Software provider K2fly says cost management remains its major focus as the company’s latest financial report today revealed a remarkable 14th consecutive quarter of annual recurring revenue (ARR) growth.
The company’s ARR was at $8 million in the past quarter, up 16 per cent compared to the previous corresponding period (PCP) and revenue was at $3.4million, up 21 per cent from the PCP. It holds a cash position of $2.5 million at the end of the past quarter.
Management says the December quarter generated a net operating cash outflow of $1.05million, a 159 per cent increase from the PCP due to the cost of improvements in product development, inflation and general cost growth to support material revenue growth.
However, the company says that when viewed on a year-to-date basis, net operating cash outflow for the first half of this financial year when compared to last year’s first half increased only modestly by 8 per cent. Gross operating expenditure during the December quarter was $4.2 million, which was consistent with the prior quarter’s spend.
Cash receipts from customers were up 11 per cent compared to the PCP to sit at $3.2 million. Management notes that the timing and collection of cash receipts varies throughout the year and are historically concentrated in the June quarter due to anniversary dates of annual contracts.
K2fly chief executive officer Nic Pollock said: “Although our Net Cash Outflow from Operations in Q2 FY2024 was higher than the prior year, cost control remains a key focus, and on a half-year comparison, 1H this year increased only modestly compared to 1H in the prior year. Capital investment in software development has reduced since the completion of the Resource Disclosure development project and a deliberate cost reduction plan has largely been executed. Historically, the second half of the financial year sees a positive Net Operating Cash result.”
In September, the company signed industrial mineral producer Imerys onto its “Land Access Solution” cloud-based platform – a deal which will see its “Natural Resource Governance” platform implemented across 15 sites around the globe, with the potential for further growth. Management says that deal is worth $860,000 and has an ARR of $123,000.
The past quarter also saw K2fly upgrade a contract with Newmont Mining to migrate the company from legacy software to its new “Resource Disclosure” platform. That work began in January this year and is expected to take four months.
The company also completed a share placement to existing investor Maptek to raise $1million at 10c per share, which management say will go towards strengthening its balance sheet.
With the recent appointment of a new global sales leader, K2fly says its pipeline and forecast for the second half of this year has strengthened considerably. Management says it has identified opportunities in the infrastructure, rail and energy markets suitable for the application of its software services, particularly within businesses involved in the global energy transition.
The results of a sweeping strategic review are also due shortly. That work was completed by Argonaut PCF and Atrico as joint advisors on strategic investments, merger and acquisition opportunities, partnerships and other potential corporate activity.
K2fly’s software remains the only commercial off-the-shelf software-as-a-service (SaaS) solution available globally for the mining sector to ensure proper resource compliance, technical assurance and disclosure.
The company’s client base includes some big players such as Rio Tinto, BHP, Roy Hill Holdings, Fortescue Metals Group, Anglo American, South32, Glencore, Westgold Resources, Arcelor Mittal and AngloGold Ashanti.
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14 Oct 2026
14 Oct 2026
