Australian tech company K2fly (ASX: K2F) has reported record sales for their mineral resource and land management software delivering $1.67m in revenues for Q2 2020, a rise of 102% on the equivalent FY19 quarter.
Key to the significant uptick in sales is the ongoing SaaS fees which ensures annual recurring revenues and the onboarding of Tier 1 clients including Rio Tinto (ASX: RIO) to a 5-year agreement across 20 of the mining giant’s sites.
Other major clients secured through the quarter include Nexa Resources (NYSE: NEXA) to a 1-year contract across 12 mining sites, an extension with Teck Resources (TSE: TECK.A) for a further 3 years, and an extension with Westgold Resources (ASX: WGX) for a further 5 years.
As at the end of December 2019, K2fly had deployed their software solutions in 45 countries and across 235 sites, signalling a milestone year for the tech company which owns software packages RCubed – mineral resource reporting software which meets international reporting standards, and Infoscope – natural resource and land management software.
The upswing in sales continues corporate growth for K2fly which reported a net loss of $1.9m in FY19 ($4.14m revenue) which was a significant improvement on FY18 when reporting a net loss of $5.4m from $2.57m revenue.
Continued sales growth may be in the pipeline for K2fly due to regulatory changes in the United States being undertaken with the SEC requiring resources companies to meet new compliance measures by January, 2021 which can be met by adopting RCubed.
Shares in K2F have seen a major surge in line with its revenue growth, reaching an intra-day high of $0.28 following the release of the Q2 FY20 results, and have steadily risen from a 52-week low of $0.11 in May 2019.