes Announces Fiscal 2022 Third Quarter Financial Results Record Revenues and Income from Operations WATERLOO , Ontario , Dec. 01 , 2021 ( GLOBE NEWSWIRE ) The Descartes Systems Group Inc. ( TSX : DSG ) ( Nasdaq : DSGX ) announced its financial results for its fiscal 2022 third quarter ( Q3FY22 ) . 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 ) . " Driver shortages , supply constraints , capacity challenges and shipping bottlenecks are just some of the factors impacting today's global supply chains and the wider economy , " said Edward J. Ryan , Descartes ' CEO . “ Running efficient supply chains is complicated , and the right technology is key to delivering on customer promises in a secure and efficient manner . Our Global Logistics Network was specifically designed to help solve the inherent multi - party , multi - process challenges faced by supply chain participants . We continue to leverage our experience and financial position to grow our Global Logistics Network for the benefit of our customers . ” Q3FY22 Financial Results As described in more detail below , key financial highlights for Q3FY22 included : • Revenues of $ 108.9 million , up 24 % from $ 87.5 million in the third quarter of fiscal 2021 ( Q3FY21 ) and up 4 % from $ 104.6 million in the previous quarter ( Q2FY22 ) ; • Revenues were comprised of services revenues of $ 97.2 million ( 89 % of total revenues ) , professional services and other revenues of $ 10.3 million ( 10 % of total revenues ) and license revenues of $ 1.4 million ( 1 % of total revenues ) . Services revenues were up 25 % from $ 77.6 million in Q3FY21 and up 4 % from $ 93.5 million in Q2FY22 ; • Cash provided by operating activities of $ 43.3 million , up 31 % from $ 33.1 million in Q3FY21 and down from $ 46.4 million in Q2FY22 ; • Income from operations of $ 27.8 million , up 48 % from $ 18.8 million in Q3FY21 and up 7 % from $ 26.1 million in Q2FY22 ; • Net income of $ 25.5 million , up 92 % from $ 13.3 million in Q3FY21 and up 10 % from $ 23.2 million in Q2FY22 . Net income as a percentage of revenues was 23 % , compared to 15 % in Q3FY21 and 22 % in Q2FY22 ; • Earnings per share on a diluted basis of $ 0.30 , up 100 % from $ 0.15 in Q3FY21 and up 11 % from $ 0.27 in Q2FY22 ; and Adjusted EBITDA of $ 48.2 million , up 32 % from $ 36.4 million in Q3FY21 and up 5 % from $ 45.9 million in Q2FY22 . Adjusted EBITDA as a percentage of revenues was 44 % , compared to 42 % in Q3FY21 and 44 % in Q2FY22 . 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 ) : Q3 Q2 Q1 Q4 Q3 FY22 FY22 FY22 FY21 FY21 Revenues 108.9 104.6 98.8 93.4 87.5 Services revenues 97.2 93.5 88.3 82.7 77.6 Gross margin 76 % 76 % 76 % 75 % 74 % Cash provided by operating activities 43.3 46.4 40.9 36.5 33.1 Income from operations 27.8 26.1 23.4 21.9 18.8 Net income 25.5 23.2 18.4 17.2 13.3 Net income as a % of revenues 23 % 22 % 19 % 18 % 15 % Earnings per diluted share 0.30 0.27 0.21 0.20 0.15 Adjusted EBITDA 48.2 45.9 41.5 38.6 36.4 Adjusted EBITDA as a % of revenues 44 % 44 % 42 % 41 % 42 % Year - to - Date Financial Results As described in more detail below , key financial highlights for Descartes ' nine - month period ended October 31 , 2021 ( 9MFY22 ) included :