The Pointerra Ltd (ASX: 3DP) share price fell lower today despite announcing a positive annual contact value update. By the market's close, the Pointerra share price was down 6.48% to 50.5 cents. This compares to the All Ordinaries Index (ASX: XAO) which closed 0.78% lower at 6,641.80 points.
Let's take a look at what Pointerra does and what it reported today.
What's driving the Pointerra share price lower?
The Pointerra share price dropped lower today as shareholders digested the company's latest set of results.
According to the release, Pointerra advised that, during the months of October and November, its annual contract value (ACV) has increased. The company revealed a surge in spending from its existing customers in addition to the onboarding of new customers. Pointerra experienced growth across its Australian and United States markets whereby its ACV run-rate has eclipsed the second quarter of FY21.
For the period from 15 October to 25 November, the company achieved ACV at US$5.82 million. This represents an 18% increase from when ACV was last reported 40 days ago.
The company stated that its software-as-a-service (SaaS) solutions increased ACV by US$0.89 million. This included its data-as-a-service (DaaS), analytics-as-a-service (AaaS), and data-processing-as-a-service (DPaaS) solutions.
Management said that it will update the market on further ACV growth when available. In addition, contract awards within the company's suite of services will be announced during FY21.
What does Pointerra do?
Based in Australia, Pointerra provides 3D geospatial data technology. Its online platform processes massive 3D dataset and stores the information on the cloud. This negates the need for expensive and time-consuming high-performance computing. The company's platform can be accessed instantaneously around the world on any device.
About the Pointerra share price
The Pointerra share price has had a stellar performance over the last six months, rising by 1,163%. No doubt shareholders who invested back in May and held onto their Pointerra shares, would be smiling with these incredible gains.
Reaching an all-time high of 67.5 cents in September, Pointerra has experienced a rapid acceleration of interest in its cloud-based platforms recently. At the start of this month, the Ponterra share price was sitting at 31 cents before increasing to today's level, highlighting its volatility.
The company has a current market capitalisation of around $355 million today.
