K2fly tables record sales invoicing in May, inks reseller agreement with Descartes Labs

K2fly Ltd (ASX:K2F) has recorded three consecutive months of record sales invoicing as it prepares for FY21’s winddown.

The ASX-lister, which provides software and solutions to tier-one mining clients to support resource definition, topped its sales invoicing record in May and delivered its first-ever A$2 million-plus quarter at the end of March.

Today, K2fly also provided an update on its partnership with Descartes Labs, inking a reseller agreement with the Santa Fe, US-based company.

Under the deal, the technology company will bundle Descartes’ software as a service-based Deformation systems with its own solutions in a bid to expand its offering.

Growing client base

Speaking to the jump in invoicing, K2fly CEO Brian Miller said: “The growing client base for K2F solutions has allowed us to generate more invoices across the full range of solutions.

“In the last few months, we have won deals for all of our solutions, including: Land Management and Heritage (Rio Tinto, Fortescue Metals Group, The Keeping Place and Griffith University); Reserves Reporting (Alcoa and Couer); Decipher (South African Energy Coal and a BHP pilot); and SATEVA (Roy Hill).”

K2fly chief commercial officer Nic Pollock said “We have met with stakeholders from many mining companies that are awash with expensive data that they cannot adequately turn into intelligence.

“Other mining companies have very little at all. All of them need to turn the multiple sources of data into useable and actionable intelligence, which is what the K2fly solution provides as well as supporting their path towards Global Industry Standard on Tailings Management (GISTM) compliance.”

Invoicing increases over autumn

As it prepares for the new financial year and annual reporting season, K2fly has broken down its invoicing performance over the last three months.

The technology company hit its stride in May, with invoicing for the month exceeding the A$1 million benchmark for the first time.

In the previous financial year, K2fly brought in A$769,000 over May, meaning last month’s statistics mark a 31% increase on the previous corresponding period.

K2fly also saw increases in April: it secured A$887,000 worth of invoice totals in April 2021 compared to A$581,000 in April 2020. In March, the ASX-lister tabled A$851,000 in invoices compares to A$846,000 in the previous financial year.

Graph comparing K2fly’s monthly invoicing performance over March, April and May in FY20 and FY21.

On a quarterly basis, K2fly hit more than A $2 million in sales invoices over FY21’s third quarter - a landmark result for the company.

Promisingly, it anticipates totals for the current quarter will “comfortably exceed” this figure.

K2fly chalks the invoicing increases up to its ‘land & expand’ strategy, which involves delivering its software solutions range to major resources companies.

Reseller agreement with Descartes

Under its new agreement with Descartes Labs (DL), a geospatial intelligence company operating in New Mexico, K2fly will bundle DL’s software as a service-based Deformation solutions with its own product suite.

Descartes’ software aims to provide an integrated spatial intelligence solution for resources companies that analyse data from a range of satellite and ground-based sensors.

Combined with K2fly’s Dams & Tailings solutions, the ASX-lister believes both companies can create products that help mining companies better manage their tailings facilities in support of their GISTM commitments.

Descartes Labs head of mining & metals James Orsulak said: “The Descartes Labs Global Deformation Systems (GDS) is a first of its kind planetary-scale deformation model.

“Leveraging our history in high-performance computing (HPC), geospatial data, and machine learning, we’ve created the world’s first automated, low-cost subsidence and deformation system that can be deployed anywhere in the world at any scale.”

“GDS is an ideal fit for the K2fly Dams & Tailings solution, where the deformation outputs can be operationalized and interpreted in the context of all available data.

“We believe this will be the beginning of a long and successful partnership with Descartes Labs that will enable K2fly to deliver world-class remote sensing products and analytics workflows to the mining industry with seamless integration into dam management programs.”

Since founding the reseller agreement, both companies have joint bid on several advanced tailings opportunities with tier one and two global miners.

Story by ProactiveInvestors