Canada NewsWire
HALIFAX, May 28, 2019
HALIFAX, May 28, 2019 /CNW/ - kneat.com, inc. (TSXV: KSI) ("Kneat") today announced its financial results for the quarter ended March 31, 2019. All dollar amounts are presented in Canadian dollars unless otherwise stated.
First Quarter Highlights
Chief Executive Officer Commentary
"Building on a productive year of customer wins in 2018, Kneat continued in the first quarter to deliver high quality services, taking new customers live, releasing significant software enhancements and building our teams to deal with anticipated future demand," said Eddie Ryan, Chief Executive Officer of Kneat. "With growing market awareness of Kneat and a more powerful platform, we are excited by the level of engagement that we are seeing. In 2019 we anticipate adding new clients while investing in the business to serve our growing list of customers and adding new functionality to our platform to address a broader market."
Financial Results Summary for the First Quarter
Net loss for the first quarter of 2019 was $1,970,470 as compared to a net loss of $560,499 for the same period in 2018. The increase in net loss of $1,409,931 was due primarily to an increase in unrealized foreign exchange loss of $1,030,021 on intercompany and cash balances denominated in foreign currencies. In addition, net loss was increased by higher headcount and related overhead costs across all operating teams compared to the quarter ended March 31, 2018. Kneat invested heavily in hiring key team members and will continue to do so throughout 2019 to meet the demands of our growing customer list and expanding addressable market. The majority of our customers are still in the early stages of implementing and scaling Kneat's platform.
About Kneat
Kneat develops and markets the next generation Kneat Gx software platform. Multiple business processes can be configured on the platform from equipment to computer system validation, through to quality document management. Kneat's software allows users to author, review, approve, execute testing online, manage any exceptions and post approve final deliverables in a controlled FDA 21 CFR Part 11/ Eudralex Annex 11 compliant platform. Macro and micro report dashboards enable powerful oversight into all systems, projects and processes world wide. Customer case studies are reporting productivity improvements in excess of 100% and a higher data integrity and compliance standard. For more information visit www.kneat.com.
Non-GAAP measure
Annualized recurring revenues is used by Kneat to assess the expected annual recurring revenue from the customers that are live on Kneat Gx at the end of the period. Annualized recurring revenue is calculated as the licenses delivered to customers at the period end, multiplied by the expected customer retention rate of 100% and multiplied by the contracted annual SaaS license fee or maintenance fee at the related quarter end. Since many of the customer contracts are in currencies other than the Canadian dollar, the Canadian dollar equivalent is calculated using the related period end exchange rate multiplied by the contracted currency amount.
Cautionary and Forward-Looking Statements
Except for the 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 its customers, Kneat's business development activities, the use of Kneat's software within its customers' validation processes, the ability to scale the use of Kneat's software within its customers' organizations, the ability to sign new customer contracts, the recognition of the expected ARR and the compliance of Kneat's platform under regulatory audit and inspection. While such forward-looking statements are expressed by Kneat, as stated in this release, in good faith and believed by Kneat to have a reasonable basis, they are subject to important risks and uncertainties. As a result of 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, given that they involve risks and uncertainties. Kneat does not undertake any obligation to release publicly revisions to any forward-looking statement, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at an investors' own risk.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE kneat.com, inc.
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