• Hit new quarterly record for incremental business won, and annual customer additions
• Q4 SaaS revenue grows 17%, adjusted EBITDA ² margin of 25%, annual recurring revenue ³ grows 14% in constant currency, 12% as reported
• Full-year results meet all guidance elements

Kinaxis ® (TSX:KXS), the leading provider of supply chain orchestration solutions, reported results for its fourth quarter and year ended December 31, 2024. All amounts are in U.S. dollars. All figures are prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise indicated.

“Our record-breaking incremental business this quarter – balanced across all regions – reflects significant expansion activity and new customer wins, including prominent global brands. This success remains anchored in Maestro’s product leadership, which will continue to grow as we launch new revenue-generating GenAI and Agentic AI capabilities,” said Bob Courteau, interim chief executive officer at Kinaxis. “We're also encouraged by the continued positive results from our recent corporate realignment and elevated go-to-market team. Looking to 2025, we're focused on ARR growth, further progress towards our mid-term, normalized annual Adjusted EBITDA target of 25%, and the return to consistent Rule of 40 performance.”

Q4 2024 Highlights

(1) The Percentage change has been excluded as it is not meaningful.
(2) “Adjusted EBITDA” is a non-IFRS measures that is not a recognized, defined or standardized measure under IFRS. This measure as well as any other non-IFRS financial measures reported by Kinaxis are defined in the “Non-IFRS Measures” section of this news release.

FY 2024 Highlights

Key Performance Indicators

The company’s Annual Recurring Revenue ³ (ARR), which includes subscription amounts related to both SaaS and on-premise contracts, rose 12% to $360 million at the end of the quarter, and 14% in constant currency.

(3) Annual Recurring Revenue (ARR) is the total annualized value of recurring subscription amounts (ultimately recognized as SaaS, Subscription term licenses and Maintenance and support revenue) of all subscription contracts at a point in time. Annualized subscription amounts are determined solely by reference to the underlying contracts, normalizing for the varying revenue recognition treatments under IFRS for cloud-based versus on-premise subscription amounts. It excludes one-time fees, such as for non-recurring professional services, and assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal, unless such renewal is known to be unlikely. We believe that this measure provides a more current indication of our performance in the growth of our subscription business than other metrics.

The nature of the company’s long-term contracts provides visibility into future, contracted revenue. The following table presents revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at December 31, 2024.

Financial Guidance

Kinaxis is introducing its fiscal 2025 financial guidance, as follows.

"We achieved record Incremental ARR in the quarter, though the performance gets masked when looking at period-end ARR and RPO balances, due to recent significant fluctuations in key foreign exchange rates against the US dollar," said Blaine Fitzgerald, chief financial officer at Kinaxis . "Our profitability, measured in Adjusted EBITDA margin, continues to improve and we maintained a strong trailing 12-month free cash flow margin, thanks to ongoing operating leverage gained through disciplined investment and important changes we've made to the organization. For 2025, we expect ongoing leverage in research and development and general and administrative expenses, while continuing to make important investments in priority sales and marketing initiatives and steadily progressing towards our mid-term Adjusted EBITDA target."

Guidance in this press release is provided to enhance visibility into Kinaxis’ expectations for financial targets for the periods indicated. Please refer to the section regarding forward-looking statements that forms an integral part of this release. This press release along with the financial statements and MD&A for the quarter ended December 31, 2024 are available on Kinaxis’ website and on SEDAR+ at www.sedarplus.ca .

Conference Call

Kinaxis will host a conference call tomorrow, February 27, 2025, to discuss these results. Bob Courteau, interim chief executive officer, and Blaine Fitzgerald, chief financial officer, will host the call starting at 8:30 a.m. Eastern Time. A question and answer session will follow management's presentation. Investors and participants must register for the call in advance. See registration link below. Please call the conference telephone number fifteen minutes prior to the start time.

About Kinaxis Inc.

Kinaxis is a global leader in modern supply chain orchestration, powering complex global supply chains and supporting the people who manage them, in service of humanity. Our powerful, AI-infused supply chain orchestration platform, Maestro™ , combines proprietary technologies and techniques that provide full transparency and agility across the entire supply chain — from multi-year strategic planning to last-mile delivery. We are trusted by renowned global brands to provide the agility and predictability needed to navigate today’s volatility and disruption. For more news and information, please visit kinaxis.com or follow us on LinkedIn .

Non-IFRS Measures

This press release makes reference to Adjusted Profit and Adjusted EBITDA, which are non-IFRS financial measures, as well as Adjusted EBITDA margin which expresses Adjusted EBITDA as a percentage of revenue. Adjusted Profit, Adjusted EBITDA and Adjusted EBITDA margin are not recognized, defined or standardized measures under IFRS. We use these measures to provide investors with supplemental information on our operating performance and to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Providing these non-IFRS measures provides useful information because they portray the financial results of the company before certain expenses that do not impact the ongoing operating decisions taken by management. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements, and to determine components of employee compensation.

Adjusted Profit represents profit adjusted to exclude the changes in the fair value of contingent consideration, our equity compensation plans, special charges, and non-recurring items. Adjusted EBITDA represents profit adjusted to exclude the change in the fair value of contingent consideration, our equity compensation plans, special charges, non-recurring items, income tax expense, depreciation and amortization, foreign exchange loss (gain) and net finance (income) expense. Adjusted EBITDA margin expresses Adjusted EBITDA as a percentage of revenue. Our definitions of Adjusted Profit, Adjusted EBITDA and Adjusted EBITDA margin will likely differ from those used by other companies (including our peers) and therefore comparability may be limited. Non-IFRS measures should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures. Kinaxis has reconciled Adjusted Profit and Adjusted EBITDA to the most comparable IFRS financial measure as follows:

Note:
(1) Costs associated with business transformation activities.
(2) Costs associated with the restructuring initiative

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. In some cases, these forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to” or the negative of these terms, or other similar expressions intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect the financial condition, results of operations, business strategy and financial needs of Kinaxis.

Forward-looking statements include statements as to our expectations for:

• growth of annual total revenue, annual SaaS and Subscription term licenses revenue, and our expectations for Adjusted EBITDA margin achievement, in each case looking forward for our fiscal year ending December 31, 2025; and
• SaaS growth and increased profitability in years beyond 2025; and
• contracted revenue in future periods, including 2025, 2026 and 2027 and later.

This release also includes forward-looking statements as to Kinaxis’ growth opportunities and the potential benefits of, and markets and demand for, Kinaxis’ products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis’ products and services compared to competitive offerings in the industry.

In particular, our guidance for 2025 annual total revenue, annual SaaS and Subscription term license revenue and annual Adjusted EBITDA margin, as well as our comments on our expectations for SaaS growth and increased profitability in years beyond 2025, are subject to certain assumptions and associated risks including:

• our ability to win business from new customers and expand business from existing customers;
• the timing of new customer wins and expansion decisions by our existing customers;
• maintaining our customer retention levels , and specifically, that customers will renew contractual commitments on a periodic basis as those commitments come up for renewal, at rates consistent with our historic experience;
• anticipated trends, standards and challenges in our business and the markets we operate in;
• fluctuations in the value of foreign currencies relative to the U.S. Dollar; and
• with respect to Adjusted EBITDA and profitability, our ability to contain expense levels while expanding our business.

Our guidance and commentary for achievement of contracted revenue in future periods, including in 2025, 2026 and 2027 and later, is based on assumptions and associated risks including:

• our ability to satisfy material unperformed obligations under our long-term contracts; and
• the continued financial capacity and creditworthiness of our customers under long-term contracts.

These and other assumptions, risks and uncertainties may cause Kinaxis’ actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by forward-looking statements. Material risks and uncertainties relating to our business are described under the headings “Forward-Looking Statements” and “Risks and Uncertainties” in our annual MD&A dated February 26, 2025, and under the heading “Risk Factors” in our 2024 Annual Information Form dated February 26, 2025, which are available at www.sedarplus.ca . Forward-looking statements are provided to help readers understand management’s expectations as at the date of this release and may not be suitable for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements. Kinaxis assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

SOURCE: Kinaxis Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226994035/en/

Investor Relations
Rick Wadsworth | Kinaxis
rwadsworth@kinaxis.com
613-907-7613

Media Relations
Belinda Thomas | Kinaxis
bthomas@kinaxis.com
613-322-9305