Click here to close now.


News Feed Item

Kinaxis Inc. Reports Fiscal Second Quarter 2014 Results

- Reports Subscription Revenue Growth of 28% -

OTTAWA, Aug. 7, 2014 /CNW/ - Kinaxis® TSX:KXS, provider of RapidResponse®, delivering cloud-based SCM and S&OP applications, reported results for its fiscal second quarter ended June 30, 2014. All figures are in U.S. dollars and prepared in accordance with International Financial Reporting Standards (IFRS).

Second Quarter 2014 Highlights
(Comparisons made between fiscal Q2 2014 and fiscal Q2 2013 results, unless otherwise noted)

  • Subscription revenue was $12.6 million, up 28%
  • Total Revenue was $17.9 million, up 14%
  • Gross profit was $12.3 million (69% of total revenue), up 10%
  • Adjusted EBITDA totaled $3.3 million 
  • Adjusted Profit totaled $1.9 million or $0.09 per diluted share
  • Completed initial public offering, issuing 5,000,000 common shares and an aggregate of 3,900,672 common shares were also sold by certain shareholders at a price of Cdn$13.00 per share. The offerings resulted in aggregate gross proceeds of Cdn$65.0 million to Kinaxis and Cdn$50.7million to the selling shareholders, for total aggregate gross proceeds of Cdn$115.7 million.

"The success of our initial public offering underscores the market's positive view of our unique SaaS offering and the growth potential it represents," said Doug Colbeth, President and CEO of Kinaxis. "The complexity and importance of supply chain management in today's global economy provides us with a large addressable market. Our focus is growing subscription revenues through new customers, verticals and applications to drive cash flow."

Fiscal Q2 2014 Financial Results

Total revenue for the three months ended June 30, 2014 (Q2 2014) was $17.9 million, an increase of 14% compared to the same period in 2013. For the six month period ended June 30, 2014 (H1 2014), revenue was $33.6 million, an increase of 16% compared to $29.0 million in the same year ago period.

Subscription revenue was $12.6 million in Q2 2014, an increase of 28% from $9.9 million for the same period in 2013. For H1 2014, subscription revenue was $24.0 million versus $19.0 million in 2013. The increase was due to additional revenue from contracts secured with new customers during fiscal 2013 and in the first quarter of 2014 and expansion of existing customer subscriptions.

Professional services revenue was $5.0 million in Q2 2014, compared to $5.4 million for the same period in 2013. For H1 2014, professional services revenue was $9.0 million as compared to $9.2 million in the same year ago period. The change was due to a significant engagement with an existing customer that ended in December of 2013 largely offset by services provided for deployment of new customers acquired second half of 2013 and first quarter of 2014.

Gross profit was $12.3 million in Q2 2014, compared to $11.2 million for the same period in 2013. For H1 2014, gross profit was $23.1 million as compared to $20.2 million in the same year ago period. As a percentage of revenue, gross profit was 69% in the second quarter and H1 2014 compared to 71% in the second quarter of 2013 and 70% in H1 2013. This change is due to the investment in additional Professional Services headcount and data centre capacity undertaken in the second quarter to support growth.

Adjusted EBITDA was $3.3 million in Q2 2014, compared to adjusted EBITDA of $3.8 million in the same period last year. The change is primarily attributable to certain non-capitalized costs incurred to support the initial public offering and higher operating expenses, specifically, professional services and research and development resources. H1 2014 Adjusted EBITDA was $7.2 million compared to $5.8 million in H1 2013. The increase in Adjusted EBITDA over the prior period was primarily due to increase in revenue and gross profit. A reconciliation of net loss to Adjusted EBITDA is provided below.

Net loss was $5.3 million or $0.34 per basic and diluted share in Q2 2014 compared to a net loss of $3.5 million or $0.21 per basic and diluted share for the same period in 2013. The increase in loss was primarily driven by a higher fair value, non-cash adjustment on the redeemable preferred share liability.  Net loss in H1 2014 was $3.3 million compared to $6.1M in the same year ago period due to a lower fair value, non-cash adjustment on the redeemable preferred share liability.  The redeemable preferred shares were converted into common shares in connection with the initial public offering and will no longer affect our operating results.

Adjusted profit, which excludes the fair value adjustment on the redeemable preferred share liability and non-cash share-based compensation, was $1.9 million in Q2 2014, compared to $2.7 million in the same year ago period. The change was the result of higher expenses due to investment in professional services and research and development resources and costs incurred to support the initial public offering. For H1 2014, Adjusted profit was $4.5 million compared to $3.9 million in the same period last year. The increase in Adjusted profit during the first half of 2014 was the result of an increase in revenue and gross profit compared to the first half of 2013 . A reconciliation of net loss to Adjusted profit is provided below.

Cash generated by operating activities was $7.3 million for H1 2014 as compared to $6.4 million in H1 2014. The increase was the result of higher deferred revenues received as cash in the period which resulted from the timing of subscription billings as well as a contract amendment with an existing customer.

Cash and cash equivalents were $50.5 million as at June 30, 2014 as compared to $13.8 million as at December 31, 2013. The increase is primarily due to the proceeds from our initial public offering net of repayment of the term loan, as well as cash from operations for the first six months of 2014.

Please refer to the section regarding forward-looking statements which forms an integral part of this release. These results, along with the unaudited condensed consolidated interim financial statements and the company's unaudited MD&A, are available on the company's website at and on SEDAR at

Conference Call

The company will host a conference call tomorrow (Friday, August 8, 2014) to discuss these results. Doug Colbeth, President & CEO and Richard Monkman, CFO will host the call starting at 8:30 a.m. Eastern time. A question and answer session will follow management's presentation.

Date: Friday, August 8, 2014
Time: 8:30 a.m. Eastern time
Dial-In Number: 1 (888) 231-8191
International: 1 (647) 427-7450
Conference ID#: 63138727

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

A replay of the call will be available after 11:30 a.m. Eastern time on the same day through August 14, 2014.

Toll-Free Replay Number: 1 (855) 859-2056
International Replay Number: 1 (416) 849-0833
Replay PIN: 63138727

About Kinaxis Inc.

Kinaxis is a leading provider of cloud-based subscription software that enables our customers to improve and accelerate analysis and decision-making across their supply chain operations. The supply chain planning and analytics capabilities of our product, RapidResponse, create the foundation for managing multiple, interconnected supply chain management processes. By using the single RapidResponse product instead of combining individual disparate software solutions, our customers gain visibility across their supply chains, can respond quickly to changing conditions, and ultimately realize significant operating efficiencies.

Non-IFRS Measures

This news release contains non-IFRS measures, specifically, Adjusted profit, Adjusted diluted earnings per share, and Adjusted EBITDA.  We use Adjusted profited and Adjusted diluted earnings per share, which remove the impact of our redeemable preferred shares and stock option plans, to measure our performance as these measurements better align the reporting of our results and improve comparability against our peers. 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 profit, Adjusted diluted earnings per share and Adjusted EBITDA are not recognized, defined or standardized measures under IFRS. Our definition of Adjusted profit, Adjusted EBITDA and Adjusted diluted earnings per share 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.

We have reconciled Adjusted profit and Adjusted EBITDA to the most comparable IFRS financial measure as follows:

  Three months ended March 31   Six months ended June 30
    2014     2013     2014     2013
          (In thousands of U.S. dollars)      
Loss  $    (5,274)   $     (3,532)   $      (3,317)   $     (6,099)
Loss due to change in fair value of redeemable preferred shares    6,581     5,972     6,760     9,536
Share-based compensation    631     217     1,019     454
Adjusted profit  $    1,938   $   2,657   $        4,462   $    3,891
Income tax expense    889     964     1,692     1,562
Depreciation    260     207     500     407
Net finance (income) expense    253     (15)     510     (28)
Adjusted EBITDA  $    3,340   $      3,813   $     7,164   $     5,832

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 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. Readers are cautioned not to place undue reliance on such statements. Kinaxis' actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of Kinaxis to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by Kinaxis with Canadian securities regulatory authorities. 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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
The revocation of Safe Harbor has radically affected data sovereignty strategy in the cloud. In his session at 17th Cloud Expo, Jeff Miller, Product Management at Cavirin Systems, discussed how to assess these changes across your own cloud strategy, and how you can mitigate risks previously covered under the agreement.
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment proces...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
Countless business models have spawned from the IaaS industry – resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his general session at 17th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, an IBM Company, broke down what we have to work with, discussed the benefits and pitfalls and how we can best use them ...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).