North America business!
What does scalability mean in this context?
Nearmap puts a plane in the air that takes pictures; they then sell those pictures.
One must presume that NEA first chooses the flight paths that will generate the most revenue per pass.
NEA is madly selling all the current the flight paths.
Last year, in North America that strategy generated revenue of $48 Million and lost $14 Million (EBIT).
So profitability will only come from per "sells" per picture taken!
In order to make a profit NEA has to sell each flight picture more times than it is now!
The issue is ...
If NEA has already chosen the "best" flight paths for revenue generation (a logical conclusion for a smart management team); and
those flight paths lose a shedload of money
therefore either ...
their current choice of flight paths is non-profit-optimal; or
the next set of flight paths will generate less revenue per picture!!
.. which means that management has made wrong decisions previously; or ...
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