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Date : 14/12/2021

Nearmap Stock Price Surged Following Its Latest Announcement

NEA Share Price Up On ASX As Its North America Portfolio Performs

Nearmap ASX shares (ASX: NEA) are on form on Tuesday. The NEA share price jumped 4.76% on strong US growth and ended the day at $1.54 per share.

Investors have been bidding the Nearmap share price higher on Tuesday following the release of a trading update. According to the release, the company expects the Annualised Contract Value of its North America portfolio to surpass its ANZ portfolio Annualised Contract Value for the first time soon.

Actually, Nearmap Ltd expects to reach this milestone by the end of the upcoming first half. Thus, the company projects its side business to continue on its growth trajectory and even become the largest segment of the group shortly. Hence, Nearmap’s North America market continues to accelerate.

The release explains that the North American segment has just surpassed US$50 million. This led to the overall group Annualised Contract Value reaching beyond US$100 million. To put things in perspective, the North American Annualised Contact is valued at US$44.5 million at the end of FY21.

This puts Nearmap Ltd (ASX NEA) on course to achieve its FY22 Annualised Contract Value guidance of $150 to $160 million on a constant currency basis, which represents an increase of 17% to 25% year-on-year.

Positive Momentum Of Nearmap Ltd Continuing Into FY22

The Nearmap share price surged following its latest announcement.

This recent achievement in the North American market is positive momentum for Nearmap Ltd. The result of this achieved milestone has been possible thanks to the company’s operating excellence. Hence, the group has purposefully refined its go-to-market strategy in the region at the beginning of FY21 to focus on three core industries for growth. These industries are government, insurance, and roofing. Furthermore, this approach was aligned to the firm strengths and follows strong demand from customers in these sectors. Indeed, Nearmap Ltd has delivered consecutive record half-year results. Besides, we are also seeing this momentum continuing into FY22, which we believe is the result of a proven strategy and exemplary execution.

This growth strategy of Nearmap Australia Pty Ltd supports the company expanding footprint in the key market.

Nearmap Ltd (ASX: NEA) will continue to invest in this strategic market. Therefore, we expect Nearmap Ltd to double its coverage footprint in FY22 of its US capture programme to about 80% of the population up to three times each year. Following a successful pilot, the company is expanding access to all sectors in North America with its “Nearmap ImpactResponse” product to assist disaster relief efforts following catastrophic weather.

Nearmap NEA share price Chart, histogram Description automatically generated
Source: Tradingview.com

Since the last twelve months, investors quite neglected Nearmap shares. The company saw the NEA share price depreciate by 30% year-to-date and nearly 31% in the last trailing twelve months. In comparison, three of its major competitors, JCurve Solutions (JCS), Knosys (KNO), and Elmo Software (ELO), returned 110%. 22%, and -19%, respectively.

However, when we look at the big picture, over the last five-year period, the NEA share price gained more than 175%. Likewise, with the recent positive outlook, we believe it might be a unique opportunity to consider Nearmap Ltd (ASX NEA). Nearmap ASX shares are still relatively undervalued.

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