Technology company K2fly (ASX: K2F) has kicked off the new year by unveiling its largest-ever quarterly raised invoice figure of $1.67 million, which is a 102% increase on the previous corresponding period.
In a statement to the market earlier today, K2fly said it improved its invoicing figures to $1.67 million in the December quarter – up 102% on the $830,000 generated in December quarter in 2018.
From a cash perspective, K2fly starts the new year with around $1.1 million on hand with a further $1.05 million available as aged receivables from tier one clients.
Annual recurring revenue (ARR) has grown by 40% in the past three months up to $1.4 million while total contract value (TCV) has risen 188% up to $3.5 million.
K2fly also claims that it is currently in contractual negotiations for SaaS solutions with “several other major mining companies” and while there are no guarantees of success, the company said it is “well placed” to win multiple contracts before June 2020.
K2fly’s services and contracts
K2fly supplies people, products and strategic alliances focused on solving problems for clients in mining exploration and owns two distinct market entities within the mineral resource governance field.
The company offers a range of SaaS products focusing on digital transformation and process improvement with today’s figures potentially indicating that mineral exploration activity is steadily picking up.
K2fly operates RCube, a resource and reserve reporting solution that supports reporting codes such as JORC across the major stock exchanges including the NYSE, LSE, TSX, ASX and the JSE.
In recent months, the K2fly has snagged new commercial deals which it expects will deliver additional revenue momentum going into the new year.
In October 2019, NYSE-listed and Brazil-based Nexa Resources signed a one-year contract for RCubed Mineral Resource and reserve software solution across 12 sites, according to K2fly. Nexa currently operates five polymetallic mines across Brazil and Peru.
Also, in November this year, global giant Rio Tinto contracted with K2fly to deploy its RCubed software solution across 20 sites in a five-year agreement.
And just a few weeks ago, existing client Teck Resources extended its contract with K2fly for its RCubed solution for a further three years.
The tech company also operates Infoscope, an enterprise land management, natural resource governance and stakeholder relations solution for the energy and resources market.
At the end of 2019, K2fly’s SaaS offerings in the form of RCubed and Infoscope were deployed in 45 countries and across 235 sites.
The news helped K2fly shares to add almost 6% to reach $0.275 in early morning trade.