- SaaS revenue grows 22% to $49.3
million, total revenue grows 70% to $98.1 million, adjusted EBITDA1 margin
of 34%
- New customer wins match Q4 '21 record levels
- ARR grows 24% in constant currency
- Company increases guidance
OTTAWA,
ON, May 5, 2022 /CNW/ - Kinaxis® (TSX: KXS) ,
the authority in driving agility for fast, confident
decision-making in an unpredictable world, reported results for its
first quarter ended March 31, 2022.
All amounts are in U.S. dollars. All figures are prepared in
accordance with International Financial Reporting Standards (IFRS)
unless otherwise indicated.
"We are pleased to report a very strong start to the year with
first quarter financial performance beating our expectations and
ultimately driving an improved outlook for the full calendar year.
Momentum in winning new customers continues to accelerate as more
companies consider replacing inflexible, legacy cascaded planning
techniques in favour of a more agile concurrent planning approach."
said John Sicard, President and CEO
of Kinaxis. "Uncertainty and disruption are the only true constants
in today's supply chain, regardless of industry. We continue to be
humbled by the number of world leading companies that put their
trust and confidence in Kinaxis and RapidResponse to bring about
transformative improvement in supply chain planning performance. We
will continue to invest to meet the growing opportunity in front of
us."
Q1 2022 Highlights
|
$ USD thousands, except
as otherwise indicated
|
Q1
2022
|
Q1
2021
|
Change
|
|
Total
Revenue
|
98,108
|
57,728
|
70%
|
|
SaaS
|
49,320
|
40,576
|
22%
|
|
Subscription term
licenses
|
23,474
|
2,059
|
1,040%
|
|
Professional
services
|
21,458
|
12,027
|
78%
|
|
Maintenance and
support
|
3,856
|
3,066
|
26%
|
|
Gross
profit
|
69,642
|
37,222
|
87%
|
|
Margin
|
71%
|
64%
|
|
|
Profit
|
12,522
|
(1,534)
|
nm
|
|
Per diluted
share
|
$0.44
|
($0.06)
|
|
|
Adjusted
EBITDA(1)
Margin
|
33,149
34%
|
9,041
16%
|
267%
|
|
Cash from operating
activities
|
21,993
|
20,649
|
7%
|
|
(1) "Adjusted
EBITDA" is a non-IFRS measure and is not a recognized, defined or a
standardized measure under IFRS. This measure as well as 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 24% in
constant currency to $236 million at
the end of the quarter
|
$USD
millions
|
Q1
2022
|
Q1
2021
|
|
Annual recurring
revenue2
|
232
22%
|
191
18%
|
|
Year-over-year
growth
|
|
Annual recurring
revenue2, constant currency
Year-over-year
growth
|
236
24%
|
189
17%
|
|
(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 March 31, 2022.
|
$USD millions
|
|
Remainder of
2022
|
|
2023
|
|
2024 and
later
|
|
Total
|
|
SaaS
|
|
145.2
|
|
151.6
|
|
148.4
|
|
445.2
|
|
Maintenance and
support
|
|
10.8
|
|
10.5
|
|
12.3
|
|
33.6
|
|
Subscription term
licenses
|
|
0.3
|
|
-
|
|
0
|
|
0.3
|
|
Total
|
|
156.3
|
|
162.1
|
|
160.7
|
|
479.1
|
Financial Guidance
Based on the current business
outlook, Kinaxis is updating its fiscal 2022 financial guidance, as
follows:
|
FY 2022
Guidance
|
|
Total
revenue
|
$345-355
million
|
|
SaaS
|
23-25%
growth
|
|
Subscription term
license
|
$32-34
million
|
|
Adjusted
EBITDA(1) margin
|
16-19%
|
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
three months ended March 31, 2022 are
available on Kinaxis' website and on SEDAR at www.sedar.com.
Conference Call
Kinaxis will host a conference call
tomorrow, May 6, 2022, 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:
Friday, May 6, 2022
TIME:
8:30 a.m. Eastern Time
CALL REGISTRATION:
https://dpregister.com/sreg/10165881/f258f2c0cd
WEBCAST:
https://bit.ly/3rpPeqs (available for three months)
REPLAY:
(877)-344-7529
Available through May 20, 2022
Reference number: 9783912
About Kinaxis Inc.
Everyday volatility and uncertainty
demand quick action. Kinaxis® delivers the agility to make fast,
confident decisions across integrated business planning and the
digital supply chain. People can plan better, live better and
change the world. Trusted by innovative brands, we combine human
intelligence with AI and concurrent planning to help companies plan
for any future, monitor risks and opportunities and respond at the
pace of change. Powered by an extensible, cloud-based platform,
Kinaxis delivers industry-proven applications so everyone can know
sooner, act faster and remove waste. For more Kinaxis news, follow
us on LinkedIn or Twitter.
Non-IFRS Measures
This news release contains non-IFRS
measures, specifically Adjusted EBITDA and Adjusted EBITDA margin.
We use Adjusted EBITDA to provide investors with a supplemental
measure of our operating performance and thus 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. Adjusted EBITDA and
Adjusted EBITDA margins are not recognized, defined or standardized
measures under IFRS. Our definition of Adjusted EBITDA and Adjusted
EBITDA margin will likely differ from that 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 EBITDA to the most comparable IFRS
financial measure as follows:
|
Three months
ended
March
31,
|
|
2022
|
|
2021
|
|
(In thousands of
USD)
|
|
|
|
|
|
Profit
(loss)
|
$
12,522
|
|
$
(1,534)
|
|
Share-based
compensation
|
6,003
|
|
5,307
|
|
Adjusted
profit
|
$
18,525
|
|
$
3,773
|
|
Income tax
expense
|
7,128
|
|
68
|
|
Depreciation and
amortization
|
5,914
|
|
4,470
|
|
Foreign exchange
loss
|
1,165
|
|
468
|
|
Net finance
expense
|
417
|
|
262
|
|
14,624
|
|
5,268
|
|
Adjusted
EBITDA
|
$
33,149
|
|
$
9,041
|
|
Adjusted EBITDA as a
percentage of revenue
|
34%
|
|
16%
|
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, 2022;
and
- contracted revenue in future periods, including 2022, 2023
and 2024 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 2022 annual total revenue,
annual SaaS and Subscription term license revenue and annual
Adjusted EBITDA margin, is 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; and
- with respect to Adjusted EBITDA, our ability to contain
expense levels while expanding our business.
Our guidance and commentary for achievement of contracted
revenue in future periods, including in 2022, 2023 and 2024 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 March 1, 2022,
under the heading "Risk Factors" in our Annual Information Form
dated March 25, 2022 and in our other
public documents filed with Canadian securities regulatory
authorities, which are available at www.sedar.com.
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
Kinaxis Inc.
Condensed Consolidated Interim Statements of Financial Position
(Expressed in thousands of USD)
(Unaudited)
|
March 31,
2022
|
December 31,
2021
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
$
221,983
|
$
203,220
|
|
Short-term investments
|
30,175
|
30,168
|
|
Trade and other receivables
|
106,715
|
89,247
|
|
Prepaid expenses
|
11,649
|
8,502
|
|
370,522
|
331,137
|
|
Non-current
assets:
|
|
|
|
Unbilled receivables
|
1,371
|
512
|
|
Other receivables
|
1,051
|
1,096
|
|
Prepaid expenses
|
3,095
|
1,780
|
|
Investment tax credits recoverable
|
4,658
|
3,616
|
|
Deferred tax assets
|
2,311
|
6,000
|
|
Contract acquisition costs
|
22,501
|
19,691
|
|
Property and equipment
|
54,472
|
52,093
|
|
Right-of-use assets
|
57,452
|
53,578
|
|
Intangible assets
|
11,095
|
10,778
|
|
Goodwill
|
42,420
|
39,988
|
|
200,426
|
189,132
|
|
|
|
|
$
570,948
|
$
520,269
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Trade payables and accrued liabilities
|
$
39,583
|
$
43,328
|
|
Deferred revenue
|
121,183
|
99,239
|
|
Provisions
|
551
|
716
|
|
Lease obligations
|
3,324
|
2,526
|
|
164,641
|
145,809
|
|
Non-current
liabilities:
|
|
|
|
Lease obligations
|
57,476
|
53,233
|
|
Deferred tax liabilities
|
2,340
|
9
|
|
59,816
|
53,242
|
|
Shareholders'
equity:
|
|
|
|
Share capital
|
205,626
|
195,414
|
|
Contributed surplus
|
57,658
|
54,739
|
|
Accumulated other comprehensive loss
|
(977)
|
(597)
|
|
Retained earnings
|
84,184
|
71,662
|
|
346,491
|
321,218
|
|
|
|
|
$
570,948
|
$
520,269
|
Kinaxis Inc.
Condensed Consolidated Interim Statements of Comprehensive Income
(Loss)
(Expressed in thousands of USD, except share and per share
data)
(Unaudited)
|
Three months ended
March 31,
|
|
2022
|
2021
|
|
|
|
|
Revenue
|
$
98,108
|
$
57,728
|
|
|
|
|
Cost of
revenue
|
28,466
|
20,506
|
|
|
|
|
Gross profit
|
69,642
|
37,222
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling and marketing
|
17,126
|
12,838
|
|
Research and development
|
18,157
|
13,682
|
|
General and administrative
|
13,184
|
11,542
|
|
48,467
|
38,062
|
|
|
|
|
21,175
|
(840)
|
|
|
|
|
Other
expense:
|
|
|
|
Foreign exchange loss
|
(1,165)
|
(468)
|
|
Net finance and other expense
|
(360)
|
(158)
|
|
(1,525)
|
(626)
|
|
|
|
|
Profit (loss) before
income taxes
|
19,650
|
(1,466)
|
|
|
|
|
Income tax
expense
|
7,128
|
68
|
|
|
|
|
Profit
(loss)
|
12,522
|
(1,534)
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
Items that are or may
be reclassified subsequently to profit or loss:
|
|
|
|
Foreign currency translation differences - foreign
operations
|
(380)
|
(269)
|
|
|
|
|
Total comprehensive
income (loss)
|
$
12,142
|
$
(1,803)
|
|
|
|
|
Basic earnings (loss)
per share
|
$
0.46
|
$
(0.06)
|
|
|
|
|
Weighted average number
of basic Common Shares
|
27,481,560
|
27,109,227
|
|
|
|
|
Diluted earnings (loss)
per share
|
$
0.44
|
$
(0.06)
|
|
|
|
|
Weighted average number
of diluted Common Shares
|
28,466,916
|
27,109,227
|
|
|
|
Kinaxis Inc.
Condensed Consolidated Interim Statements of Changes in
Shareholders' Equity
(Expressed in thousands of USD)
(Unaudited)
|
Share
capital
|
Contributed
surplus
|
Accumulated
other
comprehensive
loss
|
Retained
earnings
|
Total
equity
|
|
|
|
|
|
|
|
Balance, December 31,
2020
|
$
173,104
|
$
35,846
|
$
(20)
|
$
72,827
|
$
281,757
|
|
|
|
|
|
|
|
Loss
|
—
|
—
|
—
|
(1,534)
|
(1,534)
|
|
Other comprehensive
loss
|
—
|
—
|
(269)
|
—
|
(269)
|
|
Total comprehensive
loss
|
—
|
—
|
(269)
|
(1,534)
|
(1,803)
|
|
|
|
|
|
|
|
Share options
exercised
|
3,159
|
(899)
|
—
|
—
|
2,260
|
|
Share based
payments
|
—
|
5,307
|
—
|
—
|
5,307
|
|
Total shareholder
transactions
|
3,159
|
4,408
|
—
|
—
|
7,567
|
|
|
|
|
|
|
|
Balance, March 31,
2021
|
$
176,263
|
$
40,254
|
$
(289)
|
$
71,293
|
$
287,521
|
|
|
|
|
|
|
|
Balance, December 31,
2021
|
$
195,414
|
$
54,739
|
$
(597)
|
$
71,662
|
$
321,218
|
|
|
|
|
|
|
|
Profit
|
—
|
—
|
—
|
12,522
|
12,522
|
|
Other comprehensive
loss
|
—
|
—
|
(380)
|
—
|
(380)
|
|
Total comprehensive
income (loss)
|
—
|
—
|
(380)
|
12,522
|
12,142
|
|
|
|
|
|
|
|
Share options
exercised
|
9,197
|
(2,020)
|
—
|
—
|
7,177
|
|
Restricted share units
vested
|
598
|
(598)
|
—
|
—
|
—
|
|
Performance share units
vested
|
417
|
(417)
|
—
|
—
|
—
|
|
Share based
payments
|
—
|
5,954
|
—
|
—
|
5,954
|
|
Total shareholder
transactions
|
10,212
|
2,919
|
—
|
—
|
13,131
|
|
|
|
|
|
|
|
Balance, March 31,
2022
|
$
205,626
|
$
57,658
|
$
(977)
|
$
84,184
|
$
346,491
|
Kinaxis Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in thousands of USD)
(Unaudited)
|
Three months ended
March 31,
|
|
2022
|
2021
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Profit
(loss)
|
$
12,522
|
$
(1,534)
|
|
Items not
affecting cash:
|
|
|
|
Depreciation of property and equipment and right-of-use
assets
|
5,331
|
3,909
|
|
Amortization of intangible assets
|
583
|
561
|
|
Share-based payments
|
6,003
|
5,307
|
|
Net finance expense
|
417
|
158
|
|
Income tax expense
|
7,128
|
68
|
|
Investment tax credits recoverable
|
(1,042)
|
(425)
|
|
Change in
operating assets and liabilities
|
(7,232)
|
12,940
|
|
Interest
received
|
30
|
23
|
|
Interest
paid
|
(454)
|
(184)
|
|
Income
taxes paid
|
(1,293)
|
(174)
|
|
21,993
|
20,649
|
|
|
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
|
Acquisition of business, net of cash acquired
|
(3,028)
|
(800)
|
|
Purchase
of property and equipment
|
(6,279)
|
(4,441)
|
|
Purchase
of short-term investments
|
(15,006)
|
(15,006)
|
|
Redemption
of short-term investments
|
15,006
|
15,006
|
|
(9,307)
|
(5,241)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Payment of
lease obligations
|
(1,477)
|
(1,172)
|
|
Proceeds
from exercise of stock options
|
7,177
|
2,260
|
|
5,700
|
1,088
|
|
|
|
|
Increase in cash and
cash equivalents
|
18,386
|
16,496
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
203,220
|
182,958
|
|
|
|
|
Effects of exchange
rates on cash and cash equivalents
|
377
|
(311)
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
221,983
|
$
199,143
|
SOURCE Kinaxis Inc.