I'm happy to collect as the SP falls. In my opinion Pointerra is only just warming up...Pointerra is profitable and growing although lumpy. Small customers are signing up for its core service, existing customers adding extras and large customers trialing and signing up for customised services. The later could take 9-24 months but give the ACV quite a bump when they come onboard. Pointerra is enhancing its offering by going from data hosting to digital asset management solutions and analysis. Also don't forget the we have a 3d data and insights marketplace on the boil.
Airovant'shttps://airovant.com/ merge with Pointerra probably took a fair bit of attention away from the Airovant founders and Pointerra team. Now this is done they can focus on sales and platform improvement. It wouldn't surprise me to see more acquisitions like this to expand in overseas markets
Stickiness: One major positive in my eyes in regards to the long sales cycle is it creates a real barrier to entry for competitors. For example Large utilities don't swap software often (I work for one of the largest in Australia and we use software from the 90s still) but when we do change its a very lengthy process and once a decision is made the walls go up on competitors. This is one of the reasons why Pointerra hasn't got many Power Utilities in Australia because Powerlines Pro (Now Neara) got their foot in the door first. But once Pointerra starts bringing in some serious cash I'd imagine we will continue to expand in the Utility space by acquiring these types of businesses along with organic growth.
Many organisations are going through digital transformation trying to create 3D models of their infrastructure to enable autonomy, inspections, design etc. When I first started working with utilities you would visit the site to measure and scope your work, now most of its done on the computer at home. Then we have autonomous vehicles (and machines), games and movies. The market is growing.
What about competitors? Pointerra's point of difference in the eyes of its customers is the way they can compress and visualise 3d data fast and easily. Add on top all these new capabilities and we will have quite a good platform ( and in the cloud!).
Motional: I'm quietly confident we are working with motional, the evidence is there (In Randys presentation and the fact that eversource is using them to scan the network). This will open doors to other customers and likely add to the 3D insights marketplace data.
Eversource is onboard: The announcement everyone was waiting for... and it sounds like a fair order in my opinion; A full 3D map of their massive network and analytics. "enterprise-wide deployment will provide a full digital twin of Eversource’s power network and will help Eversource deliver higher levels of reliability to customers and enhanced network resilience through grid modernisation and increased operational efficiencies. These outcomes will be realised through fewer outages, shorter restoration times, more effective response efforts and predictive analytics around vegetation and asset management."
Defence: Jason Higgs moved to a full-time role during the quarter. I note that it has been mentioned he's looking for work on LinkedIn but its possible he needed more work and Pointerra has come to the party. Accenture (Pointerra work closely with) now own also Novetta who offer technology solutions to a wide range of government organisations in the US. Pointerra also tends to be a piece of a greater puzzle so Pointerra has to be patient and wait for the puzzles to be finished before they will benefit. Accenture are one of the driving forces getting Pointerra into large utilities and chances are they are the avenue being used to enter the DoD with Jason Higgs as the face of Pointerra in that space.
3DP Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
