Mining software provider K2fly has tabled some healthy numbers from the September quarter with the company achieving record highs in its core metrics thanks to continued major tier 1 contract wins. The company operates in the global resources space under a ‘Software as a Service’ business model – meaning its product is delivered on a subscription basis.
The company reached a high of $6.5 million in annual recurring revenue, an 8 per cent gain over the last quarter and a 59 per cent improvement over the same quarter last year. Similarly, the company’s total contract value for the quarter clocked in at $18.8 million, a 6 per cent gain over the last quarter and a 34 per cent improvement over the same quarter last year.
K2fly Chief Executive Officer, Nic Pollock said: “Our core metrics of ARR and TCV continue to grow strongly ahead of revenue recognition with continued expansions into our global customer base.”
The record results come on the back of major contracts signed across the quarter with Imerys and Fortescue Metals Group. Last quarter, K2fly recruited BHP to its long roster of rolled-gold clients, including South32, Rio Tinto, Roy Hill Holdings, Mineral Resources, Newmont Corporation, Newcrest Mining, AngloGold Ashanti, Goldfields, Westgold Resources and Glencore.
The company aims to continue its focus on tier 1 and 2 miners globally and sees a strong potential within its existing customer base to roll out additional, complementary solutions.
The company’s cash balance is sitting at $6.2m with no debt.
K2fly has introduced a new metric ‘revenue’ that provides investors with a more consistent measure of performance from quarter to quarter. Revenue was down 11 per cent over the last quarter at $2.6 million and up 4 per cent over the same quarter last year. The company says whilst its new metric was down over the previous quarter due to a one-off event, it is still higher than prior periods. Similarly, net operating cash outflows for the quarter amount to $1.2 million compared with an inflow of $1.7 million last quarter. The company attributes the disparity to a function of the timing of receipts from existing and new contracts.
Last quarter was K2fly’s first cashflow-positive quarter since the September quarter of 2020 with the company citing strong sales and ongoing business improvement initiatives.
Whilst the company expected its cashflows to continue to fluctuate by proving its ability to table a solid cashflow, K2fly has paved the way for achieving positive net operating cash positions as it targets growth in recurring revenue through new contract deals.
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