Pointerra (ASX:3DP) share price stalls after September quarter update

Here's how Pointerra performed in the third quarter.

The Pointerra Ltd (ASX: 3DP) share price is struggling on Friday after the company released a sales update for the September quarter.

A male executive worker wearing glasses and a blue collared shirt looks at his laptop screen with a concerned look on his face and his hand to his forehead.

Image source: Getty Images

Third quarter highlights

Pointerra recapped a strong September quarter following the addition of new customers and increased spending from existing customers across key target sectors.

The company reported a September quarter annual contract value (ACV) of US$1.9 million, or a 19% increase against the June quarter. Total ACV as at 29 October now sits at US$11.7 million.

Pointerra was pleased to highlight a step change in its sales mix from being dominated by the US utilities and mapping sectors to a broader adoption across most target sectors. The target sectors being Survey & Mapping, Architecture, Engineering and Construction (AEC) industries, utilities, oil & gas, transport as well as mining across the United States and Australia.

The company believes this also reflects its investment in new business development and sales resources, focused outside of utilities and mapping sectors.

Pointerra noted that its quarter-on-quarter cash receipts might vary as customers are onboarded with different payment cycles including multi-year in advance agreements.

Pointerra share price snapshot

The Pointerra share price posted some extraordinary gains between June 2020 and February this year, surging more than 2,000% from a mere 4 cents to all-time highs of 92.5 cents.

After hitting an all-time high of 92.5 cents on 15 February, the Pointerra share price has trended lower, hitting lows of 35 cents by late August.

Encouraging announcements such as its 14 September corporate presentation helped drive some life back into its share price, hitting a 3-month high of 58 cents shortly after.

However, the move to the upside was shortly met with selling pressure, sliding to the mid-low 40 cent level by October.

The Pointerra share price is down 18% year to date.

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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