A solid quarter of new sales to large miners has lifted Australian software-as-a-service provider K2fly’s 2022 fiscal year growth momentum, with annual recurring revenue (ARR) in the three months to the end of September up 79% year-on-year.
The ASX-listed company (K2F) said five-year deals with gold majors Newmont and Sibanye-Stillwater, and integrated aluminium producer Alcoa, boosted ARR 20% on the June quarter to A$4.1 million. It reported “total contract value [TCV] growth of 42% to $14m” in the first quarter of FY22 on the back of the new contracts, and 58% higher quarterly invoicing yoy in an historically quieter part of the annual invoicing cycle.
“Cash receipts from customers grew 34% to $2.7m in Q1 FY2022 compared to the prior quarter and up 36% compared to Q1 FY2021, driven by invoicing of new contracts signed in recent quarters and is also influenced by the invoicing cycle,” K2fly reported. The company’s largest contract signed to date, with Rio Tinto, came after the end of the September quarter. It has a TCV of A$3.44m (US$2.56m) and adds ARR of $620,000, bringing these markers to $17.6m and $4.7m, respectively, early in Q2.
K2fly delivers environmental, social and governance (ESG) compliance, disclosure and technical assurance products to mining and other companies via SaaS cloud platforms.
“Having completed a number of acquisitions in the past few years to broaden and deepen our platform of nine ESG solutions, our offering has never been stronger,” said CEO Nic Pollock, the company’s former chief commercial officer who took over the top job from Brian Miller at the start of September.
“The acquisition of the Decipher Tailings Solution earlier this calendar year is showing a very strong contribution to our overall TCV and ARR growth. We are seeing increasing focus and spend on ESG solutions by the mining industry to which K2fly’s offering is showing strong take-up.”
K2fly had estimated net cash of $6.25m on its balance sheet this week.
The company has a current market value around $45m.