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AERIAL mapping company Nearmap (ASX: NEA) is set to post a record half yearly growth in annualised contract value (ACV) of 53 per cent to $7.2 million, compared to the prior corresponding period.
The company released its first half FY18 preliminary results and says its ACV growth was achieved through investment in sales and marketing along with the largest half yearly growth from its US operations. Nearmap now has a total of $61.4 million in ACV.
Nearmap sells subscriptions for its high-resolution aerial imagery to a diverse range of clients that range from construction companies and engineers who view the potential sites to government departments, insurance companies who want to view the properties they're covering, solar companies who need to inspect roofs and access and other commercial operations.
The company updates an image library which involves specialised camera-mounted planes that make regular flights and it saves customers time and money by allowing them to view a site without physically visiting it.
"Our Australian base of high quality, recurring subscription revenues continues to generate strong cash inflows as we further build our sales and marketing expertise in the US," says Nearmap CEO and MD Dr Rob Newman.
"Nearmap has invested in new product development and ground-breaking innovation. It is exciting to be able to commercially launch our new market leading products in both the US and Australia."
Revenue from its Australian market has funded Nearmap's US growth which showed a 100 per cent growth in ACV for the half year from $1.6 million to $3.2 million and the company has forecast this rapid growth to continue and become a major revenue earner in the future.
The potential in the US market is being pursued as the average revenue per subscription of $US8,771 (AU$11,173) is much higher than the company's Australian equivalent of $5,540.
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