The Descartes Systems Group Inc. (NASDAQ:DSGX) Q3 2023 Earnings Call Transcript

Jeremy Campbell: Great. Thank you. This is Jeremy on for Raimo. I just wanted to ask on the sanctions business line. If you can speak a bit to what led to outperformance in the quarter there and maybe just like some of the different factors in the macro that you’re seeing impact that segment of the business. Thank you.

Ed Ryan: Thanks, Jeremy. Yes, you can just pick up the paper, you can kind of see what’s causing it, right? Wars, threats of wars. You see trouble brewing in Iran. You see trouble brewing in China. You see an all-out war with Russia and Ukraine. And those things tend to drag more people getting put on the sanctions list. And the more people that are on the sanction list, the more companies have to pay attention to that and end up needing to buy a service to make sure that they can do it. It gets very complicated to — these lists change every day, and there’s 140 countries that are making changes every day. And if you ship to someone you’re not allowed to ship to, you can get an awful big fine. And I didn’t know, it was not a good answer for the government.

And as companies become more and more aware of that and are worried about running those things, they have to do something about it. We’re the leading solution provider in the world to provide that database because we have more countries than anybody else and we have more accurate data than anyone else.

Operator: We have no more questions at this time. I’ll turn it back to Ed Ryan for closing comments.

Ed Ryan: Hey. Great, everyone. Thanks very much for your time, and we look forward to reporting back to you on Q4 in a few months. Have a great day.

Operator: And thank you, ladies and gentlemen. This concludes today’s conference. Thank you for participating. You may now disconnect.