The Pointerra Ltd (ASX: 3DP) share price has been an exceptionally strong performer on Thursday.
In afternoon trade, the 3D geospatial data technology company's shares are up 26% to 67 cents.
This latest gain means that its 12-month return now stretches to a staggering ~1,500%.
Image source: Getty Images
Why is the Pointerra share price rocketing higher?
Investors have been fighting to get hold of the company's shares on Thursday following the release of its third quarter update.
According to the release, for the three months ended 31 March, Pointerra achieved record quarterly cash receipts from customers of $1.37 million. This was more than double the cash receipts it recorded during the second quarter of FY 2021.
This ultimately led to the company achieving a net cash inflow from operating activities of $0.21 million for the quarter.
As a result, at the end of the quarter, Pointerra was left with a cash balance of approximately $5.1 million.
What is driving its growth?
Management advised that its strong growth was driven by continued platform rollout and enterprise deployment activities in the US with Pacific Gas and Electric and Eversource Energy.
Also supporting its growth was work with existing utility customers both directly and via their mapping partners across the US. These include Florida Power & Light, Southern California Edison, San Diego Gas & Electric, Seattle City Light, American Transmission Company and Tennessee Valley Authority.
In addition, management revealed that the company experienced growth in demand for Pointerra's platform from large regional and global engineering firms. It notes that these are actively engaged in early works for local, state and federal government COVID-19 recovery infrastructure investment initiatives.
This activity is also driving the acceleration of innovation adoption by the Architecture, Engineering & Construction sector, which management expects to contribute to further growth in customer acquisition in the coming quarters and into calendar 2022.
This could bode well for the Pointerra share price over the next 12 months.
