ASX-listed resource governance software company K2fly has posted a 35% year-on-year revenue gain to A$3.4 million for the three months to the end of March, a period in which its largest ever project went live for BHP in Western Australia.
The $2.12 million deployment of K2fly’s ground disturbance reporting solution across BHP’s WA iron ore sites “creates a template for which other resource industry players can use K2fly systems to demonstrate sector leadership in land management and natural resource governance”, K2fly CEO Nic Pollock said.
“The go-live for of our ground disturbance solution in a large and complex operation in the Pilbara is our biggest single project to date and a significant milestone for K2fly.”
The company’s $7 million annual recurring revenue in its FY23 Q3 was up 35% on the same period in FY22.
Pollock said the latest quarter was flat for new contract sales on the back of a record Q2 of $1.52m new ARR when five deals were closed.
“The strong deal flow in Q2 was impetus for strong revenue growth in Q3 of 19% from last quarter and 35% [on the] previous corresponding period,” he said.
The March quarter also saw Rio Tinto’s K2fly reconciliation module implementation go live across 24 reporting sites.
Pollock said managing a reconciliation plan to actual was a real challenge for the resource industry and was critical to managing performance.
“We are very pleased to offer a commercial off the shelf solution which addresses this critical industry challenge.
“We currently have 18 customers of K2fly’s RCubed or resource disclosure solution which can now leverage this important module. The module is also attracting new customers as a standalone entry offering.”
K2fly had cash of $4.1m at the end of March and no debt.
The company has a current market value around $21m.