Kanata-based producer of supply chain management software turned a profit of $1.2 million, compared with a profit of $12.5 million in the first quarter of 2022.
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Kinaxis says it continues to experience “great tailwinds” as the supply chain management software company raised its 2023 revenue projections on Thursday.
The Kanata-based firm, which keeps its books in U.S. dollars, reported revenues of $101.1 million in the first quarter ending March 31, up three per cent from the previous year.
Kinaxis turned a profit of $1.2 million, compared with a profit of $12.5 million in the first quarter of 2022. The company earned four cents per diluted share, below analysts’ expectations of 37 cents per share, according to Refinitiv.
Still, Kinaxis raised its full-year revenue guidance as its influx of new business, already at record highs, continued to grow in the first four months of the year.
The firm is now projecting revenues of between $425 million and $435 million for 2023, an increase of about $5 million from its previous forecast.
“Some might say, ‘Oh, the supply chain is stabilizing,’” CEO John Sicard told analysts Thursday morning during a conference call to discuss the company’s latest financial results.
“Well, it’s certainly not as volatile as it was in the midst of the pandemic, but make no mistake – every board is asking every CEO, ‘What are you going to do next time?’”
Kinaxis’s flagship platform, called RapidResponse, helps manufacturers and retailers track inventories and shipments while forecasting demand for future inventory. Its customers include automakers Ford, General Motors and Toyota and consumer packaged goods giant Unilever.
Sicard said the company is seeing significant growth in traditional verticals like the automotive industry, which he said was “heavily hit” by the pandemic and a rapid widespread shift to electric vehicles that is causing “major disruptions” in supply chains.
But Kinaxis is also seeing gains in other sectors like high-tech, electronics, life sciences, retail and consumer packaged goods.
Among the new customers it signed in the first quarter are a “household name” in the quick-service restaurant industry and “one of the most iconic snacking brands on the planet,” Sicard said.
“It makes me want to eat chocolate, let’s just say,” he added with a chuckle.
On Monday, Kinaxis announced an agreement with global supply chain company Havi that will see the firms collaborate on supply chain planning and analytics solutions for customers in the quick-service restaurant industry.
CFO Blaine Fitzgerald said the firm’s sales pipeline is growing at a “very nice” rate, adding Kinaxis has a “huge ability to expand” its income from new and existing customers.
“We have phenomenal brands that are joining us,” he said. “I think we’ve got some great tailwinds.”
Kinaxis’s share price was down $3.12, or about 1.8 per cent, to $174.35 late Thursday afternoon on the Toronto Stock Exchange.
