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Bit of a Point of View on Pointerra from Simply Wall Street.
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Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.
So should Pointerra (ASX:3DP) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.
How Long Is Pointerra's Cash Runway?
A company's cash runway is calculated by dividing its cash hoard by its cash burn. When Pointerra last reported its December 2024 balance sheet in February 2025, it had zero debt and cash worth AU$4.6m. Importantly, its cash burn was AU$40k over the trailing twelve months. That means it had a cash runway of very many years as of December 2024. The image below shows how its cash balance has been changing over the last few years.
ASX:3DP Debt to Equity History June 13th 2025
View our latest analysis for Pointerra
How Well Is Pointerra Growing?
Given our focus on Pointerra's cash burn, we're delighted to see that it reduced its cash burn by a nifty 99%. And there's no doubt that the inspiriting revenue growth of 84% assisted in that improvement. Overall, we'd say its growth is rather impressive. While the past is always worth studying, it is the future that matters most of all. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.
How Hard Would It Be For Pointerra To Raise More Cash For Growth?
While Pointerra seems to be in a decent position, we reckon it is still worth thinking about how easily it could raise more cash, if that proved desirable. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).
Pointerra's cash burn of AU$40k is about 0.1% of its AU$32m market capitalisation. That means it could easily issue a few shares to fund more growth, and might well be in a position to borrow cheaply.
Is Pointerra's Cash Burn A Worry?
It may already be apparent to you that we're relatively comfortable with the way Pointerra is burning through its cash. For example, we think its cash burn reduction suggests that the company is on a good path. And even its cash burn relative to its market cap was very encouraging. After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash. Its important for readers to be cognizant of the risks that can affect the company's operations, and we've picked out 1 warning sign for Pointerra that investors should know when investing in the stock.
