Nuix (ASX:NXL) anticipates fall in revenue, share price tumble on ASX

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Nuix (ASX:NXL) anticipates fall in revenue, share price tumble on ASX

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ASX:NLX, Nuix Limited, ASX, technology stocks
Image source: © Alexandersikov | Megapixl.com

Highlights

  • NXL share price plunges to its all-time low on ASX today.
  • Nuix releases its H1-22 results update.
  • Nuix expects its half yearly revenue to be lower on a pcp basis.

Software business, Nuix Limited’s (ASX:NXL) share price has touched its rock-bottom on ASX today. NXL shares have reached close to their all-time low price of AU$1.725 each as at 11:03 AM AEDT. Today the NXL shares are seeing tremendous selling volumes, resulting into a fall in share price of around 16.263% since morning.  

What has Nuix achieved in first half of 2022?

Nuix has updated the exchange with unaudited numbers for the first half of 2022. The preliminary estimates show that Nuix expects to deliver-

  • Nuix’s first half revenue is expected to be in the range of AU$82-85 million, which lies below its’ H1-21 numbers.
  • Stronger revenue outcome in North America and APAC which will be offset by a weaker performance in EMEA.
  • Nuix’s Annualised Contract Value (ACV) shall remain relatively flat, as Nuix makes a shift from module-style licences to consumption licences.
  • Nuix seems to be experiencing materially higher costs in H1-22 than in the prior corresponding period (pcp).
  • The non-operational legal costs are also higher especially since the last two months.
  • As a result, Nuix’s pro forma EBITDA is expected to be significantly lower on a pcp basis.
  • However, the Statutory EBITDA, which incorporated IPO costs in previous corresponding period, shall be higher.

Where is Nuix headed?

  • As claimed in its ASX release, Nuix is reinvesting in sustainable revenue generation models.
  • It is seeking to build sales and distribution capability.
  • Nuix is also focusing more with higher investment in creating a product development pipeline.

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Bottom line-

NXL share price has dipped down even after reporting on expectations of a higher EBITDA in H1-22. Since Nuix is still shifting its revenue model and its ACV has remained flat in the first half of 2022, investors seem wary of the business outcomes. As a results Nuix’s share price has fallen today on ASX.

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