Nearmap share price climbs to all-time high

The Nearmap (ASX:NEA) share price has reached an all-time high today after a very strong start to 2019, spurred by unfaltering growth in the company's operations.

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Small-cap aerial imagery company Nearmap Ltd (ASX: NEA) had a massive 2018 and it's already making big gains in 2019. Shares are up 34% since the beginning of the year as the company continues to show strong growth.

Today, the Nearmap share price has climbed 3.77% to an all-time high of $2.06. The move is further evidence that investor sentiment for the stock is very positive once again after having faltered in 'red October', which was particularly harsh on tech stocks.

The share price recently saw a rally on the back of promising preliminary results for the first half of the 2019 financial year. The company saw its Annualised Contract Value (ACV) grow rapidly, increasing 42% in the 2018 calendar year.

ACV is an all-important metric for the company's subscription business model; it's an annualised measure of the revenue the company will bring in from its existing contracts in one year. Strong growth in AVC indicates that the company's operations are expanding nicely.

While Nearmap burned $10.7m in cash during FY18, the company has affirmed guidance that it expects its cash flows to break even in FY19, excluding the $70m capital raise.

Motley Fool contributor Cale Kalinowski has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap 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.

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