Kinaxis, Inc. · TSX:KXS
Kinaxis — Investor Presentation (August 2020)
20 slides from Kinaxis's investor presentation, August 2020
Slide 1: Kinaxis Investor Overview
Kinaxis Investor Overview TSX:KXS August 2020 PRESENTED BY Rick Wadsworth | VP, IR 1
Slide 2: Forward looking statements
Forward looking statements Forward-Looking Information Non-IFRS Measures This document contains forward-looking statements within the meaning of applicable Canadian securities legislation. In This document makes reference to certain non-IFRS measures, specifically Adjusted EBITDA. These non-IFRS som
Slide 3: Know sooner. Act faster. Supply chain planning, monitoring and response
• Know sooner. Act Faster. Supply chain planning, monitoring and response. • Eliminating volatility in your supply chain is impossible, but managing it is not. • Trusted by top brands, Kinaxis is the leading provider of cloud-based, software-as-a-service (SaaS) solutions that give people the confide
Slide 4: Investment highlights
Investment highlights 1 Industry-recognized, disruptive SaaS product in a growing market 2 Growing blue chip customer base 3 Growing list of partners providing scale 4 Rapid revenue growth, strong profitability and good visibility 5 Strong leadership team Copyright © 2019 Kinaxis. All Rights Reserve
Slide 5: High-growth SaaS model
High-growth SaaS model Rapid revenue growth and strong profitability $US Millions 212.6 191.5 181.5 158.5 150.7 133.3 118.9 127.9 116 Margin 100.8 99.3 97.2 91.3 33% 25% 30% 28% 30% 81.8 57.7 65.2 ** Note: 40.1 41.7 Results for 2018 and 30 28.5 after impacted by change to IFRS 15 standard Total Reve
Slide 6: Concurrent planning balances the end-to-end supply chain
Concurrent planning instantly and continuously balances the end-to-end supply chain S D I Inventory Capacity Demand Supply S&OP KINAXIS S C Old way Our way • Cascaded • Concurrent • Static and siloed • Real-time and integrated single system • Slow and difficult to respond to change • Fast proactive
Slide 7: Proven across multiple market verticals
Proven across multiple market verticals LIFE SCIENCES AND HIGH TECH AND CONSUMER RETAIL PHARMACEUTICALS ELECTRONICS PACKAGED GOODS AEROSPACE AUTOMOTIVE INDUSTRIAL AND DEFENSE Copyright © 2019 Kinaxis. All Rights Reserved. 7
Slide 8: Today's global marketplace is complex and volatile
Today’s global marketplace is complex and volatile Short and Brand SKU Global, multi- Unexpected dynamic pressure explosion tier sourcing events demand Omni-channel Short delivery Distribution Shifting growth lead time cost increase regulations Slide 8 Copyright © 2019 Kinaxis. All Rights Reserved.
Slide 9: Rapidly growing market for SaaS-based SCM solutions
Rapidly growing market for SaaS-based SCM solutions 1 Kinaxis’ market opportunity 2 2022 $10.5B > 100 Current customers 22.4% 3,000 2 CAGR Opportunities in 2017 current market 5,000 verticals served 2 SaaS Application Total potential Market in SCM $3.8B opportunities 1 Forecast: Supply Chain Managem
Slide 10: Market leader
Market leader Magic Quadrant for Supply Chain Planning System of Record1 3rd consecutive year in Leaders Quadrant. Positioned furthest on Completeness of Vision 3rd consecutive year as Leader. Highest on Greater Usability This graphic was published by Gartner, Inc as part of a larger research docume
Slide 11: Innovative leaders partner with Kinaxis
Innovative leaders partner with Kinaxis Aerospace & Consumer High Tech / Automotive Industrial Life Sciences Defense Products Electronics 11
Slide 12: Actual customer results
Actual customer results Happier customers Lower costs Better efficiency Faster decision-making Copyright © 2019 Kinaxis. All Rights Reserved. 12
Slide 13: Kinaxis partner ecosystem
Kinaxis partner ecosystem Alliance partners Resellers Technology partners Referral partners 13
Slide 14: Business model provides visibility, stability & growth
Business model provides visibility, stability & growth VISIBILITY STABILITY ~ 80 % >100 % FORWARD TWELVE-MONTH REVENUE NET REVENUE DOLLAR RETENTION SUSTAINABILITY SUBSCRIPTION REVENUE GROWTH 2-5 ~ 65 % | 35 % FROM NEW NAME ACCOUNTS ~ FROM EXISTING CUSTOMERS Multiple levers in revenue model: YEAR CON
Slide 15: Financial results, Q2 2020
Financial results, Q2 2020 $USD thousands Q2 2020 Q2 2019 Change Total Revenue $61,373 $42,352 45% SaaS 35,741 28,283 26% Subscription Term Licenses 10,003 2,414 314% Gross Profit 45,739 29,368 56% (margin) (75%) (69%) Profit 9,004 4,001 125% (per share) ($0.32/diluted share) ($0.15/diluted share) A
Slide 16: Strong backlog
Strong backlog SaaS backlog Total Backlog 400 ↑35% $339.4 $344.9 $333.0 Growth v. Q2 2019 300 $310.6 $310.8 $302.7 ↑32% $289.7 $247.3 $246.9 $229.3 200 ~$72 million of Q2 2020 SaaS backlog converts to revenue in 2020 100 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Copyright © 2019 Kinaxis. All Rights Re
Slide 17: Financial guidance, FY 2020
Financial guidance, FY 2020 FY 2020 guidance Total revenue $216-220 million SaaS revenue 23-25% growth Subscription term license revenue $16-17 million Adjusted EBITDA margin1 20-23% of revenue 1. Adjusted EBITDA is a non-IFRS measure. For reconciliation of Adjusted EBITDA to profit, please see “Man
Slide 18: Building the Team for Acceleration
Building the Team for Acceleration Management Board John Sicard, Chief Executive Officer Ian Giffen (Chair) • Key contributor to the architecture and development • Serves as an advisor and/or director to technology companies of Kinaxis since 1994 and investment funds • Corporate Director to public a
Slide 19: Kinaxis growth focus
Kinaxis growth focus M U LT I P L E O P P O R T U N I T I ES TO I N C R E A S E M A R K E T P E N E T R AT I O N 1 Continuous customer value - land & expand 2 Expand geographic market focus 3 Invest in further product innovation 4 Leverage channel partners for scale and reach 5 Penetrate new vertica
Slide 20: Thank you
Thank you 20