K2Fly Ltd (ASX: K2F) shares have been on the rise today as the company released its update for the quarter. At the market's close, the K2Fly share price was trading 9.72% higher at 39.5 cents on the news.
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What K2Fly does
K2Fly is a technology company that provides technical assurance and reporting solutions. Its software aids companies' environmental, social and governance needs. To do this, the tech company supplies people and products as well as helps to form strategic alliances focused on solving problems for clients.
Primarily, K2Fly services the mining, oil and gas, utility and agriculture sectors through two main platforms. RCubed is the company's mineral resource and reserve reporting program while Infoscope is a solution that supports enterprise land management.
Quarterly update
The K2Fly share price is flying today following the release of some impressive results. The company announced that it had raised invoices for $1.64 million in Q1, which is an improvement of 15% over the equivalent quarter in FY20.
Furthermore, as at 30 September, its cash available was $3.1 million. Adding to this was $0.88 million in receivables collected, predominantly from Tier 1 clients. These numbers reflect that during Q1, K2Fly's current operations achieved net positive cash flows of approximately $0.37 million. This follows on from being cash flow positive in the previous quarter by $0.7 million.
Moreover, the company's sales pipeline remains strong. Earlier in the year, K2Fly announced it had signed a contract with Orano SA. Orano is a multinational, nuclear fuel cycle company with uranium mining operations, and is headquartered in France. Orano signed a five-year contract to implement the RCubed resource governance solution, and the total contract value was in excess of $300,000.
What now for the K2Fly share price?
With the Australian mining sector performing strongly during the global pandemic, K2Fly has seen some strong tailwinds. This looks set to continue for the company with a number of its customers, such as Imerys SA (EPA: NK), recently signing for proof of concept (POC) offerings. Imerys is conducting a paid POC study to implement K2Fly's land management solution across its 200+ sites globally.
Additionally, K2Fly is continuing to progress a new tailings management and governance solution with its partners SAP SE (NYSE: SAP) and Decipher, which is part of the Wesfarmers Ltd (ASX: WES) group.
Investors are clearly impressed as the K2fly share price has been bid up today.
