The Nearmap Ltd (ASX: NEA) share price treaded lower on Thursday despite the company releasing a positive update to the ASX.
At market close, the aerial imagery specialist's shares finished 1.63% in the red at $1.205.
What did Nearmap announce?
Investors appeared unfazed by the company's latest release, sending the Nearmap share price lower.
In today's statement, Nearmap announced that it has successfully completed the research and testing phase for its new proprietary aerial camera system, HyperCamera3.
The next-generation technology is expected to deliver a number of advantages over its previous model, HyperCamera2. This includes faster captures with wider reach, more detailed imagery, additional perspectives and better 3D models, as well as new artificial intelligence capability.
Nearmap advised that the upgraded aerial imagery system resulted in several technology breakthroughs, which are expected to come under a portfolio of patents.
Production of the HyperCamera3 has commenced and is on track to be rolled out in both Australia and North America this year.
The company expected demand to increase for high-resolution, high-frequency aerial imagery captures from aeroplanes.
Nearmap managing director and CEO, Dr Rob Newman commented:
For over a decade, Nearmap has developed the most efficient and accurate aerial camera systems in the world. We're proud of being a world-leading technology company, homegrown in Australia, that continues to drive global innovation in the $60 billion location intelligence market.
The next generation of our aerial camera system will enable Nearmap to expand the scale and reach of our coverage and will offer new mapping and artificial intelligence products across North America, Australia, and New Zealand.
Nearmap share price summary
Nearmap has faced a turbulent couple of months, with its shares falling 22% for the calendar year.
Share price volatility aside, the company is projecting to achieve the upper range of its FY22 group annual contract value (ACV) of between $150 million to $160 million. This represents a potential increase of between 17% and 25% compared with the prior year of $128.2 million.
On valuation grounds, Nearmap commands a market capitalisation of roughly $601.38 million.
