Nearmap Limited [ASX:NEA] is up over 5% in trade today.
Nearmap is a technology company that provides aerial imagery and location data.
The company announced its preliminary results for the first half of the 2019 financial year this morning.
What’s the news behind this price surge?
Nearmap reported strong growth for its preferred growth metric: Annualised contract value. This showed increases in both the company’s key markets: Australia and the United States. The company affirmed its previous guidance — something the market always likes to see.
Most likely, it’s Nearmap’s potential to expand in the U that is attracting investors to the stock currently.
What are some further tailwinds for this business?
The global market for aerial imagery could be as high as US$10 billion by 2020. One estimate suggests Nearmap only has 0.5% of market share in the US — so there’s plenty of room to keep growing.
The company raised $70 million in September 2018 to invest in further expansion.
This article is not an endorsement of Nearmap or a recommendation to buy and sell. It’s an observation that it announced positive news today only.
One idea is to include Nearmap on a watch list and watch for further announcements to gauge the progress of the company from here.