The Nearmap Ltd (ASX: NEA) share price is on the move on Wednesday morning following the release of its half year results.
At the time of writing, the aerial imagery technology and location data company's shares are up 8% to $1.33.
Nearmap share price higher on strong half year results
- Annual contract value (ACV) portfolio up 28% to $147.7 million (or $143.3 million in constant currency)
- Reported statutory revenue up 23% to $67.5 million
- Reported statutory loss after tax of $11.9 million. This includes $9 million spent supporting its research and development (R&D) initiatives
- Group cash balance of $110 million and no debt
- Outlook: ACV portfolio now expected to close FY 2022 at the upper end of the $150 million to $160 million guidance range.
What happened during the first half?
For the six months ended 31 December, Nearmap reported a 28% increase in ACV to $147.7 million.
This reflects further strong growth in the North America market, with ACV rising 57% over the prior corresponding period to US$55 million. This was the third consecutive record half of growth for the segment and means its ACV now exceeds the ANZ portfolio.
The strong growth in North America was driven by demand from Roofing, Insurance, and Government markets. ACV from these markets grew 62% over the prior corresponding period. The Insurance side of the business now accounts for almost 40% of Nearmap's North American ACV.
This ultimately led to North American average revenue per subscription rising 29% to US$22,350.
Over in the ANZ market, Nearmap performed positively. It delivered an 8% increase in ACV to $71.9 million. Management advised that SME and midmarket segments continue to perform well, with encouraging improvements in the Enterprise market.
Management commentary
Nearmap's Chief Executive Officer and Managing Director, Dr Rob Newman, commented: "Nearmap has delivered yet another exceptional result on the back of continued record performance in North America and an extension of our market leadership in Australia and New Zealand."
"This has been enabled by our ongoing commitment to invest in our leading Research & Development initiatives, which are delivering strong returns and will continue driving our future growth. Refinements to our go-to-market strategy in North America eighteen months ago are now embedded into our business and today's results demonstrate our team in North America are continuing to deliver outstanding results for our customers," he added.
Outlook
In light of its strong first half performance, Nearmap now expects to hit the top end of its $150 million to $160 million guidance range in FY 2022.
Dr Newman commented: "We have delivered another record half of ACV growth whilst maintaining our Balance Sheet strength, this leaves us well positioned to continue our investment and execution of our go-to-market strategy. Core to our leadership is investment in our product and technology and we will focus this investment on ensuring we continue to provide increasing value to our customers."
"We will complete prototype testing and commence manufacturing of our world leading aerial camera system, HyperCamera3. This represents a major milestone and will enable us to fly even higher and faster than we do today, significantly extending our already industry leading competitive advantage. This is ground-breaking technology being designed and manufactured right here in Australia and is the key priority for us for the remainder of FY22," he concluded.
