Pointerra (ASX:3DP) share price 5% higher on triple-digit revenue growth in FY21

The Pointerra share price is on the rise again after surging 810% in 2020.

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The Pointerra Ltd (ASX: 3DP) share price is trading 5.33% higher at 39.5 cents on Tuesday after the company released its preliminary FY21 results.

Pointerra share price higher on triple-digit top-line growth

Here are the highlights of the geospatial data tech company's prelim results:

  • Annual contract value (ACV) up 241% to US$9.8 million
  • Customer revenues rose 224% to A$3.98 million
  • Customer cash receipts increased 121% to A$4.07 million
  • Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of A$1.27 million (FY20: $1.83 million loss)
  • Cash balance $5.18 million as at 30 July

What happened to Pointerra in FY21?

2021 has proved to be a challenging year for the Pointerra share price, down 24% year-to-date. This follows a bumper performance in 2020 where its shares surged 810% from 5.5 cents to 51 cents.

During the financial year, the company acquired US-based aerial imagery company, Airovant for US$1 million.

The acquisition was described as a "step-change in the dimension and scale of Pointerra's US operations in the important AEC (architecture, engineering and construction), facilities management and energy utilities markets".

According to the acquisition announcement, Airovant's annual revenue averaged US$1.4 million over calendar years 2018, 2019 and 2020 with positive cash flow and earnings during this time.

Pointerra's growth across key market sectors, in addition to Airovant's contribution to earnings, helped deliver the triple-digit increase across key financial metrics. Pointerra was pleased to highlight that the business is profitable on its current ACV run-rate basis.

During the period, Pointerra delivered a lower underlying EBTIDA loss of A$1.27 million, reflecting scaling customer revenue is outpacing the modest increase in operating expenses.

Pointerra had a cash balance of $5.18 million for the year ended 30 June, boosted by its $2.5 million placement in July 2020 and options exercised during the year.

What's next for Pointerra?

Pointerra believes it's well-funded for continued organic growth in the new financial year.

The company continues to roll out its enterprise platform with key US utility customers in July and August, enhanced by additional paid proof of concept projects designed to validate the platform's capabilities.

Pointerra successfully developed a digital twin solution for tier-1 mining sector customers in Australia and expects to launch the product in the US market. The company expects mining sector ACV spend to continue to grow in FY22.

Despite a solid outlook for FY22, the Pointerra share price is currently hanging around 9-month lows.

Motley Fool contributor Kerry Sun 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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