The Pointerra (ASX: 3DP) share price has been rocketing lately, despite no recent news. We take a look at what’s driving its shares higher.
The post Why is the Pointerra (ASX:3DP) share price up 75% so far this year? appeared first on The Motley Fool Australia. –
The Pointerra Ltd (ASX:3DP) share price was trading strongly higher today despite no news out of the company.
Shares in the 3D data operator’s shares were trading up 8.33% at 91 cents at the close of trade today. This means the Pointerra share price has gained a massive 75% since the start of 2021.
Why is the Pointerra share price flying higher?
The release on 29 January of Pointerra’s quarterly report has proved to be a significant catalyst sending shares higher, with 82% gains recorded post announcement.
In the release, the company continued its strong run of growth with its annual contract value (ACV) standing at US$6.88 million as of 29 January. This means the company’s ACV increased by 18% between quarters and 262% since the same corresponding quarter last year.
Notably, the company also received cash receipts of $0.64 million from customers, including new US customer Eversource Energy, a $29 billion utility company. As part of its recent storm response efforts, it engaged Pointerra to provide an enterprise repository and analytics platform. Eversource will then extract actionable information from geospatial data allowing for better and informed decisions that will lead to faster response times. The company signed a 4-month initial contract of $150,000 a month.
On 10 February, due to Pointerra’s astronomical share price rise, the ASX asked the company to explain its increase. Pointerra confirmed that it was complying with the ASX listing rules and had disclosed all relevant information in its quarterly report. The company also noted that any individual material change in ACV would be reported separately as it was in its growth phase.
About the Pointerra share price
Pointerra is an Australian company aiming to take on the challenge of using and monetising 3D data sets. The company provides cloud-based solutions for utilising and distributing these data sets. It gathers data from 3D scanners such as drones or handheld scanners and converts it into useable data sets. The data is stored on the cloud so that users can access it instantly, on-demand, on any device.
The company boasts a range of customers in construction, utilities, entertainment, defence and search & rescue.
The Pointerra share price has gained an astounding 1,720% in the last 12 months. Share took off in July last year after tech entrepreneur Bevan Slattery invested 2.5 million in the company via a placement of 50 million shares at 5¢ each.
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Daniel Ewing owns shares of Pointerra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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.