- SaaS revenue grows 19% to $40.6 million
- Adjusted EBITDA(1) margin of 16%
OTTAWA, ON, May 4, 2021 /CNW/ - Kinaxis® (TSX: KXS), the authority in driving agility for fast, confident decision-making in an unpredictable world, today reported results for its first quarter. All amounts are in U.S. dollars. All figures are prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise indicated.
"We're pleased with the results of our first quarter, which represent a good initial step towards achieving our outlook for the year. While COVID-related delays are not fully behind us, the environment for booking new business has shown continued signs of improvement. We won a record number of new customers for a first quarter, which together with project expansions, resulted in record first quarter incremental subscription bookings. Overall, we continue to see a heightened level of interest from companies looking to drive hyper-agility in their supply chain," said John Sicard, President and CEO of Kinaxis.
Q1 2021 Highlights
|
$ USD thousands, except as otherwise |
Q1 2021 |
Q1 2020 |
Change |
|
Total Revenue |
57,728 |
52,755 |
9% |
|
SaaS |
40,576 |
33,995 |
19% |
|
Subscription term license |
2,059 |
4,904 |
(58%) |
|
Professional services |
12,027 |
10,673 |
13% |
|
Maintenance and support |
3,066 |
3,183 |
(4%) |
|
Gross profit |
37,222 |
36,919 70% |
1% |
|
Profit (Loss) |
(1,534) |
5,581 |
(127%) |
|
Adjusted EBITDA(1) |
9,041 |
15,052 29% |
(40%) |
|
Cash from operating activities |
20,649 |
20,960 |
(1%) |
|
(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. |
Financial Guidance and Outlook
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, 2021.
|
|
2021 |
2022 |
2023 and |
Total |
|
SaaS |
119.8 |
118.6 |
122.4 |
360.8 |
|
Maintenance and support |
9.2 |
8.4 |
5.1 |
22.7 |
|
Subscription term license |
0.5 |
- |
- |
0.5 |
|
Total |
129.5 |
127.0 |
127.5 |
384.0 |
Based on this backlog and the current outlook, Kinaxis is reiterating its fiscal 2021 financial guidance, as follows:
|
|
FY 2021 Guidance |
|
Total revenue |
$242-247 million |
|
SaaS |
17-20% growth |
|
Subscription term license |
$3-5 million |
|
Adjusted EBITDA(1) margin |
11-14% |
Beyond 2021, and assuming more typical business and market conditions, the company continues to believe that annual SaaS revenue growth of 23-25% is achievable in the mid-term.
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, 2021 are available on Kinaxis' website and on SEDAR at www.sedar.com.
Conference Call
Kinaxis will host a conference call tomorrow, May 5, 2021, to discuss these results. John Sicard, Chief Executive Officer, and Richard Monkman, 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.
|
CONFERENCE CALL DETAILS |
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|
DATE: |
Wednesday, May 5, 2021 |
|
TIME: |
8:30 a.m. Eastern Time |
|
CALL REGISTRATION: |
|
|
WEBCAST: |
|
|
REPLAY: |
(416) 849-0833 or (855) 859-2056 |
|
|
Available through Wednesday, May 19, 2021 |
|
REFERENCE NUMBER: |
8858568 |
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, |
||||
|
|
2021 |
|
2020 |
||
|
|
(In thousands of USD) |
||||
|
Profit (loss).................................................................. |
$ |
(1,534) |
|
$ |
5,581 |
|
Share-based compensation........................................ |
5,307 |
|
3,776 |
||
|
Adjusted profit............................................................ |
$ |
3,773 |
|
$ |
9,357 |
|
Income tax expense.................................................... |
68 |
|
3,476 |
||
|
Depreciation and amortization................................... |
4,470 |
|
2,941 |
||
|
Foreign exchange loss (gain)...................................... |
468 |
|
(49) |
||
|
Net finance income (expense).................................... |
262 |
|
(673) |
||
|
|
5,268 |
|
5,695 |
||
|
Adjusted EBITDA......................................................... |
$ |
9,041 |
|
$ |
15,052 |
|
Adjusted EBITDA as a percentage of revenue............ |
|
16% |
|
29% |
|
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 years ending December 31, 2021; and
- contracted revenue in future periods, including 2021, 2022 and 2023 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 2021 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 current customer retention levels; 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 2021, 2022 and 2023 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.
Our guidance and commentary for annual SaaS revenue growth beyond 2021 is based on assumptions and associated risks including normalization of macroeconomic factors, including business and market conditions, relative to recent conditions that have been affected by the COVID-19 pandemic. 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 3, 2021, under the heading "Risk Factors" in our Annual Information Form dated March 25, 2021 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, |
December 31, |
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
199,143 |
182,958 |
|
Short-term investments |
30,182 |
30,180 |
|
Trade and other receivables |
70,945 |
82,883 |
|
Investment tax credits recoverable |
- |
1,109 |
|
Prepaid expenses |
10,138 |
9,264 |
|
|
310,408 |
306,394 |
|
Non-current assets: |
|
|
|
Property and equipment |
32,019 |
30,746 |
|
Right-of-use assets |
15,127 |
15,722 |
|
Contract acquisition costs |
17,152 |
16,484 |
|
Unbilled receivables |
913 |
2,013 |
|
Other receivables |
701 |
752 |
|
Deferred tax assets |
2,986 |
2,308 |
|
Investment tax credits recoverable |
2,514 |
980 |
|
Intangible assets |
12,462 |
13,023 |
|
Goodwill |
39,988 |
39,988 |
|
|
|
|
|
|
434,270 |
428,410 |
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Trade payables and accrued liabilities |
29,437 |
33,030 |
|
Deferred revenue |
98,182 |
94,275 |
|
Lease obligations |
4,796 |
4,554 |
|
|
132,415 |
131,859 |
|
Non-current liabilities: |
|
|
|
Lease obligations |
11,316 |
12,065 |
|
Deferred tax liabilities |
3,018 |
2,729 |
|
|
14,334 |
14,794 |
|
Shareholders' equity: |
|
|
|
Share capital |
176,263 |
173,104 |
|
Contributed surplus |
40,254 |
35,846 |
|
Accumulated other comprehensive loss |
(289) |
(20) |
|
Retained earnings |
71,293 |
72,827 |
|
|
287,521 |
281,757 |
|
|
434,270 |
428,410 |
Kinaxis Inc.
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three months ended
(Expressed in thousands of USD, except share and per share data)
(Unaudited)
|
|
March 31, |
March 31, |
|
|
2021 |
2020 |
|
|
|
|
|
Revenue |
57,728 |
52,755 |
|
|
|
|
|
Cost of revenue |
20,506 |
15,836 |
|
Gross profit |
37,222 |
36,919 |
|
|
|
|
|
Operating expenses: |
|
|
|
Selling and marketing |
12,838 |
11,975 |
|
Research and development |
13,682 |
9,677 |
|
General and administrative |
11,542 |
6,932 |
|
|
38,062 |
28,584 |
|
|
|
|
|
|
(840) |
8,335 |
|
Other income (expense): |
|
|
|
Foreign exchange gain (loss) |
(468) |
49 |
|
Net finance and other income (expense) |
(158) |
673 |
|
|
(626) |
722 |
|
|
|
|
|
Profit (loss) before income taxes |
(1,466) |
9,057 |
|
|
|
|
|
Income tax expense |
68 |
3,476 |
|
Profit (loss) |
(1,534) |
5,581 |
|
|
|
|
|
Other comprehensive income (loss): |
|
|
|
Items that are or may be reclassified subsequently to profit or loss: |
|
|
|
Foreign currency translation differences - foreign operations |
(269) |
(124) |
|
Total comprehensive income (loss) |
(1,803) |
5,457 |
|
|
|
|
|
Basic earnings (loss) per share |
(0.06) |
0.21 |
|
|
|
|
|
Weighted average number of basic Common Shares |
27,109,227 |
26,432,585 |
|
|
|
|
|
Diluted earnings (loss) per share |
(0.06) |
0.20 |
|
|
|
|
|
Weighted average number of diluted Common Shares |
27,109,227 |
27,534,441 |
Kinaxis Inc.
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity
For the three months ended March 31, 2021 and 2020
(Expressed in thousands of USD)
(Unaudited)
|
|
|
|
Accumulated |
|
|
|
|
|
|
other |
|
|
|
|
Share |
Contributed |
comprehensive |
Retained |
|
|
|
capital |
surplus |
income (loss) |
earnings |
Total equity |
|
|
|
|
|
|
|
|
Balance, December 31, 2019 |
140,961 |
30,392 |
(348) |
59,097 |
230,102 |
|
|
|
|
|
|
|
|
Profit |
- |
- |
- |
5,581 |
5,581 |
|
Other comprehensive (loss) |
- |
- |
(124) |
- |
(124) |
|
Total comprehensive income (loss) |
- |
- |
(124) |
5,581 |
5,457 |
|
|
|
|
|
|
|
|
Share options exercised |
6,724 |
(1,714) |
- |
- |
5,010 |
|
Share based payments |
- |
3,776 |
- |
- |
3,776 |
|
Total shareholder transactions |
6,724 |
2,062 |
- |
- |
8,786 |
|
|
|
|
|
|
|
|
Balance, March 31, 2020 |
147,685 |
32,454 |
(472) |
64,678 |
244,345 |
|
|
|
|
|
|
|
|
Balance, December 31, 2020 |
173,104 |
35,846 |
(20) |
72,827 |
281,757 |
|
|
|
|
|
|
|
|
Profit (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 |
Kinaxis Inc.
Condensed Consolidated Interim Statements of Cash Flows
For the three months ended
(Expressed in thousands of USD)
(Unaudited)
|
|
March 31, |
March 31, |
|
|
2021 |
2020 |
|
Cash flows from operating activities: |
|
|
|
Profit (loss) |
(1,534) |
5,581 |
|
Items not affecting cash: |
|
|
|
Depreciation of property and equipment and right-of-use assets |
3,909 |
2,899 |
|
Amortization of intangible assets |
561 |
42 |
|
Share-based payments |
5,307 |
3,776 |
|
Net finance and other income (expense) |
158 |
(673) |
|
Income tax expense |
68 |
3,476 |
|
Income tax credits recoverable |
(425) |
- |
|
Change in operating assets and liabilities |
12,940 |
6,856 |
|
Interest received |
23 |
862 |
|
Interest paid |
(184) |
(120) |
|
Income taxes paid |
(174) |
(1,739) |
|
|
20,649 |
20,960 |
|
Cash flows used in investing activities: |
|
|
|
Acquisition of businesses, net of cash acquired |
(800) |
(2,410) |
|
Purchase of property and equipment |
(4,441) |
(1,709) |
|
Purchase of short-term investments |
(15,006) |
(65,302) |
|
Redemption of short-term investments |
15,006 |
20,102 |
|
|
(5,241) |
(49,319) |
|
Cash flows from financing activities: |
|
|
|
Payment of lease obligations |
(1,172) |
(591) |
|
Common shares issued on exercise of stock options |
2,260 |
5,010 |
|
|
1,088 |
4,419 |
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
16,496 |
(23,940) |
|
|
|
|
|
Cash and cash equivalents, beginning of period |
182,958 |
182,284 |
|
|
|
|
|
Effects of exchange rates on cash and cash equivalents |
(311) |
(196) |
|
|
|
|
|
Cash and cash equivalents, end of period |
199,143 |
158,148 |
SOURCE Kinaxis Inc.