Justin Long's questions to Descartes Systems Group Inc (DSGX) leadership • Q1 2025
Question
Justin Long inquired about the slight moderation in organic services growth compared to the prior quarter and whether to expect a reacceleration. He also asked about the potential margin and organic growth impact from the recent OCR and ASD acquisitions.
Answer
CFO Allan Brett noted that organic growth was solid at around 8.5% and that minor revenue items in the prior year's quarter slightly impacted the growth rate. CEO Ed Ryan added that the company sees the current high single-digit growth as strong and consistent. He explained that the new acquisitions are currently operating at margins slightly below Descartes' average but present a great opportunity for improvement over time. Ryan also mentioned that the full revenue potential of the new acquisitions has not yet been incorporated into the baseline calibration, suggesting potential future upside.