Q3 revenues increased 54% YoY to
Q3 SaaS revenue was up 71% YoY to
Annual recurring revenue
(ARR) grew 60% to $19.1
LIMERICK, Ireland, Nov. 9, 2022
/CNW/ - kneat.com, inc. (TSX: KSI) (OTC: KSIOF)
("Kneat" or the "Company") a leader in digitizing and
automating validation processes, today announced financial results
for the three and nine-month periods ended September 30, 2022. All dollar amounts are
presented in Canadian dollars unless otherwise stated.
"I am proud of our team as we continue to deliver record
results, highlighted by 71% growth in SaaS revenue and 60% growth
in annual recurring revenue over Q3 2021." said Eddie Ryan, Chief Executive Officer of Kneat.
"This is testament to the growing importance of eValidation as
a critical business function and our customers' appreciation for
Kneat's ease of use, product vision, and proven track record."
Q3 2022 Financial
- Total revenues increased 54% to $5.8
million, as compared to $3.7
million for the third quarter of 2021.
- SaaS revenue grew 71% to $4.5
million, versus $2.6 million
for the third quarter of 2021.
- Gross profit was $3.5 million, an
increase of 74% compared to $2.0
million for the third quarter of 2021.
- Gross margin was 61%, compared to 54% for the third quarter of
2021. The improvement in gross margin reflects significant growth
in SaaS revenue, offset by lower one-time on-premise license
revenues and a smaller increase in related cost of revenue.
- Total ARR1, which includes SaaS license and
recurring maintenance fees, was $19.1
million at September 30, 2022,
an increase of 60% from $12.0 million
at September 30, 2021.
- SaaS ARR1, the proportion of ARR attributable to
SaaS licenses, was $18.0 million at
September 30, 2022, an increase of
60% from $11.3 million at
September 30, 2021.
Q3 YTD 2022 Financial
- Total revenues year to date 2022 increased 79% to $16.5 million, as compared to $9.2 million for the same nine month period in
- SaaS revenue grew 107% to $11.7
million for the nine months ended September 30, 2022, versus $5.6 million for the same period in 2021.
- 2022 year to date gross profit was $10.1
million, an increase of 107% compared to $4.9 million for the same nine period in
- Gross margin for the nine months ended September 30, 2022 was 61%, compared to 53% for
the same year to date period in 2021.
- Increased investment in sales and marketing resulted in Kneat
growing its customer base to record levels over the quarter. The
customer base is broadening to include both large and small
companies across all functions of the life science industry,
including multiple companies in the supply chain. Post the quarter,
Kneat announced the addition of a top tier Fortune 500 Healthcare
Company to its list of customers.
- Kneat is rapidly transitioning its few remaining on-premise
deployments onto its SaaS platform. One of Kneat's earliest large
customers and a top ten pharmaceutical company both transitioned in
recent months. This top ten pharmaceutical company also expanded
its license numbers significantly during the process.
- The Kneat training academy is making a significant impact by
enabling Kneat's growing list of partners and customers through
high quality certified training programs.
"Kneat continues to leverage more than a decade of investment in
our platform and a fast-growing base of customer references to
drive commercialization across all tiers of the life sciences
vertical," said CFO Hugh
Kavanagh. "We continue to hire key employees to drive
growth, supported by a strong financial position and a focus on
prudent expense management."
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 third-quarter results and hold a
Q&A for analysts and investors via webcast on November 10, 2022, at 9:00
Interested parties can register
for the live webcast via the following link:
Or, attend via teleconference
Ireland +353 16 572
Canada +1 (647)
United States +1 (562)
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")
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.
1 Annual 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.