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K2fly's Rcubed acquisition exceeds annual revenue performance milestone in six months

A high level of interest from NYSE-listed companies continues as US SEC regulation changes come into effect in 2021.

K2fly Ltd - K2fly's Rcubed acquisition passes year-1 recurring revenue performance milestone in 6 months
The company’s year-1 ARR milestone was $500,000 and this was passed in November

K2fly Ltd (ASX:K2F) has exceeded its initial annual revenue milestone for the RCubed software solution in under six months assisted by the signing of tier-one mining client Rio Tinto.

New or additional RCubed annual recurring revenues (ARR) have reached AU$665,000 since the acquisition in May with the total contract value (TCV) of contracts signed reaching more than $2 million as customers sign three- or five-year contracts.

Total ARR from RCubed contracts now stands at A$900,000.

Investors responded positively with shares up as much as 12% to an intra-day high of 23.5 cents, a new 12-month high.

Milestone achieved ahead of schedule

Chief commercial officer Nic Pollock said: “In November 2019 K2fly has achieved some significant milestones including further validation by a tier-one mining client (Rio Tinto) and our first customer based in Brazil (Nexa Resources) combining to exceed the contracted first-year revenue performance milestones ahead of schedule.”

The Nexa and Rio contracts further increase the strong ARR growth that K2fly SaaS business is experiencing of 140% CAGR over the last four quarters, in which Q1 was up to 29% from Q4 2019.

To date in Q2 FY20, K2fly’s ARR has already grown a further 34%.

TCV increase by 159%

The company’s TCV has risen sharply by 159% in November to more than $2 million as the contract terms extend.

This trend is expected to continue with further multi-year contracts in the pipeline.

These potential contracts are still in negotiations and until complete, there are no guarantees.

Background information

K2fly owns the following software solutions:

  • Mineral resource governance Rcubed - a resource and reserve reporting solution that supports reporting codes such as JORC, NI43101 and SAMREC across the major stock exchanges, including NYSE, LSE, TSX, ASX and JSE; and
  • Natural resource governance Infoscope - an Enterprise Land Management, Natural Resource Governance and Stakeholder Relations solution for the Energy and Resources market.

The company has strategic alliances with global technology companies such as GE(USA), Esri (USA) and SAP (Germany).

K2fly also re-sells market-leading software which has been developed by industry leaders in the USA, Australia, Europe and the UK.

These solutions come from OBI Partners (USA), Kony (USA), Pointerra Limited (Aus), ABB (Switzerland), Totalmobile (UK) and Capita PLC (UK), where they have an outstanding track record of delivering benefits to clients.

In addition, K2fly provides cutting edge advice, consultancy and services when it deploys its subject matter experts who have extensive domain knowledge in such areas as rail, electricity, gas, water, mining, oil and gas, facilities management, aviation and defence.

Quick facts: K2fly Ltd

Price: 0.22 AUD

ASX:K2F
Market: ASX
Market Cap: $17.97 m
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K2FLY signs five-year contract with Rio Tinto for RCubed Solution

K2Fly Ltd (ASX:K2F) chief executive officer Brian Miller updates Proactive on signing a five-year contract with top-tier miner Rio Tinto plc (LON:RIO) for the RCubed Mineral Resource and Reserve Solution across 20 sites globally. The total contract value is worth A$1.45 million, including...

2 weeks, 2 days ago

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