Pointerra
Pointerra is a Software-as-a-Service (SaaS) company in the geospatial industry that is listed on the Australian Stock Exchange (ASX) under the ticker 3DP (ASX:3DP). Its founding Chairman and Director have successfully built a USD1bn technology company in the geospatial industry.
In 2016, they saw another opportunity to build a USD1bn technology company in the geospatial industry. This opportunity could satisfy a huge unmet need in a large and fast growing industry that they knew intimately and had been successful in before.
As a result of their experience, guidance and skill, Pointerra’s recurring revenues have grown 200% in the last 12 months (tripled). This means at the current growth rate, it is following the trajectory of a unicorn SaaS company (one that becomes valued at USD1bn).
Who are the successful entrepreneurs behind Pointerra?
When Pointerra listed on the ASX in 2016, Rob Newman joined as Chairman and Graham Griffith as a non-executive Director.
At the time of joining Pointerra, Rob and Graham were Directors of nearmap. Nearmap is an aerial imagery technology and location data company listed on the ASX under the ticker NEA (ASX:NEA).
At the end of 2019, nearmap was valued at more than USD1bn. In late 2018, Rob Newman became the Managing Director of nearmap.
Rob Newman has a track record of successfully building and selling technology companies. Before joining Pointerra as Chairman in 2016, Rob was the co-founder of QPSX Communications Pty Ltd and Founding CEO of Atmosphere Networks, which were both acquired.
Graham Griffith, who sadly passed away in late 2019, was a successful entrepreneur and investor in Australian technology companies.
Why did Rob and Graham join Pointerra?
They saw an opportunity to satisfy a huge unmet need in a large and fast growing industry that they knew intimately and had been successful in before. Pointerra was another opportunity to build a USD1bn company like neamap.
But if Nearmap and Pointerra are both in the geospatial industry, wouldn’t they compete?
No. Nearmap does pixels (images), Pointerra does points (3D). They solve completely different problems. They are complimentary. Rob and Graham knew this.
Nearmap captures, manages and delivers the most current location content in the world, allowing businesses and governments to explore their environment easily. It is a global leader in the provision of geospatial map technology for business, enterprises and government customers.
Pointerra provides a powerful cloud based solution for managing, visualising, working in, analysing, using and sharing massive 3D point clouds and datasets.
Having been successful in the geospatial industry already, they knew that 3D point clouds and datasets were a massive pain point for enterprises and governments. They also knew that there was no solution that could solve the problem.
How has Pointerra outpaced potential competitors to solve the problem?
Enterprises and governments like Major League Baseball (MLB), Florida Power and Light, LendLease etc can now easily, see, use and share all types of 3D data from the comfort of their computer browser. They no longer have to physically inspect assets.
As a result, Pointerra’s recurring revenue from their software increased by more than 200% in the last 12 months (AUD930k to AUD2.8m from 31 January 2019 to 31 January 2020).
Venture capitalists use the “triple, triple, double, double, double” (T2D3) rule to project if a company is tracking toward a billion dollar valuation (a unicorn). Pointerra tripled their recurring revenue from around AUD1m to AUD3m.
What does this mean for potential investors?
Pointerra represents an opportunity to invest in a potential unicorn SaaS company with the highest quality recurring revenue (from enterprise and government clients). Also, it has recurring revenues that are almost the same as their expenses and more than AUD2m in the bank. This means it is unlikely they need to raise money for the foreseeable future.
Pointerra’s growth proves that it is solving a huge problem in a growing industry. They would not be able to grow as quickly as they are if this was not the case.
Also, Pointerra is helping enterprises and governments keep their employees safe during the COVID crisis. The software allows them to inspect assets from the comfort of their home or office. This has resulted in increased interest from potential clients through paid Proof-of-Concepts (PoCs).
At the time of writing Pointerra (April 2020) Pointerra is valued at approximately AUD13m.
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