Q2 Revenues increase 104% to $3.15 million
SaaS Revenues increase 170% to $1.72 million
Annual Recurring Revenue
increases 141% to $7.98
million
LIMERICK, Ireland, Aug. 10, 2021 /CNW/ - kneat.com,
inc. (TSXV: KSI) ("Kneat or the Company") a leader
in digitizing and automating validation processes, today announced
its strong financial results for the three and six-month periods
ended June 30, 2021. All dollar
amounts are presented in Canadian dollars unless otherwise
stated.
"During the second quarter, we continued to execute against our
key priority, driving recurring SaaS license fees. SaaS revenues
increased 170% compared with the second quarter of 2020. In keeping
with our trend, Q2 delivered strong growth in both annual recurring
revenue, which grew 141% since June 30,
2020, and total revenues, which grew 104% over Q2 2020, as
demand for our solution is increasing," said Eddie Ryan, Chief Executive Officer of
Kneat. "Our SaaS revenue growth is driven by the acquisition of
new customers as well as expansion within our existing customer
base. During the quarter, we added a number of new customers,
including one of the world's leading engineering, consultancy and
design firms to digitize Commissioning, Qualification, and
Validation services for both their food and life sciences
clients. These are exciting times for Kneat as the market
continues to adopt our industry leading platform. With our
strong balance sheet, our team is focused on executing our plan
across all areas of the business, ensuring ongoing growth and value
creation for our shareholders."
Q2 2021 Financial Highlights
- Total revenues increased 104% to $3.15
million, compared with $1.55
million for the second quarter of 2020. Total revenues
fluctuate quarter over quarter primarily due to the timing of
professional services delivery and the sale of one-time,
on-premises licenses to a decreasing number of customers who have
not yet transitioned to SaaS.
- SaaS revenues increased 170% to $1.72
million, compared with $0.64
million for the second quarter of 2020.
- Gross margin increased 244% to $1.75
million compared with $0.51
million for the second quarter of 2020 and gross profit
margin increased to 56% compared with 33% for the second quarter of
2020. The increase in gross profit margin was driven by a
significant increase in revenue, coupled with a reduction in
related cost of revenues compared with the second quarter of
2020.
Annual Recurring Revenue ("ARR")
- Total ARR: Total ARR, a key performance indicator which
includes SaaS license fees and maintenance fees, was $7.98 million at June 30,
2021, up from $3.31 million
for the same period last year, an increase of 141%.
Quarter-over-quarter growth in total ARR was 39%, up from
$5.74 million at March 31, 2021.
- SaaS ARR: Within total ARR, the proportion attributable to SaaS
license fees was $7.29 million, up
from $2.55 million at June 30, 2020, an increase of 186%.
Quarter-over-quarter growth in SaaS ARR was 49%, up from
$4.89 million at March 31, 2021.
"Our second quarter results demonstrated strong progress across
the business," said Hugh
Kavanagh, Chief Financial Officer of Kneat. "In addition
to our strong top-line growth, we saw gross profit margins expand
to 56% compared with 33% for the second quarter of 2020 reflecting
the impact of the scaling of our SaaS business."
Recent Business Highlights
In 2021, Kneat is making substantial progress driving revenue
growth by continuing to add licenses for existing customers, in
addition to winning new customers. A summary of recent corporate
highlights is included below:
- Subsequent to second-quarter end, on July 19, 2021, the Company announced it signed a
three-year agreement to be the corporate enterprise e-validation
solution for one of the world's leading healthcare brands.
- In June, the Company announced it signed a three-year agreement
with one of the world's leading engineering, consultancy, and
design firms to digitize Commissioning, Qualification and
Validation services to both their food and life sciences
clients.
- In May, Kneat confirmed Ms. Nutan Behki's election to the board
as a director following the annual and special meeting of
shareholders.
- In May, the Company announced it signed a five-year agreement
with another top ten biopharma company. In December 2020, Kneat announced its SaaS platform
was chosen by this research and development-focused biopharma
leader for a single site. However, in May
2021, this company selected Kneat as its global corporate
e-validation solution. The customer's goal is to roll Kneat out in
phases for multiple processes across all its manufacturing
sites.
- In April, the Company announced it closed its short form
prospectus offering, including the full exercise of the
over-allotment option, through which a total of 6,708,525 common
shares of the Company were sold at a price of $3.00 per common share, for aggregate gross
proceeds of $20,125,575.
- Deferred Stock Units (DSUs) worth $166,554 were granted to the Company's directors
during the quarter.
Subsequent to second-quarter end, Kneat retained LodeRock
Advisors Inc. ("LodeRock"), for strategic investor relations and
capital markets communication services. Under the terms of
the agreement, Kneat will pay LodeRock a monthly fee of
$14,000 for ongoing strategic
communication services. Either party has the right to terminate the
relationship upon 45 days' notice.
Kneat continues to operate remotely and effectively during the
pandemic. Momentum is building as customers scale the Kneat
e-validation platform across their global operations for multiple
business processes.
Quarterly Conference Call
Mr. Eddie Ryan, Chief Executive
Officer of Kneat, and Mr. Hugh
Kavanagh, Chief Financial Officer of Kneat, will host a
conference call to discuss our second-quarter results and Q&A
for analysts and investors via webcast on August 11, 2021 at 9:00
a.m. ET.
Interested parties can register for the live webcast via the
following link:
https://bit.ly/3fskLSL
or, attend via teleconference
Ireland +353 16 572 652
Canada +1 (647) 497-9385
United States +1 (951)
384-3421
United Kingdom +44 330 221
9922
About Kneat
Kneat, a Canadian company with operational headquarters in
Limerick, Ireland, develops and
markets the next generation Kneat Gx SaaS platform. Multiple
business work processes can be configured on the platform from
equipment to computer system validation, through to quality
document management. Kneat's software allows users to author,
review, approve, execute testing online, manage any exceptions, and
post approve final deliverables in a controlled FDA 21 CFR Part 11/
Eudralex Annex 11 compliant platform. Macro and micro report
dashboards enable powerful oversight into all systems, projects and
processes globally. Customer case studies are reporting
productivity improvements in excess of 100% and a higher data
integrity and compliance standard. For more information visit
www.kneat.com.
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. 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE kneat.com, inc.
