Nearmap builds US contract momentum

AERIAL imaging company Nearmap says it has grown the value of its North American contracts by 76 per cent in a year, with the segment now representing a third of the firm’s business.

The ASX-listed mapmaker expects its North American contracts to bring in $US22.7 million ($A32.6 million) for the year — up from $US12.9 million in FY18 — outstripping growth at its larger Australian and New Zealand portfolio.

According to the preliminary figures, local Nearmap contract values are expected to jump 19 per cent to $US57.9 million ($A82.8 million) for the 12 months to June 30, with the total portfolio rising 36 per cent to $US90.2 million for the year.

“We continued to enhance our market leadership position in Australia and New Zealand, and momentum in North America is clearly building,” chief executive Rob Newman said.

“Our commitment to innovation and our investment in new product and content such as 3D and artificial intelligence means we are well placed to deliver sustained growth … in FY20 and beyond.”

The company repeated that its guidance for FY19 was for cashflow to break even, excluding a $70 million capital raising in September.

Nearmap core business cash balance at June 30 was $17.8 million — an increase of $300,000 on the opening balance.

Despite the impressive numbers, investors appeared underwhelmed, with shares in the map-maker slumping by 8.4 per cent to $3.38 by yesterday afternoon.