Shares of Nearmap Soar by 9% On Continued Strong Growth Reported in 1H 2019

January 10, 2019 11:25 PM AEDT | By Team Kalkine Media
 Shares of Nearmap Soar by 9% On Continued Strong Growth Reported in 1H 2019

Nearmap Ltd (ASX:NEA) is a digital technology company based out in Perth, Australia with offices in New Zealand and the US as well. It provides high-resolution aerial imagery, city-scale 3D data sets, and integrated geospatial tools with more prominent and sharper images which are always accessible. It is a subscription-based platform catering to various businesses and government agencies enabling them to conduct virtual site visits for deep, data-driven insights. It provides products like Vertical which included Panorama imagery, Measurable Obliques for measuring the heights of buildings and other structures, and 3D data for providing consistently high-resolution across the nation.Â

Today, the company has announced the preliminary results for its first half year of 2019 ending 31 December 2018. The company reported continued strong growth in the group’s key metric, i.e., Annualized Contract Value (ACV). The group ACV portfolio has surged by 42% this time. The company reported the group ACV at AU$78.3 million which was AU$67.1 million in FY18 and AU$55.3 million in 1H18.

The US ACV, representing one-third of the group portfolio, has shown tremendous growth of 107% as compared to the equivalent prior period, i.e., 1H18. It was reported at US$17.6 million which was US$12.9 million in FY18 and US$8.5 million in 1H18. The growth was marked by the continuing operational improvements to the US sales and marketing strategies. Sales Team Contribution Ratio (STCR), a ratio of incremental ACV to direct cost of sales and marketing, is also expected to be more than 100%.

The Australian ACV has also shown a growth of 23% as compared to 1H18. It was reported at AU$53.3 million which was AU$48.8 million in FY18 and AU$43.3 million in 1H18. The growth was marked by the first sales contribution in New Zealand. The STCR is also expected to be more than 100%.

The ACV has been restated based on constant currency at an exchange rate of AUD$1=USD$0.7058 (as on 31 December 2018).

The company is expected to roll out offline 3D content delivery, roof measurement tools, and enhanced capture technology soon. The company has deployed $70 million towards the US sales and marketing strategies and the plan for expansion into Canada in CY2019.

The group also reaffirmed its FY19 cash flow guidance. It reported a cash balance of $81.3 million comprising $14.6 million from business as usual operations excluding capital lease and $66.7 million from the capital raise after the payment of the associated cost of $2.9 million and initial deployment of the capital of $0.3 million.

The company will be publishing its results for 1H19 on 20 February 2019 and for FY19 on 21 August 2019. The AGF is expected to be held on 14 November 2019.

Stock performance: The company’s stock has generated an outstanding positive return of 153.17% during the past year. It is currently trading at $1.745 with a surge of 9.404% during the day’s trade on account of continued strong growth. The company has ~444.56 million shares outstanding with the market cap of circa $709.08 million.


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.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
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.