HY21: K2fly's revenue on growth trajectory, outlook remains positive

Source: © Putilich | Megapixl.com


  • K2F reports continuous revenue growth and a positive outlook.
  • In 1H 21, growth slowed down due to Covid-19 impact, but company turned the corner in Q3 FY21.
  • The newly acquired SATEVA continues to perform well.

The technology company, K2fly Limited (ASX: K2F), has thrived during the pandemic period and continues on its growth path. Recently, it expanded its proprietary technologies portfolio by adding SATEVA solutions.

SATEVA performed exceptionally well and exceeded all expectations. It helped K2F to get multiple purchase orders soon after its acquisition. The other two prominent proprietary solutions from K2fly - RCubed and Infoscope solutions already have a proven success record with the significant client list.

Must read: K2fly shines bright despite pandemic's dark backdrop - announces full-year update, reports impressive Q4 

Financial Highlights

Image source: ASX announcement dated 26 February 2021

On 26 February 2021, K2fly unveiled its performance card for half-year ended on 31 December 2020. Here are the 1H21 highlights:

  • Revenue: It continues to grow, and the outlook for FY21 remains positive. The total revenue for half-year came in at AUD 3,413k, an increase of 29% on PCP. 
  • K2F's SaaS subscriptions business - ARR has increased to more than AUD 2.4M or 175% CAGR to the end of the half-year period.
  • TCV increased more than AUD 6.8M by 31 December 2020.
  • In October 2020, K2F raised AUD 648,000 from the exercise of options.
  • At the end of the half-year period, cash at hand was AUD 2.56M and AUD 0.92M in aged receivables, mostly from Tier 1 clients.

K2F's cash reserves on 31 December 2020 were AUD 2,560,665 as compared to AUD 2,919,788 on 30 June 2020.

Operating Results

The company is classified into two operational areas - SaaS (the proprietary software solutions) and consulting services. K2F incurred a net loss after income tax of AUD 1,067,666 during 1H21 on PCP when the net loss was reported as AUD 1,919,985.

The total invoice was AUD 3,201k, a 3% increase on the PCP. The HY21 net loss included the following:

  • SATEVA acquisition cost of AUD 85,520.
  • The share-based non-cash payment cost of options issued to directors and employees under the Employee Incentive Option Plan.

Other Significant Highlights

In October 2020, K2F announced the significant acquisition of SATEVA, further it also engaged nine new staff members including, SATEVA CEO Mark Forster. SATEVA's major customers include the mining giants such as Rio Tinto (ASX:RIO), Roy Hill Holdings, RAC, and Fortescue Metals Group Ltd (ASX:FMG).

In July 2020, K2F inked an MoU with Decipher for tailing management. During the same month, Orano S.A signed a contract for K2F's RCubed software solution. 

The company continuously won consultancy and advisory deals during the period, and in November 2020, it got the prestigious SAP Endorsed Apps Certification. 

Software Performances

In FY20, K2fly witnessed extraordinary sales success with tier 1 and tier 2 new miners. In the first half of FY21, growth slowed down due to the pandemic impact, especially in the Americas, which again strongly rebounded in Q3FY21.

RCubed helped the company to get significant clients during FY20. In the half-year period, K2F contracted with a French-owned international uranium producer, Orano (Paris).

Must read: K2fly seals the deal on 'gamechanger' acquisition of Perth-based firm SATEVA

On 02 March 2021, at AEDT 11:31 AM, K2F was trading at AUD 0.345, with a market cap of AUD 34.77 million.



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