**Canada**: Kinaxis Inc. announces an 11% revenue increase for Q4 2024, totalling $123.9 million, and a 13% rise for the year, reaching $483.1 million. SaaS revenues also surged, despite a steep decline in subscription term licenses. Company remains optimistic for 2025.
Kinaxis Inc., a Canadian provider of supply chain orchestration solutions, has released its financial results for the fourth quarter and full-year of 2024, revealing a notable increase in total revenue and highlights in several operational areas. The company’s total revenue for the fourth quarter reached $123.9 million, up 11% compared to $112.0 million in the same period the previous year. Over the entire year, total revenue amounted to $483.1 million, marking a 13% increase from $427.0 million in 2023.
The latest results also highlighted a significant rise in Software as a Service (SaaS) revenues, which grew 17% year-on-year to $81.9 million in Q4 2024, contributing to an annual total of $309.2 million and showing a consistent year-on-year growth of 17%. However, subscription term licenses saw a drastic decrease of 45% in the fourth quarter, totalling $1.6 million compared to $2.9 million in Q4 2023.
Bob Courteau, the interim CEO, commented on the results, stating, “Our record-breaking incremental business this quarter – balanced across all regions – reflects significant expansion activity and new customer wins, including prominent global brands.” He expressed optimism for 2025, emphasising the company’s focus on annual recurring revenue (ARR) growth, aiming for a target of 25% Adjusted EBITDA margin, and a return to consistent ‘Rule of 40’ performance, which is a benchmark combining revenue growth and profitability.
Kinaxis’s ARR grew by 12% to $360 million at the end of 2024, with the company benefitting from its long-term contracts, offering predictability for future earnings. The fourth quarter also reported an Adjusted EBITDA of $31.5 million, reflecting a 59% increase from the same quarter in 2023, contributing to an annual total of $106.1 million and a notable 42% increase year over year.
The company is anticipating revenue guidance for 2025, projecting total revenues between $535 million and $550 million, alongside expected SaaS growth of 11% to 13%. Blaine Fitzgerald, Chief Financial Officer, noted the strong momentum in ARR, stating, “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.”
Kinaxis will host a conference call to discuss these results further, scheduled for February 27, 2025. Analysts and investors have expressed interest in the company’s strategic direction, particularly concerning its investment in AI capabilities and realignment efforts. The full financial statements and further details can be accessed through Kinaxis’s website and SEDAR+.
Source: Noah Wire Services
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