Q2 2024 Kinaxis Inc Earnings Call Transcript
Key Points
- Kinaxis Inc (KXSCF) reported $75.4 million in SaaS revenue, representing an 18% growth.
- Total revenue grew 12% to $118.3 million, despite being in a lower part of the normal term license renewal cycle.
- The company added approximately $12 million to its ARR balance, with 75% of this growth coming from new customers.
- Kinaxis Inc (KXSCF) won a record number of customers for a Q2, including notable names like Eli Lilly and Syensqo.
- The company raised its 2024 adjusted EBITDA margin guidance for the second consecutive quarter to 19%-21%.
- The buying environment remains choppy, particularly for large enterprise prospects, leading to elongated sales cycles.
- Foreign exchange headwinds, particularly around the Japanese yen, negatively impacted SaaS revenue growth by 1%.
- Gross margin declined slightly from 60% to 59%, attributed to the transition to a public cloud-first hosting model.
- The company experienced restructuring charges of $5.5 million, impacting profitability.
- Kinaxis Inc (KXSCF) lowered its SaaS revenue growth guidance for the year to 15%-17% due to delays in large enterprise deals.
Good morning, ladies and gentlemen. Welcome to the Kinaxis Incorporated fiscal 2024 second-quarter results conference call. (Operator Instructions) I'd like to remind everyone that this call is being recorded today, Thursday, August 1, 2024.
I will now turn the call over to Rick Wadsworth, Vice President of Investor Relations at Kinaxis Incorporated. Please go ahead, Mr. Wadsworth.
Thanks, operator. Good morning and welcome to the Kinaxis earnings call. Today, we will be discussing our first quarter results, which we issued after close of markets yesterday. With me on the call are John Sicard, our President and Chief Executive Officer; and Blaine Fitzgerald, our Chief Financial Officer.
Before we get started, I want to emphasize that some of the information discussed in this call is based on information as of today, August 1, 2024, and contains forward-looking statements that involve risks and uncertainties.
Actual results may differ materially from those set forth in
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