- Australian technology company Nuix (NXL) has seen its shares fall after posting a 3.9 per cent drop in revenue to $85.3 million for the first half of FY21
- The recently-listed tech stock also announced a statutory net loss after tax of $16.6 million — a 214.4 per cent decrease on the prior corresponding period
- Nuix says this is primarily due to foreign exchange losses and high amortisation charges
- Despite facing some losses, Nuix reported a 3.3 per cent increase in pro-forma earnings before interest, taxes, depreciation and amortisation (EBITDA) and annualised contract revenue of $162 million, which is up 3 per cent
- At the end of the half-year, Nuix had $263 million in net assets including $103 million in cash
- Nuix is down 27.3 per cent and shares are trading at $6.52
Nuix (NXL) has seen a drop in its share price after posting lower revenue and a statutory net loss after tax for the first half of the 2021 financial year.
The recently-listed technology company recorded a 3.9 per cent decrease in revenue to $85.3 million compared to the prior corresponding period (pcp). Nuix expected this result, as the strong Australian dollar in December impacted revenues from licences booked.
Further, Nuix announced a statutory net loss after tax of $16.6 million — a 214.4 per cent decrease on the pcp.
The billion-dollar company attributes the statutory loss to foreign exchange losses in the current period of just over $3 million and higher amortisation charges from an extra year's worth of capital development costs.
"After a softer first quarter, the December quarter was encouraging with a strong performance in all sales regions despite the US government being impacted by delayed access to decision makers because of COVID and the US election," CEO Rod Vawdrey said.
Nuix creates software to allow organisations within the government and law sectors to filter through copious amounts of data. This allows them to better understand the true message and find what they need in a simplified way.
Despite facing some losses, Nuix reported a 3.3 per cent increase in pro-forma earnings before interest, taxes, depreciation and amortisation (EBITDA) to $31.5 million. This reflects consistent gross margins and reduced total operating costs.
It also saw a 3 per cent growth in annualised contract revenue (ACV) to $162 million.
Importantly, Nuix listed on the ASX in December after a $953 million initial public offering (IPO).
"Strong customer engagement, a maturing and growing pipeline, and low customer churn are expected to boost ACV for the second half of FY21 with a return to more certain operating conditions anticipated in Q4 FY21. This gives us confidence that we can meet FY21 forecasts set out in our IPO Prospectus," Rod said.
As of December 31 2020, Nuix held $263 million on its balance sheet, including net cash of $103 million.
As per the prospectus, Nuix expects to generate $193.5 million in revenue, $200 million in ACV and pro-forma EBITDA of $63.6 million.
Nuix is down 27.3 per cent and shares are trading at $6.52 at 11:46 am AEDT.