Ottawa-based Kinaxis announced late Wednesday it will promote from within to replace outgoing CEO Doug Colbeth.
John Sicard, a 22-year Kinaxis veteran and the company’s chief products officer, will take the helm as the firm’s new chief executive on Jan. 1, 2016, with Mr. Colbeth remaining as chairman of the board.
“It is an absolute honour to have been chosen to lead Kinaxis through the next stage of our growth,” Mr. Sicard said in a statement. “I am looking forward to continuing to work with Doug and our entire senior leadership team to ensure we drive forward with our growth plans and continue to produce exceptional results for our customers, shareholders, partners and employees.”
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Mr. Colbeth said he and the rest of the board had been working together on a succession plan and that he is confident they have made the right choice.
“We are very confident John is the right person to continue to drive Kinaxis’s growth strategy,” Mr. Colbeth said in a statement.
The announcement came as the company announced 2015 third-quarter revenue of $23.7 million, an increase of 34 per cent from the same period last year. The supply chain management solution provider’s subscription revenue came in at $16.5 million, a year-over-year growth of 24 per cent.
Gross profit for the quarter was up 31 per cent to $16.8 million, and the company’s adjusted EBITDA of $8 million, or 34 per cent of total revenue, increased 53 per cent. Kinaxis reported adjusted diluted earnings of 20 cents per share.
“We had a great third quarter that built on the momentum we established earlier this year,” Mr. Colbeth said. “Our strong growth continues to be fuelled by expansion of our subscription revenue base, in addition to a greater contribution from professional services as our teams implement new accounts.”
Mr. Colbeth said Kinaxis (TSX: KXS) remains confident its overall subscription revenue growth for the year will be between 26 per cent and 28 per cent.
“Based on the performance of the business, (we) are raising our guidance for annual adjusted EBITDA to between 28 per cent and 32 per cent of total revenue,” he said.