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Kaleyra (KLR): Q3 2021 Financial Results

Kaleyra (KLR): Q3 2021 Financial Results
  • Kaleyra, Inc. (NYSE: KLR) (NYSE American: KLR WS) recently announced its Q3 2021 financial results. These are the details.

Kaleyra, Inc. (NYSE: KLR) (NYSE American: KLR WS) – a rapidly growing cloud communications software provider delivering a secure system of application programming interfaces (APIs) and connectivity solutions in the API/Communications Platform as a Service (CPaaS) market – recently announced its Q3 2021 financial results. 


Recent Operational and Financial Highlights


— Revenue of $84 million, representing growth of 56% over the previous quarter and 120% over the comparable year-ago period.


— Gross profit of $19.6 million, representing growth of 87% over the previous quarter and 161% over the comparable year-ago period.


— Delivered 13.5 billion billable messages and connected 1.5 billion voice calls for a global customer base of over 3,800 customers.


— Uplisted to the New York Stock Exchange under the symbol: “KLR.”


— Entered a warrant repurchase agreement (1,684,470 warrants) with a group of institutional investors, enabling the company to further simplify its capital structure and support the business’ long-term financial health and operational success.


Q3 2021 Financial Results


— Results compare the 2021 fiscal third quarter ended September 30, 2021, to the 2020 fiscal third quarter ended September 30, 2020, unless otherwise indicated.


— Total revenue increased 120% to $84 million from $38.3 million in the comparable year-ago period and increased 56% from $54 million in the previous quarter. The growth during the quarter was driven by the completed integration of the mGage and Bandyer businesses, as well as strong organic revenue growth across channels and a well-balanced portfolio across geographies.


— Gross profit increased 161% to $19.6 million from $7.5 million in the comparable year-ago period and increased 87% from $10.5 million in the previous quarter. This increase was driven by an increase in revenues for the quarter that outpaced cost increases. The gross margin for the third quarter of 2021 increased to 23% compared to 20% for the third quarter of 2020. The increase in gross margin was mainly due to the mGage and Bandyer integrations and increased performance by Kaleyra video and Kaleyra voice, as well as by the Campaign Registry.


— Net loss totaled $11.9 million, or $0.29 per share based on 41.6 million weighted-average shares outstanding, compared to a net loss of $5.3 million, or $0.19 per share based on 28.3 million weighted-average shares outstanding, in the comparable year-ago period. This represented a 164% increase from $4.5 million in the previous quarter. The increase in net loss was mainly due to the amortization of acquired intangibles and the accrued interest expense on convertible notes.


— Adjusted gross profit, a non-GAAP measurement of operating performance reconciled below, increased 174% to $21 million from $7.7 million in the comparable year-ago period and increased 88% from $11.1 million in the previous quarter. Adjusted gross margin for the third quarter of 2021 was 25% compared to 20% in the comparable year-ago period.


— Adjusted Net Income, a non-GAAP measurement of operating performance reconciled below, increased 306% to $3.6 million, or $0.09 per basic share and $0.07 per diluted share based on 41.6 million and 52.4 million weighted-average shares outstanding, respectively, from $891,000, or $0.03 per basic share and $0.02 per diluted share based on 28.3 million and 45.1 million weighted-average shares outstanding, respectively, in the comparable year-ago period. This represented a 618% increase from $504,000 in the previous quarter.


— Adjusted EBITDA increased 273% to $8 million (9.5% of total revenue) compared to $2.2 million (5.6% of total revenue) in the comparable year-ago period and increased 271% from $2.2 million in the previous quarter. The increase in Adjusted EBITDA was primarily due to the effects of the business combinations with mGage and Bandyer and cost synergies between the two legacy businesses.


— At the end of the third quarter, cash and cash equivalents, restricted cash, and short-term investments were $108.5 million, compared to $37.8 million as of December 31, 2020.


Financial Outlook


Kaleyra’s outlook takes into consideration the integration of acquired businesses into the company as well as continued monitoring of the impact of the COVID-19 pandemic. And Kaleyra remains confident in its growth strategy and ability to capture its multinational market opportunity. As a result of the company’s strong performance in the third quarter, the Company is updating its financial projections for the fourth quarter and full-year 2021 as follows:


— Fourth Quarter 2021 Guidance: Total revenue is expected to be in the range of $87 – $89 million.


— Full Year 2021 Guidance: Total revenue is expected to be in the range of $264.7 – $266.7 million, representing an increase of the previously communicated guidance, including the revenue from mGage since its acquisition closed on June 1, 2021.


KEY QUOTES:


“After several quarters of strong execution against our long-term growth strategy, including focused investments that expand our global presence and enhance our omnichannel offering, Kaleyra has taken meaningful steps toward realizing our vision of becoming the leading, global CPaaS provider. This quarter, our recently completed mGage integration vastly improved our international revenue footprint; investments in new channels led to encouraging developments in both Kaleyra video and voice; and our continued commitment to providing reliable service strengthened our loyal partner base.”


“This past quarter was proof that our growth strategy is working, as we exceeded our own expectations with total revenue growth of 120% year-over-year, including 30% organic revenue growth, and an increase in our gross margin to 23%, a new quarterly record. This performance, as well as an encouraging outlook for the fourth quarter and beyond, leads us to increase our revenue guidance for the fourth quarter. At Kaleyra, we look forward to building on our positive momentum as we continue on our journey to become the trusted partner in the rapidly expanding and evolving CPaaS market.”


— CEO Dario Calogero


Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.