The Nearmap Ltd (ASX: NEA) share price is on fire on Tuesday morning.
At the time of writing, the aerial imagery and location data company's shares are up 13% to $1.46.
Why is the Nearmap share price rocketing higher?
Investors have been bidding the Nearmap share price following the release of an annual contract value (ACV) update.
According to the release, Nearmap has reached another key financial milestone, achieving ACV of $150 million across its group portfolio for the first time. This means the company has already achieved the low end of its full year guidance range.
Management notes that this follows continued strong momentum across the business, which includes Nearmap signing its largest ever government annual contract in North America. It highlights that premium content was a key factor in the contract win.
It feels that the largest ever government annual contract win demonstrates the enormous value and benefits government organisations gain from Nearmap technology, data, content, and analysis.
Management commentary
Nearmap's chief executive officer and managing director Dr Rob Newman was pleased with the achievement. He said:
"Nearmap is in an incredible position where we continue to win new customers and retain existing customers due to our world-leading location intelligence offering.
In achieving for the first time the milestone of $150 million in Group annual contract value, we again show the strength of our technology and data, and expertise of our global team. To announce this ACV milestone in the same month we signed our largest ever government annual contract in North America shows our global growth engine continues to power ahead."
In light of this strong start to the second half, Nearmap re-affirms that it expects its Group ACV portfolio to be at the upper end of the $150 million to $160 million guidance range in FY 2022. This will be up from $128.2 million in FY 2021.
