Q1 Revenues of $2.35
million, up 147% year-over-year
Q4 SaaS Revenues of $1.29 million, up 215% year-over-year
Annualized Recurring Revenue was $5.74 million at 31 March,
2021, up 120% year-over-year
LIMERICK, Ireland, May 25, 2021 /CNW/ - kneat.com, inc.
(TSXV: KSI) ("Kneat or the Company") a company focused
on digitizing and automating validation processes for Life
Sciences, today announced its financial results for the three-month
period ended March 31, 2021. All
dollar amounts are presented in Canadian dollars unless otherwise
stated.
"We are proud of our team as they continue to execute
to plan across all areas of our business. During the quarter, we
were successful in signing additional top tier companies while
increasing utilization metrics within our existing base. The recent
addition of another global leader brings the number of top ten
biopharma manufacturers that have selected Kneat Gx as their
corporate e-validation platform to seven." said Eddie Ryan, Chief Executive Officer of
Kneat. "In parallel we have been focused on strengthening
our corporate structure and developing our management teams, as we
enhance the Kneat SaaS platform in preparation for accelerated
growth in the future".
Fiscal 2021 First Quarter Results:
- Revenues: Total revenues for the first quarter were
$2.36 million, up from $0.95 million for the same period in 2020, an
increase of 147%. SaaS revenues for the first quarter were
$1.29 million, up from $0.41 million for the same period in 2020, an
increase of 215%.
- Gross Margin: First quarter gross margin was
$1.09 million, compared to
$0.05 million for the same period in
2020.
- Net Loss: Net loss for the first quarter of 2021 was
$4.07 million, up from $0.46 million for the same period in 2020. The
increase in net loss mainly reflects adverse unrealised foreign
currency movements, primarily on intercompany balances, resulting
in a foreign currency loss of $1.97
million in the first quarter of 2021 versus a foreign
currency gain of $1.48 million in the
same period in 2020.
Annualized recurring revenue ("ARR")
- Total ARR: Total ARR, a Key Performance Indicator,
which includes SaaS license fees and maintenance fees was
$5.74 million at March 31, 2021, up from $2.62 million as of March
31, 2020, an increase of 120%. Quarter-over-quarter growth
in total ARR was 21%, up from $4.76
million as of December 31,
2020.
- SaaS ARR: Within this total ARR the proportion
attributable to SaaS license fees was $4.89
million at March 31, 2021, up
from $1.88 million as of March 31, 2020, an increase of 161%.
Quarter-over-quarter growth in SaaS ARR was 25%, up from
$3.90 million as of December 31, 2020.
"Quarter 1, 2021 revenues were 147% higher than Quarter 1,
2020. SaaS license revenues have increased 215% and now
represent more than half of total revenue for the
quarter." said Hugh
Kavanagh, Chief Financial Officer of Kneat. "Our goal
for the rest of 2021 is to continue to grow our ARR base as we
onboard new customers, expand existing customers, and transition
legacy on-premise customers onto our SaaS platform."
Recent Highlights:
- In May, accomplished executive Nutan Behki was elected to the
Company's board of directors at its AGM. Ms. Behki is being granted
Deferred Share Units (DSUs) worth $100,000.
- In May, the Company announced it signed a five-year corporate
Master Services Agreement (MSA) with another top ten biopharma
company. This brings the number of top ten global biopharma
manufacturers who have selected Kneat Gx as their corporate
e-validation platform to seven.
- In April, the Company announced it closed a short form
prospectus offering and a parallel non-brokered private placement
leading to total proceeds of $22,125,575. Total cash at the end of
April 2021, after receipt of proceeds
from the financing, was approximately $27.5
million.
- In March, the Company announced that it signed a five-year MSA
with one of the world's largest contract development and
manufacturing organizations (CDMO) to digitize its global computer
system validation, commissioning and qualification processes.
- In March, the Company announced it had appointed Ms.
Laura Sweet, as its Vice President
of Marketing.
Kneat continues to operate remotely and effectively during the
pandemic. Momentum is building as customers scale the Kneat Gx
platform across their global networks for multiple business
processes.
Conference Call
Mr. Eddie Ryan, Chief Executive
Officer of Kneat, and Mr. Hugh
Kavanagh, Chief Financial Officer of Kneat, will host a
conference call and Q&A for analysts via webcast on
Wednesday, May 26, 2021 at
09:00 EDT (14:00 BST).
Interested parties can register for the live webcast via the
following link:
https://bit.ly/3eYgSDX
or, attend via teleconference
Ireland +353 15 360 755
Canada +1 (647) 497-9389
United States +1 (951)
384-3421
United Kingdom +44 330 221
9922
The unaudited condensed interim consolidated financial
statements for the period ended March 31,
2021 will be available from the Financial Information
section of the Investors page on the Kneat Solutions website
at: https://kneat.com/investors/
About Kneat
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
www.kneat.com.
Key Performance Indicator
Annualized recurring revenue is used by Kneat to assess the
expected annual recurring revenue from the customers that are live
on Kneat Gx at the end of the period. Annualized recurring
revenue 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 annual SaaS license fee or maintenance
fee at the related quarter end. 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 currency amount.
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 time. 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE kneat.com, inc.