The Descartes Systems Group Inc. (NASDAQ:DSGX) Q2 2024 Earnings Call Transcript

Kevin Krishnaratne: Okay, got it. Thanks for that. Second question is e-commerce, a growing market. You made a bunch of acquisitions during the pandemic. Can you remind us how you guys think about that business in terms of the size, percentage of revenue, and maybe if you can give us some thoughts on the growth profile there? E-commerce industry wide seems to be trending back up after normalizing a year ago. Can you just comment on the e-commerce business?

Ed Ryan: Yes. We’re big fans of the e-commerce business. We got in it seven, eight years ago, nine years ago now and continue to buy any asset in that space that we think would be a good fit for what we already do and with an ability to help us grow our network. It’s about 10% of our business today. It’s one of our faster growing businesses. And yes, we absolutely continue to like that business and think that as more and more people order stuff online, that business is going to continue to do well for us for the foreseeable future.

Kevin Krishnaratne: Got it. Just last one for me, Localz sounds it’s doing well. I know that was more of an APAC focused business. Are you starting to sell that product into other dealers and customers?

Ed Ryan: We’ve always provided that service through third parties. And when we had a chance to buy Localz, we thought that was a great opportunity for us to be able to do that ourselves without paying a third party to do it. So that’s what we did. And we’re bringing it to all the jurisdictions that we operate in right now. It’s a simple service, right? You order something and you want to see the truck driving to your house and you can go on an app and you can see where the driver is. That having been said, to someone who’s trying to deliver furniture or something of that nature, it’s very important that you’re there when they come to make the delivery. And a mobile functionality like that really helps make sure that customers know when the truck’s coming so that they’re there to get the furniture or whatever it is that they ordered from you.

So we want to make sure we’re able to bring that experience to all of our customers. And now we’re doing it in a way where we own the entire solution. So we’re happy about that.

Kevin Krishnaratne: Got it. I appreciate the color. Thanks.

Ed Ryan: Thanks, Kevin.

Operator: There are no further questions at this time. Please continue.

Ed Ryan: Great. Thanks, everyone. I appreciate your time today and we look forward to reporting back to you next quarter. Have a great day.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.