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- Aerial imaging company Nearmap (NEA) delivers record incremental annual contract value growth in FY22
- Its ACV portfolio increased 25 per cent year-on-year to almost $160 million, which is at the top of its FY22 guidance, and attributes this to new customers and retention
- The company focused on establishing its North America business which contributed $74.8 million to group revenue and $15.3 million to new customers
- Nearmap says it maintained a “disciplined” approach to cash management but will continue investing in key initiatives including sales and marketing, rolling out its aerial camera system and expanding product solutions
- Company shares are up 3.64 per cent to trade at $2 at 12:36 pm AEST
Aerial imaging company Nearmap (NEA) delivered record incremental annual contract value (IACV) growth in the 2022 financial year.
Nearmap provides cloud-based geospatial information services and location intelligence content for business and government organisations through a subscription model.
As of June 30, group ACV portfolio was $159.9 million, representing a 25 per cent year-on-year (YoY) growth. Furthermore, the ACV result is at the top of the company’s initial FY22 guidance of $150 to $160 million.
The company largely attributes the ACV growth to new customers and retention.
Customers contributed $21.6 million of IACV in FY22, up 34 per cent YoY. Broken down, the North America and Australia and New Zealand segments contributed $15.3 million and $6.3 million, respectively.
Group revenue for the year increased 29 per cent to $146 million with ANZ contributing $71.1 million (an eight per cent increase) and North American operations contributing $74.8 million which marked a solid 57 per cent increase YoY.
Total revenue is recognised evenly over the subscription period, while ACV represents the annualised value of all active subscription contracts at a particular date.
CEO and Managing Director Dr Rob Newman said the company has produced strong results, validating its “razor-sharp” focus on its strategy.
“We have now clearly established our market leadership position in the North American market and continue to extend our market leadership position in Australia & New Zealand,” Dr Newman said
“With the efficiency and productivity gains our content delivers, combined with the increased uptake of our premium content, we are seeing excellent levels of engagement and satisfaction from our customers.”
In terms of spending, the company reported a group net loss of $30.8 million, a 65 per cent increase on the prior year. General and admin costs rose by 67 per cent on the back of investments into scaling its business.
Product, engineering and tech costs rose by 83 per cent and litigation expenses increased by $8.4 million due to Nearmap’s subsidiary defending patent infringement claims in the US.
Nearmap’s cash balance decreased from $123.4 million to $93.7 million, driven by its continued investment in strategic initiatives outlined in late 2020.
The company plans to continue investing in its business with a particular focus on sales and marketing, rolling out the HyperCamera3 aerial camera system and expanding product solutions.
“In FY23 we will remain conscientious of prioritising our key initiatives whilst continuing to adopt a rigorous process that demonstrates a clear return on our investment,” Chief Financial Officer Penny Diamantakiou said.
“This ensures we can continue to develop our world leading content for our customers whilst maintaining a strong and healthy margin and balance sheet position.”
Company shares were up 3.64 per cent to trade at $2 at 12:36 pm AEST.
