Q2 2025 Kinaxis Inc Earnings Call Transcript
Key Points
- Kinaxis Inc (KXSCF) achieved its highest ever Q2 new business wins, with ARR growing 15% as reported.
- SaaS revenue increased by 17%, demonstrating strong growth and leading to an increase in fiscal 2025 guidance for SaaS revenue growth.
- The company achieved a record adjusted EBITDA margin of 25%, marking the fourth consecutive quarter of Rule of 40 performance.
- Kinaxis Inc (KXSCF) added several new enterprise customers across multiple verticals, including notable wins in consumer products and life sciences.
- The company is actively developing AI capabilities, such as generative and Agentic AI, which are expected to enhance product differentiation and customer outcomes.
- Professional services revenue growth was modest at 2%, reflecting lower-than-expected billable rates due to a competitive environment.
- Professional services gross margin decreased to 23% from 27%, influenced by market conditions and a shift towards partner-led delivery.
- The company is experiencing a more competitive environment, which has impacted professional services billable rates.
- There is uncertainty in the global trade environment, which could affect future business performance.
- The CEO search is ongoing, with the company seeking a leader who can capitalize on AI opportunities, indicating potential leadership instability.
Good morning, and welcome to the Kinaxis Inc. Fiscal 2025 Second Quarter Results Conference Call. (Operator Instructions) I'd like to remind everyone that this call is being recorded today, Thursday, August 7, 2025.
And I will now turn the call over to Rick Wadsworth, Vice President of Investor Relations at Kinaxis. Please go ahead, Mr. Wadsworth.
Thanks, operator. Good morning, and welcome to the Kinaxis earnings call. Today, we will be discussing our second quarter results, which we issued after close of markets yesterday. With me on the call are Bob Courteau, Interim CEO and Chair; and Blaine Fitzgerald, our Chief Financial Officer.
Some of the information discussed on this call is based on information as of today, August 7, 2025, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking
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