Just got this in an email ... Thu, 6 Aug at 2:37 am
Aerometrex boss boasts of 'far' better tech than bigger rival NearmapAug 5, 2020 – 11.51amFrom the a-f-r.comThe chief executive of challenger aerial-mapping business Aerometrexhas cranked the competitive heat on rival Nearmap by boasting his company has a superior 3D-mapping product.
Market-leader Nearmap raced to a $1.9 billion valuation in June 2019 on wild investor enthusiasm for the software-as-a-service sector (SaaS), before collapsing in half to a valuation around $1.1 billion today.
Mark Deuter, the boss of Aerometrex, has been investing in its subscription-based product MetroMap to compete head-to-head for customers with Nearmap in Australia, he told investors.
"I'd say we have as good a resolution as Nearmap in 2D aerial imagery. I'd say our 3D product offering is far superior. And I'd say our LiDAR offering is something that Nearmap doesn't have at this point," Mr Deuter told investors via web conference on Tuesday.
"So there are strong differences. I think we've the reputation with our customers as being able to provide a wider service - more tools at our disposal. I know there's a lot of focus on analytics at the moment we're certainly involved with that.
Aerometrex is tipping underlying EBITDA between $4 million to $5 million in financial 2020 on revenue up 18 to 30 per cent to between $19 million to $21 million. This compares to Nearmap targeting cashflow breakeven - on annualised contract revenue between $102 million to $107 million.
Land grab
As the camera, software and data-driven tech race heats up in the sector Aerometrex expects to see the results of investments in its proprietary camera system, MetroCam, Light Detection and Ranging capability (LiDAR), and expansion of 3D in the coming years.
"I guess the traditional aerial photography and mapping business is being to some extent subsumed by our Aerial Imagery subscription service MetroMap, but it's holding up fairly well in its own right, the traditional project work," Mr Deuter said.
"I think they'll always be a mix of project work and subscription type revenues... just because some areas don't lend themselves that well to subscription."
Mr Deuter said the acquisition has increased MetroMap's data archive two-fold and also hosed down expectations of a partnership or revenue sharing agreement with EagleView in the US.
"The ongoing relationship with EagleView has been definitely slowed up by COVID, we would have been over there having discussions with them and so forth.
"We've been concentrating I guess on getting MetroMap and the Spookfish databases online and all the Australia clients onboard. But it's something we're picking up in the near future.
"We have got an office in the US, but really only for our high-resolution 3D product. We're not seeking to take our complete service to the US, it's a pretty crowded market there already we think."
As a work-from-home type business, Aerometrex has seen relatively little impact from COVID-19 according to Mr Deuter, as enterprise customers use it to access maps and data remotely.
It had cash on hand around $22 million as at June 30, with a market value near $122 million including 60.2 million shares escrowed until December.
