NEA - Nearmap Limited

[System]

Nearmap Ltd (NEA) was formerly known as Ipernica Limited (IPR).

Previous discussion of this company can be found in the IPR thread: https://www.aussiestockforums.com/forums/showthread.php?t=11522

 

[mr. jeff]

Re: NEA - Nearmap

I have used nearmap.com before and have found it to be better than google earth for up to date imagery. This could be something worth watching closely for further development if it is the same company, where they charge for access to their imagery.

 

[prawn_86]

Re: NEA - Nearmap

I remember Ipernica as always having a lot of cash on hand from their law business side of things. Has NearMap split out of that? IE - are they still listed for thei law stuff?

 

[jbocker]

Re: NEA - Nearmap

I remember Ipernica as always having a lot of cash on hand from their law business side of things. Has NearMap split out of that? IE - are they still listed for thei law stuff?

My understanding is they have dropped the law stuff (fighting IP breaches), and have gone solely on Nearmap. Which by the way is soon to be no longer a free site, therefore accessing their excellent database of images (Australian metros) will need to be fee payable. That should generate some good income. Or people will return to google maps which by comparison is about as up to date as your granny's old photo album with its poor resolution too.

 

[jbocker]

Re: NEA - Nearmap

This stock has definitely improved in the last month. getting some volume and has gone from 4c to 7.4c. Will be interesting to see their first half results. The name change has drawn some attention to their refocused business model.

It starting to get back to the price I paid some time ago..

may be i should hold a little longer....ld:

 

[mr. jeff]

Re: NEA - Nearmap

Well from the last post it has just reached 14c and going well. A bit of volume today and near a new high. NEA fundamentals also seem positive at this stage and the focus of the company is a refreshing change from losing money on mining stocks.

 

[prawn_86]

Re: NEA - Nearmap

Shares up 60% today to 22c

Net Operating Cashflows for the quarter were 4.5m and currently has 10m cash in bank

 

[skc]

Re: NEA - Nearmap

Shares up 60% today to 22c

Net Operating Cashflows for the quarter were 4.5m and currently has 10m cash in bank

Saw the release this morning but really didn't think it will run like this on a day like this.

 

[Huskar]

Re: NEA - Nearmap

Saw the release this morning but really didn't think it will run like this on a day like this.

Yes I ran the ruler over these guys a few weeks ago and though I liked the product I thought it was too expensive and I would get a chance on a pullback. How wrong!

 

[skc]

Re: NEA - Nearmap

Yes I ran the ruler over these guys a few weeks ago and though I liked the product I thought it was too expensive and I would get a chance on a pullback. How wrong!

It will pull back tmr imo. The quarterly cash flow is good but anyone annualising that will be in a big shock in a few more quarter's time.

The subscription model probably has some upfront / prepaid component which means larger cashflows in the beginning. They are probably still growing their subscription base so that will continue for a few quarters at least. But then at some point it'd reach steady state which I have no idea how to determine.

 

[mr. jeff]

Re: NEA - Nearmap

It will pull back tmr imo. The quarterly cash flow is good but anyone annualising that will be in a big shock in a few more quarter's time.

The subscription model probably has some upfront / prepaid component which means larger cashflows in the beginning. They are probably still growing their subscription base so that will continue for a few quarters at least. But then at some point it'd reach steady state which I have no idea how to determine.

I agree, hard to determine what the subscription rate is going to be and what is going to drive it further. At this stage though, it is early days and has a long way to grow before it has reached that zenith. They have a very beneficial product and it is an offering that a fair range of companies and government arms would be attracted to. Not just engineering companies for planning and analysis, but the big investment companies who use mapping to analyse growth trends and manage their growth forecasts etc., as well as government infrastructure planners etc.
There is good potential for expansion, it is far better than what google earth offers and may offer a takeover target to a larger player.

So I think it will continue the move over the medium term, but I may be swayed to sell. This is the only stock I'm holding that has shown strength through the latest down move.
105% gain so far. It may have run a bit hard, but as opposed to scary moves with a drill intercept which collapses, this company is earning money and growing, so who knows where it will end up - maybe give it a PE of 20 for growth and then forecast it's earnings for the year based on this quarter's earnings of $5M - that would be something!

 

[Huskar]

Re: NEA - Nearmap

It will pull back tmr imo. The quarterly cash flow is good but anyone annualising that will be in a big shock in a few more quarter's time.

The subscription model probably has some upfront / prepaid component which means larger cashflows in the beginning. They are probably still growing their subscription base so that will continue for a few quarters at least. But then at some point it'd reach steady state which I have no idea how to determine.

Spot on SKC

As an inveterate knife catcher I find it real hard to think past price movement to the upside makes for a good investment. I have been proved wrong too many times to think.

Interesting to note users comments on whirlpool forum all slanging at nearmap for going to subscription-based model. Apparently they all spend their time looking at their houses in high res! Also gives an interesting viewpoint on users of the service: costing, customer response and friendliness etc.

Your insightful comment re change to upfront cashflows is obvious now that you say it but it had never occurred to me. Will be interesting to watch going forward. Watching because i don't know what to do.

 

[skc]

Re: NEA - Nearmap

Spot on SKC

As an inveterate knife catcher I find it real hard to think past price movement to the upside makes for a good investment. I have been proved wrong too many times to think.

Interesting to note users comments on whirlpool forum all slanging at nearmap for going to subscription-based model. Apparently they all spend their time looking at their houses in high res! Also gives an interesting viewpoint on users of the service: costing, customer response and friendliness etc.

Your insightful comment re change to upfront cashflows is obvious now that you say it but it had never occurred to me. Will be interesting to watch going forward. Watching because i don't know what to do.

I used to use nearmap as well when buying property and it's a great way to see what the house and the block looks like. Of course people are going to complaint on whirlpool - they lost access to a great tool that used to be free... actually goes to show how useful it is.

To be totally honest I don't know what proportion of subscription fees are paid upfront, since they don't tell you the price and payment terms of their services anyway.

 

[mr. jeff]

Re: NEA - Nearmap

Hard to know how the pricing structure works and trying to find out more. Will let you know if I find anything.
I sold my holding, but I am keen to keep watching and perhaps re-enter if their pricing and sales are sustainable. I still think that as a tech venture this one deals with very profitable information which will be considered invaluable to many companies. It could take a hit if any serious competitors come along, but at this stage I am going to watch the 3B's very closely to see who shows up...

 

[Gunlom]

Re: NEA - Nearmap

I used near maps for advertising my small business so when it went behind the paywall , I applied to join they took almost 2 months to get back to me , and the cheapest plan was $4500 per year for 3 years,
I emailed back that I only need access to a select number of suburbs ( about 5-6) so state wide coverage is pointless for me. No reply yet

I would pay a small amount to get this but can't justify the full fee, I feel that they are leaving a small but significant revenue stream untouched.

So is back to google maps for me, no way as good but still manageable

 

[skc]

Re: NEA - Nearmap

I used near maps for advertising my small business so when it went behind the paywall , I applied to join they took almost 2 months to get back to me , and the cheapest plan was $4500 per year for 3 years,
I emailed back that I only need access to a select number of suburbs ( about 5-6) so state wide coverage is pointless for me. No reply yet

I would pay a small amount to get this but can't justify the full fee, I feel that they are leaving a small but significant revenue stream untouched.

So is back to google maps for me, no way as good but still manageable

That seems to be the feedback from mostly smaller businesses...

But I think as a company with limited selling resources, targeting the larger enterprises first is definitely the right way to go. Customising subscription for smaller businesses can come later...

If they are smart they would have collected and kept the data on who was accessing their sites when it was free. It'd be a great direct sales model as long as their pricing is sensible.

 

[pixel]

Re: NEA - Nearmap

Hard to know how the pricing structure works and trying to find out more. Will let you know if I find anything.
I sold my holding, but I am keen to keep watching and perhaps re-enter if their pricing and sales are sustainable. I still think that as a tech venture this one deals with very profitable information which will be considered invaluable to many companies. It could take a hit if any serious competitors come along, but at this stage I am going to watch the 3B's very closely to see who shows up...

Thanks Mr J.
I would really appreciate that info. Tried to find out more myself, but as I only asked online and stated that I was merely a private user, they didn't even bother to call back.

From a company p.o.v. I don't hold that against them, assuming they have bigger fish to fry. It'll be interesting to see how their branching-out into Overseas markets progresses. I'd also like to get a feel for the costs involved for each new update. But that is probably their best-kept secret

Disclosure: I sold all but a small holding; but I won't spend the profits on a subscription.
I also left a bid inside the gap:

 

[mr. jeff]

Re: NEA - Nearmap

http://www.asxvalue.com/2013/01/23/nearmap-the-cash-cow-has-started-mooing-nea/

A bit old but something...

further to that:

Thanks for your interest in nearmap.com

Regarding our fee structure I can tell you what we have disclosed to the market through investor presentations etc. This is an approximation of our current fee structure, and as we have commented recently, we are reviewing our fee structures to more align to our overall vision/strategy of an aspirational target of 30 - 50,000 subscribers paying an average of $1,000 per year. In this regard, we are looking at pre-paid and single user products as an extension of our product offerings.

Currently we offer SME products which start with a 5 user one state browser only product for approx $5,000 pa (subject to making a 3 year commitment). We offer a 5 user all state browser only product for approx $9,000 pa (again, subject to 3 year commitment). For enterprise customers the prices are approximately double SME on the basis that we are providing a higher level of service and broader offering.

Regards
Ross

Ross Hawkey
Chief Financial Officer

Hope that helps - very promising future products to come and I get the impression that sales are going to continue growing for a while whilst they bring access to the market. There is a lot mentioned on twitter worth looking at as well.

I don't think sales expectations are unrealistic and I am holding based on basic figures...
Also worth noting is that today is a low volume down day which could be interpreted as a sign of strength which I have taken as a further entry point. This sounds like a ramp so please use your own judgement and remember that I hold and have it tipped.

 

[ando1987]

Nearmap NEA?????

Hi everyone, I'm very new to this forum or any type of forum for that matter..
Was just curious about everyone's thoughts on Nearmap?
I bought about 39215 shares for $0.255 the other day and sold them at $0.29
I have repurchased 39215 shares for $0.255..
Should i hang on to them for a little while?
Whats everyone's thoughts??

Thanks in advance.

 

[mr. jeff]

Re: Nearmap NEA?????

Hi everyone, I'm very new to this forum or any type of forum for that matter..
Was just curious about everyone's thoughts on Nearmap?
I bought about 39215 shares for $0.255 the other day and sold them at $0.29
I have repurchased 39215 shares for $0.255..
Should i hang on to them for a little while?
Whats everyone's thoughts??

Thanks in advance.

Ha the same old test of the forum members

We cannot give advice.

If you want sentiment on a stock then read the thread - it has been updated recently.
Then you could do some research on this stock that you are holding.
And then help us all learn more and make better decisions. Its a circle.