Nearmap share price zooms higher after delivering more impressive growth

The Nearmap Ltd (ASX:NEA) share price has zoomed higher after the geospatial map technology company announced even more strong growth…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In morning trade the Nearmap Ltd (ASX: NEA) share price has zoomed higher following the release of its preliminary half year results.

At the time of writing the geospatial map technology company's shares are up over 9% to $1.74. At one stage they were as much as 12% higher at $1.79.

How did Nearmap perform in the first half?

According to the release, Nearmap has had another strong half and delivered further growth in its annual contract value (ACV).

Group ACV came in at $78.3 million at the end of December, up 42% on the prior corresponding period. This was driven by an impressive 107% increase in U.S. ACV to US$17.6 million and a 23% lift in Australian ACV to $53.3 million.

Management advised that the strong growth in the United States was driven partly by continuing operational improvements to its sales and marketing.

In addition to this, clear product advantages and functionality are driving increased market awareness and customer traction in the lucrative market.

Whereas in Australia the company's market leadership has helped to drive continued growth. It also had a small boost from its first sales contribution from customers in New Zealand.

CEO Dr Rob Newman appeared to be very pleased with the company's performance.

He said: "H1 FY 2019 has been another successful period of strong growth for Nearmap. Our Australian business is building on its market leadership and our US business is gaining significant market traction."

What's next for Nearmap?

Management appears confident that there will be more of the same in the second half and has reaffirmed its guidance for FY 2019 to be cash flow break even (excluding capital raising costs).

Dr Newman advised: "We are well placed to deliver ongoing growth as new product enhancements add functionality, and our markets continue to develop and expand. We are deploying the proceeds from the capital raise as per plan and we look forward to providing a further update with the release of our half year results."

Should you invest?

I'm a huge fan of Nearmap and believe it has significant potential. But with its market capitalisation now in excess of $750 million, its valuation is a bit rich for my liking.

Because of this, I'm not a buyer of its shares at the moment and would sooner pick up fellow tech shares Appen Ltd (ASX: APX) or Aristocrat Leisure Limited (ASX: ALL) instead.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

The markets lost their steam this Thursday.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Catapult, Hutchinson, SKS, and West African shares are pushing higher today

These shares are having a strong session despite the market weakness.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 72% in 2025, why is this ASX 200 gold stock racing ahead of the benchmark again today?

Investors are bidding up this high-flying ASX 200 gold stock again on Thursday. But why?

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »