Curious as to what others thought of the meeting today.

On one hand, I can totally take Ian at face value:

The company was growing rapidly, funded by extremely supportive capital markets and they had a monster opportunity ahead of them... and then, with the big deals concentrated in a specific geography/sector, their giant US counterparties pulled back on all CAPEX as they got whacked with higher rates and constrained by capped pricing.

So 3DP went from (arguably realistically) expecting $3-4m in quarterly cash flows, to finding that they didn't even have enough to fund costs and ongoing development. In short, the world changed on them before they could hit sustainable profitability and are now faced with the challenge of funding operations and growth, but with an ever shrinking balance sheet.

Importantly, according to Ian, these projects have not gone away, they were suspended instead of cancelled, and are expected to resume in the coming months. To such an extent that Ian seems to think they can deliver CF and EBITDA +'ve results for FY24.

If true, shares are probably extremely cheap. We'll see a confluence of revenue booked in one of these quarters which will prompt a material re-rate as the growth narrative is once again seen as realistic.

On the other hand...

Regardless of the external operating environment, the company has scored some big home goals in over-promising, cancelling a core reported metric and poorly executing a capital raise. Rightly or wrongly, that's done a lot to undermine trust. And trust is everything here.

Ian talks a good game, but until we see evidence of a turnaround, it's easy to take the assertions as wishful thinking. Even if the general nature of the situation is as Ian describes, there's still the potential for big clients to delay further, or renegotiate better terms. And there's not much spare cash left at this stage either..

I'd really like to give the company the benefit of the doubt, but cannot in good conscience add to my (now relatively tiny) position until we see more clarity and progress in the reported financials.

An encouraging update, although quite vague from a financial standpoint.

New commercial agreements announced, one with an initial US$312k pa subscription, and all with expansion potential.

New Business Development hires to shorten sales cycles and land 7-figure contracts, and Amazon digital twin program for its distribution centres due to restart in December.

Will look to get some more detail when we speak with Ian tomorrow.

Well, this latest raise was an underwhelming affair.

Arguably, it all started on July 28 with a bullish announcement that Pointerra's utility partners were selected for a US$15b grid resilience CAPEX program. The detail was vague, but hinted at a significant revenue opportunity, and shares duly rose -- in fact, they more than doubled at one point (briefly).

A few days later the company's 4th quarter announcement showed a disappointing cash inflow, but this was explained as a timing issue with much of the shortfall received in July. The company said it "continues to self-fund organic growth". The ACV metric was again notably absent.

Two weeks later, Pointerra revealed it had raised $2m via an institutional placement at 12c per share (a 13% discount to the recent volume weighted trading price, but a 25% premium to where shares were at prior to July 28). Veritas, the lead manager for the raise, was paid $120k, or 6% of the total raised.

Shareholders were offered the same deal to raise a further $1.5m, but by this stage shares had returned to sub-10c, meaning any uptake would be at a 20%-odd premium to what you could get on market. Unsurprisingly, very few shareholders took up the offer, which raised just $195k, or 13% of the targeted total. Frankly, it's amazing they raised anything!

All told, the capital raised cost 6% in fees and a 2.8% dilution to existing shareholders. And all for a relative pittance in cash -- an amount that would have barely covered the FY23 cash burn.

I've lined up a meeting with Ian for the 31st of this month, but I assume the rationale will be they just needed a bit to help accelerate some growth and will be self-funded from here ("cross my heart and hope to die, stick a needle in my eye")

To be fair, they are dealing with big customers and project delays aren't uncommon for large CAPEX programs. They are a tiny company desperately trying to scale while continuing to invest in their product and resourcing. So maybe what we're dealing with here, and in other outcomes that fell short of expectations, is just a bit of over-exuberance from management, but which they genuinely feel is well founded.

But the fact is that they have damaged their reputation -- and that will take a long time to rebuild.

The lesson here for management is that it's usually best to under-promise and over-deliver. When you make bold claims you really just create a rod for your back, imo.

The market mood has really shifted for the better with Pointerra of late -- and not without some justification. But the latest 4C is somewhat lacking in my opinion.

Operating cash flow was significantly negative for the quarter (down $1.8m) with just $800k in customer cash receipts. That compares to cash receipts of $3.25m in prior quarter. This was apparently due to invoicing delays, and in July $1.8m has since been collected.

So hopefully just a timing issue, and the company says "the core business operation continues to self-fund organic growth across the business in Australia and the US."

Let's hope so -- there's less than $1.5m left in the bank.

The ACV chart -- long highlighted by the business -- was again absent. I think that's very poor form to simply abandon this metric.

Lots of fluff in the announcement and very little detail.

Here's the 2022 AGM from Pointerra, that was held yesterday (23/11/22).

https://youtu.be/gtx4Mu3pw7s

Would have loved to have been there if i was in WA. One of the great things about small cap AGMs is that you pretty much have the entire board and management to yourself.

Case in point, Ian said that for this year Pointerra team members outnumbered Shareholders!

Anyway. Nothing really new here, but always good to hear a sermon from Ian.

The pace of ACV growth remains attractive, with Pointerra adding US$1.9m during the quarter -- pretty much bang on what they've done for the past couple years. That's am 86% uplift over the past year.

If they can retain this pace, they are well on their way to my target of $50m in FY25 sales.

@Noddy74 however makes an excellent point -- the cash receipts just aren't matching up with the reported ACV. For example, at the start of FY22 they had an ACV of A$13m (at the the then FX rate of 73c). Yet over the year they have collected only A$7.8m. Add current cash receivables of A$2.5m and you still fall short by around A$3m or so.

The company did say:

Elsewhere, Pointerra reiterated:

All of which explains things, to some extent. Perhaps an ARR figure would be better given this phenomenon, but either way these aren't precisely defined metrics and there's a lot of room for discretion.

I don't think anything dodgy is going on, other than the company wanting to present the most favourable metric. At least they have been consistent in the metrics they present. But perhaps I do need to be more cautious in equating ACV to revenue. The good thing is that the 'vector' of sales growth has the right direction and magnitude.

The cash situation is starting to get a little tight. Notwithstanding the variability they mention, the company has around 2-3 quarters left before they run out of cash at the current burn rate. And it's worth noting that R&D and staff costs have all accelerated, and the company said it expects to make additional hires. Plus there's this:

The company reckons the organic growth component can be internally funded, but did say that any acquisitions would be funded by scrip (adding dilution to existing holders). Of course, we should expect increasing staff costs as the company scales, and the real question is not the quantum spent but the return on this investment. Additionally, we should also want to see some operating leverage emerge, whereby revenue growth outpaces the associated cost growth.

I'll let members read the 4C and ACV update themselves, but on balance it's good to see sustained ACV momentum, increased spend from existing customers & increasing inbound enquiries.

The opportunity is there, it's all about execution and effective capital management.

An interview with Ian Olson from today.

Ignore the idiot at the start (me, not Claude!), but interesting to hear Ian say that the $50m revenue target could be hit a year earlier than I mentioned.

YouTube clip here

A good result from Pointerra today in regard to its Dec 2021 Cash Flow Report.

Hoping to get a good read on ACV in the coming weeks.

Pointerra has just shy of $5m in cash in the bank. Although CF positive in the latest quarter, increasing headcount and development expenses, coupled with the lumpy nature of customer receipts, means a further capital raise is a real possibility (although that's not a terrible thing if they can use that to underpin accelerated ACV growth).

To get a better sense of the cash flow picture, I've plotted out the results since the Dec18 quarter. Overall, an encouraging picture.

Pointerra's announcement today of an additional ~AUD$5m in contracts has been very well received by the market -- adding around $60m to the company's market value (at time of writing).

That seems a lot given the total value of the contracts, although there are a few points to bear in mind.

Firstly, while AUD$5m is small biscuits, these deals alone represent more than the company's entire top line in FY21 ($3.98m).

In terms of the Annualised Contact Value (ACV), which was last reported at US$11.7m in October, we should see a significant boost. Pointerra has also won a range of smaller contracts not yet reported, but even excluding these the Q2 ACV is likely to be at least US$16m -- a 130% jump on the previous corresponding quarter.

Also, two of the announced contracts were from existing customers. It not only helps reinforce the value proposition of Pointerra's products, but given the scale of these customers it helps underline the growth potential as these solutions are expanded across their networks.

Indeed, the largest contract announced today was with Entergy -- a US$21b utility company with US$12b in annual revenue. This first contract is just a foot in the door, and there's a lot of scope to expand the offering here too.

All of these clients now serve as attractive reference sites to help facilitate future sales.

With shares now trading on a trailing Price to sales of 70, the company seems ludicrously priced. But given the very low base of revenue, the high pace of growth, and the potential for the business to scale rapidly, it's not difficult to imagine Pointerra reporting $50m in sales in the medium term, and retaining a high sales multiple.

For reference, similar('ish) stocks went from $4m to $50m revenue in about 3-6 years (very roughly, and some thanks to acquisitions). And at that point all managed to attract rather elevated P/S ratios.

It makes valuation quite difficult, and a lot depends on execution. The team (and costs) will definitely need to expand a lot in the coming years. Nevertheless, the business has (in my mind) all the makings of a $1 billion-plus company in the next 5-10 years.

disc. held

Pointerra saw ACV growth of 139% for the six months through to Dec 2021, and now sits at US$6.88m. Revenue was $1.56m for the half, up 218% off a very low base. Cashreceipts were up 132% to $1.14m.

Growth was driven by new customers and an increased spend by existing customers. 

Impressive numbers, but then for a business valued at over half a billion dollars, they'd need to be. For context, that's a pro-rata price to sales of ~180x, and a price to ACV of 64x (Share price at 83c and AUD @ US79c).

It lost close to $1m for the half in net profit, with around -$800k in free cash flow. There's $4.5m cash in the bank -- hopefully enough to get to breakeven. They were profitable on a ACV run rate basis as of the latest quarter.

But to generate enough sales and deliver enough implementations to sustain the rapid growth required to justify the current valuation, the headcount will surely need to grow further. It added 8 new employees in the half, and now sits at 20 full time equivalents -- but that's still tiny.

The company also announced a soft launch of its 3D data marketplace, and hopefully that will provide another good source of revenue. It's seems clear they have an attractive offering and great sales traction overall.

Not much "colour" was added to the results in terms of management commentary, and the ACV number had already been released in January. So overall my view remains this is an exciting company for which I see big things -- but that most of the market seems to have well and truly noticed this too. A lot of growth is already factored in to the current market price.

The asymmetry I try and look for in potential investments (much more upside than downside), just doesnt seem apparent. So for better or worse, although i retain a small parcel, I'm not a buyer at current prices.

If I had a large holding, i'd be tempted to lock in some profits. Even if there is some more upside, the better part of the gain has surely been realised (then again, I said that at much lower levels...)

ASX results here

Pointera allows customers to store, manages, analyse and share their 3D geospatial data.

As with the scan images that ProMedicus (ASX:PME) handle, the data sets can be very large and cumbersome. Pointera's product stores and processes this data in the cloud which enables users to access and use it without requiring a lot of processing power and bandwidth.

Technologies like laser scanning, which have dramatically fallen in price, is underpinning an explosion of 3D data sets, so there appears to be a solid tailwind.

The company reverse listed on the ASX in April 2016 (prospectus is here), following around 3 years of development as a private company. Shares were issued at 3c, and the company has undergone a couple of capital raisings since then.

Dr Rob Newman, the CEO of Nearmap, helped float the company and only recetly stepped down as Chairman due to the increasing time commitments of running Nearmap. As at the last notice, he had 13m shares and 5m options.

After a long period of burning cash, the business is now cash flow positive on an ARR runrate basis.

Sales are growing very strongly, albeit off a small base and contract wins are lumpy.

As of Jan 2021, ACV stands at US$6.88m, up 40% since september.

The company has 670m shares on issueand 5m options. So on a fully diluted basis, at the current market price (72c), the market capitalisation is ~$486m. That's about 50x the ACV.

Overall, I like that Pointera appears to have strong product validation, good sales momentum, and all the lovely attributes of a SaaS business. There's a also a decent tailwind, patented tech and first mover advantage. Good to see managamenet with a very large shareholding too.

I've left a lot of profit on the table by selling down a big part of my Pointerra holding in the last year, but I just find the valuation hard to wrap my head around. Not that I can't see it as being evenutally validated by strong and sustained growth, but if the company falls anywhere short of that high bar, the long-term returns will likley be poor at current prices.

Disc: still hold a small amount on Strawman and in real life.

Pointerra continues to grow its ACV at a solid rate, rising US$1.95m or 40% in the 3 months from September 30, 2020. That's an 18% increase since they last reported this metric on November 25 and ACV now stands at US$6.88m.

Sales came from new and existing customers, with US utilities and mapping sectors driving much of the growth. Pacific Gas and Electric alone is being onvoiced US$35k/month and that's expected to increase to US$80k/month as the deployment continues.

Pointerra also spoke of new opportunities in the defense space, and was invited to demo its capabilities across a range of US departments. Early days, but there's good potential here. 

Pointerra reminded investors that the timing of customer receipts would be lumpy as new clients are onboarded and due to the different payment cycles at play.

Investments in new people and ongoing R&D efforts helped keep the business cash flow negative, with $635k in customer receipts (compared to $610k in preceeding qtr) and $578k in government grants being offset by ~$1.4m in expenses, yielding an operating cash outflow of $231k. That being said, on a ACV run rate basis, the business is profitable.

The business has $4.5m in cash left at the bank. Barring a material ramp up in costs, it should be able to avoid another capital raise.

You can read the 4C and company update on the ASX at these links.

It's very satisfying to watch the early thesis unfold. However, as much as my confidemce in the company has been strengthened, I remain concerned by the valuation. 3DP is trading at 36x ACV. Yes, ACV is at a relatively low base and has the potential to grow strongly for many years, but a lot of optimism is priced in.

Pointerra has reported a US$0.89m increase in ACV since October 15. ACV now stands at US$5.82m.

This was due to a combination of new sales, plus an increasing spend from existing customers -- though none were individually significant.

The 18% lift over 40 days is very decent. If you annualise this, it translates to an annual increase in ACV of around US$8m.

Shares are on a Price to ACV multiple of ~45 -- which is certainly up there. What's tricky is that that will drop very rapidly if the pace of ACV growth is mainatined.

EG, Assuming ACV of USD$14m this time next year, and assuming the share price is around current levels, the P/ACV ratio drops to ~18.

You can read the update here

Pointerra is seeing an accelerating pace of growth and has (hopefully sustainably) passed a profitability inflection point. 

US$1.1m of contracts added in August alone - more than the entire prior quarter. That implies a very high annualised run rate, though it's worth remembering that sales cycles can be very lumpy.

Still, the market opportunity is substantial, 3DP are the leading player and have an attractive business model. But as Rapstar has pointed out, there's considerable execution risk. 

My concern is that that isnt being accurately priced by the market at present, although acknowledge the exciting potential of the business (in fact, as with many here we noticed this last year).

There's a lot of moving pieces here, which makes forecasting financials super difficult. But to take a reasonably optimistic outlook, let's assume Pointerra can achieve an ACV of US$20m by FY23 (that's a high rate of growth, but off a low base). I'll assume revenue will be US$12m. In AUD that represents >100% top line growth for 3 years (not a timid forecast).

Assuming an inevitable and necessary ramp up in expenses, I'll thumb suck an NPAT of US$2.

Accounting for FX, and a modest increase in share count, and applying a PE of 50 i get a target price of 21c, or a valuation of about 14c if i discount by 15% pa. 

The point here is not to say that Pointerra is worth exactly 14c, but that even under some pretty robust assumptions it's hard to argue for a bargain.

Then again, the real value of this will be if Pointerra achieves genuine long term success. 

For the sake of example, let's say Pointerra mirrors Nearmap (NEA) which has similar themes and $106m in ACV and $96m in revenue. It took Nearmap 8 years to scale from $5.7m to 96m in revenues, and it is still loss making on a NPAT basis.

So let's say Pointerra does about the same and in 10 years has $100m in revenue. Nearmap trades on a P/S of 14, so if 3DP is in the same position in FY30, the share price would be about $2. If you discount that by 15% per yer you get a current valuation of roughly 50c.

Under this scenario, which is certainly plausible, shares seem super cheap.

In this example, we do rely on a P/S ratio that many would argue is very aggressive for a $1.4b compny and well above historic market levels -- even for growth stocks.

For comparison, if we use a P/S of 5 -- which is still quite decent, with all else held the same, we get a valuation of 18c.

So again, we can see that there's a huge range of potential outcomes. Even under favourable assumptions.

Of course, there is the very real possibility that sales growth doesnt eventuate to the degree expected. EG. if Pointerra has only $10m in sales in five years (which would still be impressive growth), it's likely shareholders will do very poorly from here.

So what do you do?

For those that are long term bullish -- and I am in this basket -- you really should only be investing money you can afford to leave untouched for many years. Importantly, you have to understand that there will 100% definitely be LOTS of volatility along the way.

A good analogy here might be Envirosuite (EVS) which has also done really well for Strawman members. We saw a lot of value, and managed to reap some great returns as shares re-rated from ~5c to 35c as the market woke up to the business's performance and potential.

But although the business is just as well positioned today as it ever was, shares are down 50% from their highs, at one one point hitting 8c in March. (As an aside, it's been a good opportunity in my opinion).

Things just got carried away, and those that bought with a short term, momentum only focus would have been badly burnt. 

The point is that with Pointerra, you need to expect that kind of thing. I'm not trying to predict any short term moves, and not saying you should try to trade in and out -- just know that if your thesis is based on long-term success, you have to be prepared to sit through some challenging times.

For me, I've been selling down my original holding due to valuation and weighting considerations (i dont want 30% of my portfolio in one stock!). But I am happy to retain a stake given the long term opportunity, and will look to buy if an attractive enough price comes up.

I'll update my best guess valuation shortly.

A podcast interview with Pointerra CEO Ian Olson, released this morning:

https://soundcloud.com/morgans-financial-limited/morgans-conversations-pointerra-asx-3dp-ian-olson-ceo

(thanks to @L888 for pointing it out to me)

UPDATED (thanks @RobW)

Pointerra'a 4th quarter report was encouraging.

Cash receipts grew 55% to $0.82m from the preceeding quarter, and up 290% from the same quarter last year. This was due to an increasing spend from existing customers and the addition of new customers. Pointerra again told investors to expect lumpy cash receipts due to the timing and nature of customer invoicing.

The business was cash flow positive, in the black by $220k for the quarter (and down $800k for the year). This was however aided by a $120k grant from the US govt. as part of covid stimulus measures.

Importantly, a number of enterprise proof of concepts were progressed, the most important being Pacific Gas & Electric. Both parties are working towards a full commercial agreement -- one that will make PG&E Pointerra's largest customer and "have a material impact on CV growth."

Further large enterprise contracts are expected in the coming quarters.

Pointerra also announced plans to partner with Accenture's global energy consulting team. This will hopefully prove to be a valuable channel (although likely at a lower margin).

Interestingly, the business is looking at expanding into a 3D data marketplace for the film & television sectors. Given the growing use of Computer Generated Images (CGI) in this industry, there could be a decent niche area that Pointerra can exploit without much added investment.

With $2.4m in cash at the end of the quarter, and the recemt $2.5m investment from Bevan Slattery, Pointerra has close to $5m in the bank. Although much of this will be used to expand resources, given some large contracts on the horizon and the business hopefully remaining cash flow positive (on average), any further capital raise seems unlikely.

Quite happy with this. No word on ACV, but that's expected before the end of July, as well as more detail on enterprise sales.

What makes it hard of course is that shares are on roughly 30 times the pro-rata Q4 cash receipts. But the thing is that it only takes a few big deals to really swing the dial, given we are working off an extremely low base. If they land PG&E as well as Florida Power & Light (for example), ACV could double on that alone.

So while it seems overly generous to ascribe high double-digits growth rates when doing valuations, it's certainly not implausible. In my experience, it's best not to get too fussy with price when sales are on a J-curve (just watch the underlying business like a hawk to ensure that is indeed what's happening).

ASX annoucement here

UPDATED

Pointerra has issued 50m new shares at 5c each to raise $2.5m. It's a bit disappointing given they said only a few months back that they weren't likely to raise additional cash.

Nevertheless, there are some positives here.

The obvious one is that the balance sheet is in a much stronger position, and based on prior commentary from management this should easily see them through to cash flow positive.

Next, the issue price of 5c is a good premium to the average market price over the past 3-4 months.

Finally, and perhaps most interestingly, the shares were sold to Bevan Slattery -- someone with deep experience and success in tech companies. With this transaction, he holds 7.5% of Pointerra.

Slattery founded Pipe Networks in 2002 and sold that to TPG for $373m in 2010. He also founded Megaport (ASX:MP1), up 7x since listing.

See below for his experience (from Wikipedia).

ASX announcement here

Pointerra have reported results for the 3 months ending March 31, 2020.

• Record quarter of cash receipts, which came in at $530k
• ACV grew 17% to $3.32m
  • (there was a 4.6% FX boost here due to a more favourable exchange rate. On a constant currency basis, ACV would have grown 11.7%)
• If ACV growth continues, the company should be cash flow positive by Q4 2020 
• COVID-19 has accelerated inquiries and accelerated adoption from existing customers
• COVID-19 has had no impact on service delivery
• Cash balance is $2.2m at quarter's end (compared with $2.5m three months ago)

As @Rapstar has noted, there is a real disconnect between the quoted ACV figure and quarterly cash from customers. It's understandable that there would be a delay as customers are onboarded, invoiced and paid, and different payment cycles can make it difficult too -- but the lag is meaningful. For example, the ACV from Q1 (Sep 30 2020)  would suggest cash receipts of $0.6m for the latest quarter (6 months later), 13% above the reported figure.

All in all, a decent result. And very encouraging that cash flow breakeven is on the horizon. If they can sustain sales momentum, the current share price will be looked back on as quite cheap. 

You can read the quarterly 4C here, and the Enterprise sales update here

Pointerra released an operations and outlook announcement in regard to the COVID-19 outbreak.

Key points:

• Except for HQ, all staff worked from home previously anyway, and the current lockdowns arent expected to prevent the business from conducting operations.
• Pointerra has seen an increase in customer numbers and spend (although no specifics given on these numbers)
• Cash receipts are expected to be "more than double" that of the previous quarter ($0.18m). That being said, last quarters cash flows are a low base for comparison (a major client was forced to defer payment as it recapitalised), as cash receipts were down 42% in Q2 compared to Q1.
• Due to the increased need to work remotely, Pointerra has said it had "experienced a noticeable acceleration in bith interets and adoption of the company's cloud-based 3D digital asset management platform"
• In the past week, Pointerra has signed 3 seperate paid proof of concept agreements with existing prospects. These were all large clients and the gareements are intended to "prove-up a rapid enterprise deployment"
• Over the weekend, the company completed a task order for its major client precision hawk, who has apparently committed to the continuing use of pointerra's platform.
• The company says cash recipts and cash balance "should remove the requirement for any additional external capital".

The company will be holding a shareholder webinar briefing on March 27. Details in the announcement, here.

Cash receipts of  only $0.18m, down from $0.31m in first quarter. This was due to their major US customer, PrecisionHawk, working through a restructure and recapitalsiation, which delayed some work for a large mutual client in Florida. 

Cash outflow increased due to added US staff hires. Quarterly costs are just shy of $1m, and the company has only $2.5m in cash. And this is after the capital raise last year. The company is looking at making additional hires in the current quarter, so expect costs to rise again.

Unless cash receipts materially increase, the company will need to pass the hat around again to remian a going concern. I think it very likely we'll see another capital raise or two before breakeven is reached.

To be fair, 3DP has previously advised that cash receitps will be very lumpy in the short to medium term, due to a variety of different payment terms, and as new customers are onboarded.  And that makes sense given how small the business is and the breadth of its client base. But it does make it very difficult for an outsider to gauge the "trend growth" in revenues/cash receipts. It also highlights concentration risks (eg. if precisionhawk go under, they will lose a major source of revenue)

The company reported ACV of $2.84m as of January 31 (although for some reason they always plot the ACV value for the quarter based on what it was a month after each quarter ends. Seems a bit rich..

At any rate, if we assume that's just due to the precisionhawk delay, it's an incremental gain of $430k for the quarter, and has cast doubt on my initial assumption of hitting $5m in ACV by the end of FY20.

Pointerra highlighted some larger contracts. The partnership with precisionhawk to provide inspection services to Florida Power & Light is expected to "significant and incremental" ongoing revenue throughout this year and next, with another 48 inspection task orders contracted. Each of these order total around $1m, but it's not clear what % of this is for pointerra.

The company was also approached by Major League Baseball (MLB) to assist in vizualistion efforts of MLB stadiums. MLB is expected to formerly adopt the pointerra paltform in April/March of this year and is also expected to generate "significant" revenue. Although again, that's very vague.

The deal with an unnamed US mapping customer, announced in Sepetember 2019, has now commenced. It helped contribute to the latest quarters ACV growth, but in total is expected to generate more than $600k in ACV when complete (although when that is likely to be was not disclosed). Pointerra said that there was potential for similar contracts with other US states, and that at least one was expected to commit to the platform in the current quarter.

R&D remains a major expense item, with company on an annual run rate of >$1m in related expenses. Partly this seems due to the need to create bespoke solutions at the request of clients, and while these new feautres will have broader appeal, it shows that the offering is still far from comprehensive.  

All told, I remain of the view that this is still an early stage, high risk business. There's definitely huge potential, but how well the opportunity is exploited, and how effectively costs are managed remains to be seen. Even under optimistic assumptions, profitability is a good ways off, so this is very much a story that will take years to play out. In the meantime, expect huge volatility.

4C statement here, Enterprise sales update here

Pointerra has released its latest 4C quarter results.

• Cash receipts from customers was up 46% from the pcp, to $0.31 million
• Costs were in line with expectations, and indeed the company realised positive operating cash flow for the quarter (although that was very much helped by a $470k R&D rebate)
• Because clients pay in advance over different periods (eg. some pay monthly in advance, others pay annually), the company reiterated to investors that cash receipts will be lumpy until greater customer breadth is achieved
• Cash on hand increased marginally to just under $1 million
• 3DP built further analytics for its largest customer, Precision Hawk. These new analytics are available to other clients, and helped win new contracts during the quarter
• Existing customers continued to use increased storage capability, which has resulted in increased Data As A Service (DaaS) revenue.

Pointerra also released an enterprise sales update

Key points:

• ACV grew >30% to $2.41m 
• Precision Hawk has extended its contract with Pointerra through to the end of calendar 2020. They have a minimum monthly spend of US$30k
• US team has been expended by two new sales people with backgrounds in the geospatial sector. They have brought in immediate revenue
• New development has provided a data processing functionality that is expected to further streamline workflows. This has already resulted in a new contract worth $350k over 4 months from an existing customer

All told, a very decent quarterly, and good to see things moving in the right direction. If the pace of ACV growth can be maintained, while costs are contained, shareholders are likely to do quite well from here. Of course, if growth stalls or costs blowout, it's another story.

I'm still hoping to see Pointerra hit $5m in ACV by year's end

An encouraging sales update from Pointerra was released on 2/9/2019.

See full details here

Although light on specific financial details, it's encouraging to see more sales to existing and new customers, some of which appear significant.

Also, their major US customer PrecisionHawk is looking to further integrate Poinerra's solution and is becoming an essential component of their offering.

Still mindful of the need for a capital raising with less than $1m in cash available. And this is still a very early stage business, and therefore high risk. But it appears as though Pointerra have a world leading solution in a niche, but fast growing and (globally) significant market. 

Disc. held and recommended here on Strawman.