From Lakehouse Capital's February newsletter (led by Joe Magyer). TLDR - They still like the business and added to their position on the selloff.

Nearmap’s disappointing downgradeto full year guidance in late January left little room for surprise in the company’s half year results. Annualised contract value of subscriptions grew 23% to $96.6 million, a material slow down from the 36% growth delivered in fiscal 2019. Meanwhile the proportion of multi-year deals increased to 42% from 36% a year earlier providing improved visibility over future revenue.Despite the recent stumble, Nearmap’s business fundamentals remain attractive. The company is applying a very data-driven approach to a large addressable market, actively enhancing the product with more and fresher content, as well as additional features and tools. The addition of 3D imagery, artificial intelligence and roof geometry should help to establish new use cases and drive average revenue per subscription higher across the business.Digging deeper into historical churn rates and the specifics of recent customer losses reinforced our view towards the half being an outlier. Nearmap’s fundamentals, increased mix of recurring revenue and management’s more conservative approach to revised full-year guidance gave us the confidence to top up. We continue to like the business’ prospects and expect the $49.3 million net cash balance will see it through to breakeven.