Australian mining software company K2fly posted lower quarterly sales but continued to grow annual recurring revenue in the three months to the end of March as it nears the end of a strategic review of its capital structure.
CEO Nic Pollock said the latest quarter was the fifteenth in a row of ARR growth, with the metric up 15% year-on-year to A$8.3 million. It had since risen to $8.8m on the back of a new contract with Brazil mining major, Vale.
“K2fly continues to focus on our ARR growth as a key metric coupled with our exceptional rolling 12-month gross retention rate of 98%,” Pollock said.
March-quarter revenue was meanwhile down 15% yoy and 13% lower than the December quarter at $2.9m.
Net cash outflow for the latest quarter was $0.7m. The company had $1.5m cash at the end of March and a $2m undrawn working capital facility.
The Australian Securities Exchange-listed K2fly had a circa-A$16.8m market value at the end of April.
It appointed securities broker Argonaut PCF and leading advisory firm Atrico last November to “assess alternative capital structures” and results of the review are awaited by the market.
K2fly is 17.7%-owned by private Australian mining software company Maptek.
