NEA 0.00% $2.10 nearmap ltd

Ann: H1 FY2018 Preliminary Results - Record Growth, page-15

  1. 924 Posts.
    lightbulb Created with Sketch. 175
    If you are in tech, First revenues, then profits my friend... amazon and Facebook etc
    Key takeaways:
    1) USA ACV revenues $8.5 milion = breakeven/small profit, any further revenue growth from now at gross profit margins (~80%)
    2) AUS ACV revenues $43.5 million = very high profit margins

    USA revenue growth at 100% and AUS growth at 27% ... all R&D and fixed costs are now covered, so al revenue at NEA gross profit margins from operations at 80% ... plus we been spending a lot on new product features on 3D which is ready by Fall means even larger revenue growth.

    1 year lookout at current revenue Growth to profit growth translation = $15.3m growth in net profits for 2018 calendar year (on top of Australian profit)
    Derived from following incremental profit growth from current revenue trending
    USA = $6 million profit (assuming all USA costs now covered)
    AUS = $9.3m profit

    Question now is what is AUS current profitability that we can add $15.3m profit to in order to derive P/E?

    If 3D uptake higher than bobs your uncle, and we could closer to euphoria then with NEA share price doubling from what it is now releively easily.
    Last edited by Linsanity: 11/01/18
 
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