It has been a very disappointing end to the week for the Nearmap Ltd (ASX: NEA) share price.
In afternoon trade the aerial imagery technology and location data company's shares are down approximately 10% to $3.33.
What happened?
This morning Nearmap released its preliminary full year results which revealed another year of record growth in its key annualised contract value (ACV) metric.
For the 12 months ended June 30, the company expects to report an ACV of $90.2 million, which will be an increase of 36% from its ACV of $66.2 million in FY 2018.
The biggest driver of the company's record ACV growth was its North America business. Nearmap's expansion in the country continues to yield impressive results, with the company reporting a 76% increase in ACV to US$9.8 million.
This means that despite its short time operating in the region, 36% of the company's ACV is now generated in the massive market.
Supporting this impressive growth was its ANZ operations. Nearmap recorded a $9.1 million or 19% increase in ACV to $57.9 million in the region.
So why are its shares crashing lower today?
Whilst this was undoubtedly a strong result and looks to be roughly in-line with expectations, some investors appear to have been betting on Nearmap outperforming expectations.
Prior to today the Nearmap share price had gained a remarkable 145% since the start of the year, making it the best performer on the ASX 200 ahead of Magellan Financial Group Ltd (ASX: MFG) and Appen Ltd (ASX: APX). Clearly expectations were very high.
In addition to this, the lack of guidance for FY 2020 could also have weighed on its shares today.
Nearmap's CEO and managing director, Dr Rob Newman, appears very confident on the company's prospects in FY 2020, but stopped short of giving any concrete guidance at this stage.
He said: "We continued to enhance our market leadership position in Australia and New Zealand, and momentum in North America is clearly building. Our commitment to innovation and our investment in new product and content such as 3D and Artificial Intelligence mean that we are well placed to continue to deliver sustained growth and expansion in our core markets into FY20 and beyond."
