Pointerra Limited (ASX: 3DP) has just released its quarterly update which has been extremely well received by the market. Pointerra’s shares are up 25% at the time of writing.
3DP share price
Key takeaways
For the March 2021 quarter (Q3 FY21), Pointerra reported record quarterly cash receipts from customers of $1.37 million, up 114% from the previous quarter.
Pointerra remained cash flow positive across the period and reported $0.21 million from operating activities, which helped the company finish the quarter with a cash balance of just over $5 million.
Pointerra’s headcount increased from 23 to 27 across the period and expects to make additional appointments in coming quarters as the business continues to scale.
Customer growth
During the quarter, Pointerra experienced high growth in spend from its existing subscription customers across all business segments.
It also reported onboarding of new customers across a variety of sectors, including architecture, engineering & construction (AEC), mining, utilities and aerial & mobile mapping.
According to management, Pointerra has recently been a beneficiary of civil infrastructure spending as local, state and federal governments ramp up investment towards COVID-19 recovery initiatives.
This spending was particularly beneficial to the AEC sector and management believes that this will be a key contributor for further customer acquisition in the coming quarters and into CY22.
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Another exciting development throughout the recent quarter was its partnership with global mapping company Here Technologies – one of the world’s largest mapping companies with over 9,000 employees across 56 countries. Its maps are used in over 150 million vehicles worldwide.
Here (formerly Navteq) is majority-owned by a consortium of German car companies and captures things such as road networks, buildings and traffic patterns. It then sells this data to other businesses for things like location services and navigation.
During the quarter, the two companies progressed their technical integration, which now means Pointerra can access Here’s extensive cloud-based LiDAR libraries, which will help provide answers to a range of digital asset questions.
The 3D LiDAR data can be used to interpret asset condition and is able to sell this data through a subscription-based commercial model.
Management believes this business segment will go on to become the largest and most valuable part of Pointerra’s product offering.
Summary
This was a positive update that seems to confirm there’s potentially a lot more to come from Pointerra as it continues to execute on its exciting growth strategy.
There seems to be a fairly large sales pipeline in the works, with over 25 contract opportunities across Army, Air Force, Navy and other military and intelligence sector agencies in the US.
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