Kneat reports record sales and gross margin expansion for the second quarter of 2021
Q2 sales increase by 104% $ 3.15 million
SaaS revenues grow 170% $ 1.72 million
Annually recurring Sales increase by 141% $ 7.98 million
LIMERICK, Ireland, August 10, 2021 / CNW / – kneat.com, inc. (TSXV: KSI) (“Kneat or the Company”) a leader in the digitization and automation of validation processes, today announced strong financial results for the past three and six months June 30th, 2021. All dollar amounts are in Canadian dollars unless otherwise noted.
“In the second quarter, we continued to implement our main priority and increased the recurring SaaS license fees. SaaS revenues increased 170% compared to the second quarter of 2020. Ours which has grown by 141% since then June 30, 2020, and total revenue, which increased 104% in Q2 2020 as demand for our solution increases “, said Eddie Ryan, Managing Director of Kneat. “Our SaaS revenue growth is being driven by the acquisition of new customers as well as the expansion of our existing customer base. During the quarter we gained a number of new customers, including one of the world’s leading engineering, consulting and design companies for digitizing commissioning.” , Qualification and validation services for their food and life sciences customers. These are exciting times for Kneat as the market continues to adopt our industry leading platform. With our strong balance sheet, our team is focused on advancing our plan in every area of the business and ensuring continued growth and value for our shareholders. ”
Financial highlights of the 2nd quarter 2021
- Total sales increased 104% $ 3.15 million, compared to $ 1.55 million for the second quarter of 2020. Total revenue will fluctuate from quarter to quarter, mainly due to the timing of professional service delivery and the sale of one-time local licenses to a decreasing number of customers who have not yet migrated to SaaS.
- SaaS revenues grew 170% $ 1.72 million, compared to $ 0.64 million for the second quarter of 2020.
- Gross margin rose 244% $ 1.75 million compared to $ 0.51 million for the second quarter of 2020 and the gross profit margin increased to 56% compared to 33% in the second quarter of 2020. The increase in the gross profit margin was due to a significant increase in sales combined with a reduction in the associated cost of sales compared to the second quarter of 2020.
Annual Recurring Revenue (“ARR”)
- Overall ARR: Overall ARR, a key performance indicator that includes SaaS license fees and maintenance fees, was $ 7.98 million at June 30, 2021, away $ 3.31 million for the same period of the previous year an increase of 141%. The quarterly growth in total ARR was 39%, versus $ 5.74 million at March 31, 2021.
- SaaS FER: SaaS license fees accounted for the total FER $ 7.29 million, away $ 2.55 million at June 30, 2020, an increase of 186%. SaaS ARR’s quarter-over-quarter growth was 49%, versus $ 4.89 million at March 31, 2021.
“Our second quarter results showed strong progress across the business,” said Hugh Kavanagh, Chief Financial Officer of Kneat. “In addition to our strong top-line growth, we were able to increase gross profit margins to 56% from 33% in Q2 2020, reflecting the impact of scaling our SaaS business.”
Current business highlights
In 2021, Kneat is making significant strides in revenue growth by continuing to add licenses for existing customers in addition to attracting new customers. Below is a summary of the company’s recent highlights:
- After the end of the second quarter, on July 19, 2021, the company announced that it has signed a three-year contract to provide an in-house e-validation solution for one of the world’s leading healthcare brands.
- In June, the company announced that it had signed a three-year contract with one of the world’s leading engineering, consulting and design companies to digitize commissioning, qualification and validation services for its food and life science customers.
- In May, after the annual and special meeting of shareholders, Kneat confirmed the election of Ms. Nutan Behki as director to the board.
- In May, the company announced that it had signed a five-year deal with another top ten biopharmaceutical company. In December 2020, Kneat announced that its SaaS platform has been selected for a single location by this research and development-focused biopharma leader. However in May 2021, this company has selected Kneat as their global enterprise e-validation solution. The customer’s goal is the gradual introduction of Kneat for multiple processes at all production sites.
- In April, the company announced the completion of its condensed prospectus offering, including the full exercise of the over-allotment option, through a total of 6,708,525 common shares in the company priced at. were sold $ 3.00 per common share, for total gross proceeds of $ 20,125,575.
- Deferred Stock Units (DSUs) in value $ 166,554 were granted to the company’s directors during the quarter.
After the end of the second quarter, Kneat hired LodeRock Advisors Inc. (“LodeRock”) to provide strategic investor relations and capital market communications services. Under the terms of the contract, Kneat pays LodeRock a monthly fee of $ 14,000 for ongoing strategic communication services. Each party has the right to terminate the relationship with 45 days’ notice.
Kneat continues to work remotely and effectively during the pandemic. The momentum grows as customers scale Kneat’s e-validation platform across their global operations for multiple business processes.
Quarterly conference call
Gentleman. Eddie Ryan, Chief Executive Officer of Kneat, and Mr. Hugh Kavanagh, Kneat’s Chief Financial Officer, will host a conference call to webcast our second quarter results and Q&A for analysts and investors. to discuss August 11, 2021 at 9:00 p.m. ET.
Interested parties can register for the live webcast via the following link:
or take part in a conference call
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Kneat, a Canadian company with operational headquarters in Limerick, Ireland, develops and markets the next generation Kneat Gx SaaS platform. Several business processes can be configured on the platform, from equipment to validation of computer systems to quality document management. Kneat’s software enables users to create, review, approve, run tests online, manage exceptions and post-approve final results on a controlled platform that is FDA 21 CFR Part 11 / Eudralex Annex 11 compliant. Macro and micro report dashboards provide a powerful overview of all systems, projects and processes worldwide. Customer case studies report productivity gains of over 100% and higher data integrity and compliance standards. More information is available at www.kneat.com.
Cautionary Notes 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, Kneat’s relationship with its customers, Kneat’s business development activities, usage and implementation schedules Kneat software within the customer’s validation processes, the customer’s ability and intent to scale, the use of Kneat’s software within the customer’s organization, and the compliance of the Kneat platform with regulatory reviews and inspections. While such forward-looking statements by Kneat, as stated in this press release, are made in good faith and are believed by Kneat to be reasonable based, they are subject to important risks and uncertainties. Because of these risks and uncertainties, the events predicted in these forward-looking statements could differ materially from actual results or events. These forward-looking statements are not guarantees of future performance as they involve risks and uncertainties. Kneat assumes no obligation to publicly publish changes to any forward-looking statement except as required by applicable securities laws. Investors should not assume that failure to update a previously published forward-looking statement will reaffirm such statement. Continued reliance on forward-looking statements is at the investor’s own risk.
Neither the TSX Venture Exchange nor its regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE kneat.com, inc.
For more information: Hugh Kavanagh, Chief Financial Officer, +353 61 203826, [email protected]; James Bowen, Kneat Investor Relations, +1 416-519-9442, [email protected]