Flick through two Canadian tech stocks in Q2 2023

Highlights

• The S&P/TSX Capped Information Technology Index surged about 15% YTD.
• Descartes offers on-demand Software-as-a-Service (SaaS) solutions.
• Kinaxis Inc. enables its users to enhance their supply chain operations.

Canadian tech stocks soared upwards during the pandemic, and in 2022, they declined massively amid recession fears and higher interest rates.

In 2023, the situation of the tech sector doesn't seem to be bad like the previous year, but volatility continues to affect it every now and then.

The S&P/TSX Capped Information Technology Index was down by 1.34 per cent during the trading session on Wednesday, March 15. However, in terms of year-to-date (YTD) performance, the tech index is up by 14.92 per cent.

Let's look at two tech stocks listed on the Toronto Stock Exchange (TSX) and see how they have performed recently:

Descartes Systems Group Inc. (TSX: DSG)

For companies that rely heavily on logistics, Descartes offers on-demand Software-as-a-Service (SaaS) solutions to help them increase efficiency, performance, and security.

In fiscal 2023, Descartes' revenues jumped to US$ 486 million from US$ 424.7 million in the fiscal year 2022. This represented a surge of 14 per cent year-over-year (YoY).

The cash from operating activities increased by nine per cent YoY to US$ 192.4 million. Meanwhile, the income from operations amounted to US$ 130.4 million, reflecting a growth of 26 per cent YoY.

The company's net income was US$ 102.2 million in FY 2023 compared to US$ 86.3 million in FY 2022.

Kinaxis Inc. (TSX: KXS)

Cloud-based subscription software firm Kinaxis Inc. enables its users to enhance their supply chain operations. The company's market capitalization was US$ 4.74 billion at the time of writing, and its price-to-book (P/B) ratio is 8.36.

In Q4 2022, the total revenue was US$ 98.48 million, up by 44 per cent YoY. Meanwhile, on a constant currency basis, it surged by 51 per cent YoY to US$ 103.52 million.

The gross profit amounted to US$ 61.26 million in Q4 2022 compared to US$ 43.88 million in Q4 2021.

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.