Q2 Revenues increase 104% to
SaaS Revenues increase 170% to
Annual Recurring Revenue increases 141% to
LIMERICK,
"During the second quarter, we continued to execute against our key priority, driving recurring SaaS license fees. SaaS revenues increased 170% compared with the second quarter of 2020. In keeping with our trend, Q2 delivered strong growth in both annual recurring revenue, which grew 141% since
Q2 2021 Financial Highlights
- Total revenues increased 104% to
$3.15 million , compared with$1.55 million for the second quarter of 2020. Total revenues fluctuate quarter over quarter primarily due to the timing of professional services delivery and the sale of one-time, on-premises licenses to a decreasing number of customers who have not yet transitioned to SaaS. - SaaS revenues increased 170% to
$1.72 million , compared with$0.64 million for the second quarter of 2020. - Gross margin increased 244% to
$1.75 million compared with$0.51 million for the second quarter of 2020 and gross profit margin increased to 56% compared with 33% for the second quarter of 2020. The increase in gross profit margin was driven by a significant increase in revenue, coupled with a reduction in related cost of revenues compared with the second quarter of 2020.
Annual Recurring Revenue ("ARR")
- Total ARR: Total ARR, a key performance indicator which includes SaaS license fees and maintenance fees, was
$7.98 million atJune 30, 2021 , up from$3.31 million for the same period last year, an increase of 141%. Quarter-over-quarter growth in total ARR was 39%, up from$5.74 million atMarch 31, 2021 . - SaaS ARR: Within total ARR, the proportion attributable to SaaS license fees was
$7.29 million , up from$2.55 million atJune 30, 2020 , an increase of 186%. Quarter-over-quarter growth in SaaS ARR was 49%, up from$4.89 million atMarch 31, 2021 .
"Our second quarter results demonstrated strong progress across the business," said
Recent Business Highlights
In 2021, Kneat is making substantial progress driving revenue growth by continuing to add licenses for existing customers, in addition to winning new customers. A summary of recent corporate highlights is included below:
- Subsequent to second-quarter end, on
July 19, 2021 , the Company announced it signed a three-year agreement to be the corporate enterprise e-validation solution for one of the world's leading healthcare brands. - In June, the Company announced it signed a three-year agreement with one of the world's leading engineering, consultancy, and design firms to digitize Commissioning, Qualification and Validation services to both their food and life sciences clients.
- In May, Kneat confirmed Ms. Nutan Behki's election to the board as a director following the annual and special meeting of shareholders.
- In May, the Company announced it signed a five-year agreement with another top ten biopharma company. In
December 2020 , Kneat announced its SaaS platform was chosen by this research and development-focused biopharma leader for a single site. However, inMay 2021 , this company selected Kneat as its global corporate e-validation solution. The customer's goal is to roll Kneat out in phases for multiple processes across all its manufacturing sites. - In April, the Company announced it closed its short form prospectus offering, including the full exercise of the over-allotment option, through which a total of 6,708,525 common shares of the Company were sold at a price of
$3.00 per common share, for aggregate gross proceeds of$20,125,575 . - Deferred Stock Units (DSUs) worth
$166,554 were granted to the Company's directors during the quarter.
Subsequent to second-quarter end, Kneat retained
Kneat continues to operate remotely and effectively during the pandemic. Momentum is building as customers scale the Kneat e-validation platform across their global operations for multiple business processes.
Quarterly Conference Call
Mr.
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About Kneat
Kneat, a Canadian company with operational headquarters in Limerick,
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. 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
SOURCE
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