NEARMAP FY17 Analyst Pack
Year ended 30 June 2017
Nearmap Ltd - bringing the real world to you nearmap.comContents
Group performance indicators 3
Consolidated statutory profit and loss 5
Consolidated operating cash flow 10
Investor Relations Contacts | ||
Andy Watt | Daniel Maurer | Pegagsus Advisory |
Chief Financial Officer | Head of Investor Relations | Investor Relations Enquiries |
+61 2 8076 0707 | +61 2 8076 0774 | +61 400 248 080 |
andy.watt@nearmap.com | daniel.maurer@nearmap.com | investor.relations@nearmap.com |
Information presented in the FY17 Analyst Pack is presented on an operational basis (rather than statutory) to reflect a management view of the business. Nearmap Limited (ACN 083 702 907) also provides statutory reporting as prescribed under the Corporations Act 2001. The Nearmap Limited 2017 Financial Report is also available from Nearmap's website at www.nearmap.com.
The analyst pack is not audited. The statutory net loss after tax as disclosed in the consolidated profit and loss (page 5) has been prepared in accordance with Australian Accounting Standards and the Corporations Act 2001. Nearmap's external auditors, KPMG, have reviewed the statutory net profit after tax as disclosed in the consolidated profit and loss.
Any forward-looking statements included in this document are by nature subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, Nearmap, such that actual results or events may vary from those forward looking statements and the assumptions on which they are based.
Past performance is not an indicator of future performance. While Nearmap has sought to ensure that information is accurate by undertaking a review process, it makes no representation or warranty as to the accuracy or completeness of any information or statement contained in this document. In particular, information and statements in this document do not constitute investment advice or a recommendation on any matter, and should not be relied upon.
23 August 2017
Dear Nearmap shareholders
As Nearmap's business continues its growth in the global location content market, we are providing an Analyst Pack for shareholders and investors summarising the key financial and operational performance metrics of our business for the year ended 30 June 2017 with a comparative for the year ended 30 June 2016.
In addition to outlining the performance of Nearmap as a group, this pack also sets out summaries of the three operating segments:
- United States - responsible for all sales and marketing efforts in the United States
- Australia - responsible for all sales and marketing efforts in Australia
- Corporate - holds all the IP and product "know-how" which allows Nearmap to deliver its product offering, being online aerial photomapping. The segment facilitates the day to day survey operations globally
Individual segment performance is discussed in the relevant sections in this pack below.
This pack is to be read in conjunction with the "Preliminary Final Report Appendix 4E for the year ended 30 June 2017" and the "Investor Briefing Full Year Results to 30 June 2017" released to the ASX on 23 August, 2017.
We trust that you find this information useful and insightful. Kind regards
Andy Watt
Chief Financial Officer Nearmap Ltd
Group performance indicators
H1 16 | H2 16 | FY16 | H1 17 | H2 17 | FY17 | |
Group ACV portfolio (AUD) | ||||||
Opening ACV ($'000) * | 24,223 | 36,411 | ||||
New Business ACV | 7,868 | 8,918 | ||||
Net Upsell ACV | 7,512 | 5,447 | ||||
Churn ACV | (3,196) | (3,754) | ||||
Net Incremental ACV | 6,219 | 5,964 | 12,183 | 4,665 | 5,946 | 10,611 |
FX Impact | 18 | (14) | 4 | 175 | (238) | (63) |
Closing ACV * | 30,461 | 36,411 | 36,411 | 41,250 | 46,959 | 46,959 |
Group Revenue | 14,141 | 17,148 | 31,289 | 19,426 | 21,639 | 41,065 |
Churn (%) | 13.2% | 10.3% | ||||
Closing ARPS ($) | 4,963 | 5,064 | 5,064 | 5,496 | 5,996 | 5,996 |
Portfolio LTV ($'000s) | 223,997 | 365,453 | ||||
Opening Subscriptions | 5,518 | 7,190 | ||||
New Business Subscriptions | 2,182 | 1,846 | ||||
Churn Subscriptions | (510) | (1,204) | ||||
Closing Subscriptions | 6,138 | 7,190 | 7,190 | 7,505 | 7,832 | 7,832 |
Group Sales Team Contribution Ratio | 123% | 133% | 128% | 88% | 92% | 90% |
Earnings | ||||||
EBITDA Group ($'000) | (1,879) | 2,511 | 632 | 2,393 | 3,624 | 6,017 |
EBIT Group ($'000) | (4,557) | (453) | (5,010) | (1,113) | (333) | (1,446) |
Statutory NPAT | (3,295) | (3,840) | (7,135) | (2,953) | (2,351) | (5,304) |
Operating cash flow ($'000) | 270 | 1,015 | 1,285 | (1,115) | 4,787 | 3,672 |
* Adjusted for personal subscription products which were ceased in Australia during FY16
They key metrics which Nearmap manages represent the following:
ACV - Annualised Contract Value represents the annualised value of all active subscription contracts in effect at a particular date. Subscriptions in both Australia and the United States are typically for 12 month periods with customers paying the subscription in full up front, with the revenue being recognised evenly over the subscription period. ACV is a key metric for the company, with the nature of the subscription model determining that incremental ACV will drive revenue growth in the subsequent financial period.
Group ACV grew by 29% to $47.0M (FY16: $36.4M) with growth in both Australia and the United States. ACV performance in each territory is discussed in the segment results below. Note FY16 opening information has been adjusted to reflect the cessation of personal account products in Australia during FY16.
Sales Team Contribution Ratio (STCR) - STCR represents the ratio of incremental ACV generated by a sales team in a period, compared to the direct costs of obtaining that incremental ACV. This measures how quickly the cost of acquiring a subscription is recovered from the subscription itself, with a ratio of greater than 33% generally seen as effective in a SaaS business (i.e. recovery of customer acquisition costs from customer revenues within a three year period).
Group STCR reduced to 90% in FY17 (FY16: 128%), as increased effectiveness of the US sales and marketing efforts were offset by the non-recurrence of several large one-off customer upsell events in Australia in FY16.
Nearmap Ltd. published this content on 23 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 August 2017 22:37:08 UTC.
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