Join our daily newsletter At The Bell to receive exclusive market insights
- Aerial imagery technology company Nearmap (NEA) has reached over $102 million in annualised contract value and launched its Nearmap AI platform
- Nearmap provides detail-rich, high-res solutions to business customers so they can access work sites without leaving their home
- CEO and Managing Director Dr Rob Newman considers this milestone a testament to its industry-leading content
- Its newly-launched artificial intelligence content will initially cater to the utilities, local government and insurance industries — where the demand is strongest
- Further, thanks to cash management initiatives, Nearmap is on track to being cash flow breakeven at the end of FY20
- Company shares are up 14.6 per cent this morning and are trading for $2.20 each
Aerial imagery technology company Nearmap (NEA) has reached over $102 million in annualised contract value (ACV) and commercially launched Nearmap its AI platform.
ACV portfolio and resilience
The $102 million figure has been reached using an AUD and USD constant currency foreign exchange (FX) rate of 70 cents.
Based on current trading, Nearmap expects its closing ACV portfolio to range between $103 and $107 million.
The company is pleased it has reached such a milestone considering the challenging state of the global economy due to COVID-19.
Essentially, Nearmap provides business solutions that have enabled working remotely. Customers can access work sites without leaving their home by using the Nearmap high-resolution, “detail-rich” aerial imagery.
Twelve-month rolling churn is now under 10 per cent, down from 11.5 per cent since December 2019.
While sales have been slightly impacted by some customers delaying their decisions to acquire or upsell, the fundamentals of the business remain strongly intact.
“Continuing growth of our ACV portfolio through new customer acquisition and deeper penetration into existing customer workflows during the period of global uncertainty demonstrates the value that new and existing customers derive from our industry-leading content,” CEO and Managing Director Dr Rob Newman said.
Nearmap AI launch
Nearmap has also launched new Artificial Intelligence (AI) content. A newly processed set of AI dataset packages will be available to all U.S. and Australia-based subscribers, starting from next week.
This launch follows the commercial roll-out of 3D and roof geometry and aligns with the company’s ongoing strategy to enhance its market-leading technology position for the expanding location intelligence market.
Nearmap’s solutions are used in various industries such as government, industrial, insurance, real estate, solar, utilities, transport, and more. However, the initial focus for this launch will be on insurance, utility and local government, where the demand is the strongest.
To access Nearmap AI, subscribers purchase online or offline export credits to export AI-derived location intelligence content.
“As we approach FY21 we look forward to bringing new and innovative products to our growing customer base, which will further enhance our market-leading position in our key markets,” Rob added.
Cash management initiatives
Last month, Nearmap announced it was implementing cash management initiatives to maintain its cash balance and strengthen its balance sheet. These measures are saving roughly 30 per cent in operating and capital costs. The company is hoping these initiatives will lead to being cash flow breakeven by the end of FY20.
Under these initiatives, Nearmap reduced its staff by 10 per cent, reduced Board and the CEO’s compensation by 25 per cent for six months, and reduced employee salaries by 20 per cent.
Nearmap reports these changes have helped it remain on track to meet its cash flow breakeven target by the end of FY20. It expects to cap off the financial year with a Group cash balance of between $32 and $35 million.
Company shares are up 14.6 per cent this morning and are trading for $2.20 each at 10:30 am AEST.
