Pointerra share price tumbles despite 93% increase in full-year cash receipts

The market is bidding the Pointerra share price lower on Friday.

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Key points

  • The Pointerra share price is suffering on Friday on the back of the company's latest quarterly report and an update on its enterprise and annual contract value 
  • The company posted record full-year cash receipts, coming in at $7.9 million, buts its quarterly cash receipts fell on those of the March quarter 
  • Pointerra's annual contract value now sits at US$18.2 million – $1.9 million higher than it was at the end of April

The Pointerra Ltd (ASX: 3DP) share price is in the red this morning after the developer and provider of 3D geospatial data technology updated the market on its performance in the June quarter.

Since opening 11% lower at 23.5 cents, the tech stock has posted a slight recovery. The Pointerra share price is trading at 25 cents at the time of writing, representing a 5.66% fall.

Pointerra share price plunges despite record receipts

Highlights of Pointerra's quarterly activities and cash flow report included:

  • Quarterly invoicing came to a record $4.2 million
  • Cash receipts grew 21% on those of the prior corresponding period (PCP) to $1.7 million, but that's down from $2.4 million in the March quarter
  • Operating cash flow came to a $1.4 million outflow
  • Full-year cash receipts reached $7.9 million – a 93% increase
  • Pointerra ended the quarter with $3.6 million of cash and equivalents

The tech company also updated the market on its enterprise sales and annual contract value (ACV) this morning, noting the latter now totals U$18.2 million. That's US$1.9 million higher than it was at the end of April.

It also rose 86% between the end of the June quarter and the PCP, driven by the deployment of contracts in the United States energy sector, as well as growth across other targeted sectors.

What else happened in the June quarter?

The big news from Pointerra last quarter was of two contracts won in the United States.

A new contract signed with Florida Power and Light could have the potential to bring in at least US$250,000 each year, as could another with NextEra Energy.

The Pointerra share price surged 24% on the back of the announcement in June.

The company also continued improving its platform through the quarter just been.

What's next?

The company didn't provide any new earnings guidance today. However, it did provide a sunny outlook.

Revenue and cash from the company's newer contracts are expected to continue growing this financial year. However, a slight lag is expected as the company works to upload new customers' legacy data.

It also noted many customers have advocated their peers' adoption of Pointerra technology, driving down the cost of customer acquisition.  

Pointerra share price snapshot

Both the Pointerra share price and the S&P/ASX All Technology Index (ASX: XTX) have struggled to gain traction this year.

They've slipped 37% and 28%, respectively, since the start of 2022.

Longer term, however, the company's stock is underperforming. It has dumped 40% in the last 12 months. Meanwhile, the All Tech Index has fallen 24%.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in 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 Scott Phillips.

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