Pointerra (ASX:3DP) share price 5% higher on triple-digit revenue growth in FY21

The Pointerra share price is on the rise again after surging 810% in 2020.
The post Pointerra (ASX:3DP) share price 5% higher on triple-digit revenue growth in FY21 appeared first on The Motley Fool Australia. –

The Pointerra Ltd (ASX: 3DP) share price is trading 5.33% higher at 39.5 cents on Tuesday after the company released its preliminary FY21 results.

Pointerra share price higher on triple-digit top-line growth

Here are the highlights of the geospatial data tech company’s prelim results:

Annual contract value (ACV) up 241% to US$9.8 million
Customer revenues rose 224% to A$3.98 million
Customer cash receipts increased 121% to A$4.07 million
Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of A$1.27 million (FY20: $1.83 million loss)
Cash balance $5.18 million as at 30 July

What happened to Pointerra in FY21?

2021 has proved to be a challenging year for the Pointerra share price, down 24% year-to-date. This follows a bumper performance in 2020 where its shares surged 810% from 5.5 cents to 51 cents.

During the financial year, the company acquired US-based aerial imagery company, Airovant for US$1 million.

The acquisition was described as a “step-change in the dimension and scale of Pointerra’s US operations in the important AEC (architecture, engineering and construction), facilities management and energy utilities markets”.

According to the acquisition announcement, Airovant’s annual revenue averaged US$1.4 million over calendar years 2018, 2019 and 2020 with positive cash flow and earnings during this time.

Pointerra’s growth across key market sectors, in addition to Airovant’s contribution to earnings, helped deliver the triple-digit increase across key financial metrics. Pointerra was pleased to highlight that the business is profitable on its current ACV run-rate basis.

During the period, Pointerra delivered a lower underlying EBTIDA loss of A$1.27 million, reflecting scaling customer revenue is outpacing the modest increase in operating expenses.

Pointerra had a cash balance of $5.18 million for the year ended 30 June, boosted by its $2.5 million placement in July 2020 and options exercised during the year.

What’s next for Pointerra?

Pointerra believes it’s well-funded for continued organic growth in the new financial year.

The company continues to roll out its enterprise platform with key US utility customers in July and August, enhanced by additional paid proof of concept projects designed to validate the platform’s capabilities.

Pointerra successfully developed a digital twin solution for tier-1 mining sector customers in Australia and expects to launch the product in the US market. The company expects mining sector ACV spend to continue to grow in FY22.

Despite a solid outlook for FY22, the Pointerra share price is currently hanging around 9-month lows.

The post Pointerra (ASX:3DP) share price 5% higher on triple-digit revenue growth in FY21 appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pointerra right now?

Before you consider Pointerra, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pointerra wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

3 exciting small cap ASX shares to watch closely

Pointerra (ASX:3DP) share price leaps 8% ahead of next week’s earnings

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!