A Look At Upward Momentum Of Nearmap

  • May 18, 2019 AEST
  • Team Kalkine
A Look At Upward Momentum Of Nearmap

Nearmap Ltd (ASX: NEA) is a technology-driven company which provides its customers instant access to high-resolution aerial imagery across Australia. Its technology is frequently updated and provides current and accurate aerial views. It caters to Australia, the US and New Zealand. NEA has expanded to Canada recently. Industries that use NEA’s services include engineering, rail, construction, property and insurance.

The company aids users to save time and money, hence avoid road rush by providing inspected and monitored locations on its cloud-based platform.

In the past 12 months, the company has depicted upside momentum on ASX with the stock price up by 274.73%. The total Global aerial imagery market was estimated at USD$7.4 billion in 2018; and is anticipated to grow up to USD$10.1 billion in 2020.

Continent-wise, in the US, the company has a coverage of 71% of the population with a total addressable market worth almost USD 1-2b. The Australia coverage is 88% with a total addressable market worth of approximately AUD 250-300m. In New Zealand, NEA covers 72% of the population and has the market worth range of almost NZD 50m. The 62% coverage from Canada provide an addressable market worth approximately at CAD 300-400m.

In H1 FY19, the Annualised Contract Value (ACV) soared up 44% and was valued at $78.3m and helped the revenue post a growth of 45% and was at $35.5m. The gross margin, however, improved by 2% and stood at 82%. The company’s group sales team contribution ratio was improved by 20% when compared to pcp and was recorded at 117%. The group subscription churn, at 6.0%, witnessed a downward movement of 3% from pcp. The subscriptions accessing the new products feature paced up by 77%, since June 2018 and was valued at $16m.

The company is keeping its upward trend intact, as witnessed by the growth in its operations. Offline 3D subscription, Tool for Roof measurement, enhanced integration and scalability for the enterprise customers were amongst the new products that the company launched. It also had the HyperCamera2, allowing higher, faster capture. A Data science team was into research to derive insights from the company’s data set. The balance sheet was in a strong position. The newly opened office in New York is a doorway to an expanded market, outside Australia.

Looking at its equity structure front, the company issued 708,345 Fully Paid Ordinary Shares on conversion of Options on 29th April 2019.

Earlier this year in February, the company had released its half-yearly report.

Highlights of NEA’s half year report. Source: Company’s report.

As on 31st December 2018, the company’s total assets amounted to $160,553k. This was a huge leap from the $82,487k recorded on 30th June 2018. The total liabilities amounted to $63,044k, which were at $53,493k in June.

Below are the cash flow details of the company as released in its report:

Share Price Information:

The market capitalisation of the company is A$1.65 billion. The 52-week high and low of the stock is A$3.900 and A$0.890, respectively. The stock made an intraday high of A$3.870 and closed at A$3.830, as of 17th May 2019. In the last one year, the stock has delivered a return of 310.00%, and the YTD return stands at 141.18%.


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