- Reports 24% growth in first quarter subscription revenue and Adjusted EBITDA of 26% of revenue (1)-
OTTAWA, May 2, 2018 /CNW/ - Kinaxis® (TSX:KXS), provider of RapidResponse®, the leading cloud-based supply chain management solution based on concurrent planning, today reported results for its fiscal first quarter ended March 31, 2018. This is the first quarter that Kinaxis has adopted IFRS 15 and 16(1) (or "the Standards") and an initial date of application of January 1, 2018. Accordingly, the information presented for 2017 has not been restated.
Prior to adoption of the Standards, Q1 2018 total revenue was up 10% to $35.9 million, subscription services revenue grew by 24% to $29.5 million, Adjusted EBITDA(2) was up 8% to $9.2 million (26% of revenue), and profit was level at $3.2 million, all compared to the same quarter in the previous year. Under IFRS 15 and 16, Q1 2018 total revenue was $36.8 million, total subscription revenue was $30.5 million, Adjusted EBITDA(2) was $12.5 million (34% of revenue) and profit was $4.6 million. All amounts are in U.S. dollars. All figures are prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise indicated.
"Q1 represented another quarter of strong execution by Kinaxis. We continue to demonstrate ongoing momentum with top tier brands in the automobile market, where we have marquee accounts that include Toyota, Nissan, Ford and others. We also recently announced an excellent new customer in our Consumer Packaged Goods market," said John Sicard, Chief Executive Officer of Kinaxis. "Operationally, we have completed our planned, significant expansion of our European sales team and are positioned to take advantage of our momentum and opportunities in that region. We remain confident in our growth strategy and will continue to invest to take advantage of the market potential while maintaining strong bottom line performance."
Q1 2018 Highlights
| | Under IFRS 15/16(1) | Prior to IFRS 15/16(1) |
| $ USD millions, except as otherwise indicated | Q1 2018 | Q1 2018 | Q1 2017 | Change |
| Total Revenue | 36.8 | 35.9 | 32.5 | 10% |
| | | Subscription services | 26.0 | 29.5 | 23.9 | 24% |
| | Subscription term licenses | 4.5 | - | - | - |
| | Total subscription revenue | 30.5 | 29.5 | 23.9 | 24% |
| Gross profit | 26.7 (72%) | 25.7 (72%) | 22.2 (68%) | 16% |
| Profit | 4.6
($0.17/diluted share) | 3.2
($0.12/diluted share) | 3.2
($0.12/diluted share) | - |
| Adjusted EBITDA(2) | 12.5
(34%) | 9.2
(26%) | 8.5
(26%) | 8% |
| Cash from operating activities | 10.5 | 10.5 | 10.3 | 3% |
| (1) | This is the first quarter that Kinaxis has adopted IFRS 15, using the cumulative effect method, and IFRS 16, using the modified retrospective approach, and an initial date of application of January 1, 2018. Accordingly, the information presented for 2017 has not been restated. The impact of the adoption of IFRS 15 relates primarily to accounting for Kinaxis' revenue from on-premise, fixed term subscription arrangements and capitalization of contract acquisition costs. IFRS 16 specifies how to recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all major leases. See the Kinaxis' financial statements and MD&A for the three months ended March 31, 2018 for further information. |
| (2) | "Adjusted EBITDA" is a non-IFRS measure and is not a recognized, defined or a standardized measure under IFRS. This measure as well as other non-IFRS financial measures reported by Kinaxis are defined in the "Non-IFRS Measures" section of this news release. |