- Global software company Nuix (NXL) expects to report lower financial results for FY22 compared to FY21
- The company estimates annualised contract value of between $160 and $163 million which is slightly less than the $165.6 million reported for FY21
- Statutory revenue is expected to decline between $22 and $25 million which is driven by lower sales and deals that were realised in the prior financial year or FY23
- Following suit is expected EBITDA of between $10 to $12 million — another drop from the $30.5 million statutory EBITDA in FY21
- Company shares are down 12 per cent to trade at 64.3 cents at 2:12 pm AEST
Nuix (NXL) has reported on its expected financial results for the full 2022 financial year.
The software company estimates its annualised contract value to be between $160 and $163 million which is slightly less than the $165.6 million reported for FY21.
In terms of revenue, Nuix expects statutory revenue to decrease on the prior corresponding period (FY21) which brought in $176.1 million for the full year.
The company said the decline to an expected $151 to $154 million is driven by the recognition of revenue for some large multi-year contracts in the prior year, lower sales to new customers and deals that slipped into FY23 rather than FY22.
Furthermore, earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the range of $10 to $12 million which is notably less than the statutory EBITDA of $30.5 million and pro-forma result of $66.7 million in FY21.
Nuix reportedly experienced “materially higher” non-operational legal costs during the financial year of approximately $14 million.
The company is committed to creating software that aims to empower organisations to make sense of information in an efficient way. It specialises in transforming large amounts of ‘messy data’ – from emails, social media, communications and other content – into actionable intelligence.
Nuix is continuing its strategy of funding software development costs from free cashflow, and aims to be cashflow neutral before non-operational legal costs and Topos acquisition costs and trading losses in the near term.
The company ended the financial year with $46.8 million in cash.
Nuix expects to announce its full year results on August 18.
Company shares were down 12 per cent to trade at 64.3 cents at 2:12 pm AEST.