Can 3D location intelligence provider Pointerra Ltd grow to become the next Nearmap share price? We take a closer look at the company.
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The Nearmap Ltd (ASX: NEA) share price had humble beginnings from a mere microcap to one of ASX’s leading tech shares. Could this 1000% runner be the next Nearmap share price?
Enter Pointerra Ltd (ASX: 3DP)
Pointerra provides a 3D data-as-a-service (DaaS) solution to support digital asset management activities across a range of sectors including civil infrastructure, mining, oil and gas, architecture, engineering and construction and government agencies at all levels. Its cloud-based solution is designed around compression, visualisation and analytics algorithms which index massive 3D data sets. The processed and hosted 3D data can be dynamically searched, accessed, visualised, analysed and shared by anyone, anywhere on any device. Its major client wins and plans for growth have seen the Pointerra share price run from 4 cents in July to 47 cents today (at the time of writing). This represents an increase of 1075% in only three months.
The company is in its infancy but follows a similar business model as Nearmap’s with a diverse offering of analytics as a service (AaaS), data protection as a service (DPaaS) and DaaS. Moving forward, the company will continue to commercialise its technology via its DPaaS, DaaS and AaaS recurring subscription-based revenue model. Its ultimate vision is to create an online marketplace for the massive amounts of 3D data captured by the private and public sectors globally.
In FY20, the company delivered a 115% increase in revenue to $2 million with an operating loss of $2.8 million and $2.3 million cash as at 30 June.
Can Pointerra become the next Nearmap share price?
Pointerra is in its early days but currently boasts a significant market capitalisation of $315 million. In the company’s most recent enterprise sales and annual contract value (ACV) update on 1 September, it reported further growth in spend by existing customers in addition to the onboarding of new customers in the United States energy utilities sector.
The one month impact on ACV from increased spend by existing and new utility sector customers has already exceeded the company’s entire prior quarter uplift. ACV currently stands at US$3.98 million as at 31 August, representing a $1.11 million or 39% increase in just 30 days.
Pointerra is now engaged directly and indirectly in servicing six paying utility customers across the US, with many more currently using and trialling Pointerra’s digital asset management platform.
The total addressable market for the energy utility sector in the US comprises of 168 private (investor owned) companies, 812 cooperatives and more than 1,950 federal, state and municipal owned utilities. These organisations invest extensively in 3D data capture to better understand and manage the condition of their networks. Pointerra’s platform is positioned to deliver powerful insights and assist utilities in network management by simplifying workflow and improving the quality and accuracy of 3D data analytics.
Pointerra is in its early days and is arguably a high risk/high reward investment. The company’s cash position could mean a potential capital raising in the near term. I believe this ASX share will continue to grow strongly and the Pointerra share price may provide a buying opportunity in the future.
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Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.