The Aerometrex Ltd (ASX: AMX) share price has been on form on Thursday and is pushing notably higher.
In afternoon trade the aerial mapping company's shares are up 4% to $1.23.
Why is the Aerometrex share price pushing higher?
Investors have been buying the Nearmap Ltd (ASX: NEA) rival's shares today after the release of a positive trading update.
That update revealed that the company has delivered significant growth in its aerial imagery subscription service MetroMap following the signing of Suncorp Group Ltd (ASX: SUN), Geoscape Australia, and a number of other corporates during the first quarter.
According to the release, Suncorp has selected Aerometrex's subscription-based service MetroMap as its aerial imagery provider for data analytics. It will provide the banking and insurance giant with geospatially accurate imagery over more than 8.5 million residences across capital cities and selected regional towns in Australia.
Combined with its Geoscape Australia deal, management estimates that these two contracts are worth a minimum of $860,000. They also represent an important step forward for MetroMap in the areas of insurance and AI-derived data generation, respectively.
Thanks partly to these deals, at the end of the quarter the company's annualised recurring revenue (ARR) increased 65.7% quarter on quarter to $2.75 million.
Management believes this reflects the growing uptake of MetroMap by large corporate organisations as well as SMEs. It also notes that this growth has been largely achieved during the period most affected by general economic uncertainty over COVID-19.
What is MetroMap?
MetroMap is an online imagery web-serving application offering Aerometrex's high-quality and accurate imagery to its customers via a DaaS (Data as a Service) subscription model.
The product offers its subscribers four captures per annum for each major capital city, in addition to annual rural and regional city captures. Management notes that the service fulfils all of the quality and accuracy requirements of sophisticated geospatial data users and provides an easy-to-consume product for the corporate market, via a web browser interface.
The company estimates that there is a current addressable market in Australia of approximately $75 million to $80 million annually. It feels this provides it with a significant market to grow into.
