A string of major contract wins with mining heavyweights Rio Tinto, Mineral Resources, Anglo American plc and ArcelorMittal Mining UK has seen mining software provider K2fly achieve record highs for the December quarter in its core financial metrics. Sales of $2.8 million were represented an 8 per cent hike on the previous quarter and a significant 33 per cent when compared to the same period last year.
K2fly derives both one off contract revenues and “annual recurring revenue” from clients that sign multi-year deals on a subscription basis.
The company reached a high of $6.9 million in the ever-important annual recurring revenue metric during the December quarter representing a 6 per cent gain over the last quarter and a whopping 44 per cent jump over the same quarter last year. Similarly, the company’s total contract value for the quarter clocked in at $19.5 million, a 6 per cent gain over the last quarter and a 17 per cent improvement over the same quarter last year.
K2fly is now sitting on about $5.0m and has a clean slate with regard to debt.
Chief Executive Officer, Nic Pollock said: “Our key metrics continue to trend in the right direction as we manage the balance between our continued investment in growth coupled with our increased focus on costs positioning us on the path to operational cash flow breakeven.”
K2fly’s ongoing investment in its platforms is beginning to pay dividends, with a client list reading like a who’s-who of the mining industry. The company now has deals with 18 global clients working in 55 countries.
With mining houses facing increased public scrutiny over their environmental, social and governance, or ‘ESG’ practices, K2Fly is in a strong position to capitalise on a once-in-a-generation investment by global majors to enhance their public disclosures and maintain and strengthen their ESG credentials.
The company’s latest rollout – its Resource Governance Platform, launched in December last year, builds on the global success of its popular RCubed mineral resource and reserve reporting software. The platform enables mining customers to comply with the rapidly changing ESG regulations, standards and disclosures.
According to the company, Resource Disclosure is the first of the new platform solutions released that will allow existing RCubed customers to upgrade and leverage new modules - including Reconciliation Governance and Model Manager - to improve public disclosures.
In a three-year $1.44 million deal inked with Anglo American, K2fly will roll out the new Resource Disclosure platform across all of Anglo’s commodities and operating regions.
Environmental, social and governance, or “ESG” has become more than just a catch cry in recent times. The market has now hit fever pitch when it comes to ESG and some investment houses are even demanding their portfolio companies throw themselves into upgrading their ESG capabilities – to say K2fly is blessed with the right product at the right time would be something of an understatement.
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By Matt Birney
