Q4 revenues increase 111% to $6.3 million
Q4 SaaS revenues increase 167% to
$3.0 million
Annual recurring revenue
(ARR) increases 174% to $13.1
million
Full year revenues increase 109% to
$15.5 million
LIMERICK, Ireland, Feb. 23, 2022 /CNW/ - kneat.com,
inc. (TSX: KSI) ("Kneat" or the "Company") a leader
in digitizing and automating validation processes, today announced
financial results for the three and twelve-month periods ended
December 31, 2021. All dollar
amounts are presented in Canadian dollars unless otherwise
stated.
"Our fourth quarter results demonstrate strong performance
across key financial metrics, highlighted by 167% growth in SaaS
revenues over the same quarter in 2020, and a 174% increase in
annual recurring revenue1 since December 2020. For the full year, revenues grew
by 109% aided by an impressive Net Revenue Retention
Rate1 of 245%. This Net Retention Rate highlights the
strength of our land and expand business model, as existing
customers increased the adoption of our platform," said
Eddie Ryan, Chief Executive Officer
of Kneat.
"In addition to robust customer expansion activity, new customer
acquisitions continue to be a key driver of growth. In 2021, we
added significantly to our customer base ending the year with 48
contracted customers, including a majority of the top 20 global
biopharmaceutical companies. New customer momentum continued
into 2022, with a leading consumer packaged goods company signing a
four-year Master Services Agreement. Building on our leading
position within life sciences, we are also driving adoption in the
mid-market, supply chain and consumer packaged goods
industry," continued Mr. Ryan.
"In December, Merck Sharp & Dohme authored a case study
detailing its journey from initial site deployment to global roll
out for 7 validation work processes across 27 sites, within their
manufacturing and research divisions. The results of this study are
a clear endorsement of the Kneat platform and our global service
capabilities."
"Overall, 2021 was a transformative year for Kneat. I am proud
of our dedicated employees and I look forward to ongoing growth and
value creation for our shareholders in the year ahead," Mr. Ryan
added.
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1Annual
Recurring Revenue ("ARR"), Gross Revenue Retention Rate ("GRR")
& Net Revenue Retention Rate ("NRR") are supplementary
financial measures. See 'Supplementary Financial Measures' section
of our MD&A for additional information
|
Q4 2021 Financial Highlights
- Total revenues increased 111% to $6.3
million, compared with $3.0
million for the fourth quarter of 2020.
- SaaS revenues increased 167% to $3.0
million, compared with $1.1
million for the fourth quarter of 2020.
- Gross margin increased 177% to $4.4
million, compared with $1.6
million for the fourth quarter of 2020. Gross margin
percentage increased to 71% compared with 54% for the fourth
quarter of 2020. The increase in gross profit margin was driven by
a significant increase in revenue, including some one-time
on-premise license revenues, offset by a smaller increase in
related cost of revenue.
Fiscal Year 2021 Financial Highlights
- Total revenues increased 109% to $15.5
million, compared with $7.4
million for the year ended December
31, 2020.
- SaaS revenues increased 201% to $8.7
million, compared with $2.9
million for the prior year.
- Gross margin increased 224% to $9.3
million compared with $2.9
million for the year ended December
31, 2020. Gross margin percentage increased to 60% compared
with 39% in the year ended December 31,
2020. The higher gross profit margin was driven by increases
in revenue, in particular SaaS license revenues and some one-time
on-premise revenue, offset by a smaller increase in related cost of
revenue.
Supplementary Financial Measures
- Total ARR1, which includes SaaS license and
maintenance fees, was $13.1 million
at December 31, 2021, an increase of
174% from $4.8 million at
December 31, 2020.
- SaaS ARR, the proportion of ARR attributable to SaaS licenses,
was $12.2 million at December 31, 2021, an increase of 212% from
$3.9 million at December 31, 2020.
- Gross Revenue Retention Rate1 was 100% for the year
ended December 31, 2021.
- Net Revenue Retention Rate1 was 245% for the year
ended December 31, 2021.
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|
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1Annual
Recurring Revenue ("ARR"), Gross Revenue Retention Rate ("GRR")
& Net Revenue Retention Rate ("NRR") are supplementary
financial measures. See 'Supplementary Financial Measures' section
of our MD&A for additional information.
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Recent Business Highlights
In 2021, Kneat continued to scale existing customer licenses in
addition to winning and onboarding new customers. A summary of
corporate highlights includes:
- In March Kneat announced it had been selected by one of the
world's largest contract development and manufacturing
organizations (CDMO).
- In April, the Company closed a public equity financing of
$20,125,575 and a concurrent
non-brokered private placement equity financing of $2,000,000.
- In May, Nutan Behki, VP of Core Network R&D at Nokia, was
elected to the Board of Directors.
- In May, Kneat announced that it had been selected by a top ten
biopharma leader as its corporate e-Validation solution.
- In July, the Company announced that a leading global healthcare
manufacturer and a leading engineering firm had selected Kneat's
SaaS Platform.
- On November 15, 2021, the Company
announced its graduation to the Toronto Stock Exchange.
- In December, Kneat was awarded a 3rd place ranking in the
prestigious 2021 Deloitte Technology Fast 50 Ireland list.
- In December, the Company announced that it had signed an
industry leading global biopharmaceutical company.
- Subsequent to year end, Carol
Leaman, CEO of Axonify, was appointed to the Board of
Directors.
- On January 20, 2022, the Company
announced that it had signed the U.S. subsidiary of one of the
world's top fifteen consumer-packaged-goods companies.
Quarterly Conference Call
Mr. Eddie Ryan, Chief Executive
Officer of Kneat, and Mr. Hugh
Kavanagh, Chief Financial Officer of Kneat, will host a
conference call to discuss Kneat's fourth-quarter results and hold
a Q&A for analysts and investors via webcast on February 24, 2022, at 9:00
a.m. ET.
Interested parties can register for the live webcast via the
following link:
Register
Or, attend via teleconference
Ireland +353 15 360
755
Canada +1 (647)
497-9385
United States
+1 (951) 384-3421
United
Kingdom +44 20 3713 5012
If attending via teleconference, please register at the link
above to access the dial-in pin code required to attend. The
dial-in pin code is available in your confirmation email.
Supplementary Financial Measures
The Company uses supplementary financial measures as key
performance indicators in its MD&A and other communications.
Management uses both IFRS measures and supplementary financial
measures as key performance indicators when planning, monitoring
and evaluating the Company's performance.
Annual Recurring Revenue ("ARR")
ARR is used by Kneat to assess the expected recurring revenues
from the customers that are live on the Kneat Gx platform at the
end of the period. ARR 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 full agreed SaaS
license or maintenance fee. 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 contracted currency amount.
Net Revenue Retention Rate ("NRR")
We believe that our Net Revenue Retention Rate is a key measure
to provide insight into the long-term value of our customers and
our ability to retain and expand revenue from our customer base
over time. Our Net Revenue Retention Rate is calculated over a
trailing twelve-month period by considering the cohort of customers
on our platform as of the beginning of the period and dividing the
ARR attributable to this group of customers at the end of the
period by the ARR at the beginning of the period. By implication,
this ratio excludes any ARR from new customers acquired during the
period but includes revenue changes for this cohort base of
customers during the period being measured. This measure provides
insight into customer expansions, downgrades, and churn, and
illustrates the level of scaling by those customers.
Gross Revenue Retention Rate ("GRR")
We believe that Gross Revenue Retention ("GRR") is a key measure
to provide insight into our success retaining existing
customers. It is a measure of the retention of ARR at the
beginning of the period with a maximum possible value of 100% if
there are no downgrades and churn. Gross Revenue Retention
Rate is calculated over a trailing twelve-month period by
considering the cohort of customers on our platform as of the
beginning of the period and dividing the ARR attributable to this
cohort of customers at the end of the period excluding any
expansions, but including downgrades and churn during the period,
by the ARR at the beginning of the period.
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
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.
SOURCE kneat.com, inc.