The Nearmap Ltd (ASX: NEA) share price could be a mover on Wednesday after the company released its FY21 results.
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Nearmap FY21 highlights
The Nearmap share price is down 9.25% year-to-date, primarily driven by a 23.3% slump on 6 May as a result of legal proceedings from competing aerial imaging firm, Eagle View Technologies.
Despite the underperformance, the company delivered a well-rounded FY21 result with solid top-line growth and a reduction in net losses. Highlights include:
- Reported annual contract value (ACV) at 30 June 2012 of $128.2 million or $133.8 million on a constant currency (CC) basis, up 26% on the prior comparative period
- Incremental ACV growth of $21.8 million ($27.4 million on a CC basis) driven by record growth in North America
- Reported statutory revenue of $113.4 million, up 17% on pcp
- Reported statutory loss after tax of $18.8 million compared to $36.7 million in FY20
- Group cash balance at 30 June 2021 of $123.4 million
What happened in FY21 for Nearmap?
Nearmap reported a better-than-expected net loss of $18.8 million compared to Commsec estimates of $23.5 million.
The company also delivered a substantial jump in earnings before interest, taxes, depreciation, and amortisation (EBITDA) from $9.1 million in FY20 to $24.3 million.
North America was the centrepiece of the company's growth trajectory, contributing an ACV of US$44.5 million compared to US$28.8 million a year ago. The company's North American portfolio now comprises 46% of the Group's ACV, an increase from 39% at 30 June 2020.
The region delivered closing subscriptions of 2,240, up 21% on pcp, with an average revenue per subscription of US$19,844, up 28% on pcp.
The company's Australia and New Zealand delivered an ACV of A$69.1 million, a 7% increase on the pcp. Nearmap described the regional performance as a "further extension of the company's market leadership position".
What did management say?
Nearmap CEO and managing director Dr Rob Newman commented on the result, saying:
Nearmap has delivered a strong performance in FY21, validating the strength of our underlying business model and our vertically aligned strategy. The strong growth in premium content uptake is driving increased returns and demonstrates the benefits of investments previously made.
Our North American business continues to go from strength to strength, with the 28% increase in Average Revenue Per Subscription evidence that larger North American organisations are deriving increasing value from our unique contenttypes. With minimal cash consumption following the selective and disciplined deployment of capital raise proceeds, we are well positioned to continue our investment in growth initiatives in FY22 …
What's next for the Nearmap share price?
The Nearmap share price has a lot of catching up to do, given the 12.3% year-to-date performance of the S&P/ASX 200 Index (ASX: XJO).
Looking ahead, management said that "We will build on our successful execution of our vertically aligned go-to-market strategy, adding industry specialists and targeted marketing programs to deliver a superior experience for our customers."
That said, the company did not provide any financial guidance for FY22.
