Buoyed by a successful initial public offering, Ottawa’s Kinaxis reported second-quarter revenues of $17.9 million, the company announced after trading Thursday.
That is up 14 per cent from the same quarter last year for the company (TSX: KXS), which sells cloud-based supply-chain management software.
“The success of our initial public offering underscores the market’s positive view of our unique SaaS offering and the growth potential it represents,” company president and CEO Doug Colbeth said in a statement. “The complexity and importance of supply chain management in today’s global economy provides us with a large addressable market. Our focus is growing subscription revenues through new customers, verticals and applications to drive cash flow.”
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Subscription revenue for the quarter ending June 30 was up 28 per cent from the second quarter of 2013, at $12.6 million.
Gross profit for the quarter came in at $12.3 million, up 10 per cent from the same time last year. Adjusted profit was $1.9 million, or nine cents per diluted share.
Kinaxis reported a net loss for the quarter of $5.3 million, or 34 cents per share, an increase from $3.5 million, or 21 cents per share, a year ago. The company attributed this to a higher fair value, non-cash adjustment on the redeemable preferred share liability.
Cash and cash equivalents were $50.5 million, up significantly from six months earlier. Kinaxis said this was due primarily to its IPO, which raised just over $100 million in June. At that time, Kinaxis said it will pay down some debt and consider some minor acquisitions.
On the day of its IPO, Kinaxis opened at $13 per share. The company’s stock started the Friday trading day at $15.25 on the Toronto Stock Exchange.
