The Nearmap Limited (ASX: NEA) share price has rocketed 133% higher in 2019 to be the top performing S&P/ASX200 Index (ASX: XJO) stock – but what has fuelled the tech company's share gains this year?
Why has Nearmap been surging higher?
The company reported strong half-year earnings in February highlighted by 46% year-on-year revenue growth and its net loss after tax reduced by 70% to $1.97 million.
Nearmap also reported reduced churn from 9% to 6% and should continue to see annualised contract value (ACV) trend higher when it reports its full-year results in August this year.
Strong subscription sales for its high-resolution geospatial imaging across Australia and the USA have seen Nearmap's revenues explode in the last 1-2 years and the company is harbouring plans for further expansion following its February 2019 $70 million capital raise.
Is Nearmap in the buy zone?
Nearmap has proven to be one of the real success stories on the ASX in recent years and is up 7,040% on its IPO offer price of $0.05 per share.
The geospatial mapping technology company is currently trading at $3.57 per share and has more than doubled in value since the start of the year.
Given its success in maturing its business model and establishing itself as a powerhouse in the sector, I think further diversification across industries and into the small-to-medium-sized enterprise (SME) space could fuel the Nearmap share price higher still.
The recent inclusion of Nearmap into the benchmark S&P/ASX200 Index in April was another catalyst for share price growth and I wouldn't be surprised to see Nearmap approaching the top 100 or even top 50 stocks in the next 12-18 months.
I'm quite bullish on Nearmap's growth prospects and don't see any reason why it couldn't continue to rocket higher in 2019 and outperform other Aussie tech stocks to become the "Afterpay of 2019".
For those who want to find the next hot growth company, this top-rated stock could boost portfolio gains as it continues to soar in a $22 billion industry.
