KnowBe4 Q2 Result Tops Estimates, Notes Margin Expansion, Provides Upbeat Outlook

KnowBe4 Inc KNBE reported second-quarter FY21 revenue growth of 43% year-on-year to $59.4 million, surpassing the analyst consensus of $56.4 million.
Annual recurring revenue expanded 42.4% Y/Y to $240.6 million. The number of customers rose 25.9% Y/Y to 41,601.
The non-GAAP gross margin expanded by 90 bps to 85.9%. The non-GAAP operating margin expanded 440 bps to 7.6%.
The non-GAAP EPS of $0.02 beat the analyst consensus for a loss of $(0.02).
It generated $14.1 million in operating cash flow. The company held $257.1 million in cash and equivalents.
Overall business growth resulted from positive multi-product adoption trends, strong international development, and continued customer base expansion into both enterprise and SMB.
The results reflect growth across all products and geographies, including increasing multi-product attachment rates of 17% and Y/Y international growth of 95%.
Outlook: KnowBe4 sees Q3 revenue of $60.5 million - $61.5 million, which is above the analyst consensus of $58.9 million.
For full-year 2021, it expects revenue of $237.5 million - $239.5 million versus the consensus of $231.55 million.
Price action: KNBE shares traded higher by 0.64% at $21.28 on the last check Monday.