Will Nearmap Retain Its Upward Momentum?

  • Apr 19, 2019 AEST
  • Team Kalkine
Will Nearmap Retain Its Upward Momentum?

Nearmap Ltd (ASX: NEA) has shown an attractive upside momentum on the Australian Securities Exchange; the stock price is up by 274.73% over the past 12 months. There has been a positive price change of 74.87% in the last three months, demonstrating the favourable response of investors on 1H FY19 results.

The company reported largest half-yearly incremental annualised contract value (ACV) growth in United States’ sales and marketing segment, taking the Group’s annualised contract value (ACV) grew 42% to $78.3 million. The Group customer numbers increased to over 9,300 with group average revenue per subscription (ARPS) increasing to $8,410.

There has been substantial growth in the product portfolio of the company, through the continued expansion of the existing product, technology and content coupled with the launch of new product features, enhanced capture systems to fly higher and faster.

Total revenue increased to $35.5 million, up 45% on the previous corresponding period. This reflects the upgraded sales and marketing activities, undertaken by the company including the launch in New Zealand.

Chief Financial Officer of Nearmap, Mr Andy Watt stated that “2018 has been a landmark year with new products, and ongoing improvements in unit economic delivering strong ACV portfolio growth in Nearmap’s core markets. This H1 FY2019 performance follows a substantial H2 FY2018.”

On the segmental front, United States has achieved record half-year ACV growth, that underscores the ACV portfolio of USD$17.6 million, with 1H 2019 incremental ACV of USD$4.8 million compared to 1H FY2018’s USD$3.2 million. The ANZ market has continued its growth trajectory during the period, achieving an ACV portfolio of $53.3 million with H1 FY19 incremental ACV of $4.5 million. There has reportedly been strong unit economics and the Sales Team Contribution ratio increased to 117% compared to 101% in 1H FY2018.

Group portfolio lifetime value exceeded $1 billion, thereby demonstrating the effectiveness of the Nearmap business model. 1H FY19 EBITDA jumped to $8.1 million from $1.2 million in the previous corresponding period, due to the scale economies of investments put in place over the preceding 18 months.

The solid fundaments seem to lay the foundation of the company’s long-term success. The balance sheet has been strengthened, further via a capital raising of $70 million from institution offer in September 2018.

The cash balance stood at $81.3 million as at 31 December 2018 which included $14.5 million of cash inflow from business operations.

Mr Watt presented the positive outlook for the company on the back of recent capital raise that empowers Nearmap to accelerate its strategic objectives, in pursuit of the considerable global market opportunity. Moreover, the launch of products and features seem to add the substantial arm to the upside momentum in the company’s performance as it intends to launch further existing products in the second half including 3D content visualisation through MapBrowser.

The management believes that with its unique technology business model, which no other aerial imagery company has been able to replicate at scale, Nearmap continues to scale for a global opportunity and become the world’s leading provider of subscription-based location intelligence.

NEA’s stock last traded at A$3.270, down 4.11% as on 18 April 2019.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK