Everything in this report points to a significant scale-up of operations and commercial opportunity.
A few things worth highlighting:
Subsequent to year-end Pointerra successfully secured its first domestic enterprise customer, which is expected to deliver more than A$240,000 per annum in recurring revenue...
...and has numerous similar enterprise sales opportunities pending award in Australia and the US.
The Company has a highly scalable, low cost business model to globally commercialise its technology and generate near-term revenue and earnings.
During the year, Pointerra signed its first Data Marketplace and Business Partnership Agreements with domestic Pointerra DaaS customers from the capture sector who saw an opportunity to disrupt the business model for 3D data in much the same way that NearMap changed the market for aerial imagery back in 2009.
As this data comes online, access will be offered for sale via a mix of monthly recurring subscriptions and spot purchases on Pointerra’s cloud platform for 3D data.
Pointerra will host the data and will share in subscription revenue generated from the sale of access to the 3D data and the derived 2D mapping and analytics products.
The Company is currently working with a number of US partners in the aerial and mobile capture sectors to replicate this model in the significant North American marketplace.
The Pointerra data ingestion and analytics API’s are also being enhanced via feedback gained through working with customers and partners including AAM, Autodesk and Bentley Systems who are seeking to take advantage of the power and scalability of Pointerra’s platform.
In anticipation of a step-change in the level of data ingestion that will result from closing potential opportunities in the sales pipeline,
the development team continued to focus on ways to further scale the platform, both from a data ingestion/hosting perspective, and the ability to run value-adding services on the data that is being hosted.
The development team are in active discussions with several 3rd parties (both vendors and customers) regarding the usage of existing API’s as well as the provision of additional API capabilities to support streaming of data into 3rd party systems.
The Company continues to operate a lean, agile, low-cost operating model as it scales customer sales and will continue to add sales resources in line with growth in the sales pipeline while maintaining a strong focus on achieving cashflow positive operations in the near-term.
Pointerra will continue to commercialise its technology via its Data as a Service (DaaS) recurring subscription based revenue model as well as by seeking technology licensing and partnership opportunities with Tier-1 companies across the geospatial, technology, engineering and construction sectors to generate a mix of license fees and royalties.
Summary:
1. Numerous enterprise sales opportunities pending award in Australia and US similar to the recent $240,000 pa deal signed in Autsralia.
2. Near-term revenue and earnings with a strong focus on achieving CFP in the near-term.
3. Currently working with a number of US partners in the aerial/mobile capture sectors to replicate the Australian business model in US market place.
4. Anticipating a step-change of data ingestion from closing potential opportunities - presumbaly data capture - in the US.
To my mind, the most significant insight is this:
5. They are working with multiple customers and partners including AAM, Autodesk and Bentleys to "
take advantage of the power and scalability" of Pointerra's platform technology.
The development team are working to scale all aspects of the platform from data ingestion and hosting through value-add services.
They are in "
active discussions with several 3rd parties (both vendors and customers) regarding the usage of existing API’s as well as the provision of additional API capabilities ...
6. ...to support streaming of data into 3rd party systems...
...as well as by seeking technology licensing and partnership opportunities with Tier-1 companies across the geospatial, technology, engineering and construction sectors to generate a mix of license fees and royalties."
Once Pointerra start streaming data from their 3D marketplace into 3rd party platforms and charging technology licensing fees and royalties, this company will come of age. Hence, I would suggest, the subtle reference to the way NearMap disrupted the 2D market.
Also worth noting, the reference to subscription revenue from the sale of
"derived 2D mapping and analytics products."
This could only be a partnership with NearMap, who are global leaders in 2D mapping/analytics. Further evidence if needed of the closeness of the relationship.
Presumably, given the close collaboration also being undertaken with the likes of Autodesk and Bentleys to take advantage of the power and scaleability of the platform, you would have to think they are among the Tier 1 companies prospective for technology licensing/royalty agreements for data streaming.
Guess the only thing left to consider is whether this can be achieved with current cash on hand. Ian said from the get-go that the initial raise would be sufficient to reach operational CFP.
Wouldn't surprise me if the size of the commercial opportunity has increased such that a strategic injection might be required to fully capture the opportunity.
I would welcome that. At its most basic level, this is a real estate play. If Pointerra can achieve market leadership, rewards will be commensurate.
If that requires a strategic raise, get it done.
With apologies for the length of the post.......
