Ottawa-based Kinaxis had record-breaking subscription revenue in its first quarter of 2015, president and CEO Doug Colbeth said in a statement.
“We've continued to see strong demand for our innovative supply chain management solutions,” Mr. Colbeth said in a statement.
Kinaxis posted total revenues of $19.7 million, up 26 per cent from the same quarter last year. Subscription revenue made up $15.4 million, up 36 per cent from the first quarter of 2014.
The company’s gross profit was up 29 per cent to 13.9 million, adjusted EBITDA was up 47 per cent to $5.6 million and it posted adjusted diluted earnings of 13 cents per share.
The company said the growth in subscription revenue played a role in lifting gross margins to 71 per cent, compared with 69 per cent in the same quarter last year.
"Given the results of the first quarter and the strong forward revenue visibility of our business model, we are confident to revise our overall subscription growth outlook for 2015 from 25 per cent to a range of 26 to 28 per cent,” Mr. Colbeth said. “We remain in an excellent position within our market and see opportunity to enter new verticals and grow our customer base to continue to deliver solid results."
As of March 31, Kinaxis has cash and cash equivalents of $78.8 million, compared with $56.7 million at Dec. 31, 2014. The company said the increase is primarily due to a multi-year subscription prepayment worth roughly $20 million it received this quarter.