- Former ASX darling Nuix (NXL) has once again parred back its revenue forecast following a month of controversy and turmoil for the data analytics provider
- NXL is now expecting to pull in between $173 million and $182 million in pro-forma revenue this financial year
- The company attributed to drop to the “expected timing of closure of some upsell opportunities and new potential customers”, as it is unclear whether these deals will make it into its FY21 figures
- The downgrade arrives just days after the company cut consultancy ties with former Chairman Tony Castagna, who is currently the subject of an Australian Federal Police (AFP) probe amid a storm of controversy surrounding the company’s dealing with Castagna in the lead up to its IPO last December
- Ahead of market open, NXL shares are trading down 17.8% at $2.77 apiece
Former ASX darling Nuix (NXL) has once again parred back its revenue forecast following a month of controversy and turmoil for the data analytics provider.
NXL is now expecting to pull in between $173 million and $182 million in pro forma revenue this financial year. This forecast comes just weeks after the company cut its expectations back in April down to a midpoint of around $182.5 million.
The company attributed to drop to the “expected timing of closure of some upsell opportunities and new potential customers” as it is unclear whether these deals will make it into its FY21 figures.
Speaking on the forecast drop, NXL CEO Rod Vawdrey said the company understood the importance of meeting financial forecasts.
“There’s a near-term level of uncertainty regarding the precise timing, shape and scope of some large and anticipated customer contracts coming to fruition in the next few weeks,” he said.
“We expect to capture most of the revenue which remains under current negotiation with these customers either by financial year-end or early in our new financial year. We remain confident in the long-term outlook for the company.”
The downgrade comes just days after NXL dropped a consultancy agreement with former chairman Tony Castagna, who is currently under the scrutiny of an Australian Federal Police (AFP) probe into his business dealings.
That investigation follows a joint investigation by The Sydney Morning Herald, The Age and The Australian Financial Review, which brought attention to gaps in Nuix’s records in the lead up its IPO last December, through which Castagna pulled in more than $80 million from an initial $3000 investment.
Despite so much uncertainty surrounding NXL, investors will have to wait until August and the release Nuix’s full-year report to get a clearer picture of its FY21 performance.
NXL shares are trading down 17.8% at $2.77 at 11.15 AEST.