Shares in Value Logo
Product Review Img Vertical

Date : 24/08/2022

Nearmap Takeover Bid and FY22 Results Announcement

Nearmap Ltd (ASX: NEA) is a rare tech company listed on the ASX specialising in geospatial analytics. The company uses planes, not drones, to capture aerial imagery, which it collects into a database of information and photographs and then sells to various business customers.

Compared to other mapping apps, Nearmap updates their catalogue much more frequently while retaining historical data to show how different locations have changed over time. As an added bonus, photos can be meshed to create 3D or vertical images and then analysed with AI.

Government and insurance agencies are the core clientele of Nearmap LTD, utilising the product from assessing property tax bills to preparing for natural disasters. Utilities, solar energy providers, architecture firms, and building contractors are just a few of its other clientele.

 

Nearmap LTD (ASX:NEA): FY22 Results Announcement

Nearmap LTD (ASX:NEA) shares are trading at $1.96 and have gained more than 51% in the last 30 days. The current market cap of the company is approximately 982.61 Million AUD.

Nearmap Ltd Shares Growth

Below are the key results announcement for Nearmap LTD (ASX: NEA) FY22:

  1. Nearmap Ltd reported a 29% annual statutory revenue increase which results to $145.9 million.
  2. The company revealed a 31% annual contract value (ACV) increase to $167.6 million.
  3. The percentage of the company’s subscription income attributable to premium content was recently announced to have risen to 73%.
  4. Nearmap’s FY22 results show its gross profit rose by 37% to $111.1 million.
  5. Nearmap’s net loss ballooned from $18.8 million to $30.8 million during FY22.
  6. By the end of June of 2022, its cash on hand had totalled $93.7 million.

 

Shares Soar after Nearmap Takeover Bid

For Nearmap Ltd (ASX:NEA) shareholders, the most important development of FY22 likely occurred only recently. The Nearmap takeover bid announcement from Thoma Bravo LP was just presented to shareholders on Monday.

The offer price of $2.10 is fascinating because it significantly soared over the last trading price of Nearmap LTD (ASX: NEA) shares. The business has decided to allow Thoma Bravo to conduct non-exclusive due diligence on the takeover bid offer.

The company stressed that while they are excited about the prospect of entering into Nearmap takeover bid discussions with Thoma Bravo, there is no official announcement at this point in time.

 

Trying its Luck in the US

Nearmap operates in these four nations: The United States of America, Canada, Australia, and New Zealand. 2007 marked the year of its inception, while the year 2014 marked the announcement of its expansion into the American market. It has endured years of difficulty in that market, during which time it has repeatedly shifted both its market verticals and its price strategy. In addition, the corporation was subjected to legal assaults from its rivals and damaging reports from short sellers.

 

CEO and Managing Director’s Remarks

According to Dr Rob Newman, CEO and managing director of Nearmap, they have delivered another set of strong results proving the laser-like concentration on their plan. Our company’s key business segments have experienced sustained and rapid expansion thanks to the plan our team has diligently executed.

We have firmly established ourselves as the market leader in North America and further strengthened our position in Australia and New Zealand.

Newman further emphasised that the takeover bid and current legal proceedings in the United States had no effect on operations and credited the company’s sound financial position at the end of FY22 ($94 million in cash and zero debt) to its strict cash management practices. We burned through less than $20m in cash in FY22, lower than the earlier forecast results of $30m, excluding the impact of the takeover bid and litigation expense connected to the US District Court, which, I would stress, continues to have no operational impact on our business.

 

Forecasted Growth

Nearmap’s results announcement for the fiscal year ending on June 22nd reveals an ACV of $167.6m, an increase of 31% from the previous year’s same period. Its cash outflow as a group results to around $20 million, less than the projected $30 million.

Despite the lack of FY23 projections, Nearmap anticipates a positive free cash flow by FY24. Forecast results for FY23 include a 24% increase in sales to $178m and an increase in EBITDA to $35.7m, both from FY22 levels. The following year, FY24 calls for even more impressive growth forecast. Nearmap Ltd (ASX:NEA) is looking at revenues of $213.6m and EBITDA of $62.2m, an increase of 20% and 71%, respectively.

 

 

Previous Nearmap Ltd Articles:

Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.