Thanks for the responses, but everyone seems to be singing from their own hymn sheet and avoiding the core question I am asking.
Management forecast $3.3m in revenue growth for the last half in Australia.
This was exceeded and they generated $5.5m in ACV growth in Australia (66% above forecast), a fantastic result, well done Nearmap.
Now either they are bad at forecasting and found lots of NEW customers in the last 6 months, or the introduction of the new products and upselling campaign that the marketing team and account managers undertook was more effective as product adoption in Aus was strong.
Personally I think they are pretty good at forecasting NEW customers, as have been on the money in the past, so I think they were just conservative in their forecasting about how much revenue the new products would drive once introduced, as they truly didn't know at the time.
Now, none of that is an issue, it has driven really strong ACV growth for the business.....but here's the real question.....what do you think they would be forecasting for ACV growth in Australia this half?
If it is $5.5m, I would disagree with you as I think that will be too high, but happy to be proven wrong.
Realistically, I would be happy if it was above their original $3.3m forecast for this half, as taking out the one-off event of new products being introduced (ever heard the same-store sales metric used in retail?), this would still be a great result.
On that point, I wonder if they will ever (maybe in the future) breakdown the revenue by product?
I don't expect my theory will have quite the same impact on ACV growth in the States, as they only had 700 customers over there to upsell too (versus 5,800 in Aus).
Anyway, each to their own, management will give an overview of the half later this month and all will be revealed.
