Ottawa-based Kinaxis is heading into fiscal 2016 with “strong momentum,” CEO John Sicard said after the firm released its 2015 fourth-quarter and year-end results late Wednesday.
Kinaxis CEO John Sicard
That momentum has the company forecasting its annual revenues to exceed $100 million for the first time in company history.
Mr. Sicard said fiscal 2015 proved the company’s RapidResponse software platform could consistently deliver growth.
“Subscription revenue continues to drive our underlying fundamentals as we add new accounts and current accounts expand their applications,” he said in a statement.
Fourth-quarter revenues at Kinaxis jumped 29 per cent in 2015 to $24.2 million, while its subscription revenue of $17 million was up 22 per cent. The company’s gross profit of $17.4 million was up 30 per cent year-over-year, while its adjusted EBITDA of $7.1 million, which accounted for 30 per cent of total revenue, was up 88 per cent. Adjusted diluted earnings came in at 10 cents per share.
The firm’s overall fiscal 2015 revenues came in at $91.3 million, 30 per cent higher than a year earlier, and subscription revenue increased 28 per cent to $65.2 million. Gross profit was up 33 per cent to $65.5 million and its adjusted EBITDA jumped 86 per cent to $30 million. Kinaxis posted adjusted diluted earnings of 67 cents per share for the year.
As of Dec. 31, 2015, Kinaxis had $99.4 million of cash and cash equivalents, up from $56.7 million at the end of 2014. The company said the increase is in part “due to cash generated from operations and the receipt of prepayment of a multi-year subscription of approximately $20 million in the first quarter of 2015.”
For 2016, Kinaxis is projecting total revenues between $107 million and $110 million. It is expecting subscription revenue to grow by 20 per cent to 22 per cent and projects its adjusted EBITDA to be between 24 per cent and 28 per cent of total revenue.
Investors are taking notice of the strong results. In early afternoon trading on the Toronto Stock Exchange, the company’s share price was up more than $2 from Wednesday’s close to $39.31.