I've been holding back my excitement on today's results until I've spend some time looking at all the info (& the more I look the more I like).
It is not only GOOD but it is GREAT !
As a start, here are 2 reasons & I'll quote from today's phone conference transcript:
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1)
“Finally, after several years of investment, in our US operations, in our product, our technology and our capture program, FY19 will mark a turning point for Nearmap. Our business model will continue to scale, generating returns on our investments in the form of continued portfolio growth, and we expect FY19 to be cash flow break even."
As a long term holder, we've all hoped for Nearmap's management to give us some indication as to WHEN breakeven will occur. Behold, we now have an answer, FY19 !!!
Even though Nearmap have increased their expenditure compared to FY17, for the CEO to state that breakeven will be FY19 is really music to a LOT of people's ears, as we cheer, "FINALLY" the light of profitability at the end of our very long expenditure tunnel.
2)
"The portfolio growth, combined with the reduction in churn, continued high gross margins in Australia and a doubling of the gross margin in the US, has seen the lifetime value of our subscription portfolio grow by 84% to $715 million at the end of the financial year."
OMG, $715 million !
Assuming the current sp of $1.60 holds & we have around 395 million shares outstanding, does this mean we are heading towards $1.80 very soon ?
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Now you might have heard this all before, but I'll said it again, OMG, US is growing FAST !!!
With a previous $3.3 million outflow in H1 FY18 we are now at a cash inflow of $0.6 million in H2 FY18. Talk about a quick cashflow turnaround !
And with $17.5 million in the bank we have at least another 2 years of runway before any potential CR is required, BUT of course the chance of this occurring is now GREATLY reduced because breakeven is now STATED to occur in FY19.
Sure the expenditure has increased between FY17 to FY18, but we are clearly seeing the company's organic growth strategies in ACTION, both in a geographical sense from AUS->US & AUS->NZ, but also in a product technology sense from 2D->panorama->oblique->3D, and on another strategic level, we are now given a glimpse of a move from DATA->INSIGHT.
Anyway, with every retrace of the sp, I continue to remind myself that "ROME wasn't built in a day" and with the creation of all GREAT things, "Patience will be Rewarded" !
Onwards & Upwards !
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