Kinaxis ((TSE:KXS)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Kinaxis Earnings Call Reflects Strong Growth Amid Cautious Outlook
The recent earnings call for Kinaxis highlighted a generally positive sentiment, with strong growth in Annual Recurring Revenue (ARR), Software as a Service (SaaS) revenue, and profitability. The company successfully acquired new customers and formed strategic partnerships, though it remains cautious about macroeconomic uncertainties. Despite a decline in professional services revenue due to strategic shifts, the positive aspects of the call significantly outweighed the negatives.
Record Expansion Business Volume
Kinaxis reported a 14% growth in ARR, both as reported and in constant currency, alongside a 16% increase in SaaS revenue, or 17% in constant currency. The company achieved record expansion business volume for the first quarter, demonstrating its robust growth trajectory.
Strong Profitability and EBITDA Margin Growth
The company’s adjusted EBITDA rose by 46%, with the margin reaching 25%. This marks the third consecutive quarter of delivering Rule of 40-plus performance, a key indicator combining SaaS revenue growth and adjusted EBITDA margin.
Successful New Customer Acquisitions
Kinaxis successfully added several new customers, including Sun Pharma, Workwear Outfitters, Delta Faucet Company, Demant A/S, and Veolia. Notably, the company also signed one of the world’s largest companies in the semiconductor ecosystem, highlighting its expanding market presence.
Gartner Recognition
Kinaxis was recognized as a leader in the 2025 Gartner Magic Quadrant for Supply Chain Planning Solutions for the 11th consecutive time, underscoring its industry leadership and innovation.
Successful Partnerships and Innovations
The company announced a new partnership with Infor, focusing on mid-market discrete manufacturing companies, and a collaboration with Databricks to enhance data integration and AI adoption, showcasing its commitment to innovation and strategic growth.
Strong Pipeline and Conversion Rates
Kinaxis reported higher conversion rates and a healthy pipeline, with a focus on large enterprise cohorts, indicating strong future growth potential.
Professional Services Revenue Decline
Professional services revenue decreased by 3% to $33.3 million, primarily due to a strategic shift to move services work to partner networks, reflecting a change in business strategy.
Volatile Macro Environment
The company expressed caution regarding the macroeconomic environment, particularly concerning global tariffs and exchange rate fluctuations, which could impact future performance.
Forward-Looking Guidance
Kinaxis maintained all guidance elements for the year, with ARR growing by 14% and SaaS growth at 16%, or 17% in constant currency. The company achieved a significant increase in adjusted EBITDA by 46%, with a margin of 25%. It highlighted a strong new business pipeline and balanced ARR growth from both new and existing customers, alongside successful partnerships and industry recognition.
In summary, the Kinaxis earnings call painted a picture of robust growth and strategic expansion, tempered by caution regarding external economic factors. The company’s strong financial performance, new customer acquisitions, and strategic partnerships underscore its positive trajectory, despite challenges in the macroeconomic landscape.