Kinaxis (KXS) Q2 2024 earnings summary

Executive summary

• Achieved $75.4M in SaaS revenue (18% growth) and total revenue of $118.3M (12% growth) in Q2 2024, despite a challenging buying environment and FX headwinds.

• Adjusted EBITDA reached $21.9M (19% margin), up 44% year-over-year; net profit was $3.4M ($0.12/share) vs. a $2.5M loss last year.

• Added a record number of new customers, with 75% of ARR growth from new logos, including major wins like Eli Lilly and Syensqo, and strong Asia-Pacific performance.

• Launched Maestro, an AI-driven supply chain orchestration platform, and announced a major new strategic partnership to expand go-to-market capacity.

• Committed SaaS backlog increased 30% year-over-year, supporting future growth.

Financial highlights

• Professional services revenue rose 22% to $36.5M; gross margin was 59%, down slightly due to product mix and cloud transition.

• Cash flow from operations was $13.1M; cash and equivalents stood at $282.3M or $147.2M, depending on reporting.

• Q2 2024 IFRS results include $5.5M in workforce initiative charges, excluded from Adjusted EBITDA.

• Subscription term license revenue declined 81% to $1.4M; maintenance and support revenue increased 9% to $5.0M.

• Gross profit was $70.2M, up 10% year-over-year.

Outlook and guidance

• SaaS revenue growth guidance lowered to 15%-17% for 2024 due to delayed large enterprise deals and smaller initial deal sizes.

• Total revenue guidance maintained at $483–495M, but expected at the lower end of the range; adjusted EBITDA margin guidance raised to 19%-21%.

• STL revenue guidance unchanged at $9–11M.

• 2025 SaaS growth expected to be slightly depressed unless large enterprise buying normalizes by year-end; major go-to-market investments expected to impact 2026 and beyond.

• Management targets a mid-term Adjusted EBITDA margin of 25%.