Question · Q3 2026
Colin Eberhardt inquired about the percentage of Descartes' revenue derived from per-user pricing versus volume-based or fixed pricing, and how this model might adapt if brokers and forwarders structurally reduce headcount. He also asked about the benefit Descartes is seeing from the elimination of the de minimis exemption and the impact of increased customs filings and complexity.
Answer
CEO Ed Ryan explained that Descartes employs a variety of pricing models, including transaction processing charges, per-truck fees, per-mobile handheld device fees, and per-user fees, indicating flexibility to adapt if customer headcount decreases. He confirmed a significant benefit from the de minimis exemption's removal, leading to a shift from Type 86 to Type 1 filings. Descartes' robust network infrastructure, unlike competitors' software-only solutions, effectively handled the massive transaction volumes, resulting in substantial market share gains and nearly doubling revenue in that specific area.
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