Q1 revenues increase 121% YoY to
Q1 SaaS revenue up 156% YoY to
Annual recurring revenue (ARR) grows 134% to
LIMERICK,
"I am proud of our team as we continue to deliver strong year-on-year growth through the first quarter, highlighted by 156% growth in SaaS revenue and 134% increase in annual recurring revenue1 over Q1 2021," said
Q1 2022 Financial Highlights
- Total revenues increased 121% to
$5.2 million , as compared to$2.4 million for the first quarter of 2021. - SaaS revenue grew 156% to
$3.3 million , versus$1.3 million for the first quarter of 2021. - Gross margin was up 201% to
$3.3 million , compared to$1.1 million for the first quarter of 2021. Gross profit margin was 63%, compared to 46% for the first quarter of 2021. This improvement in gross margin reflects the significant growth in revenue, including some one-time, on-premise license revenues, offset by a smaller increase in related cost of revenue.
1 Annual Recurring Revenue ("ARR") is a supplementary financial measure. See 'Supplementary Financial Measures' section below for additional information |
Supplementary Financial Measures
- Total ARR1, which includes SaaS license and maintenance fees, was
$13.4 million atMarch 31, 2022 , an increase of 134% from$5.7 million atMarch 31, 2021 . - SaaS ARR1, the proportion of ARR attributable to SaaS licenses, was
$12.4 million atMarch 31, 2022 , an increase of 153% from$4.9 million atMarch 31, 2021 .
"With a strong balance sheet, we are focused on executing across all areas of the business, to drive ongoing growth and value creation for our shareholders." said
Recent Business Highlights
- In March, the Company announced that a European National Health Service selected Kneat as their enterprise solution for laboratory equipment validation management.
- In March, the Company announced that a top ten biopharmaceutical company had selected Kneat as its enterprise platform.
- In March, the Company announced that it had signed a leading Canadian generics pharmaceutical manufacturer.
- In January, the Company announced that it had signed the
U.S. subsidiary of one of the world's top 15 consumer-packaged-goods companies.
Quarterly Conference Call
Mr.
1 Annual Recurring Revenue ("ARR") is a supplementary financial measure. See 'Supplementary Financial Measures' section below for additional information |
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Supplementary Financial Measures
The Company uses supplementary financial measures as key performance indicators in its MD&A and other communications. Management uses both IFRS measures and supplementary financial measures as key performance indicators when planning, monitoring and evaluating the Company's performance.
Annual Recurring Revenue ("ARR")
ARR is used by Kneat to assess the expected recurring revenues from the customers that are live on the Kneat Gx platform at the end of the period. ARR is calculated as the licenses delivered to customers at the period end, multiplied by the expected customer retention rate of 100% and multiplied by the full agreed SaaS license or maintenance fee. Since many of the customer contracts are in currencies other than the Canadian dollar, the Canadian dollar equivalent is calculated using the related period end exchange rate multiplied by the contracted currency amount.
About Kneat
Kneat, a Canadian company with operational headquarters in Limerick,
Cautionary and Forward-Looking Statements
Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking information" within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, the relationship between Kneat and the customer, Kneat's business development activities, the use and implementation timelines of Kneat's software within the customer's validation processes, the ability and intent of the customer to scale the use of Kneat's software within the customer's organization and the compliance of Kneat's platform under regulatory audit and inspection. While such forward-looking statements are expressed by Kneat, as stated in this release, in good faith and believed by Kneat to have a reasonable basis, they are subject to important risks and uncertainties. As a result of these risks and uncertainties, the events predicted in these forward-looking statements may differ materially from actual results or events. These forward-looking statements are not guarantees of future performance, given that they involve risks and uncertainties.
The forward-looking information in this press release does not include a full assessment or reflection of the unprecedented impacts of the COVID-19 pandemic occurring since the first quarter of 2020 and the ongoing and developing resulting indirect global and regional economic impacts. This has resulted in significant economic uncertainty and even though the Company has to date experienced no significant impact to its operations, any potential impact on our future is difficult to understand or measure at this time.
Kneat does not undertake any obligation to release publicly revisions to any forward-looking statement, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at an investors' own risk.
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