Subscription revenue boosts third quarter for Kinaxis

Increasing subscription revenue reflects the growth potential of Kinaxis’s software-as-a-service offering, CEO Doug Colbeth said while reporting the company’s third-quarter results late Thursday.

Subscription revenue for the Ottawa-based company was up 31 per cent at $13.3 million, helping boost total revenue to $17.7 million, an increase of 14 per cent from the same quarter last year.

Gross profit was up seven per cent to $12.8 million and adjusted EBITDA was up 10 per cent to $5.2 million.

Kinaxis reported a profit of $2.5 million or 10 cents per share, compared with a net loss of $2.8 million in the same quarter in 2013.

“Organizations demand effective supply chain management solutions in order to achieve material performance improvement,” Mr. Colbeth said in a statement. “We are well positioned within our market and our superior product offering will allow us to continue to deliver strong results.”

The company’s cash and cash equivalents were up to $55.9 million on Sept. 30, compared with $13.8 million on Dec. 31, largely due to proceeds from the initial public offering net of repayment of its term loan, as well as cash from operations so far this year.