Nearmap (ASX: NEA) is an Australian software business that specialises in mapping, aerial imagery and location data services. This week, NEA reaffirmed its earnings guidance and flagged that its customer lifetime value (LTV) had increased to over $1.4 billion from $1.1 billion at the end of December 2018. LTV is an important financial ratio for software-as-a-service (SaaS) companies like NEA because it is a good gauge of future earnings for a company.

We invested in NEA due to its leading market share in Australia, and its expansion strategy into the US. NEA is continuing to gain traction in the US due to their product advantage and management execution track record, which will underpin their growth. We hold NEA as a market-driven investment in WAM Capital and WAM Active. Shares in NEA closed up 8.8% for the week.