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Date : 30/08/2021

Nuix Share Price Dropped On ASX Following The Announcement Of FY21 Results

Nuix Limited is a Sydney based technology company that listed on the ASX in December 2020. Coming in at a market cap of $1.7 billion back then, it became the most valuable tech stock IPO of the year. NXL shares soared 50% on the day of the float and shares closed over $8 a share.

Nuix provides intelligence software and investigative analytics by analysing large volumes of data in the back end.They have very wide use case scenarios such as: criminal investigations, financial crimes, litigation, data protection/governance/compliance, employee & insider investigations, etc.

Why is the Nuix Share Crashed On ASX Today?

NXL shares have been caught in a whirlwind recently, as Nuix has been marred by controversies and fraud allegations. Today, NXL shares dipped once again and were the worst performer among the ASX 200 stocks on the back of their FY21 earnings announcements. The key highlights from the announcement are:

  • Revenue (statutory and pro forma) of $176.1m, up 0.1% on FY20, up 7.4% on a constant currency basis
  • Annualised Contract Value3 (ACV) of $165.6m, down 1.7% on FY20, up 4.1% on a constant currency basis
  • Statutory EBITDA decreased by 52% to just $30.2 million
  • Nuix reported a Net Loss after Tax of $1.6 million – a 107% decrease in NPAT from FY2020.

Statutory revenue rose to $176.1m, up 0.1% on a functional currency basis, and 7.4% on a constant currency basis. New business contributed $27.6m to the revenue outcome, with subscription-based revenue rising to 93% of total revenue. Annualised Contract Value (ACV), which mitigates variability associated with multi-year deals, grew by 4.1% in constant currency. Importantly, Subscription ACV, which is recurring in nature, grew by 10.3% on FY20 in constant currency. The rise in subscription ACV was partly driven by a strong rise in consumption (including SaaS) licences.

The decrease in EBITDA is largely due to the one-off IPO costs. Removing that, NXL EBITDA came in at a 20% increase to $66.7 million, compared to pcp. Operating conditions remained difficult for Nuix with pandemic restrictions hindering sales staff ability to meet customers and subsequently sign new deals.

In the coming year, Nuix will continue to invest for growth. Further investment will be made in Nuix’s journey to the cloud beyond the Discover SaaS offering. In addition, Nuix will further accelerate its product development pipeline, building on the strong product base and delivering further value-added solutions. In conjunction with an increased investment in Research and Development, Nuix will also further build and enhance its Sales and Distribution capability.

In the coming year, Nuix will continue to invest for growth. Further investment will be made in Nuix Journey to the cloud beyond the Discover SaaS offering. In addition, Nuix will further accelerate its product development pipeline, building on the strong product base and delivering further value-added solutions. In conjunction with an increased investment in Research and Development, Nuix will also further build and enhance its Sales and Distribution capability.

NXL share price dived 10.8% today and the downward pressure has been relentless for NXL shares. NXL shares closed at $2.56 a share

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