Ottawa-based Kinaxis delivered on its goal to grow subscription revenue and EBITDA in 2014, president and CEO Doug Colbeth said when the company released fourth-quarter and year-end results late Tuesday.
The company reported total revenue of $18.8 million for the quarter and $70.1 million for the year, both up 15 per cent compared with 2013.
Subscription revenue increased to $13.9 million for the three months ending Dec. 31, 2014, an increase of 27 per cent from the same quarter a year earlier. Subscription revenue was up 28 per cent for the year at $51.1 million.
At $3.8 million, adjusted EBITDA made up 20 per cent of the supply chain management solution provider’s total revenue, down 15 per cent from the fourth quarter of 2013. For the year, however, adjusted EBITDA was up seven per cent to $16.1 million, or 23 per cent of total revenue.
Gross profit for the quarter was $13.4 million, or 71 per cent of total revenue, up 14 per cent from the fourth quarter of 2013. Year-end gross profit increased 15 per cent to $49.3 million, or 70 per cent of total revenue.
Kinaxis (TSX:KXS) recorded a $600,000 profit in the fourth quarter and a year-end loss of $200,000, or a penny per diluted share.
Mr. Colbeth predicted subscription revenue will grow at least another 25 per cent in 2015, and forecast EBITDA would continue to exceed 20 per cent of the company’s total revenue.
“Furthermore, as we continue to have success with our partners and as they expand their role in customer deployments, we expect professional services revenue will grow between 10 per cent and 15 per cent,” Mr. Colbeth said in a statement. “We look forward to continuing to build on the great achievements our team made this year.”
Professional services revenue for the fourth quarter was $4.7 million, down from $5.1 million for the same quarter a year earlier. Year-over-year, it fell from $19.2 million to $17.8 million.
The company said this drop was “due to the end of a significant services engagement with an existing customer in December of 2013, and was largely offset by services provided for deployment of new customers throughout 2014.”
Kinaxis also reported cash and cash equivalents of $56.7 million as of Dec. 31, 2014, compared with $13.8 million at the end of 2013, largely due to proceeds from the company’s $100-million initial public offering last June.