Nearmap share price hits an all-time high: Is it too late to invest?

It seems as though nothing can stop the Nearmap Ltd (ASX: NEA) share price right now.

Despite the recent market wobbles, the geospatial map technology company’s shares have continued their positive run and reached a new all-time high of $3.00 on Thursday.

At that point the Nearmap share price had gained an impressive 190% in the space of 12 months or a staggering 445% over the last two years.

Why is the Nearmap share price on fire?

The company’s performance over the last two years has caught the eye of investors and it isn’t hard to see why.

After delivering a very impressive result in FY 2018, Nearmap has built on this in FY 2019 thanks to its successful expansion into the U.S. market.

Last month Nearmap released its half year results and revealed revenue of $35.5 million, which was up a sizeable 45% on the prior corresponding period.

This strong revenue growth was driven by increasing demand for its service in both the Australia and U.S. markets. At the end of the half the company had increased its annualised contract value (ACV) by 44% to $78.3 million.

The star of the show was the company’s U.S. segment which more than doubled its ACV to US$17.8 million. The company’s Australian segment also performed well, growing its ACV by 23% to $53.3 million.

But it wasn’t just the company’s ACV that increased. Nearmap also reported growth in its average revenue per subscriber metric to $8,410. This, combined with a reduction in its churn level to 6% from 9%, led to Nearmap reporting a total subscriber lifetime value of $1.07 billion. This was an increase of 123% on the prior corresponding period.

Is it too late to invest?

Whilst I think that Nearmap’s shares are looking close to fully valued now, I still believe they are worth considering along with Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) if you’re willing to make a patient buy and hold investment.

Especially given its sizeable cash balance which will be used to support its expansion into new markets. If it can replicate its U.S. success in these new markets, then I believe Nearmap could be destined for big things in the future.

As well as Nearmap I think these buy-rated growth shares would be great investments this month.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Altium and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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