The Nearmap Ltd (ASX: NEA) share price has accelerated over the past month, leaving the S&P/ASX 300 (ASX: XKO) behind. At the end of Tuesday’s market close, the aerial imagery specialist’s shares finished 14.36% higher, trading at $2.27.
This means that in a month, Nearmap shares have gained more than 20%, reflecting renewed positive investor sentiment.
Following the company’s latest share price rise, we take a look at its recent updates including yesterday’s upgraded guidance.
Why is the Nearmap share price surging lately?
Investors appear buoyant on the company’s prospects after it provided some clarity on its trading performance for FY21.
In Tuesday’s statement to the ASX, Nearmap revealed its unaudited preliminary results for the year ending 30 June 2021.
According to the release, the company reported that it expects to exceed its recently upgraded guidance of $128 million to $132 million. Annual contract value (ACV) is forecast to close FY21 at $133.8 million on a constant currency basis. This represents an increase of 26% on the prior corresponding period (FY20).
Nearmap’s robust performance was driven by record ACV growth in North America, surging 54% to US$44.5 million. The company noted that this reflected 46% of the entire group portfolio.
The Australia and New Zealand segment lifted by 7% to $69.1 million, further extending its market leadership position.
Nearmap declared a healthy cash balance of $123.3 million for the end of the 2021 financial year.
In addition to the trading result, the company announced its HyperCamera3 prototype has been tested in flight. Nearmap aims to roll out the next-generation camera system commercially sometime in FY22.
Nearmap also provided an update on the United States district court proceedings. It said that claims of patent infringement made by Eagle View Technologies, Inc and Pictometry International Corp are without merit. As such, Nearmap has engaged in internationally recognised patent litigators to lead its defence against the accusations.
A broker note from Citi came in the middle of May putting a price target of $2.00 for Nearmap shares. Although this is more than a month old, more brokers may weigh in the company’s share price target following yesterday’s release.
Despite plenty of peaks and troughs along the way, the Nearmap share price remains relatively unchanged when compared to this time last year and for the 7 months in 2021.