The Nearmap Ltd (ASX: NEA) share price will be one to watch on Thursday after the release of a shareholder update.
What did Nearmap announce?
This morning the aerial imagery technology and location data company released an update on current trading conditions and how it is responding to the potential impact of the coronavirus outbreak.
According to the release, last week the company transitioned all its Australian and United States based employees to remote work as part of its business continuity measures. This was not overly hard for the company, given that it has previously had policies in place promoting a flexible working environment and remote working.
At this point in time, management advised that it continues to provide its business services as usual. It also remains committed to supporting its customers by continuing to provide them with instant access to current and historical aerial derived imagery and content.
In addition, it advised that its web-application MapBrowser and access to content and tools via APIs remain unaffected. Positively, survey flights are scheduled to continue as normal in order provide constantly updated and reliable content to its customer base.
Balance sheet strength.
Another positive is that the company's balance sheet remains strong. At the end of December it had a cash balance of $49.6 million. It is now emphasising a strong focus on cash management and optimisation.
It is also keeping a close eye on trading conditions and has a number of options to maintain its capital flexibility and strong balance sheet position if conditions change materially.
Nearmap's CEO and managing director, Dr Rob Newman, sees positives in the current trading conditions.
He commented: "Nearmap has always facilitated flexible working arrangements by reducing the need for costly, time consuming site visits. Whilst the impact of COVID-19 remains uncertain for our customers, our content can actually help businesses adapt to a need for conducting more work remotely, and for many of our customers we are providing enhanced content during this period."
"We are well prepared to navigate the uncertain time ahead and will continue monitoring the advice of authorities in order to support the health and well-being of our people, their families, our customers and suppliers during this extraordinary time," he concluded.
Nearmap didn't mention its guidance. Which appears to indicate that it is on track to achieve annualised contract value in the range of $102 million to $110 million in FY 2020.
