Nearmap climbed high on ASX after updating the market about its ACV Growth

Nearmap Limited (ASX:NEA) updated the market that the results for FY18 are expected to show record growth in group Annualised Contract Value (ACV) and will exceed the guidance which was provided at the time of H1FY18 results. The Group recorded a growth of 41 per cent in ACV portfolio and at the time of closing on 30 June 2018, ACV portfolio amounted to $66.2 million (30 June 2017:$47.0 million) and recorded an annual increase in ACV amounting to $19.2 million (FY2017:$10.6 million). Results for FY18 will be released on 22 August 2018. Cash Balance of the Group as on 30 June 2018 amounted to $17.5 million (31 December 2017:$20.6 million) which reflected returns from investment in sales and marketing capabilities of the Company in FY18 and also from the expansion of HyperCamera 2 capture program. The Group has reduced its cash investment in H2.

There was an increase of 67 per cent in growth rate in H2FY18 as compared to growth reported in H1FY18 ($7.2 million) and further exceeded ACV growth for the full year FY17. Moreover, US Portfolio got doubled (largest annual ACV growth in the history of the Company’s US operations) and grew by 143 per cent and was larger than Australian ACV growth in AUD terms. By these results, the Company is encouraged and is buildings its subscription bases both in the US and in Australia. This is all driven by the Company’s investment in market-leading technologies and expansion in its marketing and sales capabilities. After these positive results, the stock price climbed up by 18 per cent and was trading at $1.315, that is inching towards its 52-week high price of $1.37 as on 10 July 2018, 03:15 PM AEST.

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ACV Portfolio (Source: Company Reports)


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