Kneat Announces Record SaaS Revenue in Q1 2022


First-quarter revenue increases 121% year-on-year to reach $5.2 million

Q1 SaaS revenue up 156% YoY $3.3 million

Recurring annual revenue (ARR) increases by 134% to reach $13.4 million

LIMERICK, Ireland, May 11, 2022 /CNW/ –, inc. (TSX: KSI) (“Kneat” or the “Company”) a leader in digitizing and automating validation processes, today announced its financial results for the three-month period ended March 31, 2022. All dollar amounts are presented in Canadian dollars, unless otherwise indicated.

“I’m proud of our team as we continue to deliver strong year-over-year growth in the first quarter, highlighted by 156% growth in SaaS revenue and a 134% increase in revenue. annual recurring.1 in the first quarter of 2021, ” mentioned Eddie RyanCEO of Knee. “Our diverse and rapidly growing customer base is proof that Kneat’s platform is a preferred solution in the industry.”

Mr. Ryan added, “The first quarter marked a strong start to the year for Kneat. Our investment in sales and marketing continued to drive strong new customer activity. Today, we have 57 contract customers and the largest pipeline of potential customers in our history.Our customer base includes 8 of the top 10 and the majority of the top 20 pharmaceutical companies, several leading consumer packaged goods companies, and large and small suppliers to these organizations. select a system to manage their global validation, which is a critical regulated business function.This is a long-term investment decision, so they carefully evaluate relevant market offerings before selecting their preferred solution. We are proud of the trust of these world leaders to help them deliver their highly regulated products to their customers in an efficient way. efficient and effective. to the highest quality standard. We are now leveraging more than a decade of investment in our platform and a growing customer reference base to accelerate commercialization at all levels of the life science and consumer packaged goods industries. »

First Quarter 2022 Financial Highlights

  • Total revenues increased by 121% to reach $5.2 millioncompared to $2.4 million for the first quarter of 2021.
  • SaaS revenue increased 156% to $3.3 millionversus $1.3 million for the first quarter of 2021.
  • Gross margin increased by 201% to $3.3 millioncompared to $1.1 million for the first quarter of 2021. Gross profit margin was 63%, compared to 46% for the first quarter of 2021. This improvement in gross margin reflects the significant growth in revenues, including certain one-time site license revenues, offset by a lower increase in the cost of related products.

1 Annual Recurring Revenue (“ARR”) is an additional financial metric. See the “Additional Financial Measures” section below for more information.

Additional financial measures

  • Total ARR1which includes SaaS license and maintenance fees, has been $13.4 million to March 31, 2022an increase of 134% compared to $5.7 million to March 31, 2021.
  • ARR SaaS1the proportion of ARR attributable to SaaS licenses, was $12.4 million to March 31, 2022an increase of 153% compared to $4.9 million to March 31, 2021.

“With a strong balance sheet, we are focused on execution across all areas of the business, to drive continued growth and value creation for our shareholders.” mentioned Hugh KavanaghCFO of Kneat.

Recent Business Highlights

  • In March, the company announced that a European national health service had chosen Kneat as its enterprise solution for managing laboratory equipment validation.
  • In March, the company announced that a top ten biopharmaceutical company had chosen Kneat as its enterprise platform.
  • In March, the company announced that it had signed a contract with a major Canadian generic pharmaceutical manufacturer.
  • In January, the company announced that it had signed on to the US subsidiary of one of the world’s 15 largest consumer packaged goods companies.

Quarterly conference call

Mr. Eddie RyanChairman and CEO of Kneat, and Mr. Hugh KavanaghChief Financial Officer of Kneat, will host a conference call to discuss Kneat’s first quarter results and will host a Q&A session for analysts and investors via webcast on May 12, 2022to 10:00 a.m. ET (15:00 GMT).

1 Annual Recurring Revenue (“ARR”) is an additional financial metric. See the “Additional Financial Measures” section below for more information.

Interested parties can register for the live webcast via the following link:


Or participate by teleconference

Ireland +353 15 360 755
Canada +1 (647) 497-9389
United States +1 (562) 247-8421
UK +44 20 3713 5012

If you are attending via teleconference, please register at the link above to access the dial-in PIN required to attend. The call PIN is available in your confirmation email.

Additional financial measures

The Company uses additional financial measures as key performance indicators in its MD&A and other communications. Management uses both IFRS measures and supplemental financial measures as key performance indicators when planning, monitoring and evaluating the Company’s performance.

Annual Recurring Revenue (“ARR”)

ARR is used by Kneat to gauge the recurring revenue expected from customers who are live on the Kneat Gx platform at the end of the period. ARR is calculated as the licenses delivered to customers at the end of the period, multiplied by the expected customer retention rate of 100%, and multiplied by the total agreed SaaS license or maintenance fee. Since many of the customer contracts are denominated in currencies other than Canadian dollars, the Canadian dollar equivalent is calculated using the related period-end exchange rate multiplied by the contract currency amount.

About Knee

Kneat, a Canadian company with operational headquarters in Limerick, Ireland, develops and markets the next-generation Kneat Gx SaaS platform. Several business work processes can be configured on the platform, from equipment validation to IT system validation to quality document management. Kneat’s software allows users to create, review, approve, run online tests, manage all exceptions, and post-approve final deliverables in a controlled platform that is FDA 21 CFR Part 11/Eudralex Annex 11 compliant. Macro and micro reporting dashboards allow powerful monitoring of all systems, projects and processes globally. Customer case studies report productivity improvements greater than 100% and a higher standard of data integrity and compliance. For more information visit

Cautionary and forward-looking statements

Except for statements of historical fact contained herein, certain information presented constitutes “forward-looking information” within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, the relationship between Kneat and the customer, Kneat’s business development activities, timelines for the use and implementation of Kneat’s software as part of the validation processes of the Customer, Customer’s ability and intent to evolve Kneat’s software usage within Customer’s organization, and Kneat’s platform compliance through audit and regulatory inspections. Although these forward-looking statements are made by Kneat, as set forth in this release, in good faith and believed by Kneat to have a reasonable basis, they are subject to significant risks and uncertainties. Due to these risks and uncertainties, the events predicted in these forward-looking statements may differ materially from actual results or events. These forward-looking statements are not guarantees of future performance, as they involve risks and uncertainties.

The forward-looking information contained in this press release does not include a full assessment or consideration of the unprecedented impacts of the COVID-19 pandemic occurring since the first quarter of 2020 and the ongoing and developing indirect global and regional economic impacts that result. This has resulted in significant economic uncertainty and while the Company has not experienced any material impact to its operations to date, any potential impact on our future is difficult to understand or measure at this time.

Kneat undertakes no obligation to release revisions to any forward-looking statements, except as may be required under applicable securities laws. Investors should not assume that any failure to update a previously issued forward-looking statement constitutes a restatement of that statement. Any continued reliance on forward-looking statements is at the investors’ own risk.

SOURCE, inc.

For more information: Hugh Kavanagh, Chief Financial Officer, +353 61 203826, [email protected]; James Bowen, Knee Investor Relations, +1 416 519 9442, [email protected]


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