Insights

The Nearmap (ASX:NEA) share price is up and down today. Here’s why.

The Nearmap Ltd (ASX: NEA) share price has the wobbles today following its annual general meeting and FY21 guidance.
The post The Nearmap (ASX:NEA) share price is up and down today. Here’s why. appeared first on Motley Fool Australia. –

aerial shot of buildings and dollar signs representing nearmap share price

The Nearmap Ltd (ASX: NEA) share price has the wobbles today following its annual general meeting and FY21 guidance. At the time of writing, shares in the aerial imagery specialist are trading flat at $2.48 after dropping as low as $2.45.

Let’s take a closer look at what was said in its annual address to shareholders, and its outlook for FY21.

Key highlights

During FY20, Nearmap completed a number of significant milestones.

Annualised contract value (ACV) surpassed 10,000 subscriptions, which saw the average revenue of each subscription rise more than $10,000. This was achieved despite COVID-19 challenges, which resulted in a small loss of customers in the North American market.

After the successful introduction of wide-scale 3D content in FY19, the release of artificial intelligence content expanded Nearmap’s product offering. The premium subscription service helped drive revenue growth, with enterprise sales across multiple industries.

In North America, ACV grew 27% and is becoming a larger part of the company’s total ACV portfolio. In addition, the company entered new geographical markets in Canada, capturing content to increase revenue streams.

The Australian and New Zealand business surged in the second-half of FY20, offsetting the softening demand experienced in the first-half. This was due to sales leaders focusing their efforts on expansion in the North American market. However, after a re-organisation of sales leadership, customer experience retention teams delivered improved performance. ACV increased 11% in FY20 and management advised that the ANZ segment continues to generate a steady flow of cash.

Fortunately for Nearmap, its business operations have not been impacted by COVID-19 as employees work remotely. In terms of cash management, the company made a number of small headcount reductions and cut salaries to all staff, ensuring continuity.

FY21 guidance

As momentum remains strong, Nearmap expects the end of FY21 to produce ACV of between $120 million and $128 million.

Management stated that forecasts are based on a constant currency basis and do not factor any unforeseen circumstances.

Furthermore, Nearmap will deploy around $10–$15 million in investment activities to support acceleration of ACV. The company is targeting between 20% and 40% ACV growth over the medium to long term, with underlying churn below 10%.

Nearmap share price summary

The Nearmap share price has been climbing higher since the dilution of shareholder value through a capital raising last month. Gaining more than 6% since the start of October, the company has been on the march to reach its former highs.

In June 2019, the Nearmap share price soared higher than $4. Today, shares can be bought for little over half the price at $2.47.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Aaron Teboneras owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The Nearmap (ASX:NEA) share price is up and down today. Here’s why. appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!