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Highlights
- Nearmap Group has signed largest ever government annual contract in North America.
- The annual contract value (ACV) stands at AU$150 million.
- Recently, Nearmap has also reaffirmed its FY22 guidance, driving the overall upbeat momentum.
Software and services company, Nearmap Ltd (ASX:NEA) is making headlines today as it has closed 16.602% higher at AU$1.510 apiece on the ASX on 29 March 2022.
The share price of this location intelligence and aerial imagery firm, has gained over 17% in last five trading days. The shares have managed to generate a return of over 25% in the previous month.
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What's the news?
Nearmap informed its shareholders today that it has achieved a significant financial milestone today as the company secured an annual contract value (ACV) of AU$150 million. This is the first time that group ACV portfolio value of Nearmap has exceeded AU$150 million.
Image source: © Lichtmeister | Megapixl.com
ACV is a financial metric used by software and services companies with multi-year or yearly contracts. It represents the revenue a contract has for one year.
The aerial mapping company said that with this ACV, the North America ACV portfolio has surpassed US$50 million for the first time. Moreover, North American ACV has exceeded the New Zealand and Australian ACV portfolio for the first time.
Nearmap expects North American operations to be a significant contributor to the group ACV.
Australian-headquartered technology company added that New Zealand and Australian businesses are performing well.
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Nearmap continues the growth momentum
Nearmap has inked its largest governmental annual contract in North America. The company cited premium content, technology, analysis and data as critical factors for securing this yearly contract. NEA added that the contract reflects the enormous benefits and value government organisations enjoy from the Nearmap offerings.
Rob Newman, managing director and chief executive officer of Nearmap, commented on the development:
Nearmap announces change in the management
Nearmap is shifting from content provider to solutions provider. This follows the promotion of Don Weigel to the executive leadership team from the senior vice president of product. Don Weigel's promotion also follows the vertical general manager appointment in North America.
To assist Nearmap in driving growth, the company is looking for an advisory board member or U.S. based non-executive director.
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The financial year 2022 guidance
The financial year of Nearmap runs through June. For the financial year (FY22), Nearmap management expects to reach the upper end of the group ACV portfolio guidance range which is AU$15 million to AU$160 million.
Worth mentioning here is that NEA has already achieved the lower end of its ACV guidance range.
