J Capital has responded to NEA presentation, with a brief follow-up. Summary as follows:
"Nearmap’s response to our report avoids addressing key issues: ‣ Nearmap did not dispute that the Eagleview camera system is twice as efficient. ‣ No attempt was made to demonstrate market-share improvement in the U.S. ‣ Then company obfuscated pricing strategy with obtuse language that does not refute any of our statements. ‣ The company did not address allegations of aggressive revenue recognition and end-of period upselling with an auto renew that inflates sales but loses clients. ‣ Sales structure problems were overlooked ‣ Nearmap’s roof-measurement business has quality and legal problems not addressed in the reply report."
It is a pretty weak follow-up IMO. I am happy to let the NEA results continue to speak for themselves, particularly the trend to developing a profitable US business, with innovations yet to be rolled out.
In yesterday's presentation I was really heartened by the CEO focus on the 3 verticles, and the recognition that the US is a big market, so no need to get distracted elsewhere for the moment. Also, recognition of the potential to benefit ANZ by applying some of the lessons and focus from USA back to ANZ.
NEA Price at posting:
$2.66 Sentiment: Hold Disclosure: Held
