Overview

* Kneat Q2 revenue rises 32% yr/yr to CAD 15.4 mln, misses expectations

* Gross margin improves to 75% from 74% in Q2 2024

* Net loss narrows to CAD 0.4 mln from CAD 3.1 mln in Q2 2024

Result Drivers

* NEW CUSTOMER WINS - Kneat attributes revenue growth to new customer acquisitions, per CEO Eddie Ryan

* SAAS REVENUE - SaaS revenue grew 31% yr/yr, contributing significantly to total revenue increase

* ARR GROWTH - Annual Recurring Revenue rose 43% yr/yr, indicating strong demand for Kneat's services

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss C$15.40 C$16.20

Revenue mln mln (4

Analysts

)

Q2 Gross 75.0%

Margin

Q2 Gross C$11.60

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Kneat.com Inc ( KSIOF ) is C$8.50, about 33.8% above its August 1 closing price of C$5.63

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)