LIMERICK, Ireland, Aug. 27, 2019 /CNW/ - kneat.com, inc. (TSXV: KSI) ("Kneat") today announced its financial results for the quarter ended June 30, 2019. All dollar amounts are presented in Canadian dollars unless otherwise stated.
Second Quarter Highlights
- Revenue of $528,812 was recognized during the three-months ended June 30, 2019 representing an increase of 299% over the same period in 2018. Year to date June 30, 2019 revenues totalling $942,535 are up 58% over the six-month period ended June 30, 2018.
- Annualized recurring revenues at June 30, 2019 increased by 58% to $1.1 million since March 31, 2019 and by 178% since June 30, 2018. The growth in recurring revenue continues to be driven primarily by an increase in SaaS deployments.
- During the quarter, two customers deployed our SaaS platform. Year to date, four customers have successfully gone live on our SaaS platform and two customers have started to scale their use of our on-premise solution. More go-live dates and expansions are expected in the coming months for both solutions.
- A leading company in the field of messenger RNA was announced as a new SaaS customer during the quarter. Deployment on the initial computer system validation processes has started, with go-live expected before the end of the year.
- Kneat appointed Mr. Rory Cameron to its Board of Directors in May. Mr. Cameron has over 15 years of strategic experience in the software industry and an extensive background in mergers, acquisitions and go-to-market operations.
- Kneat continues to add to its customer base by focusing on its sales and marketing campaigns, including a well-attended inaugural summit held in the United States in May.
- Throughout the second quarter, Kneat expanded its team across all functions in Europe and the United States in response to a growing list of customers and market opportunities.
- The sales pipeline is robust and continues to grow. We will continue to report on contract wins as they occur.
Chief Executive Officer Commentary
"We are pleased with progress across all areas of the business and in particular with the growth in annualized recurring revenues from our SaaS platform. As cloud solutions become more sought after in the life sciences industry, demand from our current and prospective customers for our SaaS platform remains strong," said Eddie Ryan, Chief Executive Officer of Kneat. "Our growing team remains dedicated to providing excellent customer service and developing quality software for our highly regulated life sciences customers."
Financial Results Summary for the Second Quarter
Net loss for the second quarter of 2019 was $1.8 million as compared to a net loss of $1.5 million for the same period in 2018. The increase in net loss was due primarily to increased salaries and benefits related to higher headcount on the professional services and development teams. In addition, the amortization of the intangible asset, a non-cash expense, increased over the prior year due to continued investment in our platform. Throughout the second quarter and for the remainder of the year we will continue to invest in our teams with a focus on the professional services team to drive customer deployments and expansions; and our development team to add functionality to our platform to expand our addressable market.
This press release should be read in conjunction with the unaudited condensed interim consolidated financial statements and management's discussion and analysis for the period ended June 30, 2019 which have been filed on SEDAR at www.sedar.com and Kneat's website at www.kneat.com.
Kneat, a Canadian company with operational headquarters in Limerick, Ireland, develops and markets the next generation Kneat Gx software 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.
Annualized recurring revenues 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 contracted 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 contracted 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 its customers, Kneat's business development activities, the use of Kneat's software within its customers' validation processes, the ability to scale the use of Kneat's software within its customers' organizations, the ability to sign new customer contracts, the recognition of the expected ARR 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 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.
For further information: Sarah Oliver, Chief Financial Officer, kneat.com, inc., 2001-1969 Upper Water Street, Halifax, NS, B3J 3R7, T: +353 61 203826, E: [email protected]