K2fly revenue soars on half-yearly numbers

ASX-listed software developer K2fly has posted a hefty uplift of 29 per cent in its half-yearly revenues, after locking in software as a service, or “SaaS” contracts with Australian iron ore monoliths Rio Tinto, Fortescue Metals Group and Roy Hill, amongst its bevy of global mega-miners. Revenues for the half-year to 31^st December 2020 hit $3.413 million, up over $760,000 on the corresponding period last financial year.

K2fly said the positive boost to its financials comes on the back of new contract wins and sales to multiple Tier-1 clients that mainly operate in the mining and resources sector.

Despite the positive result, the company said sales growth across its software business had not grown as quickly as it otherwise may have done due to COVID-related issues.

Importantly, the revenue uplift has been supported by an almost three-fold increase in revenues that are contracted to re-occur annually inside the last two financial years.  The increase in quarterly annual recurring revenues comes as a consequence of the company’s total contract value more than doubling across the last four fiscal quarters and reaching $8 million in the current quarter.

Whilst K2fly also offers consulting services, it is its SaaS unit that has reeled in the lion’s share of the cash during the last half-year period.

Its primary software offering is its “RCubed” resource and reserve management system and its “Infoscope” product that manages heritage, land and other environmental and social governance areas largely for the resources sector.

Interestingly, the mining governance software disruptor recently picked up the software business of SATEVA, who brought Rio and its neighbours, Fortescue Metals Group and Roy Hill into the fold at K2fly.

SATEVA specialises in building IT applications in fields such as exploration, grade control, planning, ore tracking, inventory management, reconciliation and data management for the mega-miners.

K2fly is also developing a new solution for block modelling that the company says will provide a direct line of sight from the block model of the mine to a company’s annual mineral inventory reports.

Block models of ore are aggregated to produce annual mineral resource and reserve reports, integrating directly with K2fly’s existing RCubed reporting solution which is now called “Resource Inventory”.

K2fly’s latest batch of clients to sign up to its SaaS solution include the French-owned uranium producer, Orano and Alcoa USA Corporation.

The company also added local Tier-1 miner, Mineral Resources to its now burgeoning international list of mining giants. 

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