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Is The Nearmap (ASX:NEA) Share Price A Buy For Its Record FY19?

Nearmap Ltd (ASX:NEA) has released some of its preliminary FY19 results to the ASX this morning. 

Nearmap Ltd (ASX: NEA) has released some of its preliminary FY19 results to the ASX this morning.

Nearmap is a leader of aerial imagery technology and location data, providing frequently-updated, high-resolution aerial imagery. It currently operates in Australia, New Zealand and the United States. It’s one of the ten largest aerial survey companies in the world by annual data collection volume.

Nearmap’s Record FY19 Result

The company’s annualised contract value (ACV) is expected to show another year of record growth.

Group ACV increased by 36% to $90.2 million with North American ACV growing by 76% to US$22.7 million and Australian & New Zealand ACV increased by 19% to $57.9 million.

Thanks to the strong American growth, North American ACV now comprises 36% of the Group portfolio, which was up from 26% at 30 June 2018. The company opened its second North American sales office in New York during the year.

Nearmap was also pleased to announce that it has completed its third capture of New Zealand.

Reference To Cash Flow And Capital Raising

The company reminded investors that its guidance for FY19 was to be cashflow breakeven excluding the capital raise.

Nearmap said that the core business cash balance at 30 June 2019 was $17.8 million which was an increase of $0.3 million on the opening balance, so it seems to have achieved its target.

The company’s total cash balance was $75.9 million at the end of FY19.

However, the capital raising proceeds have already been to work with US sales & marketing, the first Canadian capture program completed (covering 62% of the population), product & content expansion and the launch (and the first sale) of its artificial intelligence product.

Nearmap CEO and Managing Director Dr Rob Newman said: “I am extremely proud of another successful proud of another successful period of strong growth across all areas of our business.”

Whilst this result is strong, the 141% growth of the share price in 2019 definitely reflects the improved performance of the company. However, in early trading the Nearmap share price is up more than 1.5%.

Still, I am interested in Nearmap’s growth journey along with the quality shares in the FREE REPORT below.

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