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Here’s why Nearmap Ltd is still a great buy today

Shares of one of Australia’s most promising small-cap stocks, Nearmap Ltd (ASX: NEA), have surged more than 10% today to 64 cents after the company delivered a promising update on its operations.

Nearmap, which is Australia’s leading provider of high-resolution aerial photographs, announced that it is expecting revenue for H1 FY15 to be between $11.3 million and $11.6 million, which would reflect an increase of 43%-47% on the prior corresponding period. It’s also expecting to meet its revenue run rate target of between $30 million and $50 million by December 2015.

Also pleasing was the confirmation that the company is ahead of schedule in expanding its operations in the much larger United States market. It said that 130 million people had already been captured as part of the nationwide urban capture program, which allowed it to increase its preliminary capture target from 100 million people to 150 million people in FY15. It announced that capex costs were still the same at $8 million.

Should you buy?

Many investors would be deterred by the company’s incredible returns to date (it’s up 1,423% since late 2012), but such a stance could see them miss out on a potential multi-bagger over the coming years. As this promising company continues to expand its product offering (and geographical reach), Nearmap’s growth story could just be getting started.

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Motley Fool contributor Ryan Newman owns shares in Nearmap Ltd. You can follow Ryan on Twitter @ASXvalueinvest.

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