The Nearmap Ltd (ASX: NEA) share price is down 3% to $2.89 on Friday lunchtime amidst a wave of selling among junior shares on the tech-heavy NASDAQ index overnight.
That selling has spread to the local S&P/ ASX200 Index (ASX: XJO) today with the likes of Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC) tumbling 4.7% and 4.5% respectively this lunchtime.
Despite today's falls Nearmap shares have risen around 220% over just the past year largely thanks to the initial success the aerial mapping business has enjoyed in selling its services in the United States.
For the six months ending December 31 2018 Nearmap added US$4.8 million in annualised contract value (ACV) in the U.S. to take total ACV in the region to US$17.6 million, with group ACV at A$78.3 million.
Annualised contract value is the sum of the next 12 months' anticipated revenues with the metric commonly being used by software-as-a-service companies such as Nearmap that generate a high proportion of recurring revenue.
Nearmap has also flagged that it intends to start covering Canada from April 2019 and may provide a trading update for the quarter ending March 31 2019 next week. Around this time last year it provided an update for the corresponding 2018 quarter.
Evidently a lot of growth is already baked into Nearmap's $1.33 billion valuation, but if it keeps delivering on the growth expectations then the shares could gradually edge higher in 2019. If not then it could be look out below for shareholders.
