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Nearmap share price on watch following AGM update

The Nearmap Ltd (ASX: NEA) share price will be on watch on Thursday following the release of its annual general meeting presentation.

What was in the presentation?

The presentation began with a breakdown on its performance in FY 2019.

Management highlighted the continued momentum it experienced during the year. This was particularly the case with its annualised contract value (ACV) and subscriptions.

Over the last couple of years ACV has grown at a compound annual growth rate (CAGR) of 39%, whereas Subscriptions have been growing at a CAGR of 12%.

Strong growth was also achieved in customer lifetime value. At the end of FY 2019 this had reached $1,175 million. Up from just $371 million two years earlier.

FY 2020.

In FY 2020 management is investing in growth with the aim of maintaining and enhancing its leadership position in the location intelligence market.

It intends to increase its North American sales and marketing investment to accelerate growth in the key market. It also aims to improve brand awareness through targeted campaigns and focusing on strategic priorities.

In addition to this, Nearmap has its eyes on other markets. It continues to evaluate potential geographic expansion, though no decisions have been made at this stage.

Guidance.

Pleasingly, the company appears confident its strong form can continue in FY 2020.

According to the release, Nearmap’s Group ACV portfolio is expected to be in line with analyst consensus estimates of $116 million to $120 million. This compares to $90.2 million in FY 2019.

Though, it looks as though the company expects the second half of FY 2020 to be the stronger half. It explained that evolving industry dynamics are creating new opportunities for growth in the second half.

Further, its North American sales and marketing investment is ramping up, with the returns expected to accelerate in the second half.

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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. 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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