Why are Nearmap (NEA) shares rallying today?
NEA +13.1%: shares in the mapping technology company have popped to 2 months highs today after reporting they are expected to beat guidance at the full year result. Nearmap expect Annual Contract Value (ACV) to come in at $133.8m after upping guidance only 10 weeks ago to $128-132m. The unaudited figure would see ACV growth of 26% for the year coming on the back of strong North American sales after a rethink of the process. They also stated that they are currently testing new technology expected to be released to the market later this financial year.
The May upgrade came just a day before it was announced US competitor Eagle View was looking to sue Nearmap for patent breaches. Nearmap continue to deny the claims, however it has caused some pressure on the share price in the short term.
