- SaaS revenue grows 18%, adjusted EBITDA1 margin of 19%, annual
recurring revenue grows 15%
- Highest number of new customers for a second quarter, second
highest quarterly wins ever
- Guidance reflects stronger profitability outlook despite
elevated scrutiny in buying environment
Kinaxis® (TSX:KXS), a leading provider of supply chain
orchestration solutions, reported results for its second quarter
ended June 30, 2024. All amounts are in U.S. dollars. All figures
are prepared in accordance with IFRS Accounting Standards unless
otherwise indicated.
“We delivered solid financial results in the quarter. Over
three-quarters of business won was from new customers, and we are
seeing good results from our heightened focused on profitability.
For our larger enterprise opportunities, scrutiny around major
buying decisions remains elevated and we anticipate that to remain
over the short term. We are continuing to build for the long term.
Our committed SaaS backlog grew 30% year over year, demand drivers
are intensifying, and we are reinvesting in strategic go-to-market
initiatives, positioning us for our next wave of strong, highly
profitable growth,” said John Sicard, president and chief executive
officer at Kinaxis. “Notwithstanding large enterprise deal delays,
we closed record new customer wins for a Q2, and had record
attendance at Kinexions, our supply chain community conference. At
Kinexions, we introduced Maestro, our new AI-infused supply chain
orchestration platform that breaks down silos across the entire
network so our customers can conduct their supply chain in total
harmony as they wrestle with increasing business complexity and
disruption. The market is demanding better orchestration solutions
and we are creating the path for them to follow.”
Q2 2024 Highlights
$ USD thousands, except as otherwise
indicated
Q2 2024
Q2 2023
Change
Total Revenue
118,278
105,772
12%
SaaS
75,395
64,104
18%
Subscription term
licenses
1,368
7,086
(81)%
Professional services
36,495
29,991
22%
Maintenance and
support
5,020
4,591
9%
Gross profit
70,186
63,670
10%
Margin
59%
60%
Profit (loss)
3,434
(2,540)
_
Per diluted share
$0.12
$(0.09)
Adjusted EBITDA1
21,930
15,202
44%
Margin
19%
14%
Cash from operating activities
13,140
13,943
(6)%
(1) “Adjusted EBITDA” is a non-IFRS
measure and is not a recognized, defined or standardized measure
under IFRS. This measure as well as any other non-IFRS financial
measures reported by Kinaxis are defined in the “Non-IFRS Measures”
section of this news release.
Key Performance Indicators The company’s Annual Recurring
Revenue2 (ARR), which includes subscription amounts related to both
SaaS and on-premise contracts, rose 15% to $339 million at the end
of the quarter.
$USD millions
Q2 2024
Q2 2023
Change
Annual recurring revenue2
339
293
15%
(2) Annual Recurring Revenue (ARR) is the total annualized value
of recurring subscription amounts (ultimately recognized as SaaS,
Subscription term licenses and Maintenance and support revenue) of
all subscription contracts at a point in time. Annualized
subscription amounts are determined solely by reference to the
underlying contracts, normalizing for the varying revenue
recognition treatments under IFRS 15 for cloud-based versus
on-premise subscription amounts. It excludes one-time fees, such as
for non-recurring professional services, and assumes that customers
will renew the contractual commitments on a periodic basis as those
commitments come up for renewal, unless such renewal is known to be
unlikely. We believe that this measure provides a more current
indication of our performance in the growth of our subscription
business than other metrics.
The nature of the company’s long-term contracts provides
visibility into future, contracted revenue. The following table
presents revenue expected to be recognized in the future related to
performance obligations that are unsatisfied (or partially
unsatisfied) at June 30, 2024.
$USD millions
Remainder of
2024
2025
2026 and later
Total
SaaS
151.8
235.7
317.3
704.8
Maintenance and support
10.1
15.3
16.4
41.8
Subscription term licenses
1.6
0.1
0.1
1.8
Total
163.5
251.1
333.8
748.4
Financial Guidance Kinaxis is updating its fiscal 2024
guidance, as follows:
FY 2024 Guidance
Total revenue
$483-495 million
SaaS
15-17% growth
Subscription term
license
$9-11 million
Adjusted EBITDA1 margin
19-21%
“I’m pleased to increase our Adjusted EBITDA guidance for fiscal
2024 for the second consecutive quarter. While elevated scrutiny in
the buying environment, particularly for the largest deals, and
fluctuations in certain key foreign currencies, have tempered our
SaaS revenue outlook for 2024, we're confidently moving towards our
25% Adjusted EBITDA mid-term target. We look forward to a more
typical buying environment and seeing the impacts of reinvestment
in strategic go-to-market initiatives,” said Blaine Fitzgerald,
chief financial officer at Kinaxis.
Guidance in this press release is provided to enhance visibility
into Kinaxis’ expectations for financial targets for the periods
indicated. Please refer to the section regarding forward-looking
statements that forms an integral part of this release. This press
release along with the financial statements and MD&A for the
quarter ended June 30, 2024 are available on Kinaxis’ website and
on SEDAR at www.sedar.com.
Conference Call Kinaxis will host a conference call
tomorrow, August 1, 2024, to discuss these results. John Sicard,
chief executive officer, and Blaine Fitzgerald, chief financial
officer, will host the call starting at 8:30 a.m. Eastern Time. A
question and answer session will follow management's presentation.
Investors and participants must register for the call in
advance. See registration link below. Please call the
conference telephone number fifteen minutes prior to the start
time.
DATE:
Thursday, August 1, 2024
TIME:
8:30 a.m. Eastern Time
CALL REGISTRATION:
https://registrations.events/direct/Q4I914161463
WEBCAST
https://events.q4inc.com/attendee/304263983 (available for three
months)
About Kinaxis Inc. Kinaxis is a global leader in modern
supply chain orchestration. We serve supply chains and the people
who manage them in service of humanity. Our software is trusted by
renowned global brands to provide the agility and predictability
needed to navigate today’s volatility and disruption. We combine
our patented concurrency technique with a human-centered approach
to AI to empower businesses of all sizes to orchestrate their
end-to-end supply chain network, from multi-year strategic planning
through down-to-the-second execution and last-mile delivery. For
more news and information, please visit kinaxis.com or follow us on
LinkedIn.
Non-IFRS Measures This press release makes reference to
Adjusted Profit and Adjusted EBITDA, which are non-IFRS financial
measures, as well as Adjusted EBITDA margin which expresses
Adjusted EBITDA as a percentage of revenue. Adjusted Profit,
Adjusted EBITDA and Adjusted EBITDA margin are not recognized,
defined or standardized measures under IFRS. We use these measures
to provide investors with supplemental information on our operating
performance and to highlight trends in our core business that may
not otherwise be apparent when relying solely on IFRS financial
measures. We believe that securities analysts, investors and other
interested parties frequently use non-IFRS measures in the
evaluation of issuers. Management also uses non-IFRS measures in
order to facilitate operating performance comparisons from period
to period, prepare annual operating budgets and assess our ability
to meet our capital expenditure and working capital requirements,
and to determine components of employee compensation.
Adjusted Profit represents profit adjusted to exclude the
changes in the fair value of contingent consideration, our equity
compensation plans and non-recurring items. Adjusted EBITDA
represents profit adjusted to exclude the change in the fair value
of contingent consideration, our equity compensation plans,
non-recurring items, income tax expense, depreciation and
amortization, foreign exchange loss (gain) and net finance (income)
expense. Adjusted EBITDA margin expresses Adjusted EBITDA as a
percentage of revenue. Our definitions of Adjusted Profit, Adjusted
EBITDA and Adjusted EBITDA margin will likely differ from those
used by other companies (including our peers) and therefore
comparability may be limited. Non-IFRS measures should not be
considered a substitute for or in isolation from measures prepared
in accordance with IFRS. Investors are encouraged to review our
financial statements and disclosures in their entirety and are
cautioned not to put undue reliance on non-IFRS measures and view
them in conjunction with the most comparable IFRS financial
measures. Kinaxis has reconciled Adjusted Profit and Adjusted
EBITDA to the most comparable IFRS financial measure as
follows:
Three months ended June
30,
Six months ended June 30,
2024
2024
2023
2024
2023
(In thousands of USD)
(In thousands of USD)
Profit (loss)
3,434
(2,540)
9,621
(1,351)
Change in fair value of contingent
consideration
—
462
—
2,656
Share-based compensation
7,702
9,155
16,424
17,374
Non-recurring item3
5,546
—
7,298
—
Adjusted profit
16,682
7,077
33,343
18,679
Income tax expense
2,082
997
4,691
1,301
Depreciation and amortization
6,268
6,517
12,673
13,404
Foreign exchange gain (loss)
(40)
2,374
(166)
2,109
Net finance income
(3,062)
(1,763)
(5,931)
(3,149)
5,248
8,125
11,267
13,665
Adjusted EBITDA
21,930
15,202
44,610
32,344
Adjusted EBITDA Margin
19%
14%
19%
16%
Note:
(3) Costs associated with the
restructuring initiative
Forward-Looking Statements Certain statements in this
release constitute forward-looking statements within the meaning of
applicable securities laws. Forward-looking statements include
statements as to our expectations for:
- growth of annual total revenue, annual SaaS and Subscription
term licenses revenue, and our expectations for Adjusted EBITDA
margin achievement, in each case looking forward for our fiscal
year ending December 31, 2024;
- SaaS growth and increased profitability in years beyond 2024;
and
- contracted revenue in future periods, including 2024, 2025 and
2026 and later.
This release also includes forward-looking statements as to
Kinaxis’ growth opportunities and the potential benefits of, and
markets and demand for, Kinaxis’ products and services. These
statements are subject to certain assumptions, risks and
uncertainties, including our view of the relative position of
Kinaxis’ products and services compared to competitive offerings in
the industry.
In particular, our guidance for 2024 annual total revenue,
annual SaaS and Subscription term license revenue and annual
Adjusted EBITDA margin, as well as our comments on our expectations
for SaaS growth and increased profitability in years beyond 2024,
are subject to certain assumptions and associated risks
including:
- our ability to win business from new customers and expand
business from existing customers;
- the timing of new customer wins and expansion decisions by our
existing customers;
- maintaining our customer retention levels, and specifically,
that customers will renew contractual commitments on a periodic
basis as those commitments come up for renewal, at rates consistent
with our historic experience;
- fluctuations in the value of foreign currencies relative to the
U.S. Dollar; and
- with respect to Adjusted EBITDA and profitability, our ability
to contain expense levels while expanding our business.
Our guidance and commentary for achievement of contracted
revenue in future periods, including in 2024, 2025 and 2026 and
later, is based on assumptions and associated risks including:
- our ability to satisfy material unperformed obligations under
our long-term contracts; and
- the continued financial capacity and creditworthiness of our
customers under long-term contracts.
These and other assumptions, risks and uncertainties may cause
Kinaxis’ actual results, performance, achievements and developments
to differ materially from the results, performance, achievements or
developments expressed or implied by forward-looking statements.
Material risks and uncertainties relating to our business are
described under the headings “Forward-Looking Statements” and
“Risks and Uncertainties” in our annual MD&A dated February 28,
2024, under the heading “Risk Factors” in our Annual Information
Form dated March 25, 2024 and in our other public documents filed
with Canadian securities regulatory authorities, which are
available at www.sedarplus.ca. Forward-looking statements are
provided to help readers understand management’s expectations as at
the date of this release and may not be suitable for other
purposes. Readers are cautioned not to place undue reliance on
forward-looking statements. Kinaxis assumes no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as expressly
required by law.
SOURCE: Kinaxis Inc.
Kinaxis Inc.
Condensed Consolidated Interim
Statements of Financial Position
(Expressed in thousands of USD)
(Unaudited)
June 30,
2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
147,155
$
174,844
Short-term investments
135,176
118,118
Trade and other receivables
145,785
156,609
Prepaid expenses
17,623
14,810
445,739
464,381
Non-current assets:
Unbilled receivables
1,710
3,155
Other receivables
865
972
Prepaid expenses
2,406
1,130
Investment tax credits recoverable
10,371
8,362
Deferred tax assets
35,088
1,184
Contract acquisition costs
29,784
27,438
Property and equipment
35,858
40,300
Right-of-use assets
47,930
47,109
Intangible assets
20,343
23,394
Goodwill
73,613
74,556
257,968
227,600
$
703,707
$
691,981
Liabilities and Shareholders’
Equity
Current liabilities:
Trade payables and accrued liabilities
93,537
39,700
Provisions
875
—
Deferred revenue
133,909
137,598
Lease obligations
5,930
5,805
234,251
183,103
Non-current liabilities:
Lease obligations
45,664
45,985
Deferred tax liabilities
7,677
8,065
53,341
54,050
Shareholders’ equity:
Share capital
294,878
307,327
Contributed surplus
11,128
44,339
Accumulated other comprehensive income
(loss)
(1,314)
1,360
Retained earnings
111,423
101,802
416,115
454,828
$
703,707
$
691,981
Kinaxis Inc.
Condensed Consolidated Interim
Statements of Comprehensive Income
(Expressed in thousands of USD, except
share and per share data)
(Unaudited)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Revenue
$
118,278
$
105,772
$
237,648
$
206,902
Cost of revenue
48,092
42,102
94,532
82,231
Gross profit
70,186
63,670
143,116
124,671
Operating expenses:
Selling and marketing
27,341
28,417
52,268
52,581
Research and development
22,221
21,002
45,206
40,931
General and administrative
18,263
14,777
37,512
29,568
67,825
64,196
134,986
123,080
2,361
(526
)
8,130
1,591
Other income (expense):
Foreign exchange gain (loss)
40
(2,374
)
166
(2,109
)
Net finance and other income
3,115
1,819
6,016
3,124
Change in fair value of contingent
consideration
—
(462
)
—
(2,656
)
3,155
(1,017
)
6,182
(1,641
)
Profit (loss) before income taxes
5,516
(1,543
)
14,312
(50
)
Income tax expense
2,082
997
4,691
1,301
Profit (loss)
3,434
(2,540
)
9,621
(1,351
)
Other comprehensive income (loss):
Items that are or may be reclassified
subsequently to profit (loss):
Foreign currency translation differences -
foreign operations
(621
)
(423
)
(1,956
)
289
Change in valuation of cash flow
hedges
(241
)
154
(718
)
231
(862
)
(269
)
(2,674
)
520
Total comprehensive income (loss)
$
2,572
$
(2,809
)
$
6,947
$
(831
)
Basic earnings (loss) per share
$
0.12
$
(0.09
)
$
0.34
$
(0.05
)
Weighted average number of basic Common
Shares
28,187,236
28,318,956
28,232,707
28,181,727
Diluted earnings (loss) per share
$
0.12
$
(0.09
)
$
0.33
$
(0.05
)
Weighted average number of diluted Common
Shares
28,787,603
28,318,956
28,875,785
28,181,727
Kinaxis Inc.
Condensed Consolidated Interim
Statements of Changes in Shareholders’ Equity
(Expressed in thousands of USD)
(Unaudited)
Accumulated other comprehensive
income (loss)
Share
capital
Contributed
surplus
Cash flow
hedges
Currency
translation
adjustments
Total
Retained
earnings
Total equity
Balance, December 31, 2022
$
244,713
$
65,129
$
—
$
(156
)
$
(156
)
$
91,742
$
401,428
Profit
—
—
—
—
—
10,060
10,060
Other comprehensive income
—
—
441
1,075
1,516
—
1,516
Total comprehensive income
—
—
441
1,075
1,516
10,060
11,576
Share options exercised
41,545
(9,991
)
—
—
—
—
31,554
Restricted share units vested
10,676
(10,676
)
—
—
—
—
—
Performance share units vested
2,628
(2,628
)
—
—
—
—
—
Share-based payments
—
35,788
—
—
—
—
35,788
Shares issued for contingent
consideration
11,097
—
—
—
—
—
11,097
Shares repurchased
(3,332
)
(33,283
)
—
—
—
—
(36,615
)
Total shareholder transactions
62,614
(20,790
)
—
—
—
—
41,824
Balance, December 31, 2023
$
307,327
$
44,339
$
441
$
919
$
1,360
$
101,802
$
454,828
Profit
—
—
—
—
—
9,621
9,621
Other comprehensive loss
—
—
(718
)
(1,956
)
(2,674
)
—
(2,674
)
Total comprehensive income (loss)
—
—
(718
)
(1,956
)
(2,674
)
9,621
6,947
Share options exercised
14,824
(3,516
)
—
—
—
—
11,308
Restricted share units vested
7,387
(7,387
)
—
—
—
—
—
Deferred share units vested
1,396
(1,396
)
—
—
—
—
—
Performance share units vested
5,533
(5,533
)
—
—
—
—
—
Share-based payments
—
16,616
—
—
—
—
16,616
Shares repurchased
(25,412
)
(31,995
)
—
—
—
—
(57,407
)
Obligation related to share
repurchases
(16,177
)
—
—
—
—
—
(16,177
)
Total shareholder transactions
(12,449
)
(33,211
)
—
—
—
—
(45,660
)
Balance, June 30, 2024
$
294,878
$
11,128
$
(277
)
$
(1,037
)
$
(1,314
)
$
111,423
$
416,115
Kinaxis Inc.
Condensed Consolidated Interim
Statements of Cash Flows
(Expressed in thousands of USD)
(Unaudited)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Cash flows from operating activities:
Profit (loss)
$
3,434
$
(2,540
)
$
9,621
$
(1,351
)
Items not affecting cash:
Depreciation of property and equipment and
right-of-use assets
4,942
5,186
10,018
10,661
Amortization of intangible assets
1,326
1,331
2,655
2,743
Share-based payments
7,702
9,155
16,424
17,374
Net finance income
(3,062
)
(1,763
)
(5,931
)
(3,149
)
Change in fair value of contingent
consideration
—
462
—
2,656
Income tax expense
2,082
997
4,691
1,301
Investment tax credits recoverable
(1,109
)
(494
)
(2,009
)
(1,409
)
Change in operating assets and
liabilities
(2,904
)
1,587
6,203
24,546
Interest received
3,778
1,934
8,188
3,195
Interest paid
(459
)
(415
)
(841
)
(848
)
Income taxes paid
(2,590
)
(1,497
)
(3,868
)
(2,871
)
13,140
13,943
45,151
52,848
Cash flows from (used in) investing
activities:
Purchase of property and equipment and
intangible assets
(1,893
)
(769
)
(2,084
)
(1,632
)
Purchase of short-term investments
(157,512
)
(45,588
)
(216,869
)
(100,671
)
Redemption of short-term investments
105,832
45,154
198,395
60,160
(53,573
)
(1,203
)
(20,558
)
(42,143
)
Cash flows from (used in) financing
activities:
Payment of lease obligations
(1,786
)
(1,737
)
(3,526
)
(3,556
)
Repurchase of shares
(36,125
)
—
(57,407
)
—
Proceeds from exercise of stock
options
7,126
9,133
11,308
19,644
(30,785
)
7,396
(49,625
)
16,088
Increase (decrease) in cash and cash
equivalents
(71,218
)
20,136
(25,032
)
26,793
Cash and cash equivalents, beginning of
period
219,374
181,566
174,844
175,347
Effects of exchange rates on cash and cash
equivalents
$
(1,001
)
$
(94
)
(2,657
)
(532
)
Cash and cash equivalents, end of
period
147,155
201,608
$
147,155
$
201,608
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731357178/en/
Investor Relations Rick Wadsworth | Kinaxis
rwadsworth@kinaxis.com 613-907-7613
Media Relations Jaime Cook | Kinaxis jcook@kinaxis.com
289-552-4640
Kinaxis (TSX:KXS)
過去 株価チャート
から 7 2024 まで 8 2024
Kinaxis (TSX:KXS)
過去 株価チャート
から 8 2023 まで 8 2024