The Nearmap Ltd (ASX: NEA) share price is in the red this morning after the company released guidance for the financial year 2022.
The aerial imagery company is targeting an annual contract value (ACV) of between $150 million and $160 million on a constant currency basis in the financial year 2022. For context, the company's ACV came to $133.8 million for the financial year 2021 (on a constant currency basis).
At the time of writing, the Nearmap share price is $2.09, which is 2.79% lower than its previous close.
Let's take a closer look at today's news from the S&P/ASX 200 Index (ASX: XJO) tech company.
Nearmap share price down on FY22 outlook
The Nearmap share price is falling as the market digests the company's plans to boost its ACV by 12%–19% in the financial year 2022.
Nearmap states it will keep targeting medium to long term ACV growth of between 20% and 40%. It's also working to maintain its underlying retention at above 90%.
The North American region is expected to continue to drive Nearmap's growth. ACV in the region increased by 54% in the financial year 2021.
The company has also continued to deploy capital raising funds in line with its financial year 2022 guidance to increase investment in the business. It expects to consume around $30 million of cash this financial year.
The funds are to go towards initiatives designed to scale the business for growth. Nearmap also states it is fully funded for the foreseeable future.
Finally, Nearmap is on track to roll out its next iteration of aerial camera systems, HyperCamera3, this financial year. It has recently completed a series of tests on custom-designed components in aerial flight.
Over the past month, the Nearmap share price has gained almost 13%. However, it's still 15% lower than it was at the start of 2021.
What did management say?
In an address at the annual general meeting (AGM), taking place this morning, Nearmap chair Peter James states:
There were significant technological challenges to overcome in designing a camera system of this complexity, but our world class team delivered. Their work means that Nearmap has further extended our already significant technology leadership position.
