Do you know why Nuix (ASX:NXL) shares surged 15% today?

3 min read | January 19, 2023 04:38 PM AEDT | By Sukriti

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Do you know why Nuix (ASX:NXL) shares surged 15% today? — Image source: © Lassedesignen | Megapixl.com

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Highlights

Global software company Nuix Limited’s (ASX:NXL) shares traded up by over 15% today.

The company provided an update in relation to expected results for the half year ended 31 December 2022.

It expects to report annualised contract value (ACV) in the range of AU$168-AU$171 million.

Nuix will release half year results in February 2023.

Shares of Nuix Limited (ASX:NXL) marked an uptick of over 15% on the ASX today. The shares traded at AU$0.945 with a market capitalisation of AU$260.19 million. The trading volume was over 2.4 million. A key driver of this upward momentum could have been the company’s recent update of its expected results for the half year ended 31 December 2022.

What can we expect in Nuix’s 1H23 results?

The global software company, with the vision of “being a force for good by finding truth in a digital world”, expects Annualised Contract Value (ACV) to be in the range of AU$168 - AU$171 million. This is an increase of 3.7% - 5.6% on the half year ending June 2022 wherein the reported ACV was AU$164.5 million.

Statutory revenue is likely to lie between AU$85 - AU$88 million ($84.0 million in 1H22).
Underlying EBITDA can be somewhere between AU$24 - AU$26 million (AU$24.7 million in 1H22).
Statutory EBITDA range could be AU$19 - AU$21 million (AU$13.8 million in 1H22).
The company ended the half with cash on hand of AU$37.1 million and no debt.

The ACV range is in line with the range disclosed at the Company’s 2022 Annual General Meeting. Statutory revenue shows a bigger degree of variability, owing to the effects of multi-year deals. In the prior corresponding period, Statutory revenue has increased, catalysed by strong trading performance in December as well as currency tailwind.

Nuix further disclosed that non-operational legal costs were considerably lower during 1H23 compared to the prior period. Consequently, statutory EBITDA is likely to be materially higher and so is the Net Profit After Tax (NPAT).

The unaudited financial results remain subject to auditor review.

Source: © Ipopba | Megapixl.com

When will Nuix release 1H23 results?

The company, which offers investigative analytics and intelligence software, will release its half year results on 20 February 2023.

For 2H23, it expects non-operational legal fees to be higher, which can potentially impact EBITDA and NPAT. Meanwhile, Nuix is working on its strategy of funding software development costs from free cash flow.

What should you know about Nuix’s business?

The company offers investigative analytics and intelligence software. Nuix specialises in converting huge amounts of disordered data, be it emails, communications, social media, into searchable, contextualised information.  The Nuix Engine is a supercharged data processing technology. It gets to the ones and zeros of many data types and file formats with forensic accuracy. Nuix works with corporations, government, law firms and advisories.

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