Nearmap shares have slumped by more than 15 per cent as mounting costs widened the aerial imaging firm’s full year loss.
The company’s net loss expanded from $11 million to $14.9 million in the year to June 30, with annualised contract growth more than offset by a jump in marketing, development and product expenses.
Shares in Nearmap fell by 13.4 per cent to $2.72 by 1305 AEST on Wednesday, having earlier slipped by as much as 15.3 per cent to a near five-month low of $2.66.
RBC Capital markets analysts had expressed concern that the company’s expansion plans would not be received well by the market, especially as it flagged increased competition in the sector, and pricing pressure for its 2D product.
Nearmap’s total revenue for the year rose by 45 per cent to $77.6 million on an expanding subscription portfolio, though expenses also increased, rising 43 per cent to $82.9 million.
Nearmap said this was because of higher marketing and operational costs, and a near doubling of depreciation and amortisation to $26.7 million.
Managing director and chief executive Rob Newman said it had been a transformative year for Nearmap thanks to the roll out of a 3D product, and a beta release of artificial intelligence content that converts maps into datasets.
Nearmap takes its images from light aircraft as opposed to using drones or satellites.
Dr Newman said North America represented the biggest opportunity for the company and added that it planned to accelerate its presence there.
It did not offer a sales update or guidance for FY20.
“Nearmap is uniquely positioned to be the global leader in the location intelligence market derived from aerial imagery content,” Dr Newman said.
The ASX-listed company will not pay a dividend to shareholders, having last done so in 2008.