Pointerra Limited (ASX: $3DP) December Quarter FY24 Results

Pointerra Limited (ASX: $3DP) has released its December Quarter FY24 results, reporting a net cash outflow from operating activities of A$1.45 million. The company received A$1.33 million in customer receipts during the quarter, compared to A$0.78 million in the previous quarter and A$2.05 million in the quarter ending 30 September 2023. The delays in customer programs, invoicing, and receivables collections deferred an additional A$1.5 million in potential customer receipts into Q3 and Q4, preventing a cashflow positive quarter. The company also secured a firm commitment for a Placement of 13 million shares at $0.08 per share to raise $1.04 million from an existing Pointerra shareholder.

Executive Commentary on Growth Strategy and Market Sector Updates

Pointerra3D, the world's fastest true end-to-end digital twin solution, continues to work with customers, prospects, and partners to identify problematic desktop digital twin workflows that can be migrated to the cloud. The company's Chief Growth Officer's appointments in the US and EMEA regions during calendar 2023 have broadened sales reach into new regions and sectors. The delays in data acquisition programs by US utility customers and prospects during calendar 2023 impacted sales execution activity, but these delays appear to have finally resolved and programs on hold are now re-commencing, which is expected to improve invoicing in calendar 2024. Pointerra's team is actively engaged in discussions with several new North American Energy Utility prospects interested in utilizing Pointerra3D Analytics and Utility Explorer, focusing on grid resilience. The company is also collaborating closely with large vegetation management contractors that service the Power Utility Sector to enhance the Pointerra3D platform, offering substantial benefits including improved estimation practices and more efficient resource deployment.

Summary of December Quarter FY24 Results and Outlook

Pointerra Limited (ASX: $3DP) reported a net cash outflow from operating activities of A$1.45 million in the December Quarter FY24, with delays in customer programs impacting cashflows. The company expects to improve the result during Q3 and Q4 FY24 by growing receipts from customers. Additionally, the firm commitment for a Placement of 13 million shares at $0.08 per share to raise $1.04 million from an existing Pointerra shareholder provides the company with further excess working capital to continue operations and meet its business objectives. Pointerra's growth strategy includes leveraging its success in the power utility sector to provide a pathway for growth across other key target market sectors. The company continues to expand its market presence in sectors such as Survey & Mapping, Power & Water Utilities, Mining, Oil & Gas, AECO, Transport, and Defense & Intelligence, aiming to deliver practical and impactful solutions. The company's product development and R&D teams have delivered new functionality and enhancements, positioning Pointerra3D for continued growth and innovation.