NEA - positive news

Thought it was worth starting a new thread to look at all the positive news surrounding NEA...

Lakehouse capital consistently achieve high returns for their clients 25% yoy from memory. Joe Magyer is the main man, he has invested in NEA in his 'small companies fund', in his end of year newsletter he has had this to say on NEA...

Nearmap had an eventful year: solid fundamental business performance was marred by acontroversial short report in February and legal proceedings from a competitor in May. We havediscussed both of these stock-specific events in previous letters, and direct investors to thosecommentaries rather than rehashing them again here.

Fundamentally, Nearmap had a strong year as accelerating growth beat upgraded guidance andlower cash burn left the company in a stronger than expected financial position. The company’spreliminary results show Annual Contract Value (ACV) increased +25.8% in fiscal 2021 driven by+54.5% ACV growth in North America. Growth in North America was (and remains) a central tenetof our investment thesis, and we’re pleased to see it playing out as it now represents 46% of groupACV and looks set to surpass the ACV contribution from ANZ within the next year.

Nearmap also recently announced that a prototype of their next generation image capturetechnology, HyperCamera3, has been tested in flight and the imagery run through the existingprocessing software. HyperCamera3 will deliver higher resolution imagery captured from thesame altitude as their existing technology, or may lower image capture costs by allowing currentresolution capture from a higher altitude reducing flight time.

In any case, we are pleased to seethe multi-year R&D investment coming to a head and excited to see the commercial rollout out infiscal 2022 as it also brings forward the prospect of expanding into new geographies. We acknowledge that the US legal proceedings will likely linger for a number of years, however,we remain comfortable with the company’s long-term growth prospects supported by a recurringrevenue model, very sticky customers, ongoing investment in image capture technology andpremium content, and a $123.4 million cash balance.