The Nearmap (ASX: NEA) share price is up around 14% after giving an update to investors. Is it still a bargain?
What is Nearmap?
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, and is one of the ten largest aerial survey companies in the world by annual data collection volume.
What happened today?
Nearmap gave a business update that said it hasn’t seen a material impact on current trading conditions.
Despite that, it is doing cost management initiatives to prudently preserve cash to maintain a strong balance sheet so that it won’t need to do further capital raisings.
Some of those cost saving measures include a 25% reduction of board and CEO pay, while all other employees will see a 20% reduction in pay.
Overall, Nearmap will be saving around 30% of operating and capital costs. It intends to be cashflow breakeven by the end of FY20.
Nearmap will continue to invest in growth initiatives such as the commercialisation of its artificial intelligence and roof geometry content which remain unaffected.
Pleasingly for Nearmap shareholders, the company said its business model is well suited for remote working.
Is Nearmap a buy?
The Nearmap share price is still down 44% from 29 January 2020. So if you’ve been waiting to buy shares then this could be a good time to do it whilst it’s still so much lower but guiding for a solid few months without the need for a capital raising.
But it’s not the only technology share to think about, you could buy these other top picks:
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Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.
