In This Article:
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Total Revenue: $123.9 million, up 11%.
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SaaS Revenue: $81.9 million, up 17%.
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Subscription Term License Revenue: $1.6 million.
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Professional Services Revenue: $35.1 million, up 2%.
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Maintenance and Support Revenue: $5.4 million, up 11%.
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Gross Profit: $75.1 million, 61% gross margin.
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Adjusted EBITDA: $31.5 million, 25% margin, up 59%.
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Net Loss: $16.3 million or $0.58 per diluted share.
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Cash Flow from Operating Activities: $24.1 million.
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Cash, Cash Equivalents, and Short-term Investments: $298.5 million.
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Annual Recurring Revenue (ARR): $360 million, up 12% as-reported, 14% constant currency.
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Free Cash Flow: $95 million for the year.
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Adjusted EBITDA Margin for 2024: 22%, up from 18% in 2023.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kinaxis Inc (KXSCF) achieved all guidance elements for the year, including SaaS revenue growth, total revenue, and adjusted EBITDA margin.
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The company added a record incremental Annual Recurring Revenue (ARR) in Q4, indicating strong sales performance.
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Kinaxis Inc (KXSCF) reported a 25% adjusted EBITDA margin in Q4, reflecting rapidly improving profitability.
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The company matched its record for new customers in the quarter and set a new record for the full year.
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Kinaxis Inc (KXSCF) was named a leader in three IDC MarketScape reports, highlighting its product leadership and AI capabilities.
Negative Points
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Foreign exchange fluctuations negatively impacted ARR and RPO balances, masking some of the underlying performance.
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The company incurred a one-time tax expense of $17.5 million related to transferring certain regional market rights.
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Kinaxis Inc (KXSCF) faced a legal settlement with a competitor, impacting general and administrative expenses.
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The software gross margin was impacted by an impairment of intangible assets related to legacy technology.
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Professional services revenue growth was lower than expected, partly due to foreign exchange impacts and fixed fee contracts.
Q & A Highlights
Q: Is there a timeline for appointing a new CEO, and what skills is the Board looking for in the new CEO? A: Robert Courteau, Interim CEO and Chair, stated that the focus is on getting the right candidate rather than setting a specific timeline. The Board is looking for someone who can scale the company, with an emphasis on next-gen Kinaxis, AI, product management, and go-to-market strategies.
Q: Given the complexities in supply chains, has the level of engagement with customers increased? A: Robert Courteau noted that customer engagement is at pandemic-level highs, with strong demand for Kinaxis' solutions. The company is better positioned to manage its business and has a high win rate, despite foreign exchange variability.