The Nearmap Ltd (ASX: NEA) share price is slipping after revealing record results in the third quarter.
In the early hours of trading, shares in the aerial imagery technology company are down 0.72% to $1.38. As a result, the Nearmap share price is now 29% above its 52-week low of $1.065.
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North America provides strong growth
Today's announcement is giving shareholders of the mapping company something to rave about. According to the release, the third quarter of FY22 has proven to be lucrative for Nearmap — specifically, the North America government sector.
In dollar terms, Nearmap generated US$2 million in incremental annual contract value (ACV) from the North America government sector. This was spread across customers located in 31 US states and two provinces in Canada, indicating a widespread base.
Furthermore, the ASX-listed company informed shareholders that its technology is now being used in 42 of the 50 US states where it is offered. However, the Nearmap share price has failed to gain traction today amid the news.
Importantly, the record quarter builds upon previous milestones in the North America region. In December 2021, Nearmap announced that its ACV in the US had hurtled past US$50 million. This marked the eclipse of Australian and New Zealand ACV for the first time.
Management commentary
Accompanying the update were comments from managing director and CEO Dr Rob Newman:
Nearmap is attracting new business in North America at a record pace. With momentum already strong across our core verticals, the ability to exceed our target for the government sector in Q3 FY22 by adding more than $2 million in incremental annual contract value shows the underlying strength of our business and proposition.
Positively, the company has also reaffirmed its expectation for ACV to be towards the upper bound of $150 million to $160 million by the end of FY22. This would be in comparison to Nearmap's $128.2 million in ACV at the end of FY21.
Nearmap share price snapshot
Firstly, the technology sector as a whole has performed poorly from the outset of 2022. For instance, the S&P/ASX All Technology Index (ASX: XTX) is down nearly 20% year to date.
Fortunately, the pain is not as severe for the Nearmap share price. Since the beginning of the year, shares in the company have fallen nearly 10%.
Currently, the aerial imaging business is valued at approximately 5.5 times price-to-sales. ASX-listed Nearmap remains unprofitable on the bottom line.
