ASX-listed ‘software-as-a-service’ provider, K2fly, said this week that it expects to be cash flow-positive for the first time in the current quarter as the total contract value of its multi-year, mining client contracts hike by a spectacular 793% year on year to more than $4.7m. The rapidly growing tech company has seen its quarterly invoicing almost double this quarter when compared to the same quarter last year and invoicing so far in this financial year has already surpassed the total for FY19.
The Perth-based software provider continues to deliver in spades against its own annual financial targets as new and extended contracts for its “RCubed” mining resource reporting software solution are locked in with mega-miners such as Newmont, Vale, Anglo Gold Ashanti, South 32, and Gold Fields Australia.
Management said its software as a service business accounted for over 50 per cent of total revenues in Q3 with ongoing contract extensions set to lock in that revenue stream. The Subiaco-based software provider said that just nine months after purchasing the RCubed product, it has already achieved its year two, recurrent revenue milestone.
K2Fly picked up RCubed for just $450k almost a year ago with some additional vendor milestone payments that can now be funded by just one year’s worth of annual recurrent revenues from RCubed.
K2Fly is better placed than many in its technology peer group with locked-in forward revenue contracts and a product that its clients need to use to comply with the law – something that is not discretionary, even in the new Coronavirus world.
The company said this week that it had largely locked down its expenditure in response to the rampaging Coronavirus with a series of measures including deferrals of salary and a reduction in total, full-time staff to minimise cash burn during the current turbulent business environment.
K2fly said recently that it had locked in Gold Fields Australia for a 5-year deal, extended Anglo Gold Ashanti by a further three years and put Vale, the world’s number one iron ore producer onto its 'proof-of-concept’ customer list.
Also, the National Trust of Australia has novated the license of The Keeping Place, which is an Infoscope solution, to a new entity called The Place of Keeping Ltd. According to the company, this organisation is a new indigenous owned and controlled not-for-profit company that has been established to own and manage The Keeping Place.
As at the end of March 2020, K2fly’s management team had slotted its RCubed and Infoscope software solutions into 52 countries across more than 40 commodities and into almost 400 sites - staggering statistics from such a short marketing campaign that has swept up at least four of the world’s top ten gold miners.
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