Kinaxis Inc. Reports Fourth Quarter 2024 Results

   -- 
 Hit new quarterly record for incremental business won, and annual 
      customer additions 
 
 
   -- 
 Q4 SaaS revenue grows 17%, adjusted EBITDA2 margin of 25%, annual 
      recurring revenue3 grows 14% in constant currency, 12% as reported 
 
 
   -- 
 Full-year results meet all guidance elements 
 
OTTAWA, Ontario--(BUSINESS WIRE)--February 26, 2025-- 

Kinaxis$(R)$ (TSX:KXS), the leading provider of supply chain orchestration solutions, reported results for its fourth quarter and year ended December 31, 2024. All amounts are in U.S. dollars. All figures are prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise indicated.

"Our record-breaking incremental business this quarter -- balanced across all regions -- reflects significant expansion activity and new customer wins, including prominent global brands. This success remains anchored in Maestro's product leadership, which will continue to grow as we launch new revenue-generating GenAI and Agentic AI capabilities," said Bob Courteau, interim chief executive officer at Kinaxis. "We're also encouraged by the continued positive results from our recent corporate realignment and elevated go-to-market team. Looking to 2025, we're focused on ARR growth, further progress towards our mid-term, normalized annual Adjusted EBITDA target of 25%, and the return to consistent Rule of 40 performance."

Q4 2024 Highlights

 
$ USD thousands, except as otherwise indicated    Q4 2024  Q4 2023  Change 
-----------------------------------------------  --------  -------  ------ 
Total Revenue                                     123,935  111,990     11% 
-----------------------------------------------  --------  -------  ------ 
                                           SaaS    81,856   69,891     17% 
                     Subscription term licenses     1,592    2,899   (45)% 
                          Professional services    35,092   34,318      2% 
                        Maintenance and support     5,395    4,882     11% 
-----------------------------------------------  --------  -------  ------ 
Gross profit                                       75,102  68,890 
 Margin                                               61%      62%      9% 
-----------------------------------------------  --------  -------  ------ 
Profit (loss)                                    (16,316)   4,021 
 Per diluted share                                $(0.58)    $0.14   --(1) 
===============================================  --------  -------  ------ 
                                                   31,462  19,727 
Adjusted EBITDA(2) Margin                             25%      18%     59% 
-----------------------------------------------  --------  -------  ------ 
Cash from (used in) operating activities           24,117   27,969   (14)% 
===============================================  --------  -------  ------ 
 

(1) The Percentage change has been excluded as it is not meaningful.

(2) "Adjusted EBITDA" is a non-IFRS measures that 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.

FY 2024 Highlights

 
$ USD thousands, except as otherwise indicated    FY 2024  FY 2023  Change 
-----------------------------------------------  --------  -------  ------ 
Total Revenue                                     483,111  426,971     13% 
-----------------------------------------------  --------  -------  ------ 
SaaS Revenue                                      309,243  265,080     17% 
-----------------------------------------------  --------  -------  ------ 
                                                 106,085   74,872 
Adjusted EBITDA(2) Margin                             22%      18%     42% 
-----------------------------------------------  --------  -------  ------ 
 

Key Performance Indicators

The company's Annual Recurring Revenue(3) $(ARR)$, which includes subscription amounts related to both SaaS and on-premise contracts, rose 12% to $360 million at the end of the quarter, and 14% in constant currency.

 
$USD millions                   Q4 2024    Q4 2023  Change 
----------------------------  ---------  ---------  ------ 
Annual recurring revenue(2)    $    360   $    322     12% 
 

(3) Annual Recurring Revenue $(ARR.UK)$ 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 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 December 31, 2024.

 
 
 $USD millions                2025   2026   2027 and later   Total 
---------------------------  -----  -----  ---------------  ------ 
SaaS                         295.1  215.4            236.8   747.3 
---------------------------  -----  -----  ---------------  ------ 
Maintenance and support       20.6   13.2             12.8    46.6 
---------------------------  -----  -----  ---------------  ------ 
Subscription term licenses     9.1    0.1               --     9.2 
---------------------------  -----  -----  ---------------  ------ 
                      Total  324.8  228.7            249.6   803.1 
---------------------------  -----  -----  ---------------  ------ 
 

Financial Guidance

Kinaxis is introducing its fiscal 2025 financial guidance, as follows.

 
                             FY 2025 Guidance 
--------------------------  ----------------- 
Total revenue                $535-550 million 
 Constant currency           $545-560 million 
--------------------------  ----------------- 
                      SaaS      11-13% growth 
         Constant currency      12-14% growth 
--------------------------  ----------------- 
 Subscription term license     $16-18 million 
--------------------------  ----------------- 
Adjusted EBITDA(2) margin              23-25% 
--------------------------  ----------------- 
 

"We achieved record Incremental ARR in the quarter, though the performance gets masked when looking at period-end ARR and RPO balances, due to recent significant fluctuations in key foreign exchange rates against the US dollar," said Blaine Fitzgerald, chief financial officer at Kinaxis. "Our profitability, measured in Adjusted EBITDA margin, continues to improve and we maintained a strong trailing 12-month free cash flow margin, thanks to ongoing operating leverage gained through disciplined investment and important changes we've made to the organization. For 2025, we expect ongoing leverage in research and development and general and administrative expenses, while continuing to make important investments in priority sales and marketing initiatives and steadily progressing towards our mid-term Adjusted EBITDA target."

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 December 31, 2024 are available on Kinaxis' website and on SEDAR+ at www.sedarplus.ca.

Conference Call

Kinaxis will host a conference call tomorrow, February 27, 2025, to discuss these results. Bob Courteau, interim 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, February 27, 2025 
TIME:                 8:30 a.m. Eastern Time 
CALL REGISTRATION:    https://registrations.events/direct/Q4I914169 
WEBCAST               https://events.q4inc.com/attendee/846181931 (available 
                      for three months) 
 

About Kinaxis Inc.

Kinaxis is a global leader in modern supply chain orchestration, powering complex global supply chains and supporting the people who manage them, in service of humanity. Our powerful, AI-infused supply chain orchestration platform, Maestro$(TM)$, combines proprietary technologies and techniques that provide full transparency and agility across the entire supply chain -- from multi-year strategic planning to last-mile delivery. We are trusted by renowned global brands to provide the agility and predictability needed to navigate today's volatility and disruption. For more news and information, please visit kinaxis.com or follow us on LinkedIn.

Non-IFRS Measures

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