Kinaxis Reports Strong Q1 2025 Results, Bolstered by Record Customer Expansions and AI Innovations

Kinaxis Inc., a leading provider of supply chain orchestration solutions, reported strong financial results for the first quarter of 2025, ending March 31, 2025. The company showed a 11% increase in total revenue from $119.37 million in Q1 2024 to $132.79 million in Q1 2025, with even stronger growth in SaaS revenue, which rose 16% to $84.88 million. Subscription term licenses saw a significant increase of 34% to $9.03 million, while professional services revenue dipped slightly by 3%. Gross profit grew by 19% to $86.54 million, with the gross margin expanding from 61% to 65%. Adjusted EBITDA grew by 46% to $33.14 million, and Adjusted EBITDA margin expanded to 25%, up from 19% in the same period last year. The company's profit and earnings per share also hit record levels, with profit increasing by 157% to $15.91 million and earnings per share rising from $0.21 to $0.55. Kinaxis' Annual Recurring Revenue (ARR) grew 14% to $372 million, driven by robust performance in new and expansion business. The company's revenue visibility, represented by unsatisfied performance obligations, stands at $811.7 million, with the majority ($766.5 million) expected to be recognized over the next three years through SaaS, maintenance, and support services. Bob Courteau, the interim CEO of Kinaxis, highlighted the solid new business in Q1 and record levels of expansions from existing customers, despite global market uncertainties caused by tariffs. He noted the successful launch of the company's flagship event, Kinexions, in April, which attracted over 1,000 supply chain experts from major corporations like ExxonMobil, General Motors, Pfizer, and Colgate-Palmolive. Attendees had the opportunity to experience the latest generative and agentic AI capabilities of Kinaxis' Maestro platform, set for broader subscription availability in the second half of 2025. Additionally, the company launched a new Tariff Response offering, receiving positive feedback from prospective customers. Blaine Fitzgerald, the CFO, emphasized that Kinaxis achieved its third consecutive Rule of 40 quarter, a metric indicating the company’s ability to balance growth and profitability. He noted the record levels of profit, earnings per share, and Adjusted EBITDA, underscoring the company's improved financial health. Despite the challenges posed by volatile tariffs, Fitzgerald is confident about the company's fiscal 2025 guidance, which projects total revenue between $535 million and $550 million, with SaaS revenue growth of 11-13% and an Adjusted EBITDA margin of 23-25%. Kinaxis' strong Q1 performance reflects its leadership in leveraging AI technologies to address supply chain complexities. Industry insiders commend the company's innovative approach to supply chain management, particularly its focus on transparency and agility. The launch of Maestro’s advanced AI features and the Tariff Response offering are seen as significant steps in maintaining Kinaxis' competitive edge and supporting its vision of modern supply chain orchestration. Kinaxis Inc. is a global leader in supply chain orchestration, known for its AI-infused platform, Maestro, which provides full transparency and agility across the supply chain. Trusted by major brands, Kinaxis aims to power complex global supply chains and support the professionals managing them. The company’s commitment to innovation and customer success is evident in its consistent financial growth and positive market reception of its new offerings. With a strong foundation and robust product suite, Kinaxis is well-positioned to continue delivering value to its clients and driving industry advancements.