The Aerometrex Ltd (ASX: AMX) share price is flying higher in early afternoon trade. This comes after the company announced a purchase order for one of its products, along with an investor presentation.
At the time of writing, the aerial mapping company's shares are swapping hands for 92.5 cents, up 18.5%.
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What's driving the Aerometrex share price?
Investors are driving up Aerometrex shares higher, pricing in the company's future attractive prospects.
According to its release, Aerometrex advised that Alphabet Inc (NASDAQ: GOOGL) subsidiary, Google LLC has signed a significant purchase order.
Under the agreement, Aerometrex will capture a 3D model of downtown San Francisco to add to its 3D data archive. While the revenue amount of Google's order is not material, the demand for Aerometrex's products validates its 3D data capabilities.
Furthermore, other companies within the same area of the San Francisco Bay have signalled their interest in the 3D dataset. Aerometrex is capturing the city with a very high resolution of 2-centimetre pixels.
This follows the company's efforts in establishing a United States base, which has employed high-resolution oblique aerial imagery. 3D models that have recently been constructed include the cities of Denver and Miami.
Aerometrex noted that its 3D model data is being used across a number of diverse industries. This includes urban planning, civil engineering, computer gaming, asset management, mining and coastal erosion.
The company will retain full Intellectual Property (IP) ownership of the San Francisco 3D model.
Aerometrex managing director, Mark Deuter commented:
I am very encouraged by our developments in the US market and believe that the purchase order with Google endorses our strategy and our 3D data capture capabilities.
We are gaining greater attention from large organisations whose operations cover multiple US cities and municipalities and we see significant potential to contract with these types of organisations moving forward.
What about the investor presentation?
In further news booting Aerometrex shares, the company highlighted some key points in its investor presentation to investors.
It stated that Data-as-a-Software (DaaS) subscription model is focused on the development and growth of MetroMap. The total addressable market for this segment is estimated to be around $80 million per annum in Australia. Aerometrex holds a $4.26 million slice as of March 2020, with it targeting $40 million in the foreseeable future.
In addition, 3D modelling is on track to capture more datasets within the United States market. Discussions are continuing with large global organisations with respect to their 3D opportunities. Aerometrex is looking into markets such as virtual reality and augmented reality, property and real estate, and tourism. The addressable market size for this opportunity is open-ended as international projects could reach outside the United States.
The Aerometrex share price has lost close to 50% over the past 12 months, and it's down 28% year-to-date.
