Nearmap Ltd (ASX: NEA) shares leapt 8.5% after the aerial imaging business announced its preliminary half-year results.
Nearmap is a leader of aerial imagery technology and location data, providing frequently-updated, high-resolution aerial imagery. Basically, it takes high-resolution photos from a plane.
Why Nearmap Shares Jumped
Nearmap announced that in the first half of its 2019 financial year its annualised contract value (ACV) increased by 42% year on year to $78.3 million, with 107% growth in the US business to US$17.6 million and 23% growth in Australia to $53.3 million.
Management attributed the US performance to a focus on sales & marketing. Nearmap touted clear product advantages and functionality which drove high market awareness and customer traction.
Nearmap is planning expansion into Canada during the 2019 calendar year and is also planning expanded products and content. To fund its plans, Nearmap finished December 2018 with $81.3 million in cash and reaffirmed guidance for FY19 to be cash flow breakeven even excluding the capital raise.
Dr Rob Newman, the Nearmap CEO and Managing Director, said:
“Our Australian business is building on its market leadership and our US business is gaining significant market traction. We are well placed to deliver ongoing growth as new product enhancements add functionality, and our markets continue to develop and expand.”
Is It Time to buy Nearmap Shares?
The prospect of good growth, Canada expansion and cashflow breakeven seem to have excited investors today.
To be frank, I’m not sure how good of an opportunity Nearmap shares are right now, so you should do some extra research if you’re interested in its shares. However, Nearmap isn’t the only ASX small-cap company generating blistering growth. For example, the two shares in the free report below are also worth looking at.
2 Rapid Growth Shares For 2019
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