NEARMAP LTD (ASX:NEA) - Ann: Q1 FY17 trading update - US Operations build momentum-NEA.AX, page-55 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by Inferno31 ↑

From MF freelancer

Shares in small-cap aerial imaging provider Nearmap Ltd (ASX: NEA) rose 18% to $0.84 cents this morning after the release of a positive first quarter update to the market. Although shares have been rising strongly in recent weeks, with the update seemingly much better than the market was expecting, Nearmap shares might head higher again in the near future.
Here’s what you need to know:

Group revenue rose 39% to $9.2 million in the first quarter of Financial Year 2017 (‘Q1 FY17’) compared to $6.6 million in the same quarter in 2016

This includes a 50% increase in US revenues from A$0.4 million in the final quarter of 2016 to A$0.6 million in the first quarter of 2017

Annualised Contract Value (‘ACV’) of the US sales grew 53% to US$2.3 million

Leads are ahead of target and conversion ratio of leads to sales is improving

Business growth appears to be primarily due to increased sales to existing customers, with some new customers such as OmniEarth and TomTom

Cash balance remains strong with A$10.9 million at 30 September 2016

A further update on progress to be provided at Annual General Meeting on 17 November 2016

source: Company presentations
Nearmap appears to be executing well and CEO Dr Rob Newman’s comments: “This quarterly result gives us growing confidence in both the size of the opportunity and our ability to compete“.
This may alleviate some investor fears about Nearmap’s ability to take market share from larger competitors. Management also noted that these results came in what is seasonally one of the quietest quarters, which may give the market confidence in 2017 being another year of growth for the company.
Investors should be cautious that the company’s US story is just getting started, although given the company’s success so far Nearmap does not appear to be expensive at today’s prices.

Expand

A beautiful chart and what a great day for NEA!
Good to see Australian market is still growing nicely.
My only cautionary is that the absolute US numbers are still v small. Its not that hard to double or treble starting from such a low base..... The next few US sales result updates will be very telling.
It will be interesting to see what the updated broker forecasts have to say.
I'm very positive on NEA. Have been holding since the IPO.