Insights

Why the Nearmap (ASX:NEA) share price has risen 10% this morning

The Nearmap share price has put itself on the map with the release of the company’s preliminary results.
The post Why the Nearmap (ASX:NEA) share price has risen 10% this morning appeared first on The Motley Fool Australia. –

The Nearmap Ltd (ASX: NEA) share price is up 10% in early morning trade. It coincides with the aerial mapping technology company releasing its FY21 preliminary full-year results.

At the time of writing, the Nearmap share price is $2.19, up 10.33% on yesterday’s close. However, it’s still 6.4% lower than its price one year ago.

Let’s review the latest announcement from the company.

Nearmap share price on the move

Surpassing upgrading guidance

Investors are jumping on Nearmap shares this morning following the release of its preliminary/unaudited results for FY21.

According to the company’s release, the annual contract value (ACV) is expected to finish at $133.8 million on a constant currency basis for FY21. This would represent 26% growth compared to the prior corresponding period.

Additionally, this result surpasses the company’s previously upgraded guidance of $128 million to $132 million. The growth in ACV has been underpinned by record performance in the United States.   

While Australia and New Zealand is still Nearmap’s largest market within its ACV portfolio, the US accounted for the majority of growth during FY21.

Moreover, Australia and New Zealand provide $69.1 million in ACV versus the US’s US$44.5 million. However, growth in FY21 consisted of US$15.6 million from the US and $4.6 million locally.

Chief Executive Officer and Managing Director Dr Rob Newman said:

FY21 has been an unprecedented year with record performance delivered in a challenging economic environment. The strong growth from new and existing customers across our core industry verticals validates our refined go-to-market strategy in North America and gives us good momentum going into FY22. Given strong customer demand, we will expand our coverage footprint in the United States in FY22, delivering even more content and value for our customers

Meanwhile, the company’s cash levels at the end of June were $123.4 million.

HyperCamera3 and court proceedings

Nearmap has also revealed it has completed the design of its next-generation proprietary camera system, HyperCamera3.

The company has successfully trialled the system through a test flight and processed the captured content. Importantly, Nearmap has filed patent applications for the system in national and international markets.

This leads to the company’s update on patent infringement claims levelled by Eagle View Technologies Inc and Pictometry International Corp.

In the wake of the allegations, Nearmap has engaged patent litigators to represent the company against the claims. The Nearmap share price suffered a 16% fall when the allegations were first made known.

The company maintains the allegations are without merit and is well prepared to defend against the claims.

The post Why the Nearmap (ASX:NEA) share price has risen 10% this morning appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nearmap right now?

Before you consider Nearmap, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nearmap wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Here’s how some of the top ASX SaaS shares performed in FY21

Nearmap (ASX:NEA) share price continues to rise, up 7% today
Top broker picks the emerging ASX tech shares with the biggest upside next month

2 highly rated ASX tech shares tipped for strong long term growth

2 exciting ASX tech shares that have been named as buys

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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!