Kinaxis

Kinaxis is a supply chain management and sales and operation planning software company based in Ottawa, Ontario. It is listed on the Toronto Stock Exchange and is a S&P/TSX Composite Component.

Kinaxis Inc.
Public
Traded as
IndustryIT services
Founded1984 (1984)
FoundersDuncan Klett and 2 others
Headquarters700 Silver Seven Rd Kanata, ,
Area served
Worldwide
Key people
  • John Sicard (President and CEO)
  • Paul Carreiro (Chief Revenue Officer)
  • Richard Monkman (Chief Financial Officer)
ServicesSupply Chain Management Sales and Operation Planning
Revenue US$ 191.5 million (2019)[1]
US$ 23.3 million (2019)[1]
Total assets US$ 350.7 million (2019)[1]
Total equity US$ 230.1 million (2019)[1]
Number of employees
500
Websitewww.kinaxis.com

The company was founded in 1984 by Duncan Klett and two others as Cadence Computer Corporation[2] and went public in June 2014.[3] It has 500 employees.[4]

Business

Kinaxis provides supply-chain-management software on a subscription basis, primarily to large, multinational companies. Customers include Ford, Cisco, Qualcomm, and Avaya.[5] They also provide related professional services to their customers. Contracts typically run for two to five years.[4] Their main product is called RapidResponse.[6] As of 2017, approximately 77% of revenue came from subscriptions, with the remainder from professional services.[7] Kinaxis also allows other companies, including Deloitte and Bain & Company, to install Kinaxis software for a percentage of the subscription revenues.[4] Kinaxis runs two data centers in South Korea. It has approximately 100 customers and about 5% of an estimated $4 billion market for software related to supply chain planning.[8][9] As of 2016, 85% of revenue was from US customers, 4% from Canadian customers, 8% from Asian customers, and the rest from European customers.[7] Competitors in the supply chain management software industry include SAP SE and JDA Software.[10] In 2017, a significant customer in Asia stopped paying, leading to a 3% reduction in revenue for the company.[4]

History

Kinaxis was founded in 1984 as Cadence Computer Corporation, to do supply-chain analysis of using custom mainframe computers, by three former Mitel engineers.[9] The name was later changed to Carp Systems International (after the nearby Carp River), then Enterprise Planning Systems.[4] In the mid 1990s, it changed its name to Webplan, and shifted from making hardware to providing software.

Recent history

In 2000, it led a venture round that raised $33 million.[9] In 2005, it renamed itself Kinaxis, and started focusing on selling software by subscription, as opposed to collecting a one-time fee.[9] In June 2014, it held an IPO on the Toronto Stock Exchange, raising a total of $100 million.[11] Since then, its market capitalization has increased to $1.7 billion, as of August 2017.[4]

References

  1. "Kinaxis" (PDF). Shopify. Retrieved May 22, 2020.
  2. Klett, Duncan. "A short history of Kinaxis. | The 21st Century Supply Chain". blog.kinaxis.com. Retrieved 2017-11-30.
  3. "Supply Chain Management and S&OP Solution Company - Kinaxis RapidResponse". www.kinaxis.com. Retrieved 2017-11-30.
  4. Bagnall, James (August 13, 2017). "Kanata's Kinaxis takes a rare hit, but still 'punching giants in the nose'". The Ottawa Citizen.
  5. "Kinaxis Customers Achieve Operations Performance Breakhroughs with RapidResponse". www.kinaxis.com. Retrieved 2017-11-30.
  6. "How Kinaxis harnesses the cloud to tame global supply chains". Canadian Business. February 29, 2016.
  7. "Kinaxis 2016 Annual Report". Kinaxis Inc.
  8. "Is Kinaxis a buying opportunity?". Globe & Mail.
  9. Silcoff, Sean. "Ottawa software firm Kinaxis is finally ready for its big moment". The Globe and Mail.
  10. Paradza, Brian (November 8, 2017). "Kinaxis Inc. Shares Rise +14% in 2 Days". The Motley Fool.
  11. "Kinaxis eyes acquisitions in wake of IPO". Ottawa Business Journal. June 12, 2014.
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