The Pointerra Ltd (ASX: 3DP) share price is storming higher on Friday morning.
At the time of writing, the 3D geospatial data technology company's shares are up 5% to 50 cents.
Why is the Pointerra share price storming higher?
Investors have been buying the company's shares on Friday following the release of its quarterly update.
According to the release, Pointerra's strong growth continued during the second quarter and into the third. As of 29 January, the company's Annual Contract Value (ACV) stood at US$6.88 million.
This is an increase of US$1.06 million or 18% since its last update on 25 November. It is also up 262% since this time last year, albeit from a small base.
Management advised that this was driven partly by new customers in the US energy utilities and the US and Australian mapping sectors.
One of these new customers is Eversource Energy, a US$32 billion market capitalisation energy company servicing customers in Connecticut, Massachusetts, and New Hampshire. It is working with Eversource to determine the scope and scale of deployment of Pointerra's platform to support its storm response and network integrity operations.
Management notes that, as part of its recent storm response efforts, Eversource has engaged Pointerra to provide an enterprise repository and analytics platform to extract actionable information from geospatial data allowing for better and informed decisions. This is expected to lead to faster response efforts and higher reliability for its customers.
Eversource is currently paying US$150,000 per month for a four-month deployment. However, management expects to agree a material ongoing subscription with the energy company upon expiry.
Also supporting its ACV growth was a further increase in demand from existing customers. Management notes that its existing customers were spending more thanks to a number of successful POC projects with utilities and their LiDAR and imagery capture mapping partners in the US.
Balance sheet
During the second quarter, Pointerra received $0.63 million in customer receipts.
However, thanks to its modest operating costs, the company only posted a net operating cash outflow of $0.231 million. This left it with a cash balance of $4.52 million at the end of December.
