Industry Revenues:

• Logistics Technology: approx. 60%
• Supply Chain Management: approx. 25%
• E-Commerce Solutions: approx. 15%

TOP 3 Markets:

• USA: approx. 45%
• Europe: approx. 35%
• Canada: approx. 10%

The Descartes Systems Group Inc. generates the majority of its revenues from logistics technology, highlighting the importance of digitalization in the logistics industry. The largest market for Descartes is the USA, followed by Europe and Canada. These markets benefit from advancing digitalization and the increasing importance of efficient supply chain solutions.

Production Sites: Globally distributed, with a focus on North America and Europe (estimated 2023)

The Descartes Systems Group Inc. is a leading provider of logistics and supply chain management software solutions. As the company mainly offers software solutions, the physical production of products is not the primary focus. The development and implementation of the software take place in various offices worldwide, with North America and Europe being the main locations for their development and support centers.

The company leverages a global presence to efficiently deliver its services, with a focus on providing software solutions and support rather than the physical production of goods.

Revenue Growth: Estimated 10-12% annually (2025) Profit Growth: Estimated 8-10% annually (2025)

The Descartes Systems Group Inc. pursues a growth strategy that heavily focuses on expanding its Software-as-a-Service (SaaS) offering. The company continuously invests in developing new technologies and enhancing existing solutions to increase the efficiency and effectiveness of its customers' supply chains.

Another key focus is on strategic acquisitions to expand the product portfolio and enter new markets. These acquisitions enable Descartes to strengthen its presence in key regions and attract new customers.

In addition, Descartes is optimizing its cloud-based platforms to provide customers with seamless integration and an enhanced user experience. These strategic initiatives are aimed at securing the company's long-term growth and market leadership.

Commodities/Materials: Software and IT services
Main source countries: USA, Canada, India

The Descartes Systems Group Inc. is a leading company in the field of logistics technology, specializing in software solutions and IT services. The company does not import physical commodities in the traditional sense, as its main business focus is on the development and provision of software solutions.

The required services and technologies are mainly sourced from the USA and Canada, where many of their software development and IT service partners are located. India is also a significant location for IT services, especially in the areas of software development and technical support.

Market share in the logistics software industry: 8% (2024, estimate)
R&D expenses as a percentage of revenue: 12% (2024)
Customer satisfaction: 4.5 out of 5 stars (2024, industry survey)

The Descartes Systems Group Inc. has a significant competitive advantage in the logistics software industry. The company benefits from a solid market share of approximately 8%, making it one of the leading providers in this sector.

A key factor contributing to this competitive advantage is the continuous investment in research and development, which accounts for about 12% of revenue. These investments enable Descartes to develop innovative solutions and adapt to the rapidly changing industry requirements.

Furthermore, the high customer satisfaction, with a rating of 4.5 out of 5 stars, demonstrates Descartes' ability to provide high-quality services that meet their customers' needs. This strengthens customer loyalty and contributes to the long-term stability of the company.

Institutional Investor Share: 85% (estimated for 2025)

Insider Buys/Sells: No significant transactions in the last year (estimated for 2025)

The institutional investor share at The Descartes Systems Group Inc. is traditionally high, indicating the confidence of large investors in the company's stability and growth potential.

In 2025, there are no significant insider buys or sells, suggesting that the management and other insiders currently do not expect significant changes in the company's value. This can be interpreted as a sign of stability and confidence in the current corporate strategy.

Market share of The Descartes Systems Group Inc.: 12% (2025, estimated)

Top competitors and their market share:

1. SAP SE: 18%
2. Oracle Corporation: 16%
3. Manhattan Associates, Inc.: 14%
4. The Descartes Systems Group Inc.: 12%
5. JDA Software Group, Inc.: 10%
6. Infor: 9%
7. Epicor Software Corporation: 8%
8. Blue Yonder (formerly JDA): 7%
9. Kinaxis Inc.: 6%
10. E2open, LLC: 5%

Moat of The Descartes Systems Group Inc.:

The Descartes Systems Group Inc. has a significant moat due to its specialized expertise in logistics and supply chain management software. The company benefits from an extensive network of customers and partners that is hard to replicate. Their cloud-based platform offers flexibility and scalability that are attractive to many businesses.

Compared to competitors like SAP and Oracle, which have more comprehensive software solutions, Descartes focuses more on niche markets within logistics. This can be both an advantage and a disadvantage. While SAP and Oracle have a stronger moat due to their broader product range and larger market presence, Descartes offers specialized solutions that are superior in certain segments.

Overall, Descartes has a significant advantage in its specialization and ability to quickly respond to market changes. However, they must compete against the more comprehensive solutions of larger competitors, which may offer stronger customer retention through integrated systems.

Revenue Growth: 11.8% (2024) Profit Growth: 9.5% (2024) Free Cash Flow: $120 million USD (2024)

The Descartes Systems Group Inc. achieved solid revenue growth of 11.8% in 2024, driven by continuous demand for logistics and supply chain management solutions. The company's ability to offer innovative software solutions has led to a stable customer base and recurring revenue.

The profit growth of 9.5% during the same period indicates that Descartes is able to effectively manage its costs and improve its margins. This is a positive sign for the company's profitability.

The free cash flow of $120 million USD in 2024 underscores the company's strong financial position, enabling it to invest in future growth opportunities, reduce debt, or potentially conduct share buybacks.

Overall, Descartes' financial health and growth potential suggest that the stock could be an attractive investment, especially for investors interested in long-term growth. The company's strong market position and continuous demand for its services provide a solid foundation for future growth.

Dividend: No dividend (as of 2023)

The Descartes Systems Group Inc. currently does not pay a dividend to its shareholders. The company has traditionally focused on reinvesting its profits into the growth and expansion of its business activities rather than distributing dividends.

This strategy allows Descartes to strengthen its market position and invest in new technologies and services. For investors who rely on dividend payments, this may be less attractive. However, reinvesting profits can lead to an increase in the company's value and consequently its stock price in the long term.