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. Nuix 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.
Nuix has been on the wrong end of several unfortunate, but controversial news recently, and the NXL share price volatility has shown. The company downgraded their full year guidance following recent developments in its new and existing customer contract revenue pipeline. Revenue was downgraded from $180-$185 million range to $173-$182 million. The annualised contract value guidance fell as well from $168-$177 million range to $165-$172 million, while EBITDA remained unchanged at $64.6 – $66.6 million for FY21. These downgrades are compared to the previously provided guidance back in April 2021.
Several key factors have affected the revised forecasts including the expected timing of closure of some upsell opportunities and new potential customers. In particular, there remains uncertainty in relation to both the structure and timing of a small number of large customer upsell opportunities, including whether these may result in multi-year deals during FY21. It looks like the EBITDA guidance remains unchanged because of Nuix cutting costs during the period.
In a bid to put the flames off from their disaster of an IPO, Nuix announced last month that CEO, Rod Vawdrey, has given notice of his decision to retire from the firm. Despite the announcement, the road ahead remains tough for Nuix. The financial impacts that they have endured has thrown the stock price in a frenzy. NXL shares are now subject to heavy trading based on investor sentiment – increasing volatility.
Following a couple of days of NXL shares posting declines, the NXL stock price shot up 9.66% today and closed at $2.66 a share despite no announcements being made by Nuix.
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