What’s weighing on Nearmap’s (ASX:NEA) shares today?

2 min read | November 14, 2022 02:14 PM AEDT | By Sonal Goyal

Image source: © Timonschneider | Megapixl.com

Details of the litigation update

In May 2021, the company shared via an ASX filing that a complaint had been filed against Nearmap US, Inc., a US subsidiary of Nearmap, alleging patent infringement regarding the roof-estimation technology. Nearmap informed that the allegation covers the following products in the US:

MapBrowser
Nearmap on OpenSolar
Supply of Roof Geometry Technology

The company informed that,

In a statement, the company said that it would file its opposition to the EagleView Motion around 23 November 2022.

As reported, an adverse resolution could lead to the payment of significant damages and a pause in selling certain products that could impact the US business, financial condition, operations, and reputation. Nearmap said that, at present, these allegations are not having an operational impact on business.

Trading update shared by Nearmap

Nearmap has become aware of the possible downgrade of two customers of potentially AU$6 million during the first half of FY23 (1HFY23). The company expects to add net incremental annual contract value (ACV) of AU$12.8 million to AU$17.4 million in 1HFY23.

The company expects to report FY23 closing ACV portfolio of AU$195 million to AU$208 million. This reflects an annual growth rate of 16.3% to 24.1% compared to the previous year.

The company currently expects a closing cash balance of AU$71 million to AU$76 million in FY23, excluding scheme transaction and litigation costs. The expected litigation-related cost is AU$9 million to AU$11 million.

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