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Key points
- The Pointerra share price is currently up 8.22%, trading at 39.5 cents
- The gain follows the company's announcement that its annual contract revenue increased 23% last quarter
- Pointerra also plans to expand into the US and UK, as well as boost its Australian operations
The Pointerra Ltd (ASX: 3DP) share price is surging this morning after the company updated the market on its enterprise sales and annual contract value (ACV).
The company's ACV increased 23% over the December quarter as Pointerra3D apparently becomes a "must-have" platform for the United States' energy utility sector. As of today, its ACV stands at US$14.4 million.
At the time of writing, the Pointerra share price is 39.5 cents, 8.22% higher than its previous close.
Let's take a closer look at the news driving the technology company's stock.
Pointerra share price soars on US$2.7m ACV growth
The Pointerra share price is in the green after the company announced its ACV increased by US$2.7 million last quarter.
The boost was driven by an increase in both customer numbers and spending, as the company continued to branch into sectors including surveying and mapping, architecture, engineering and construction, utilities, transport, mining, and oil and gas.
Over the course of the December quarter – the results of which were released in the last fortnight – Pointerra was awarded between US$3.12 million and US$4.75 million of contracts within the US energy utility sector.
Additionally, Pointerra says its customers in the sector are pushing their peers to adopt the company's digital twin solution. That's expected to drive growth in the future.
As well, the company welcomed a record number of new customers over the December quarter.
The buoyant Pointerra share price is also likely being impacted by its growth plans.
The company will open its first office in the United States and begin operating in the United Kingdom. It's hoped its UK base will drive growth in Europe, the Middle East, and Africa.
Pointerra is also on the lookout for mergers and acquisitions to add knowledge of people and product in key industries.
Finally, the company will be looking to bolster its personnel in Australia to support customer demand.
As the company's portfolio of customers matures in coming quarters, it will start reporting ACV totals by target sector.
Its disclosure metrics will also evolve. It plans to start reporting such measures as average revenue per subscription, customer churn, net incremental ACV, and gross margin in the future.
