dynofish wrote: "Does anyone have a report on the briefing this...

dynofish wrote: "Does anyone have a report on the briefing this morning?"

Several analysts asked if Nearmap could provide a breakdown of revenue, specifically old contracts vs number of new annual subscriptions. This was asked at least 4 times with the same response -- nope.

It is probably the key question in terms of attempting to forecast future cashflow so it's unfortunate they weren't willing to provide that breakdown. At the same time understandable because it would not be indicative of future revenues.

They mentioned that as the current annual subscription plans don't cater for customers with < 5 users that's something that they'll be releasing plans for. Also mentioned PAYG plans.

Expansion - talked about shifting towards being a "database" service where instead of purely providing PhotoMaps they would seek to use the maps as the basis of value added services. i.e. storing customer data as well as partnering with other companies who may have relevant data. They mentioned this is one way of protecting their position should any competitors arise.

They mentioned that they may eventually have 20-50k subscribers just in Australia, as well as suggested that international expansion is on the cards (hasn't it always been :).

On capital expenditure - covers the acquisition of imagery (i.e. the PhotoPods). As they run all the business & IT side on SaaS (AWS and SalesForce specifically) that doesn't require capex. Hence they expect future margin improvement since additional revenue does not [generally] require additional image acquisition.

My favourite quote was in response to a Q in relation to the December statement that "nearmap is not yet in a position to consistently generate positive cashflows quarter on quarter" and whether they now felt confident that they could. Simon said something like "well I inherited two loss making businesses and I now have one profitable business".

Overall my interpretation is that they are cagey about sharing revenue breakdowns & forecasts perhaps because there will be a transition of customers on the old contracts to the new annual subscription plans. Long time shareholders will recall that the old plans were up to $1m annually for federal Govt depts. It remains to be seen how that will change under the new model.