NEA - Nearmap Limited

[mr. jeff]

Re: NEA - Nearmap

The main practical use I'm aware of for the product relates to enforcement by various authorities.

For example, Nearmap makes it very easy for your local council to know exactly when that new extension was built and whether or not it had approval. No arguing there.

There are similar applications relating to insurance, the electricity industry and others. Basically for anyone who wants to prove when something outdoors was done, there's huge value in regularly updated aerial photos. Police might have a use for it too I would think.

I'm 100% certain that electricity distributors are using it in some areas. Not sure about the others but there are obvious applications.

It would be difficult to imagine google flying weekly or monthly to update their image service for nothing. Just can't see the point in that. If you use google earth, many of the satellite photos for Australia's areas are 3-5 years old or more. The cost of updating and managing the systems has to be paid for and for the data to be integrated into the geo-spatial mapping software it is highly advantageous. This niche would not suit google's approach of applying technology to mass markets. Of course this may change and perhaps it will. They may also seek to just take NEA software, licensing and customer base by just taking it over and then re-branding.

 

[ROE]

Re: NEA - Nearmap

Check out the newly launch Google map in the last few days....

I dont know why you need to pay for any other mapping...they now integrate Google Earth and satellite view
and various photo source that you can fly buy and take very good 3D pictures of any building.

It pretty damn amazing..... right now invitation only....but it wont be long before a global launch...

You can get pretty much what you need free maybe not everything but it provide good enough details
that paid for something like this is hard to justified...

And when Google doing something like this, Microsoft and Apple will again try to revamp their maps and
maybe up a bit more and on and on it goes you get better product each year for free...

Here is a preview if you cant get access
http://www.youtube.com/watch?v=-_87-fMw4Fc

 

[ROE]

Re: NEA - Nearmap

It would be difficult to imagine google flying weekly or monthly to update their image service for nothing. Just can't see the point in that. If you use google earth, many of the satellite photos for Australia's areas are 3-5 years old or more. The cost of updating and managing the systems has to be paid for and for the data to be integrated into the geo-spatial mapping software it is highly advantageous. This niche would not suit google's approach of applying technology to mass markets. Of course this may change and perhaps it will. They may also seek to just take NEA software, licensing and customer base by just taking it over and then re-branding.

NEA has its application but very Niche and without the volume I cant see it justified the cost of keeping maps regularly update...if people want very specific information and NEA carry it sure but for real estate agents...

and majority of user some form of map is good enough and the stuff came out of Google is more than most people need....

the good test would be how many users they can grow in the next few years or if anyone else drop off because of Google recent development and you can bet Microsoft and Apple will follow suit .....if user based slow or going backward you know people find other source for free....

 

[SuperGlue]

Re: NEA - Nearmap

Google has agreed to acquire map-software provider Waze for about $US1.1 billion, a person with knowledge of the deal said, seeking to keep competitors such as Facebook from eroding its lead in mobile-navigation programs.

Any possibilty of Facebook having a peek at NEA?
Though not in the same category as Waze.

http://www.smh.com.au/it-pro/business-it/google-aquires-waze-for-us11b-sources-20130610-2nz31.html

 

[McLovin]

Re: NEA - Nearmap

Google has agreed to acquire map-software provider Waze for about $US1.1 billion, a person with knowledge of the deal said, seeking to keep competitors such as Facebook from eroding its lead in mobile-navigation programs.

Any possibilty of Facebook having a peek at NEA?
Though not in the same category as Waze.

http://www.smh.com.au/it-pro/business-it/google-aquires-waze-for-us11b-sources-20130610-2nz31.html

Take a look at NEA's product and you'll see it is not a mass consumer product. It's a specialist mapping service for companies that need high resolution, regularly updated aerial photography. It's highly unlikely that FB would be at all interested in it.

 

[skc]

Re: NEA - Nearmap

Take a look at NEA's product and you'll see it is not a mass consumer product. It's a specialist mapping service for companies that need high resolution, regularly updated aerial photography. It's highly unlikely that FB would be at all interested in it.

No but there's probably a single use / single area licence that will interest a lot of consumers / SMEs.

I am house hunting at the moment and it would be great to have access to HD recent images rather than grainy Google map image when the house isn't even built yet.

 

[ROE]

Re: NEA - Nearmap

No but there's probably a single use / single area licence that will interest a lot of consumers / SMEs.

I am house hunting at the moment and it would be great to have access to HD recent images rather than grainy Google map image when the house isn't even built yet.

Why would you pay for that the agent photos should be good enough ..
Which house you want to capture ....Get a $700 drone that can flight up to 50m to take photos of any place
In HD image -

Lot of cheap drones these day and I reckon sooner or later someone want lot of photos you can buy a 2-5k drone that can do amazing stuff....take photos, video, all automated.....I can tell it to go to X circle around, take dozen of pictures and come back to my home .....

Checkout www.dji-innovations.com

But seriously that is for some enthusiastic person - just another cheap technology that may up the apple cart...

 

[McLovin]

Re: NEA - Nearmap

I am house hunting at the moment and it would be great to have access to HD recent images rather than grainy Google map image when the house isn't even built yet.

I'm with ROE, a little confused why the average punter needs to see that sort of stuff. Maybe I'm missing something? I bought a house last week and I didn't even look at it on Google Maps. Although it was built about 50 years before Sputnik.

 

[skc]

Re: NEA - Nearmap

Why would you pay for that the agent photos should be good enough ..
Which house you want to capture ....Get a $700 drone that can flight up to 50m to take photos of any place
In HD image -

The agents photos are inside, not arerial view.

With aerial photographs you can check out the state of the roof, verify building area, estimate amount of lawn to be mowed, see if the neighbours look after their grounds etc etc.

I'd be happy to pay $50-60 for say 1 week of access to a 2km radius area or something. It's nothing in the scheme of buying a house.

Although I have no idea how big this market is or how much it'd cost to provide such a product offering...

P.S. Speaking of real-estate agent photos.. The use of super wide angle lens is getting ridiculous. A small room can be turned into a spacious loung. Sometimes they stretch things so much that the flatscreen TV at the corner looks like it's 80 inches. They are really pushing my definition of what consititue fair representation.

 

[ROE]

Re: NEA - Nearmap

The agents photos are inside, not arerial view.

With aerial photographs you can check out the state of the roof, verify building area, estimate amount of lawn to be mowed, see if the neighbours look after their grounds etc etc.

I'd be happy to pay $50-60 for say 1 week of access to a 2km radius area or something. It's nothing in the scheme of buying a house.

Although I have no idea how big this market is or how much it'd cost to provide such a product offering...

P.S. Speaking of real-estate agent photos.. The use of super wide angle lens is getting ridiculous. A small room can be turned into a spacious loung. Sometimes they stretch things so much that the flatscreen TV at the corner looks like it's 80 inches. They are really pushing my definition of what consititue fair representation.

I'm in the process of looking for a new house.... I dont use that sort of stuff
Google maps and street view is good enough.... most house I just use agents photos on the net to have a quick idea if I like the place or not....

I don't rely on agents photos...photos are just a way for me to have a quick peak if I like that place or not
I inspect the properties if I am serious in bidding for it...so whether they use ultra wide lenses or some other artificial stuff It wont hide with a personal inspection...

Psychology wise it is actually a bad tactics if they do try to make the room bigger than it really is because when prospect buyer inspect the place, they will outright get disappointed and that probably kill a sale ....

it better to present a clean, organised and neat place, that get a good wow first impression...telling something that isn't so don't get a good first impression...

I seen this happen and house that do this sort of tricks stay on the market far longer and they eventually have to retaken the photos to present a more realistic look of the place.

Anyway back to buying houses for me... a block size map, a plan, inspection reports, agents photos and inspection of the place is all I need .. I done this several times already and most of my friend who has multiple properties don't use anything like NEA ..you want to cut down cost not adding more fancy stuff you don't need ...

I think there is a market for it just like I said niche market not the mass market...

 

[mr. jeff]

Re: NEA - Nearmap

I don't agree with the dismissals of the service that could be available.
It will become something that investors will value as an extra piece of information.
Imagine looking at buying a development property in XYZ street which is on a major corridor near the city.
You want to know what developments have taken place, how large, when and what their areas are.
With this service you just scroll through and track the changes in the area over the last X years. You can then identify what the trend is for the area, where people are moving, what the council is encouraging in the area and where the money is going.
I have seen all this presented by some of the big investment companies in the past, but they combine it with all sorts of data overlays - this information is worth a lot.
Some people are happy with google yes, some people want as much information as possible before making large financial commitments.
Overall, NEA is offering an excellent product which I expect is still seeing growth in the market. Future single user licenses, whether readers here would use it or not, will sell - just how it is controlled and to what extent is unknown.

 

[McLovin]

Re: NEA - Nearmap

I don't agree with the dismissals of the service that could be available.
It will become something that investors will value as an extra piece of information.
Imagine looking at buying a development property in XYZ street which is on a major corridor near the city.
You want to know what developments have taken place, how large, when and what their areas are.
With this service you just scroll through and track the changes in the area over the last X years. You can then identify what the trend is for the area, where people are moving, what the council is encouraging in the area and where the money is going.
I have seen all this presented by some of the big investment companies in the past, but they combine it with all sorts of data overlays - this information is worth a lot.
Some people are happy with google yes, some people want as much information as possible before making large financial commitments.
Overall, NEA is offering an excellent product which I expect is still seeing growth in the market. Future single user licenses, whether readers here would use it or not, will sell - just how it is controlled and to what extent is unknown.

I don't doubt that their product is excellent, I doubt how big the market really is. For instance, how many property investors are going to examine aerial photography to assist in their decision making? Most share investors use things like newspapers and journals to find shares to buy and I wouldn't be surprised if property investors were the same. Original ideas for the average investor are not common. So, imo, NEA's product will remain a small niche.

People on forums like this will tend to overestimate what the average person will do before making an investment.

 

[mr. jeff]

Re: NEA - Nearmap

I don't doubt that their product is excellent, I doubt how big the market really is. For instance, how many property investors are going to examine aerial photography to assist in their decision making? Most share investors use things like newspapers and journals to find shares to buy and I wouldn't be surprised if property investors were the same. Original ideas for the average investor are not common. So, imo, NEA's product will remain a small niche.

People on forums like this will tend to overestimate what the average person will do before making an investment.

You may be right with the volume of sales. This may be why they have not released a single access license yet.
This is a serious issue which I am sure the company is struggling with - as well as determining future user numbers.

Perhaps the answer lies somewhere else with a slightly more mass market appealing innovative product which differs from their corporate product and offers more fancy/user interface features but does not provide the same geomatic type information. Although you might just call that Nearmap Earth. I am not going to give them my ideas free anyway!
What they come up with will be interesting to see.

 

[Smurf1976]

Re: NEA - Nearmap

I have actually used this to assist with a development application on my property. It wasn't essential, but having a nice clear aerial photo did make for some useful supplementary information.

That said, it didn't cost me anything so it was an easy decision. If I did have to pay then, for a single use such as this, I'd say $5 tops including any associated fees. That is, I don't need it but I used it because I could.

I know that the Tas state government has their own high definition version of something very similar to Google Streetview and they've had it for years (well before Google offered such a thing). That said, they only update it regularly for the major arterial roads that they happen to be interested in. It's used for things relating to planning of roadworks, property accesses and so on - in theory it should save a lot of time otherwise spent on site visits. Presumably there's a market for someone to offer such a service more broadly, but I'd take a guess that it doesn't cost a lot to keep the existing system updated. Set the cameras up on the car and spend a week driving around whenever they need an update.

If someone offered a real time satellite view then that would have a value I'd expect. I can see that people would pay to look, even though they had no essential need to do so.

 

[pixel]

Re: NEA - Nearmap

break alert!
Looks like I got back in just in time: Bought only 10 minutes ago at 28.5.



Doesn't mean a thing though, so DYOR

 

[heathlancaster]

Re: NEA - Nearmap

after massive growth this year, has this stock hit a wall?

 

[pixel]

Re: NEA - Nearmap

after massive growth this year, has this stock hit a wall?

possibly; however, I've risked a small carry-over into next week. Trailing Stop 27c.

 

[pixel]

Re: NEA - Nearmap

Financials will be published and explained in a tele conference next Wednesday, 24th of July.



Which way will it go? I got back in at 28 and 28.5 and think I'll risk holding...

 

[pixel]

Re: NEA - Nearmap

Looks like the teleconference failed to live up to expectations



But then again: technically, it looks better with this morning's gap-up closed right away.
I'll wait...

 

[skc]

Re: NEA - Nearmap

The top line receipt was down a bit from last quarter, the actual operating cash flow less R&D concession (not sure how sustainable these are) is ~$1.6m. If you annualise that you get $8m each year against market cap of ~$100m. So on first glance it's probably priced quite right.

The $m question is still whether the $1.6m represents steady-state, or has much further growth, or actually inflated due to high upfront payment. Management can either tell us, or investors can wait another few quarters to find out...