Kneat.com (KSI) Q2 2024 earnings summary

Executive summary

• Annual recurring revenue (ARR) rose 60% year-over-year to CAD 45.4 million in Q2 2024, with SaaS license fee revenue up 54% to CAD 10.8 million and total revenue up 45% to CAD 11.7 million compared to Q2 2023.

• Gross margin improved to 74% in Q2 2024 from 66% in Q2 2023.

• Net loss narrowed to $3.1 million in Q2 2024 from $5.4 million in Q2 2023.

• Growth was driven primarily by expansions within existing customers, with new customer additions and a balanced geographic split between the U.S. and Europe.

• Launched Kneat Gx 9.2 and signed a strategic partnership with Körber in Q2 2024.

Financial highlights

• Q2 2024 total revenue: $11.7 million (+45% year-over-year); SaaS revenue: $10.8 million (+54%).

• Q2 2024 gross profit: $8.7 million (+63% year-over-year); gross margin: 74% (vs. 66%).

• Q2 2024 EBITDA: $0.5 million (vs. -$3.5 million); Adjusted EBITDA: $1.6 million (vs. -$1.3 million).

• SaaS license revenue for the first half of 2024 grew 53% year-over-year to CAD 20.6 million, outpacing overall revenue growth.

• Professional services revenue was CAD 0.8 million, lower than the prior year as partners take on more services.

Outlook and guidance

• Management expects continued business momentum and growth in 2024, focusing on scaling with new users, customers, and features.

• No specific quantitative guidance was provided, but the company anticipates further growth in ARR and SaaS revenue, with partners playing an increasing role.