A potential near term 2x Bagger

POINTERRA LTD
Shares In Issue: 373.84 million | Mcap @ 3.5c = $13.08 m
Shares on fully diluted basis (with Options/Performance Shares): 604.54 million | [email protected] = $21.15 m
Business In Summary
Pointerra offers a cloud based DaaS (Data as a Service) technology solution with the value proposition of managing, visualising and sharing massive 3D geospatial imaging datasets for various verticals including mining, oil & gas, construction and government sector as well as incumbent providers of laser scanning equipment and 3D data analytics and design software.

Compelling Investment Proposition

• Growth in Geospatial Analytics

Across a variety of industries, geospatial data is used to take stock of tenements for oil and gas, for surveyors to capture an area or simply for council workers to build a road.
We are seeing significant efficiencies brought about by new technologies where the data can be readily available on a smartphone or tablet and where users can easily zoom in and out and change viewing angles as opposed to traditional viewing methods on desktops.

A report prepared by Oxera in 2013 found that global geo services generate $150-270 billion in revenues (by comparison global security services generated $140B) but now has grown to $500B with a growth rate of 15-20%. The geospatial analytics market is expected to grow from US$30.71 billion in 2016 to S$73.91bn in 2021operating at a compound annual growth rate (CAGR) of19.2%

A transformation is also happening in the geospatial industry with increasing demand for cloud-based and open interoperable solutions leading to a major shift in the business models which includes Data as a Service (DaaS) and Software as a Service (SaaS). Business models are focused on shifting capex to opex; opex often avoids organizational decision bureaucracy associated with large capital expenditure. Pointerra’s DaaS subscription basis proposition is well placed to take advantage of this emerging trends.

• Solving an Existing Global Problem with First Mover Advantage

• Globally, there is currently no other technology like Pointerra so it has a good opportunity to capitalise on its first mover advantage. It has to date successfully secured partnerships with global players including the largest of geospatial companies
• New and more affordable scanning technology along with increasing use of 3D visualisation in emerging disruptive technologies has created an intractable and costly problem of managing massive amounts of geospatial data. Pointerra has the solution with its unique, patent pending technology that allows anyone anywhere in the world to access, manage and visualise terabyte sized datasets on a secure cloud based system from a web browser on their computer, tablet or mobile. Some of you may know about similar data problems faced by the health imaging (Xray, MRI Scan data) data sets addressed by Promedicus (PME). So you could say that Pointerra (3DP) is the ‘young Promedicus’ for the geospatial industry.
• The world is awash with 3D point cloud data and Pointerra is poised to take advantage of it. To give you a perspective, globally 1,200 Exabytes of data is created annually that fits into 629 million 2 Terrabyte Hard Drives!

Globally, there is currently no other technology like Pointerra so it has a good opportunity to capitalise on its first mover advantage. It has to date successfully secured partnerships with global players including the largest of geospatial companies

• Converted an MoU into a Signed technology licence and business association agreement with AAM, the largest geospatial solutions company in the southern hemisphere. AAM has licensed Pointerra’s unique 3D data technology for a technology licence fee and ongoing royalty from 3D data sales ;This deal itself has provided the requisite validation of Pointerra’s 3D data technology that should justify a re-rating of Pointerra’s business fundamentals
• MOU with Advisian Digital Enterprise, part of WorleyParsons Limited. Through the MOU, Pointerra will seek markets for its 3D data management and visualisation technology in conjunction with Advisian Digital Enterprise. The partnership will promote Pointerra’s tech as a digital asset management solution to clients in the hydrocarbons, infrastructure, chemicals, and minerals and metals sectors;
• Entered into a partnership and signed a Reseller Agreement (“Agreement”) with leading Australian enterprise asset management technology company, C4D Intel (“C4DIntel”).
• Partnership with Blue Marble Geographics | Pointerra’s technology integrated into established and widely used “Global Mapper” software
• ESRI Partnership | Pointerra’s technology will be integrated into “ArcMap” and promoted to Esri’s worldwide customer base
• Significant partnership for sale of 3D data | One of the largest LiDAR surveyors in the world will use Pointerra’s technology and web browser interface as a shop-front to sell ten years of historical 3D data
• World first online market place | Pointerra has developed a world first online market place where owners of 3D data can monetise their previously unused datasets.
• Successfully converted trial licenses to paying customers | Terrestrial and aerial data capture organisations operating in the surveying geospatial sector are now paying customers and resellers of Pointerra’s Data as a Service solution

• Highly Scalable High Margin Low Cash Burn Business Model

Pointerra’s DaaS Revenue Model is highly scalable and has high margins (expected in the range of 80%). In addition, the cash burn rate of the business is low because Pointerra’s commercialisation strategy is to partner with large established geospatial organisations (such as AAM) to gain direct access to end users and customers of Pointerra’s technology to fasttrack revenue with minimal marketing expenditure. The low cash burn strategy is scalable across multiple target industries and ensures shareholder value is not diluted through regular capital raises. It also has 7 diversified revenue streams which reduces cashflow risks.

• Experienced Management Team

3DP is managed by an experienced Board, headed by Managing Director Ian Olson and overseen by non-exec Chairman Rob Newman, who is also CEO of Nearmap Ltd a successful ASX listed geospatial company.

Growth in the sales pipeline provided the impetus to commence a recruitment process to provide additional resources for the sales team, which commenced in June and resulted in the addition to two experienced individuals who come to Pointerra from roles with global geospatial giants Hexagon and Trimble

The new recruits have made an immediate impact with material incremental growth in the sales pipeline, particularly in the enterprise customer channel where higher DaaS subscription price points are generated. Highlights of growth in the enterprise customer sales channel through the new sales recruits include the addition of government utilities (domestic and international) and global AEC (Architecture-Engineering-Construction) groups as trial licence customers.

• Low Market Capitalisation

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0			Shares​	Price​	Mcap (m)​	Revenue (m)​
1	NEA	Nearmap	388.47	$ 0.615	$ 238.91	$ 41.00
2	SFI	Spookfish	1,074.41	$ 0.082	$ 88.10	$ 4.10 (half yr)
3	PME	Promedicus	103.34	$ 6.47	$ 668.64	$ 31.62
4	3DP	Pointerra	373.84	$ 0.035	$ 13.08	Commercialisation​
5
6		TMT Analytics 3DP Valuation	$ 0.08	$ 29.91

It is conceivable that signing large licensing and revenue share agreements could see Pointerra’s market cap on par with the likes of Spookfish and approach Nearmap’s in the longer term.

Pointerra or 3DP is not a competitor of NEA nor SFI. NEA and SFI are in the business of aerial data capture, Pointerra does not perform that but provides the middle function linking the people who perform the data capture (e.g surveyors) and the people who use them through its cloud based 3D data technology.

Pointerra was backdoor listed at 3c and the fact that it is merely trading at 3.5c at just 16% above its IPO even after having achieved significant milestones including de-risked business model following the AAM deal suggests significant undervaluation due to it being Under the Radar.

IMO following the AAM deal, this should already be worth $30m market cap i.e 8c [A 2x bagger ] for its IP technology alone before any revenue flows, and once revenues starts hitting, we should be looking at $50m-$80m or 13c-21c [a 5x bagger ].

ASI newsletter have recommended both NEA and SFI stocks and I would not be surprised the inclusion of 3DP as well once revenues start kicking in.

I have included the Promedicus valuation because PME and 3DP serves to solve the same problem with compressed data except they serve different industries.

Regardless of the price you have bought or buying, I have confidence when we look back 6-12 months time, you would say we bought it at a song! GLTAH!