This stock is up 300% year to date

Talk about a skyrocket. Shares of Nearmap Limited (ASX: NEA) have shot up over 320% year to date versus a …

Talk about a skyrocket. Shares of Nearmap Limited (ASX: NEA) have shot up over 320% year to date versus a near 12% climb in the S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) over the same period. Simply click the chart below for a larger view.

Nearmap vs AXJO

Reason for meteoric rise

Here’s the skinny. The Sydney-based company, which provides high-res aerial imagery and “PhotoMaps”, launched a new website with a paywall in late 2012, and saw strong uptake in subscriptions.

In releasing the company’s half year 2013 results, managing director Simon Crowther said of the paywall: “This was a carefully thought out strategy to monetise nearmap’s content and build a sustainable, recurring revenue base for the business. The response since then has been very positive and reflects the value that organisations place on nearmap’s high quality, current and changing PhotoMaps.”

As Crowder went on to point out, the half year result only included one month of the new subscription sales. This was still enough to contribute to a 51% increase in revenue and reduce net losses after tax by 38%.

Looking forward, Crowder said: “Our customer base continues to grow and we are now seeing increasing demand coming from not only the lucrative government and commercial sectors, but also the SME market. Servicing this segment represents a significant opportunity for us to build scale, and broaden our customer base.”

Still too early to call

Today, Nearmap has nearly $6 million in cash and no debt. The company has an $86 million market cap. While it still seems too early to call — especially as the company is not yet profitable and Google could yet mount a more credible threat — Nearmap is a small cap to watch.

Attention investors: Excited about small caps? Learn about two more of the ASX’s most promising small cap companies in The Motley Fool’s special free investment report.Click here now, your copy is FREE!

More reading

Motley Fool contributor Catherine Baab-Muguira has no financial interest in any of the companies mentioned in this article. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

 

 

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »