Defying the Market Poynt Continues to Grow

Poynt is the local search app that could. Once near extinction the Canadian company, which is publicly traded, has come back and continues to grow.

A week ago the company said it reached "one billion user actions," which is impressive because of the "billion" part but otherwise is a bit of a dubious metric. More transparently, Poynt said it has about 6.5 million uniques across multiple operating systems. That would put it just behind Foursquare, with 8 million users, to provide some context.

Poynt started on BlackBerry and has seen its greatest success on that platform. However it's also avaiable on the iPhone, Android, Windows Phone 7 and now Nokia handsets (QT devices). The company says that it's adding about 30K users per day. 

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A couple of weeks ago local-mobile ad network xAD acquired the consumer business of Go2 Media and Poynt bought the ad serving back end. However, Poynt makes most of its money as a distributor of ads and content for third party YP publishes such as SuperMedia and AT&T. 

Poynt is a workmanlike but unremarkable local search app, featuring restaurants, local business search, movies, gas and people search. Its appeal perhaps lies in its simplicity. Whether intentional or not its early adoption by RIM users in an uncrowded BlackBerry App World helped the company gain a following and build some momentum it probably wouldn't have otherwise. 

Avantar is a similar case. Early in with a YP app on the iPhone many users adopted it and continue to use it, though it's extremely basic. 

Poynt, as mentioned, is publicly traded in Canada and has a market cap of roughly $50 million Canadian (just over that same amount in USD). Unless the app were to dramatically improve and/or the company started releasing other apps Poynt is likely to hit the natural limits of growth in the not-too-distant future. 

The endgame for the company is probably to get to about 10 million uniques (if possible) and then be acquired by YPG in Canada or another US local media publisher. However I'm a bit surprised that the company has had the success that it has to date.