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Date : 06/05/2021

Nearmap Share Price Jump On Strong Performance

Bangaroo based Nearmap Ltd (ASX: NEA) is an online photomap content company, which provides geospatial map technology for business, enterprises, and government customers. Nearmap Ltd has a presence in Australia, New Zealand, and North America.

The Nearmap share price experienced a significant jump of 14.5% on Wednesday’s trading session, closing at $2.36 a share. This strong performance was a result of the company’s upgraded annual contract value guidance for the fiscal year 2021, which likely boosted investor confidence in the company’s future performance.

What Caused The Nearmap Share Price To Increase?

The positive momentum for Nearmap Ltd (ASX NEA) appears to be a result of a strong performance in the first half of 2021, which has continued to attract new customers and increased business from existing ones. This growth is underpinned by Nearmap’s successful subscription-based business model, which has helped to differentiate the company from its competitors, alongside its technological advancements.

By increasing their FY21 Annual Contract Value (ACV) guidance to a range of $128m-$132m from the previously estimated $120m-$128m, Nearmap Ltd is signaling to investors that they expect a higher level of revenue and growth in the coming months. This upgraded guidance is likely a result of the company’s strong performance in the first half of 2021 and the continued growth of its core industry verticals. With this guidance update, Nearmap Ltd may be positioning itself for future success and increased market share for the Nearmap share price.

The firm continues to invest the proceeds from the FY21 capital raise into key growth initiatives, including into the development of HyperCamera3, which remains on track to be rolled out in FY22. With each of the investment initiatives on track and with continued momentum in ACV growth, Nearmap Ltd now expects the net cash outflow to be less than $10m this financial year.

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