Q2 revenues increase 76% YoY to
Q2 SaaS revenue up 126% YoY to $3.9 million
Annual recurring revenue
(ARR) grows 104% to $16.3
LIMERICK, Ireland, Aug. 10,
2022 /CNW/ - kneat.com, inc. (TSX: KSI)
(OTC: FBAYF) ("Kneat" or the "Company") a leader in
digitizing and automating validation processes, today announced
financial results for the three and six-month periods ended
June 30, 2022. All dollar amounts are
presented in Canadian dollars unless otherwise stated.
"Our team delivered another great quarter, highlighted by 126%
growth in SaaS revenue and 104% growth in annual recurring
revenue1 over Q2 2021," said Eddie Ryan, Chief Executive Officer of
Kneat. "We continue to add new customers and expand within our
existing base, driven by a powerful digital transformation value
proposition, enabling cost reduction, real time visibility and
superior compliance capabilities."
During the quarter, Kneat strengthened its executive team by the
addition of Jacob Michelsen, a
proven sales leader, to head global sales.
Today, Kneat has 62 contracted customers and the largest
pipeline in its history. Within its customer base Kneat counts 8 of
the top 10 and the majority of the top 20 largest pharmaceutical
companies. In addition, customers include several top tier consumer
packaged goods companies and a growing number of smaller FDA
regulated manufacturers and service providers.
Kneat is committed to continuing its strong growth while also
maintaining a focus on expenditure and financial flexibility.
Q2 2022 Financial
- Total revenues increased 76% to $5.5
million, as compared to $3.1
million for the second quarter of 2021.
- SaaS revenue grew 126% to $3.9
million, versus $1.7 million
for the second quarter of 2021. Gross margin was $3.3 million an increase of 87% compared to
$1.8 million for the second quarter
- Gross profit margin was 59%, compared to 56% for the second
quarter of 2021. The improvement in gross margin reflects
significant growth in SaaS revenue. This is offset by lower
one-time on-premise license revenues and by a smaller increase in
related cost of revenue. Total ARR1, which includes SaaS
license and recurring maintenance fees, was $16.2 million at June 30,
2022, an increase of 104% from $8.0
million at June 30, 2021.
- SaaS ARR1, the proportion of ARR attributable to
SaaS licenses, was $15.2 million at
June 30, 2022, an increase of 108%
from $7.3 million at June 30, 2021.
"It was a strong quarter of financial performance with
impressive execution across the business," said CFO Hugh Kavanagh." I am
confident Kneat is poised for continued growth
in the coming years, supported by a strong financial
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 second-quarter results and hold
a Q&A for analysts and investors via webcast on August 11, 2022, at 9:00
Interested parties can register for the live webcast via the
Or, attend via teleconference
Ireland +353 15 360
Canada +1 (647)
United States +1 (951)
United Kingdom +44 330 221
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.
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 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
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.
Recurring Revenue ("ARR") is a supplementary financial measure. See
'Supplementary Financial Measures' section below and the MD&A
for additional information
SOURCE kneat.com, inc.