Kinaxis CEO John Sicard, pictured on Dec. 14, 2018, will retire at the end of 2024 after three decades with the company. He will continue to consult for the company through 2025 as the board searches for a successor.
Kinaxis Inc.’s KXS-T chief executive officer and chief sales officer are departing as the Ottawa-based software vendor contends with sluggish revenue growth.
Kinaxis said Tuesday John Sicard will retire at the end of 2024 after three decades with the company, which makes supply chain software used by blue-chip giants. including Volvo AB, Exxon Mobil Corp. and Pfizer Inc. The board has started a search for his successor.
While Kinaxis’s revenue has quadrupled since Mr. Sicard, 62, was appointed CEO in 2016, the company said it is shifting its focus “from building to scaling” in a release. “As we accelerate towards our ambitious goal of becoming a $1 billion revenue company, we agreed that now is the right time for a CEO transition and John will play an important role in that process,” chairman Robert Courteau said in the statement. He said the company “wouldn’t be in this position without the foundation” Mr. Sicard has built over the years.
In a statement, Mr. Sicard said “it’s the right time to pass the baton.” Mr. Sicard will continue to consult for the company through 2025.
Kinaxis also said chief sales officer Claire Rychlewski has decided to leave after five years “to take advantage of an opportunity that better suits her goals.”
Both moves were unexpected, BMO Capital Markets analyst Thanos Moschopoulos said.
Kinaxis stock has stalled in recent quarters, trading at a discount to other enterprise software companies over concerns about top-line growth. Its stock fell sharply early this month after Kinaxis trimmed its subscription-revenue growth forecast for the year to a range of 15 per cent to 17 per cent. It also upped its operating earnings guidance and reiterated that it expects to generate between US$483-million and US$495-million of revenue this year. In May, Kinaxis announced its first staff cut since going public in 2014. In a recent interview, Mr. Sicard said Kinaxis would reinvest the savings into marketing and sales, deepen ties with consulting partners and hasten product development.
Like many other vendors to large enterprises, Kinaxis has been affected by higher interest rates and economic uncertainty as clients throttle or stretch out spending plans. At the same time, Kinaxis hasn’t invested as aggressively in growth as it could have, National Bank financial analyst Richard Tse said recently. Still, analysts are positive about its long-term prospects, believing revenue growth can return to the 20-per-cent-plus range.