K2fly CEO Nic Pollock has described the December quarter as a “pivotal” period for the mining software company despite the termination of a large contract with mining major Rio Tinto, with annual recurring revenue up 44% year-on-year and contracted revenue hitting A$19.5 million.
The latter grew 4% on the previous quarter and was 17% higher than Q2 in FY2022 even with the loss of the $2.6m Rio Tinto contract (and $0.62m of ARR).
Rio Tinto has other K2fly licences, including its mineral resource governance product, which it signed up for in the latest quarter.
Pollock said the December release of K2fly’s new resource governance platform and continuing tier-one customer contract wins – including Anglo American, Rio and ArcelorMittal Mining in Q2 – had the ASX-listed company “on the right path and capitalising on a once in a generation investment by global majors to enhance their public disclosures to maintain and strengthen their ESG credentials”.
“Our new platform will open more opportunities for our customers to leverage that investment and for K2fly to offer more adjacent solutions,” he said.
K2fly reported ARR of $6.9m and revenue of $2.8m for Q2, the latter up 33% yoy. Mining and services group Mineral Resources was another notable new contact signee in the quarter, inking a $1.75m deal.
“It’s … encouraging that we know that the second half of the financial year is contractually stronger than the first half, due to many invoicing anniversary dates and collections falling into the June quarter,” Pollock said.
K2fly finished 2022 with $5m in the bank and no debt.
The company has a current market value of about $29.6m.