What's happening with the Pointerra (ASX:3DP) share price today?

The company's shares are continuing their decline this week…

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The Pointerra Ltd (ASX: 3DP) share price is slumping heavily today. This comes after the 3D geospatial data technology company provided an update on its enterprise sales activity during the June quarter.

At the time of writing, Pointerra shares are down a sizeable 7.89% to 43.7 cents. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.42% to 7,682 points.

How is Pointerra performing for the June quarter?

Investors are heading for the hills, selling Pointerra shares despite the company reporting growth across key sectors. A possible catalyst for the Pointerra share price could be that the result did not meet the market's lofty expectations.

For the period ending 29 July 2021, Pointerra advised annual contract value (ACV) increased by US$91 million from 29 April. The 24% quarterly growth brings total ACV for Q4 FY21 to US$9.80 million.

Pointerra attributed the uplift in ACV to an increase in customers across a broad range of sectors in the United States and Australian markets. This included areas such as utilities, surveying and mapping, engineering, mining, as well as oil and gas.

In addition, the company observed a surge in spending for its suite of Software-as-a-Service (SaaS) services. The adoption of cloud asset management platforms jumped as a result of Pointerra continually developing its 3D geospatial data technology.

Just last month, the company acquired United States digital asset management business, Airovant. In 2020, ACV growth had come primarily from the United States utilities and mapping sectors. However, management noted the past couple of quarters has seen a broader take-up of its services.

The company lastly said that quarter-on-quarter cash receipts could change as new customers are onboarded with different payment cycles.

About the Pointerra share price

Looking at the last 12 months, Pointerra shares have generated a 130% gain for shareholders, but have fallen 10% year-to-date. The company's share price is sitting just lower than the middle of its 52-week range of 17 cents to 92.5 cents.

Pointerra commands a market capitalisation of about $298 million, and has more than 677 million shares on its books.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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