Has the Fool got it wrong. I thought ESRI was a partner not a...

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austted

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28/09/18

08:46

Post #: 35898875
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Originally posted by birdman29 ↑

Nearmap Ltd (ASX: NEA)

September 27, 2018

Nearmap has a market cap of about $770 million. It provides geospatial maps and aerial imaging technology for governments and private enterprise clients in Australia, New Zealand, and the United States.
Nearmap’s earnings for 2018 were impressive – 2-year 35% annual compound growth in ACV (annual contract value) to $66.2 million in 2018. The share of revenue from US operations grew from 20% in 2017 to 26% in 2018 to $17.4 million. What’s exciting investors with Nearmap is the addressable market, which in the US alone is estimated to be worth over $1 billion.
Although the company reported an $8 million loss for 2018, this was largely due to increased expenditure on sales and marketing in the United States. The Australian operations reported a segment profit of about $22 million on sales of $42 million. This highlights the potential earnings powerhouse this business could be if it captures a material share of the US addressable market.
Nearmap shares are trading at $1.74. This is about 12 times current revenue. Investors are clearly looking at the growth potential of this business. However, achieving market dominance in America will not be easy. There are some dominant players like Eagleview and ESRI which will present competitive challenges for Nearmap. How well it executes on the US strategy will determine the share price trajectory over the next 12 months.

https://www.fool.com.au/2018/09/27/why-these-2-small-cap-shares-have-doubled-in-value-in-a-year/

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Has the Fool got it wrong. I thought ESRI was a partner not a competitor?

NEA Price at posting: $1.69 Sentiment: Buy Disclosure: Held
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Has the Fool got it wrong. I thought ESRI was a partner not a...

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