CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Nearmap shares surge 16% as ACV exceeds $102 million

We look at the highlights from Nearmap's latest media release titled 'ACV exceeds $102M, commercial launch of Nearmap AI.'

Nearmap share price rises, churn comes in lower

Despite challenging trading conditions as a result of the coronavirus pandemic – aerial imaging company Nearmap (NEA) today revealed that its annualised contract value (ACV) has continued to climb, currently sitting above $102 million, on a constant currency basis.

The response to this news was decisively bullish, with the Nearmap share price closing out Thursday's session 16.6% higher, to $2.240 per share.

Ultimately, as FY20 fast draws to a close, Nearmap noted that its full-year ACV guidance has now been narrowed to between $103 million to $107 million. Better still, Nearmap also revealed over the prior 12-month period, its churn levels have moderated and currently sit below 10%. For reference, for the12-months ending December 2019 Nearmap recorded churn levels of 11.5%.

Mind you, although churn has moderated and the company remains confident in its growth trajectory when economic conditions normalise, management did flag that 'There has been some impact on the velocity of the sales cycle as a small number of customers delay their decisions to acquire or upsell but with a strong and growing sales pipeline the fundamentals of the business remain intact.’

Elsewhere, the company also today revealed the launch date for its latest product, Nearmap AI. Speaking to the company’s zeal to remain competitive in a highly-dynamic and technologically focused market-space, it was noted that:

'Following the roll-out of 3D and roof geometry, Nearmap AI represents another significant milestone for Nearmap as it continues to enhance its market-leading technology position in order to penetrate more deeply into the larger and expanding location intelligence market.’

Nearmap AI will officially launch on 1 June, and be available as either a self-service export or through offline channels, in the US and Australia.

The benefits of cash management

Nearmap also announced that it expected to be cash flow break even by the end of fiscal 2020, as a result of cash management initiatives that the company has recently implemented. At the close of FY20, NEA expects to have a cash balance of between $32 million to $35 million.

Looking forward, Nearmap's CEO and MD Dr Rob Newman said:

'As we approach FY21 we look forward to bringing new and innovative products to our growing customer base, which will further enhance our market leadership proposition in our key markets.'

Nearmap currently has a market capitalisation of $869.21 million, according to the ASX.

Are you bullish or bearish on Nearmap?

You can use CFDs to trade Nearmap and other ASX-listed tech stocks – LONG or SHORT through IG’s world-class trading platform now. For example, to buy (long) or sell (short) Nearmap, follow these easy steps:

  1. Create an IG Trading Account or log in to your existing account
  2. Enter ‘Nearmap’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.