LIMERICK, Ireland, May 08, 2024 (GLOBE NEWSWIRE) -- kneat.com, inc. (TSX:KSI, OTC:KSIOF) ("Kneat" or the "Company") a leader in digitizing and automating validation and quality processes, today announced financial results for the three-month period ended March 31, 2024. All dollar amounts are presented in Canadian dollars unless otherwise stated. First-quarter 2024 total revenue reaches $10.8 million, an increase of 35% year over year Annual Recurring Revenue (ARR)1 at March 31, 2024 grows 57% year over year, to $42.1 million SaaS ARR1 at March 31, 2024 reaches $41.8 million, an increase of 59% year over year "Kneat is off to a solid start to what we expect to be another excellent year. Thousands of new licenses went to customers in the quarter, as many extended Kneat Gx to more sites and processes, and as new customers were added. Our pipeline is as strong as ever, after expanding and developing our sales team. And our team is making strides building Kneat Gx to make it the gold standard across all validation use cases for life science." -said Eddie Ryan, Chief Executive Officer of Kneat. Q1 2024 Highlights Total revenues increased 35% to $10.8 million in the first quarter of 2024, compared to $8.0 million for the first quarter of 2023. SaaS revenue for the first quarter of 2024 grew 52% to $9.7 million, versus $6.4 million for the first quarter of 2023. First-quarter 2024 gross profit was $7.9 million, up 48% from $5.4 million in gross profit for the first quarter of 2023. Gross margin in the first quarter of 2024 was 74%, compared to 67% for the first quarter of 2023. EBITDA1 in the first quarter of 2024 was ($0.5) million, compared with ($0.6) million for the first quarter of 2023. Adjusted EBITDA1 in the first quarter of 2024 was $0.6 million, compared with ($1.1) million for the first quarter of 2023. Net loss for the first quarter of 2024 was ($3.3) million, compared with ($2.5) million for the first quarter of 2023. Total ARR1, which includes SaaS license and recurring maintenance fees, was $42.1 million at March 31, 2024, an increase of 57% from $26.9 million at March 31, 2023. SaaS ARR1, the proportion of ARR attributable to SaaS licenses, was $41.8 million at the end of the first quarter of 2024, an increase of 59% from $26.3 million at March 31, 2023. In January 2024, Kneat announced that it signed a three-year Master Services Agreement with a global manufacturer of consumer health and wellness products. Headquartered in Europe, with over 35,000 employees and operations in more than 50 countries, the company's goal is to digitize and harmonize their equipment and computer systems validation processes across their North America, European and the Asia-Pacific manufacturing sites. Implementation is ongoing at lead sites in the UK and the US, with initial go-live expected in Q2 2024. In February 2024, Kneat announced that it signed a Master Services Agreement with a global provider of critical care products. Headquartered in the United States, with over 50,000 employees and operations in more than 20 countries, the company will leverage Kneat Gx beginning with its equipment validation processes. Implementation has begun at its lead site, and will follow at two additional sites, with initial go-live expected in Q3 2024. Also in February 2024, Kneat completed an equity financing through an agreement with a syndicate of investment dealers led by Cormark Securities for aggregate gross proceeds of approximately $20 million in exchange for 6,153,880 common shares from the treasury of the Company. "With our recent financing and solid performance in the first quarter, we are in a strong financial position to continue doing what we do best, that is, executing on our growth strategy." -said Hugh Kavanagh, Chief Financial Officer of Kneat.  Quarterly Conference Call Eddie Ryan, Chief Executive Officer of Kneat, and Hugh Kavanagh, Chief Financial Officer of Kneat, will host a conference call to discuss Kneat's first-quarter results and hold a Q&A for analysts and investors via webcast on Thursday, May 9, 2024, at 9:00 a.m. ET. Interested parties can register for the live webcast via the following link: Register here Supplementary and Non-IFRS Financial Measures The Company uses supplementary financial measures as key performance indicators in its MD&A and other communications. Management uses both IFRS measures and supplementary, non-IFRS 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 assess the expected recurring annual revenues from the customers that are live on the Kneat Gx platform at the end of the period. ARR is calculated using the licenses delivered to customers at the period end, multiplied by the expected customer retention rate of 100% and multiplied by the full agreed annual SaaS license or maintenance fee. 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. Software-as-a-Service Annual Recurring Revenue ("SaaS ARR") SaaS ARR is a component of ARR that is used by Kneat to assess the expected recurring revenues exclusively from license subscriptions to the Kneat Gx platform at the end of the period. SaaS ARR is calculated as the SaaS licenses delivered to customers at the period end, multiplied by the expected customer retention rate of 100% and multiplied by the full agreed SaaS license fee. 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. Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") EBITDA is calculated as net income (loss) attributable to kneat.com excluding interest income (expense), provision for income taxes, depreciation and amortization. We provide and use this non-IFRS measure of our operating performance to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. A reconciliation of EBITDA to IFRS financial measures is provided in the financial statements accompanying this press release. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") Adjusted EBITDA is calculated as net income (loss) attributable to kneat.com excluding interest income (expense), provision for income taxes, depreciation and amortization, foreign exchange gain or loss and stock-based compensation expense. We provide and use this non-IFRS measure of our operating performance to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures and to inform financial comparisons with other companies. A reconciliation of Adjusted EBITDA to IFRS financial measures is provided in the financial statements accompanying this press release. About Kneat Kneat Solutions provides leading companies in highly regulated industries with unparalleled efficiency in validation and compliance through its digital validation platform Kneat Gx. We lead the industry in customer satisfaction with an unblemished record for implementation, powered by our user-friendly design, expert support, and on-demand training academy. Kneat Gx is an industry-leading digital validation platform that enables highly regulated companies to manage any validation discipline from end-to-end. Kneat Gx is fully ISO 9001 and ISO 27001 certified, fully validated, and 21 CFR Part 11/Annex 11 compliant. Multiple independent customer studies show a 40% or more reduction in validation cycle times, nearly 20% faster speed to market, and 80% reduced changeover time. 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 the customer, Kneat's business development activities, the use and implementation timelines of Kneat's software within the customer's validation processes, the ability and intent of the customer to scale the use of Kneat's software within the customer's organization, our ability to win business from new customers and expand business from existing customers, our expected use of the net proceeds from the IPF Facility and/or any future offering, the anticipated effects of the IPF Facility and/or any future offering on our business and operations, and the compliance of Kneat's platform under regulatory audit and inspection. These and other assumptions, risks and uncertainties may cause Kneat's actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by forward-looking statements. Material risks and uncertainties relating to our business are described under the headings "Cautionary Note Regarding Forward-Looking Statements and Information" and "Risk Factors" in our annual MD&A dated February 21, 2024, under the heading "Risk Factors" in our Annual Information Form dated February 21, 2024 and in our other public documents filed with Canadian securities regulatory authorities, which are available at www.sedar.com. Forward-looking statements are provided to help readers understand management's expectations as at the date of this release and may not be suitable for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements. Kneat assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. 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 investor's own risk. For further information: Katie Keita, Kneat Investor RelationsP: + 1 kneat.com, inc. Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (expressed in Canadian dollars)     Three-month period ended     Mar 31, 2024 Mar 31, 2023 Revenue       SaaS License fees   9,718,501     6,387,635     On-premise license fees   -     436,126     Maintenance fees   70,589     151,094     Professional services and other   977,910     990,053   Total Revenue   10,767,000     7,964,908           Cost of Revenue   (2,834,015 )   (2,591,609 ) Gross Profit   7,932,985     5,373,299   Gross Margin   74 %   67 %         Expenses     Research and development   (4,045,548 )   (3,863,685 ) Sales and marketing   (4,031,684 )   (2,954,740 ) General and administrative