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K2fly financial year revenue surges 38 per cent

Updated: Apr 15


Some big name clients have seen K2fly boost its revenue by 18 per cent in just a quarter. Credit: File

ASX-listed mining software provider K2fly has unveiled revenue of $4m for the final quarter of the financial year – a 38 per cent rise from the same period last year and up 18 per cent on the previous quarter.


Management says the strong results wrapped up a solid year of growth, where revenue grew 28 per cent compared to the previous 12 months. It continues a positive trend for K2fly, which has delivered a compound annual growth rate (CAGR) in revenue of 36 per cent in the past four financial years.


The past quarter saw the Perth-based company record an annual recurring revenue (ARR) of $7.5m, a figure 7 per cent higher than the March quarter and an impressive 25 per cent more than the corresponding period in the previous financial year.


Its total contract value (TCV) grew three per cent to $17.7m compared to the previous quarter. The result means the company has achieved a CAGR in its total contract value of 38 per cent per annum in the past three financial years.


“Q4 was a strong result from the K2fly team leaving us 28 per cent up on revenue year on year and very close to our operating cash flow breakeven target. K2fly has achieved a cumulative average growth rate in ARR of 48 per cent over the last three years. Our cash balance and working capital facility collectively give us a $6.44m cash platform”. K2fly chief executive officer Nic Pollock

The company’s suite of software products focus on the environment, social and governance (ESG) space, with the aim of providing assurance and accountability to its clients in their stewardship and management of natural resources. The provider’s suite of software as a service (SaaS) covers areas such as land access, ground disturbance, tailings and heritage management and mine rehabilitation.


The mining software provider had a busy quarter with new clients.


In June, it announced it would supply Eramet SA with its “resource disclosure” solution after the French-owned miner signed a three-year deal worth $564,000 to cover its five operations and four commodities. Management says the partnership will provide an ARR of $152,000 and it is hopeful the relationship will lead to future opportunities.


K2fly’s resource disclosure solution is part of the company’s ground-breaking governance platform and will be used to fulfil Eramet’s reporting and disclosure obligations required as a publicly-listed company.


Just a week later, it revealed that it would continue to supply mining behemoth BHP with its “ground disturbance” solution for another three years after the “Big Australian” agreed to a contract extension. The deal, which covers the global miner’s iron ore operations in Western Australia’s Pilbara region, was reported to generate annual recurring revenue of $664,000 and has a total contract value of $1.99 million. The extension follows the original one-year deal that kicked off in May last year.


The ground disturbance solution again proved popular when at the end of the quarter, the company inked a five-year deal with the world-class Roy Hill iron ore operation in the Pilbara for the use of its product. Under the latest agreement, which is expected to generate annual recuring revenues of $300,000 and has a total contract value of $2 million, Roy Hill has committed to using K2fly’s solution for its integrated iron ore mining, rail and port operations for five years.


And in an early boost to the numbers for the next quarter, the Roy Hill deal will be included in the coming ARR and TCV calculations.


The $19 million market-capped company remains the only commercial off-the-shelf solution available globally. It is a handy position to be in as mine operators increasingly value the importance of proper resource governance on land and protecting their license to operate.


With that in mind, the sky appears to be a distinct blue for K2fly.


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