Q1 revenues increase 121% YoY to
Q1 SaaS revenue up 156% YoY to $3.3 million
Annual recurring revenue
(ARR) grows 134% to $13.4
LIMERICK, Ireland, May 11, 2022
/CNW/ - kneat.com, inc. (TSX: KSI) ("Kneat" or the
"Company") a leader in digitizing and automating validation
processes, today announced financial results for the three-month
period ended March 31, 2022. All
dollar amounts are presented in Canadian dollars unless otherwise
"I am proud of our team as we continue to deliver strong
year-on-year growth through the first quarter, highlighted by 156%
growth in SaaS revenue and 134% increase in annual recurring
revenue1 over Q1 2021," said Eddie Ryan, Chief Executive Officer of
Kneat. "Our fast-growing and diverse customer base is proof
that Kneat's platform is a preferred solution in the industry."
Mr. Ryan added, "The first quarter marked a solid start
to the year for Kneat. Our investment in sales and marketing
continued to drive robust new customer activity. Today we have 57
contracted customers and the largest pipeline of potential
customers in our history. Within our customer base we count 8 of
the top 10 and the majority of the top 20 biggest pharmaceutical
companies, several top tier consumer packaged goods companies and
both large and small suppliers to these organizations. These
companies are selecting a system to manage their global validation
which is a critical regulated business function. This is a
long-term investment decision, so they carefully evaluate relevant
market offerings before selecting their preferred solution. We are
proud to be trusted by these global leaders to help them deliver
their highly regulated products to their customers, efficiently and
to the highest quality standard. We are now leveraging over a
decade of investment in our platform and a growing base of customer
references to accelerate commercialization across all tiers of the
life sciences and consumer packaged goods industries."
Q1 2022 Financial Highlights
- Total revenues increased 121% to $5.2
million, as compared to $2.4
million for the first quarter of 2021.
- SaaS revenue grew 156% to $3.3
million, versus $1.3 million
for the first quarter of 2021.
- Gross margin was up 201% to $3.3
million, compared to $1.1
million for the first quarter of 2021. Gross profit margin
was 63%, compared to 46% for the first quarter of 2021. This
improvement in gross margin reflects the significant growth in
revenue, including some one-time, on-premise license revenues,
offset by a smaller increase in related cost of revenue.
Recurring Revenue ("ARR") is a supplementary financial measure. See
'Supplementary Financial Measures' section below for additional
Supplementary Financial Measures
- Total ARR1, which includes SaaS license and
maintenance fees, was $13.4 million
at March 31, 2022, an increase of
134% from $5.7 million at
March 31, 2021.
- SaaS ARR1, the proportion of ARR attributable to
SaaS licenses, was $12.4 million at
March 31, 2022, an increase of 153%
from $4.9 million at March 31, 2021.
"With a strong balance sheet, we are focused on executing across
all areas of the business, to drive ongoing growth and value
creation for our shareholders." said Hugh Kavanagh, Chief Financial Officer of
Recent Business Highlights
- In March, the Company announced that a European National Health
Service selected Kneat as their enterprise solution for laboratory
equipment validation management.
- In March, the Company announced that a top ten
biopharmaceutical company had selected Kneat as its enterprise
- In March, the Company announced that it had signed a leading
Canadian generics pharmaceutical manufacturer.
- In January, the Company announced that it had signed the U.S.
subsidiary of one of the world's top 15 consumer-packaged-goods
Quarterly Conference Call
Mr. Eddie Ryan, Chief Executive
Officer of Kneat, and Mr. Hugh
Kavanagh, Chief Financial Officer of Kneat, will host a
conference call to discuss Kneat's first-quarter results and hold a
Q&A for analysts and investors via webcast on May 12, 2022, at 10:00
a.m. ET (15:00 GMT).
1 Annual Recurring Revenue ("ARR") is
a supplementary financial measure. See 'Supplementary Financial
Measures' section below for additional information
Interested parties can register for the live webcast via the
Or, attend via teleconference
Ireland +353 15 360 755
Canada +1 (647)
United States +1 (562)
United Kingdom +44 20 3713
If attending via teleconference, please register at the link
above to access the dial-in pin code required to attend. The
dial-in pin code is available in your confirmation email.
Supplementary Financial Measures
The Company uses supplementary financial measures as key
performance indicators in its MD&A and other communications.
Management uses both IFRS measures and supplementary financial
measures as key performance indicators when planning, monitoring
and evaluating the Company's performance.
Annual Recurring Revenue ("ARR")
ARR is used by Kneat to assess the expected recurring revenues
from the customers that are live on the Kneat Gx platform at the
end of the period. ARR is calculated as the licenses delivered to
customers at the period end, multiplied by the expected customer
retention rate of 100% and multiplied by the full agreed SaaS
license or maintenance fee. Since many of the customer contracts
are in currencies other than the Canadian dollar, the Canadian
dollar equivalent is calculated using the related period end
exchange rate multiplied by the contracted currency amount.
Kneat, a Canadian company with operational headquarters in
Limerick, Ireland, develops and
markets the next generation Kneat Gx SaaS platform. Multiple
business work processes can be configured on the platform from
equipment to computer system validation, through to quality
document management. Kneat's software allows users to author,
review, approve, execute testing online, manage any exceptions, and
post approve final deliverables in a controlled FDA 21 CFR Part 11/
Eudralex Annex 11 compliant platform. Macro and micro report
dashboards enable powerful oversight into all systems, projects and
processes globally. Customer case studies are reporting
productivity improvements in excess of 100% and a higher data
integrity and compliance standard. For more information visit
Cautionary and Forward-Looking Statements
Except for the statements of historical fact contained herein,
certain information presented constitutes "forward-looking
information" within the meaning of applicable Canadian securities
laws. Such forward-looking information includes, but is not limited
to, the relationship between Kneat and the customer, Kneat's
business development activities, the use and implementation
timelines of Kneat's software within the customer's validation
processes, the ability and intent of the customer to scale the use
of Kneat's software within the customer's organization and the
compliance of Kneat's platform under regulatory audit and
inspection. While such forward-looking statements are expressed by
Kneat, as stated in this release, in good faith and believed by
Kneat to have a reasonable basis, they are subject to important
risks and uncertainties. As a result of these risks and
uncertainties, the events predicted in these forward-looking
statements may differ materially from actual results or events.
These forward-looking statements are not guarantees of future
performance, given that they involve risks and uncertainties.
The forward-looking information in this press release does not
include a full assessment or reflection of the unprecedented
impacts of the COVID-19 pandemic occurring since the first quarter
of 2020 and the ongoing and developing resulting indirect global
and regional economic impacts. This has resulted in significant
economic uncertainty and even though the Company has to date
experienced no significant impact to its operations, any potential
impact on our future is difficult to understand or measure at this
Kneat does not undertake any obligation to release publicly
revisions to any forward-looking statement, except as may be
required under applicable securities laws. Investors should not
assume that any lack of update to a previously issued
forward-looking statement constitutes a reaffirmation of that
statement. Continued reliance on forward-looking statements is at
an investors' own risk.
SOURCE kneat.com, inc.