Just examining the march Qrtly. Healthy revenues...Healthy cash flow. But something vital is missing. We don't have a clue about subscriber number ,however we can play some math games to find out. # Yearly subscription for 5 users is $6,460 ...Around $1,300/user/year....or roughly $100/user/month. # Yearly subscription for 20 users is $41,000....Around $2000/user/year....or roughly $170/user/month. # Average Yearly subscription/user is $1,650 ( Assuming a 50/50 mix) # Average monthly subscription/user is $135 (again 50/50 mix) # Qrtrly revenues $5.2m. # Number of users (assuming full yearly pay) is 5.2m/1650= 3151 users. # Number of users (assuming monthly pay) is 5.2m/135= 38,518 users. # We can safely assume that the March Qrtr revenues were lump sum yearly subscriptions for around 3000 users. # They need to grow subscription 10 fold to reach "success case" of 30,000 users. The next couple of Qrters should give us a clear indication about growth....I have opined (perhaps wrongly) that uptake of subscription will be peaking in the 1st few Quarters ,then plateau. We need to see at least 50% COMPOUND revenue growth in the next couple of quarters because it is a long way to grow 10 fold & we know it is inevitable that uptake will taper off down the track....Whoever really needs Nearmap will not wait months or years without such indispensable tool. I stand to be corrected on the numbers mentioned.
NEA Price at posting:
22.5¢ Sentiment: None Disclosure: Not Held
