The Nearmap Ltd (ASX: NEA) share price fell 9.5% today after reporting its FY19 result.
Nearmap is a leader of aerial imagery technology and location data, providing frequently-updated, high-resolution aerial imagery. It currently operates in Australia, New Zealand and the United States. It’s one of the ten largest aerial survey companies in the world by annual data collection volume.
Nearmap’s Mixed FY19 Result
The aerial imaging company reported that its group annualised contract value (ACV) rose by 36% to $90.2 million, with North America ACV rising by 76% to US$22.7 million and it’s now more than one third of the total at 36%. Australian ACV grew by 19% to $57.9 million.
Global subscriptions increased by 11% to 9,800 and the group average revenue per subscription increased 23% to $9,208.
Pleasingly, the group customer churn (the retention rate) reduced to 5.3%, down from 7.5% with FY19 customer churn lower in dollar terms than FY18.
Statutory revenue improved by 45% to $77.6 million and net operating cash inflows grew by 81.8% to $24.9 million as it benefits from growing operating leverage.
Group EBITDA (click here to learn what EBITDA means) rose by 216% to $15.5 million.
However, Nearmap’s net loss grew by 35% to $14.9 million with the company continuing to invest for future growth.
Nearmap ended the financial year with $75.9 million, largely due to the capital raising that was recently carried out.
Nearmap Management Comments
Nearmap CEO Dr Rob Newman said: “FY19 has been a milestone year for Nearmap, with record portfolio growth as we delivered a step change in our product offering with Nearmap 3D and our beta release of Artificial Intelligence content.
“These investments place Nearmap in an excellent position to deliver another year of strong growth in FY20, as we consolidate our market leadership in Australia and execute on the growing momentum in North America.”
Is The Nearmap Share Price A Buy?
Nearmap is talking about becoming a global leader in its industry, so it certainly isn’t calling an end to its growth any time soon. With the share price falling over 30% over the past two months, now could be the opportune time to pick up some shares, but it still isn’t cheap though.
It could be a good idea to mix a portfolio of Nearmap with low cost, quality ETFs like the one in the free report below.
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