Nuix (ASX:NXL) has won no particular favour on Monday after announcing its CEO, Jonathan Rubinsztein, is out the door this Friday after reportedly agreeing with the board’s mutual position that it’s time for the tech software company to part ways with the man who’s carried it since December 2021.
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The market, predictably, wasn’t too keen on this. Nor was it detectably reassured by the news it’s bringing in an interim CEO, one John Ruthven; formerly the CEO of ASX-listed Integrated Research (though it appears he’s been on a year-long break, having retired that role last October, which is neither here nor there.)
“I feel proud and privileged to have led such an incredibly talented team of gifted people at Nuix over the past four years,” Rubinsztein wrote on Monday.
“Together we have achieved much – a complete turn-around of the business from corporate structure to the development of our world-class platform Nuix Neo to earning confidence and support from our customers.”
So it sounds like Rubinsztein is leaving on good terms. Of course, one can’t help but point out Nuix’s YTD returns are down -60% and that the stock underperformed the ASX technology sector by nearly -80% over the last year.
That mightn’t be the world’s most useful comparative datapoint, but it does, perhaps, underline what the board’s thinking.
It adds to a storied history for NUIX and its shareholders. Listing in the early COVID era and briefly surpassing $10/sh on IPO hype, the stock – launched in part by former police officers – hit trouble early on when it listed in December 2020, and then tanked in February 2021 when it failed to meet half of its FY21 revenue forecast.
This became the subject of a class action from Shine lawyers, whose practitioners were also quick to point out that subsequent disclosures from NUIX included concerns around insider trading and further guidance downgrades.
ASIC would also sue the technology software company in late 2022.
In terms of price, the company bounced back in FY25, hitting a new peak around $7.50 after a good while in the doldrums, but in November last year, that momentum began dying off, bringing us to the YTD gains of -60% visible on Monday.
Watching tech companies with similar products (analytical intelligence software) in the US soar to multi-billion valuations, perhaps Nuix’s Board is growingly increasingly impatient to try and get in while the money’s good.
NXL last traded at $2.50/sh.
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