KXS reported EPS of $0.713 beating estimates of $0.435 and revenues of $146.827M beating estimates of $145.489M. Sales rose by 21%, and its SaaS revenue grew by 26%. Its ARR rose by 18% and Adjusted EBITDA increased by 54%. Management noted that the demand for supply chain management software continues to be strong, and it increased guidance to reflect higher profitability and subscription-term license revenue. Gross margins declined slightly from 62% for the same period in the prior year to 60%, although its Adjusted EBITDA margins climbed from 17% to 21%. It improved its balance sheet, and its profit margins rose on an increase in its operating leverage. Guidance calls for an Adjusted EBITDA margin of 16% to 18%, SaaS growth of 24% to 25%, and total revenue of $425M to $435M.
These were strong results and management announced a buyback plan to purchase up to 5% of shares. With a buyback program in place and good guidance, we feel that KXS can see support for its shares over the next year.