Shares of Kinaxis Inc. (TSX:KXS) were up 10.1% in late trading on November 2nd. Kinaxis is a company that specializes in provided cloud-based solutions to modernize supply chain planning. The company released its third quarter results today.
Revenue climbed 12% to $33.5 million and subscription revenue was up 24% to $25.8 million. Subscription revenue saw a bump due to procurement of new contracts and an expansion of existing subscriptions. Adjusted EBITDA made up 32.8% of revenue – totaling $10.8 million. Gross profit totaled 71% of revenue at $23.8 million – up 16%. Net income was $6 million or $0.24 per share.
The results are welcomed after second quarter earnings brought the stock down significantly. Year-over-year revenues and profits were up, but an adjustment in the 2017 forecast due to a lost Asia-based client hurt investors sentiment. As of this writing the stock is still down 13% since before the release of its second quarter results.
Kinaxis has been a top shelf growth stock since its initial public offering in June 2014. Shares have climbed 437% since its IPO and 11.8% in 2017. As businesses worldwide adopt new strategies to revolutionize supply chains Kinaxis technology will continue to be in high demand.
As far as growth stocks are concerned this is still a premium option on the Toronto Stock Exchange and it is still trading at a low price considering its recent results. Investors should feel good about buying and holding this one for the long term.
