Nuix (ASX:NXL) - Chairman, Jeffrey Bleich
Chairman, Jeffrey Bleich
Source: Griffith University
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  • Global software company Nuix (NXL) is forecasting a decline in revenue and operating earnings for the half-year ended December 31, 2021
  • Nuix expects revenue to be between $82 and $85 million, a reduction on the $85.3 million recorded a in the prior corresponding period
  • Pro-forma EBITDA and statutory EBITDA are each expected to be between $13 and $15 million with pro-forma showing a notable decline and statutory increasing from the $4.4 million loss in the pcp
  • In terms of expenditure, Nuix said it experienced ‘materially’ higher costs in the half compared to the pcp
  • Company shares are down 14.1 per cent to $1.77

Global software company Nuix (NXL) is forecasting a decline in revenue and operating earnings for the half-year ended December 31, 2021.

Nuix is dedicated to creating software that aims to empower organisations to efficiently make sense of data. It specialises in transforming large amounts of ‘messy data’ – from emails, social media, communications and other content – into actionable intelligence.

Based on preliminary estimates and subject to auditor review, the company expects half-year revenue to be between $82 and $85 million which is below the prior corresponding period’s (pcp) result of $85.3 million.

The annualised contract value (ACV) is expected to be between $161 and $164 million, compared to $161.8 million during the prior corresponding period.

Nuix said that while it observed a continuation of the trend of revenue growth from existing customers, revenue from new customers is lower than the pcp.

On the ACV front, the company said while ‘relatively flat’, it continued to see a marked “shift away from module-style licences to consumption licences”.

Pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) and statutory EBITDA are each expected to be in the range of $13 and $15 million with pro-forma showing a significant decline from the $31.6 million in the pcp.

The expected statutory EBITDA however is a notable increase from the $4.4 million loss reported for the prior year.

The company said it continues to reinvest in revenue generation, accordingly, the company said pro forma EBIDTA is expected to be materially below the prior corresponding period.

Statutory EBITDA, which incorporated IPO costs in the prior corresponding period, is expected to be higher, according to the company.

Nuix said the statutory revenue can be attributed to stronger performance in North America and the Asia Pacific offset by a weaker performance across Europe, the Middle East and Africa.

The tech stock expects a net loss after tax of between $2 and $3.5 million which would be an improvement from the $16.6 million loss in the pcp.

In terms of expenditure, Nuix said it experienced ‘materially’ higher costs in the half compared to the pcp and non-operational legal costs were higher in the final two months of the half-year period.

The company assures it continues to remain focused on reinvesting in generating sustainable revenue including building sales and distribution and increasing investment in product development.

Nuix expects to release the full, audited results for the half-year period on February 21.

Company shares were down 14.1 per cent to $1.77 at 11:00 am AEDT.

NXL by the numbers
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