Kinaxis (TSX:KXS) debuted on the TSX back in June 2014. The Ottawa-based company provides cloud-based subscription software for supply chain operations around the world. Shares of this top tech stock have dropped 1.8% in 2022 as of late afternoon trading on April 7. However, the stock is still up 10% from the previous year.
Last year, Allied Market Research released a report on the state of the supply chain management market. It projected that the market would deliver a CAGR of 10% through to 2030. One of the hurdles for growth in supply chain management software is the lack of IT infrastructure in underdeveloped countries. Regardless, this is a space that is worth targeting going forward.
The company released its fourth quarter and full-year 2021 results on March 1, 2022. In Q4 2021, it delivered total revenue growth of 25% to $68.5 million. Meanwhile, gross profit jumped 26% to $43.8 million. Moreover, adjusted EBITDA jumped 85% to $11.2 million.
For the full year, Kinaxis posted total revenue growth of 12% to $250 million. Meanwhile, gross profit has jumped 6% to $163 million. Unfortunately, adjusted EBITDA declined 26% from the prior year to $39.8 million. For its fiscal 2022 guidance, the company is projecting total revenue between $335-345 million. Moreover, it expects an adjusted EBITDA margin between 15-18%.
I’m still excited about this top tech stock in the first half of April 2022. It is still trading in favourable value territory compared to its industry peers.
