Nearmap Limited (ASX: NEA) was included only in the S & P / ASX 200 index on 24 April 2019, when it replaced MYOB Group Limited (ASX: MYO). The stock has seen a noticeable increase in the share price in the recent past, rising by 622% in 2 years to settle at $ 3.68 at the time of writing. This strong performance continues in 2019 and as a result can now be described as the best action of 2019 in the S & P / ASX 200. The Nearmap company describes itself as an innovative localization company that acquires a rich set of data on the real world, providing high …
Nearmap Limited (ASX: NEA) was included only in the S & P / ASX 200 index on 24 April 2019, when it was replaced MYOB Group Limited (ASX: MYO). The stock has seen a noticeable increase in the share price in the recent past, rising by 622% in 2 years to settle at $ 3.68 at the time of writing. This strong performance continues in 2019 and as a result can now be described as the best action of 2019 in the S & P / ASX 200.
L & # 39; Company
Nearmap describes itself as an innovative localization services company that acquires a rich set of real-world data, providing high-value insights to a wide range of companies and government organizations.
Bears of Nearmap claims that there are much larger companies that have the opportunity to enter the market. The most notable of these companies is Alphabet, inc (NASDAQ: GOOGL) and its Google Maps product. With over 1 billion monthly active users, this seems to be a real threat, but this leads to one of Nearmaps' competitive advantages: image quality and patented technology.
The company states that by using its own proprietary camera and software processing systems, Nearmap acquires multiple urban areas in Australia, New Zealand and the United States several times each year. This new content, along with a wide range of tools and analytics, is immediately available in the cloud via the Web app or API integration. This intelligence position offers Nearmap great options and potential revenue streams.
Nearmap reported semi-annual earnings in February, including 46% year-over-year revenue growth and a net post-tax loss of $ 1.97 million, down 70%. The company offers season tickets and has seen a reduction in the drop-out rate from 9% to 6%.
Another key metric was the 123% increase recorded in the total life value of the subscriber (LTV), at $ 1.07 billion. The LTV is calculated by multiplying the annualized contract value (ACV) of the Nearmaps portfolio by its gross profit margin and dividing it by percentage of group abandonment. If the ACV and gross profit margins are increasing while the churn falls, there is a multiplier effect, expanding the compound growth into LTV.
Insolent bottom line
Nearmap has a large economy and is partially protected by its patents. This should allow the company to be successful in the long term, however the recent rapid increase in the share price means that there are high expectations embedded in today's share price.
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Proutlb95 has no position in any of the stocks mentioned. The Motley Fool The Australian parent company Motley Fool Holdings Inc. owns the shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We goblins may not all share the same opinions, but we are all convinced that considering a diverse range of insights there makes investors better. The Motley Fool has a disclosure policy. This article contains only general investment recommendations (with AFSL 400691). Authorized by Scott Phillips.
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