% revenue growth will obviously flatten as recurring revenue accumulates, but expect actual revenue growth to accellerate for quite some years as new use cases are made, new clients are attracted through their networks, and existing clients more deeply embed the product into their workflows. Add to that new products and new markets.
There is plenty of growth in the US alone, add Canada and other markets to that and the prospects are bright. Meanwhile Australia chugs along contibuting close to $30m this year before its corporate costs contribution. $35m ish fy20, and $40m ish fy21.
To my mind, on many (if not all) measures it is well ahead of fundamentals, however the company has shown consistant progress, and simply by maintaining that incremental growth both revenue and earnings will justify the market cap. In the short term it could soften as you say.
But remember, this is a company that has shown profitability in Australia for some years, they invested in the US, and that investment is now well ahead of Aus at the same stage and with a much larger opportunity in front of it.
The idea that Nea needs market penetration such as Google, Facebook, Amazon to justify the current market cap is many orders of magnitude off the mark. They just need to keep doing what they are already doing. Steady as she goes Nearmap, steady as she goes.
good luck with it
NEA Price at posting:
$4.19 Sentiment: Hold Disclosure: Held
