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Kinaxis reports 31% increase in second-quarter revenues

August 14, 2023
11:29 AM
ET

Organizations: Kinaxis

People: John Sicard, Megan Paterson

Kinaxis’s revenues rose more than 30 per cent year-over-year in the second quarter as the Kanata-based company continued to see surging demand for its supply-chain management software.

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Kinaxis’s revenues rose more than 30 per cent year-over-year in the second quarter as the Kanata-based company continued to see surging demand for its supply-chain management software. Kinaxis, which keeps its books in U.S. dollars, reported revenues of $105.8 for the three-month period ending June 30, a 31 per cent increase over the same period in 2022. “We had a record number of customer wins, an increasing win rate against competitors, and the highest amount of incremental subscription business won in any second quarter in Kinaxis’s history,” Kinaxis CEO and president John Sicard said in a statement last week. “While we need to remain appropriately cautious about the global economy, we continue to see a persistent urgency to transform supply chain management practices. Siloed approaches are giving way to a concurrent, end-to-end orchestration model and Kinaxis remains alone in its ability to deliver on that vision.” Most of the gains were driven by rising sales of the firm’s subscription-based software, which brought in more than $64 million in the quarter, up from $51 million the previous year. Kinaxis’s flagship product, called RapidResponse, helps manufacturers and retailers track inventories and shipments in real time while forecasting demand for future inventory. Its customers include automakers Ford, General Motors and Toyota and consumer packaged goods giant Unilever. Kinaxis posted a net loss of $2.5 million, or nine cents per diluted share, compared with a loss of $2.6 million a year earlier. The company reiterated its full-year revenue guidance from the previous quarter, predicting it will bring in total revenues of between $425 million and $435 million in fiscal 2023. The firm’s latest earnings report came a week after Kinaxis announced it was reorganizing its C-suite in a bid to accelerate its global expansion efforts. The moves included promoting chief human resources officer Megan Paterson to the newly created position of chief operating officer.