Shares in Value Logo
Product Review Img Vertical

Date : 15/06/2021

Nuix Shares on Watch List Today with New Internal Developments

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.

Why Nuix Shared Price Could Be on Further Pressure?

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 earlier today 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.

NXL shares closed today at $2.76 a share, rising over 4% following the announcement.

Looking for best dividend stocks to invest on the ASX?

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2021! Click here now!

Are You Looking To Buy The Best Stocks In 2023?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2023!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2023

Top 5 ASX stocks to buy 2023
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.