Kinaxis Inc. Reports First Quarter 2025 Results

   -- SaaS revenue grows 16% (constant currency1 17%), adjusted EBITDA1 margin 
      of 25% 
 
   -- Annual recurring revenue2 grows 14% (constant currency1 14%) 
 
   -- FY 2025 guidance reiterated after solid first quarter 
OTTAWA, Ontario--(BUSINESS WIRE)--May 07, 2025-- 

Kinaxis$(R)$ (TSX:KXS), the leading provider of supply chain orchestration solutions, reported results for its first quarter ended March 31, 2025. All amounts are in U.S. dollars. All figures are prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise indicated.

"New business was solid in Q1, as expansions from existing customers hit record levels for a first quarter. While tariffs have created massive uncertainty across markets globally, our fiscal 2025 guidance remains firmly in sight," said Bob Courteau, interim chief executive officer at Kinaxis. "In April, our flagship industry event, Kinexions, drew a record-breaking 1,000 supply chain community experts who gathered to learn from leaders like ExxonMobil, General Motors, Pfizer and Colgate-Palmolive. Attendees were hands-on with Maestro's latest generative AI and agentic AI capabilities, which further extend our lead over competitors and will be available for subscription to initial customers in the second half of 2025. We're also thrilled with the feedback on our new Tariff Response offering, which offers prospective customers a powerful preview of Maestro's powers to tackle one of the most complex challenges supply chain practitioners have ever faced."

 
Q1 2025 Highlights 
$ USD thousands, except as otherwise indicated      Q1 2025   Q1 2024   Change 
------------------------------------------------  ---------  --------  ------- 
Total Revenue                                       132,788   119,370      11% 
(constant currency(1) )                             134,047                12% 
------------------------------------------------  ---------  --------  ------- 
                                            SaaS     84,882    73,371      16% 
                         (constant currency(1) )     85,755                17% 
                      Subscription term licenses      9,027     6,741      34% 
                           Professional services     33,340    34,443     (3)% 
                         Maintenance and support      5,539     4,815      15% 
------------------------------------------------  ---------  --------  ------- 
Gross profit                                         86,539    72,930      19% 
Margin                                                  65%       61% 
------------------------------------------------  ---------  --------  ------- 
Profit                                               15,913     6,187     157% 
Per diluted share                                     $0.55     $0.21 
------------------------------------------------  ---------  --------  ------- 
Adjusted EBITDA(1)                                   33,143    22,680      46% 
Margin                                                  25%       19% 
------------------------------------------------  ---------  --------  ------- 
Cash from operating activities                       31,647    32,011     (1)% 
------------------------------------------------  ---------  --------  ------- 
 
(1) "Adjusted EBITDA" and constant currency metrics are non-IFRS measures that 
are not a recognized, defined or standardized measure under IFRS. These 
measures as well as any 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 Revenue(2) $(ARR)$, which includes subscription amounts related to both SaaS and on-premise contracts, rose to $372 million at the end of the quarter, or 14% growth as-reported and in constant currency(1) .

 
$USD millions                                Q1 2025       Q1 2024      Change 
--------------------------------------  ------------  ------------  ---------- 
Annual recurring revenue(2)                      372           327         14% 
 
(2) 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 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, 2025.

 
 
 $USD millions                2025   2026   2027 and later   Total 
---------------------------  -----  -----  ---------------  ------ 
SaaS                         238.7  245.2            282.6   766.5 
---------------------------  -----  -----  ---------------  ------ 
Maintenance and support       15.8   13.8             13.2    42.8 
---------------------------  -----  -----  ---------------  ------ 
Subscription term licenses     2.3    0.1               --     2.4 
---------------------------  -----  -----  ---------------  ------ 
                      Total  256.8  259.1            295.8   811.7 
---------------------------  -----  -----  ---------------  ------ 
 

Financial Guidance

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

 
                            FY 2025 Guidance 
--------------------------  ---------------- 
Total revenue               $535-550 million 
Constant currency(1)        $545-560 million 
 
                      SaaS     11-13% growth 
      Constant currency(1)     12-14% growth 
 
 Subscription term license    $16-18 million 
--------------------------  ---------------- 
Adjusted EBITDA(1) margin             23-25% 
--------------------------  ---------------- 
 

"We're pleased to report our third consecutive Rule of 40 quarter. Despite the challenges to customers of a constantly-changing tariff environment, new business in the quarter was solid and kept our ARR growth rate on a positive trajectory both on an as-reported and constant currency basis," said Blaine Fitzgerald, chief financial officer at Kinaxis. "Our profit, earnings per share and Adjusted EBITDA all hit record levels, with Adjusted EBITDA growing 46% year-over-year and Adjusted EBITDA margin growing to 25%, reflecting dramatically improved profitability. We're pleased with how the business is executing and the strong results we're delivering."

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 March 31, 2025 are available on Kinaxis' website and on SEDAR+ at www.sedarplus.ca.

Conference Call

Kinaxis will host a conference call tomorrow, May 8, 2025, to discuss these results. Bob Courteau, interim chief executive officer and chair, 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, May 8, 2025 
TIME:                 8:30 a.m. Eastern Time 
CALL REGISTRATION:    https://registrations.events/direct/Q4I914161909 
WEBCAST               https://events.q4inc.com/attendee/893796070 (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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