K2fly Ltd (ASX:K2F) has locked in a three-year SaaS contract with SCR-Sibelco NV which will see its RCubed Resource Governance solution rolled out to 60 sites globally from this month.
Sibelco is a Belgium-based global material solutions company which operates in 174 production sites in more than 30 countries with a team of 8,500 people.
K2fly chief commercial officer Nic Pollock said: “We are delighted to be working with our second industrial minerals customer in Western Europe.
“What is especially pleasing is that as a private company Sibelco’s motivations are not regulatory-driven, but by business improvement and improved governance.”
Well-positioned in sector
While the annual contract value with Sibelco is not material, it demonstrates continued demand for K2fly’s SaaS solutions during challenging macro-economic conditions and further validates the company’s position in the industrial minerals sector.
K2fly’s Total Contract Value for its own SaaS solutions (RCubed and Infoscope) has risen to more than A$5 million as the contract terms extend.
Total Annual Recurring Revenue for K2F’s Software as a Service (SaaS) as of April 2020 is now A$1.9 million.
The company expects this trend to continue with further multi-year contractual negotiations in the pipeline, however, there are no guarantees and many potential contracts are still being negotiated.