Kinaxis Inc KXSCF

Primary Symbol: T.KXS

Technology Software - Application

Kinaxis Inc. is a Canada-based company that is engaged in the design, development, marketing and sale of supply chain management software and solutions. The Company provides cloud-based subscription software that enables its customers to improve analysis and decision-making across their supply chain operations. The Company's cloud-based supply chain management platform is RapidResponse. Its solutions include platform, app warehouse and supply chain orchestration. Its platform solution includes concurrent planning, artificial intelligence (AI), advanced analytics, user experience, developer studio and integration. The Company's app warehouse solution includes multi-echelon inventory optimization, production scheduling and recycling planning. Its supply chain orchestration solution includes supply chain planning, such as planning one, Demand.AI, supply planning and enterprise scheduling, and supply chain execution, such as supply chain visibility, control tower and order management.

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Kinaxis Inc

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Post by retiredcfon May 04, 2023 10:18am

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Post# 35429830

RBC

May 3, 2023

Kinaxis Inc.
Q1 mixed, FY23 guidance slightly raised

TSX: KXS | CAD 176.80 | Outperform | Price Target CAD 210.00

Sentiment: Neutral

Q1 mixed. Q1 revenue was $101MM, in line with RBC/consensus at $101MM. SaaS revenue was $63MM (+28% Y/Y), slightly above RBC/consensus at $62MM. On higher opex, adj. EBITDA of $17MM was below RBC/consensus at $22MM/$18MM. Similarly, adj. EPS of $0.40 fell short of our estimate for $0.46 (consensus at $0.37).

FY23 guidance slightly raised. Kinaxis raised FY23 total revenue guidance from $420-430MM (16% Y/Y mid-point) to $425-435MM (17% Y/Y mid-point). SaaS revenue growth guidance was unchanged at 25-27% Y/Y. The upside to guidance was largely driven by Term License, which Kinaxis now sees at $16-18MM, up from $12-14MM previously. Also, Kinaxis raised FY23 adj. EBITDA margin guidance to 14-16% (vs. 13-15% prior), which implies $65MM at the mid-point, up from $60MM prior.

ARR and RPO growth slows. ARR rose 24% Y/Y constant currency, which slowed from 26% Q4. SaaS backlog (RPO) increased 19% Y/Y to $528MM, which was down 4% sequentially. SaaS RPO growth slowed from 30% Y/Y Q4. The slowdown in ARR and RPO growth appears to reflect “an uncertain economic backdrop” which is driving “extra rigor in purchasing processes”.

Conference call tomorrow at 8:30am ET. Link to the webcast registration here.