In morning trade the Nearmap Ltd (ASX: NEA) share price has edged lower following the release of the aerial imagery technology and location data company’s preliminary full year results.
At the time of writing the company’s shares are down 1% to $3.65.
What happened in FY 2019?
According to the release, for the 12 months ended June 30, the company expects to report another year of record growth in its key annualised contract value (ACV) metric.
Subject to its audit, management expects to report an ACV of $90.2 million in FY 2019, up 36% from $66.2 million in FY 2018.
Not only is this a record figure, but it is also a record annual increase in incremental ACV of $24 million. As a comparison, last year the company grew its ACV by $19.2 million.
The key driver of this growth was its North America segment, which grew its ACV by US$9.8 million or 76% to US$22.7 million. This means the segment now accounts for 36% of its total ACV.
This was supported by robust growth in the ANZ market, where Nearmap record a $9.1 million or 19% increase in ACV to $57.9 million.
Another positive was that Nearmap achieved its guidance of being cash flow breakeven from its core operations.
The release advises that the core business cash balance (excluding its capital raising) stood at $17.8 million at the end of the period, up $0.3 million over the 12 months. Its actual cash balance was $75.9 million on June 30.
Nearmap’s CEO and managing director, Dr Rob Newman, was rightfully pleased with the company’s performance over the 12 months.
He said: “I am extremely proud of another successful period of strong growth across all areas of our business. We continued to enhance our market leadership position in Australia and New Zealand, and momentum in North America is clearly building.”
Looking ahead, Dr Newman appears confident on the company’s prospects.
He added: “Our commitment to innovation and our investment in new product and content such as 3D and Artificial Intelligence mean that we are well placed to continue to deliver sustained growth and expansion in our core markets into FY20 and beyond.”
With growth like that it will come as no surprise to learn that Nearmap is the best performer on the ASX 200 this year with a gain of 144%. The next best performers are the Magellan Financial Group Ltd (ASX: MFG) share price with a 142% gain and the Appen Ltd (ASX: APX) share price which a gain of 137%.
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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 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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