Ann: Annual Report to shareholders, page-2

Obviously not much new information contained in this Pointerra Annual Report, and clearly 2022 / 2023 was a step in the wrong direction in terms of the financials.

The MD's (Ian Olsen) review contained a few interesting statements though, and I have listed some of them below.

Sounds like revenues from Mining, Oil & Gas, and Transport are set to ramp up for 3DP going forward.

Have a great weekend everyone!!

Financial Performance

The team approached FY23 confident in the outlook for the business following the financial performance of FY22, which delivered record revenue, cashflow and an underlying EBITDA result.

The Company generated growth in spend by existing customers and also secured a number of material contracts across the electric utility, facilities management, transport, and mining sectors.

FY23’s forecast financial performance was expected to be underpinned by contributions from key US electric utility and facilities management customers however a number of underlying programs were delayed by these customers, which in turn negatively impacted the Company’s invoicing and cash collections.

The financial impact of these program delays has influenced a decision by the Company to adopt an alternate growth outlook metric, being ARR (annual recurring revenue) in place of the previous ACV (annual contract value) metric.

The financial result for FY23 was further impacted by larger than expected non-recurring project costs associated with specific US electric utility customer programs.

Pointerra has consistently sought to build a capital-light business model capable of generating very high gross margins and has built a team across development, product, sales, and marketing roles capable of delivering materially higher levels of revenue.

FY24 therefore presents an opportunity to demonstrate this capability through emerging operational leverage to deliver a maiden earnings result for the Company.

Other Points:

In addressing the complex and often lengthy sales cycle for enterprise prospects, the Company recognised the need to further invest in senior, proven enterprise sales professionals.

2 key appointments made during the year are expected to help shrink this sales cycle and also accelerate growth in existing enterprise customer spend. Additional hires at this senior level are expected during FY24 in both Australia and the US markets.

In the emerging key target market sectors of Mining, Oil & Gas, and Transport, the business development and product teams successfully leveraged the Company’s proven electric utility sector model of working with customers and prospects to systematically automate slow, inefficient desktop workflows to Pointerra3D, delivering operational productivity, safety, and regulatory compliance to the sector.

Pointerra now counts a number of Tier 1 global resources companies and Australian transport utilities as customers that are expected to scale their use to become material enterprise customers in coming periods.

The lower value but higher volume Survey & Mapping sector continued to grow during FY23, and the product and development teams have worked to automate the deal identification, onboarding, and support functions for this important sector.

The resultant light-touch solution will assist in accelerating the target prospecting and acquisition activities on a global basis, where a direct sales model is not required to scale customer growth.


Outlook & Focus Areas for FY24

As we move further into FY24 the Company expects its key US energy utility sector growth trajectory to resume as program delays are resolved and new opportunities, such as the long-term energy utility CAPEX program announced in July, emerge.

The global Mining, Oil & Gas sector is set to become the next high-growth market for the Company as the adoption of Digital Twin solutions becomes operationalised to drive construction, production, safety, and compliance outcomes.

Whilst these top-line revenue drivers are important, the Company also remains laser-focused on balancing our ambitions to deliver exceptional organisational and financial growth with a disciplined approach to financial management.

The Company looks forward to reporting on an improved financial result for FY24.