Best Canadian AI Stocks to Buy Now in 2022 - Money, Eh? 1. Kinaxis Inc. (TSE: KSX)
Kinaxis is a SaaS (Software-as-a-Service) company specializing in supply chain management. The company operates on the cloud and helps clients use AI to optimize supply chains, make them more informed on their entire business, and drive cost-efficiency. The software allows clients to gain visibility on their supply chain and plan resources better by using simulations and preventing inventory obsolescence. Traditional supply chain management software involves many software applications for different vendors and is heavily excel dependent. Kinaxis helps integrate all a companies vendors and logistics providers/departments under one software on the cloud and gives the company an organizational view of their supply chain. As supply chains are getting more complex, Kinaxis AI is helping companies better understand, control, and adapt to their increasing size.
Kinaxis has clients across various industries like consumer technology, aerospace/defence, industrials, pharmaceuticals/healthcare, automotive, and FMCG. Moreover, Moreover, Kinaxis has many blue-chip clients such as Nikon, Qualcomm, Lockheed Martin, Toyota, Asics, etc., which proves its product’s efficacy and real-world impact. In addition, the company has gained from a tailwind from COVID as the world was forced to shift towards eCommerce, thus giving the supply-chain and logistics business a big boost.
In Q1 2021, the company reported revenue of $57.7 million (up 9% YoY) and gross profit of $37.2 million (up 1% YoY). Adjusted EBITDA was $9 million, and cash flow from operations was $20.6 million. The company is very strong as it has long-term contracts (unrecognized revenue) worth $129.5 million for 2021, $127 million for 2022, and $127.5 million for 2023 and beyond. For FY21, the company has given revenue guidance of $245 million $247 million (representing 17%-20% growth) with an EBITDA margin of 11%-14%.
Best Canadian AI Stocks to Buy Now in 2022 - Money, Eh? (moneyeh.ca)