The Pointerra Ltd (ASX: 3DP) share price is falling today after the company released its quarterly activities and cash flow report. The Pointerra share price has dropped 5.15% to 46 cents at the time of writing.
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Quarterly update
Pointerra's share price is down this morning despite the company announcing strong results for the September quarter. Investors in the 3D geospatial company may have been expecting more growth to go with the company's lofty $330 million market capitalisation.
During the quarter, cash receipts from customers totalled $0.61 million compared to $0.82 million in Q4 FY20. Despite this decline, the company reported it continued to grow the spend from existing customers across Pointerra's suite of services. With the strongest growth coming from the US utilities sector. The addition of Eversource Energy (NYSE: ES), a US$32 billion energy company was a highlight.
Furthermore, the company saw numerous US Defence sector opportunities emerge. During September, Pointerra was invited to participate in a platform demonstration and situational proof of concept at an exercise for the US military. The company showcased the real world applications for its platform that could be of benefit.
The company's highly anticipated 3D Data marketplace also saw progress during the quarter. Progress on the soft-launch of the company's marketplace occurred during September. Available data was sourced and identified, pricing negotiated and data progressively uploaded for analysis and sale to Pointerra's customers and partners.
Nevertheless, as a result of the decline in cash receipts, the company saw a net cash outflow from operating activities of $0.33 million for the quarter. Pointerra's research and development spend was $0.34 million.
Contract value growth
Despite the company's falling cash receipts, Pointerra saw strong annual contract value (ACV) growth. With the one month growth in ACV standing at US$0.95 million, this represented a 24% increase during the month of September. ACV now stands at US$4.93 million as of 30 September.
Pleasingly for shareholders Pointerra remains profitable on a ACV run-rate basis.
About the Pointerra share price
Pointerra provides cloud computing solutions for 3D geospatial data technology. The company processes 3D data and allows storage on the cloud, allowing for very large 3D datasets to be used without the need for high power computing. The company's platform can be accessed anywhere from any device.
Pointerra's share price has performed exceptionally since the cash injection from Tech entrepreneur Bevan Slattery in July. Its shares have risen 675% so far this year.
