Pointerra (ASX:3DP) share price rockets 12% on 'record quarterly cash receipts'

Pointerra comes in with a solid Q2 FY22 today.

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Key points

  • Pointerra released its December 2021 quarter (Q2 FY22) activities and cash flow report today.
  • In the report it outlined record quarterly cash receipts from customers.
  • All other areas saw growth and new customers added as well.
  • Pointerra share price is up 12% on the day.

Shares in 3D geospatial data company Pointerra Ltd (ASX: 3DP) are rocketing today and now trade 12% higher at 40 cents apiece.

Investors are piling into Pointerra during Wednesday's session following the release of its December 2021 quarter (Q2 FY22) activities and cash flow report. Let's take a closer look.

Pointerra share price jumps solid cash flow results

The company outlined several investment highlights it had achieved last quarter, including:

  • Record quarterly cash receipts from customers $2.85 million
  • Cash flow positive quarter from operations $800,000
  • Energy Utilities Sector – material contracts awarded (between $4.33 and $6.6 million) and existing customers grow Actual Cash Value (ACV) spend
  • AEC Sector – new customers added and existing customers grow ACV spend
  • Survey & Mapping Sector – new customers added and existing customers grow ACV spend
  • Transport Sector – new customers added and existing customers grow ACV spend
  • Mining, Oil & Gas Sector – new customers added and existing customers grow ACV spend

What happened last quarter for Pointerra?

The quarter was highlighted by record cash receipts from customers to $2.85 million and cash flow from operations.

It also outlined several contract wins totalling between $4.33 million and $6.60 million, in the "strategically important US energy utilities sector" that was announced last year.

Coupled with these material contract awards, growth in spend by existing customers during the quarter generated further uplift in Pointerra's USD Actual Cash Value (ACV) run rate (ACV is akin to annual recurring revenue only for subscription services).

The company says it "looks forward to updating the market with a revised US$ ACV run rate, with the next update being provided by 31 January 2022 at the latest".

Pointerra says that a number of new customers were added during the quarter in its Survey and Mapping segment as well. Australian growth for instance is increasingly being driven by "state and local government agency mandates that survey & mapping firms deliver data via Pointerra3D Core".

Meanwhile, in the US, inside sales initiatives continued during the quarter which resulted in a "very large number of lower dollar ACV prospects".

Aside from that, the company realised a period of growth in all of its core operating segments, earmarked by the continued adoption of its "solution" by Australian road and rail operators.

During the quarter, payments for Research and Development (R&D) of $355,000 were made as salary allocations to team members who are "100% focused on R&D activities".

Pointerra notes that cash outflows for the quarter were 'in line with expectations' and that the balance sheet showed around $5 million in cash as of 31 December 2021.

What's next for Pointerra?

The company remains prioritised on R&D efforts to build out its strategic areas. Some of these include a platform to underpin the delivery of point cloud analytics to Pointerra3D Core customers and developing a catalogue of analytics algorithms for Pointerra3D Analytics customers.

Aside from that, Pointerra is focused on broadening the platform to support complementary data types and exploring methods to apply neural network machine learning.

The company didn't provide any specific revenue or profit guidance. The Pointerra share price is up 12% on the day and has rallied more than 8% in the past week of trading.

The author has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns 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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