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Kneat Kneat Reports Record Revenues and Gross Margin Expansion for Q2 2021 Q2 Revenues increase 104 % to $ 3.15 million SaaS Revenues increase 170 % to $ 1.72 million Annual Recurring Revenue increases 141 % to $ 7.98 million LIMERICK , Ireland , Aug. 10 , 2021 / CNW / - kneat.com , inc . ( TSXV : KSI ) ( " Kneat or the Company " ) a leader in digitizing and automating validation processes , today announced its strong financial results for the three and six - month periods ended June 30 , 2021. All dollar amounts are presented in Canadian dollars unless otherwise stated . " During the second quarter , we continued to execute against our key priority , driving recurring SaaS license fees . SaaS revenues increased 170 % compared with the second quarter of 2020. In keeping with our trend , Q2 delivered strong growth in both annual recurring revenue , which grew 141 % since June 30 , 2020 , and total revenues , which grew 104 % over Q2 2020 , as demand for our solution is increasing , " said Eddie Ryan , Chief Executive Officer of Kneat . " Our SaaS revenue growth is driven by the acquisition of new customers as well as expansion within our existing customer base . During the quarter , we added a number of new customers , including one of the world's leading engineering , consultancy and design firms to digitize Commissioning , Qualification , and Validation services for both their food and life sciences clients . These are exciting times for Kneat as the market continues to adopt our industry leading platform . With our strong balance sheet , our team is focused on executing our plan across all areas of the business , ensuring ongoing growth and value creation for our shareholders . " Q2 2021 Financial Highlights • Total revenues increased 104 % to $ 3.15 million , compared with $ 1.55 million for the second quarter of 2020. Total revenues fluctuate quarter over quarter primarily due to the timing of professional services delivery and the sale of one - time , on - premises licenses to a decreasing number of customers who have not yet transitioned to SaaS . • SaaS revenues increased 170 % to $ 1.72 million , compared with $ 0.64 million for the second quarter of 2020 . • Gross margin increased 244 % to $ 1.75 million compared with $ 0.51 million for the second quarter of 2020 and gross profit margin increased to 56 % compared with 33 % for the second quarter of 2020. The increase in gross profit margin was driven by a significant increase in revenue , coupled with a reduction in related cost of revenues compared with the second quarter of 2020 . Annual Recurring Revenue ( " ARR " ) • Total ARR : Total ARR , a key performance indicator which includes SaaS license fees and maintenance fees , was $ 7.98 million at June 30 , 2021 , up from $ 3.31 million for the same period last year , an increase of 141 % . Quarter - over - quarter growth in total ARR was 39 % , up from $ 5.74 million at March 31 , 2021 . • SaaS ARR : Within total ARR , the proportion attributable to SaaS license fees was $ 7.29 million , up from $ 2.55 million at June 30 , 2020 , an increase of 186 % . Quarter - over - quarter growth in SaaS ARR was 49 % , up from $ 4.89 million at March 31 , 2021 .