ASX-listed mining software firm K2fly has tabled record growth in key metrics for the June quarter and the 2022 financial year after continuing its hot streak of contract wins. The company posted record results in annual recurring revenue, invoices raised and cash receipts in addition to closing out the financial year with a cashflow-positive quarter of $1.7 million.
Cash receipts of $5.4m experienced the largest growth, up 200 per cent from the previous quarter and 170 per cent quarter on quarter.
Annual recurring revenue in the final quarter of the recent financial year clocked in at $6m, an impressive 76 per cent quarter-on-quarter growth.
Invoices raised came in at $3.8m, a healthy 15 per cent lift from the previous quarter and represented 46 per cent quarter-on-quarter growth.
The boost to the company’s financial figures comes after major contract wins with BHP, Rio Tinto and Asarco — one of the world’s major copper producers. The fresh deals helped drive an 80 per cent quarter-on-quarter growth in total contract value that now sits at a handsome $17.8m.
K2fly Chief Executive Officer, Nic Pollock said: “We are very pleased with the quarterly and annual growth achieved across our key financial metrics in closing out the financial year FY2022 to record levels.”
“We are extremely proud to now count BHP as another one of the global tier 1 customers to the K2fly list having signed our first contract in the quarter.”
“We remain bullish on the thematic that integrating ESG solutions into their businesses is no longer a choice but a necessity being driven by investors, community expectations and regulators.”
The initial one-year contract with BHP will involve K2fly rolling out its approvals and tracking system across the mega-miner’s iron ore operations in WA’s Pilbara region. The signing represents a total contract value of $2.12m and annual recurring revenue of $620,000.
Management says the addition of BHP to its client list shows the strong relevance of the company’s solutions to tier 1 miners and beyond. It sees considerable potential to win further work with BHP.
Arguably, BHP is now the crown jewel on K2fly’s long roster of rolled- gold clients, including Fortescue Metals Group, 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.
This was K2fly’s first cashflow-positive quarter since the September quarter of 2020 and according to the company is a function of strong sales and ongoing business improvement initiatives.
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.
For now, however the company expects cashflows to fluctuate over the coming quarters as it continues to build revenue streams.
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