Nuix crashes on disappointing update

Shares in security and analytics company Nuix fell by 23% after releasing a trading update in relation to results for the first half of FY22.

Since providing an update at its AGM covering the first four months of the fiscal year, Nuix said it has seen a continuation of the trend of revenue growth from existing customers, while revenue from new customers is lower than the prior corresponding period.

Based on preliminary estimates, Nuix said it expects to report outcomes in the following ranges:

The statutory revenue outcome reflects a stronger performance in North America and APAC offset by a weaker performance in EMEA.

Annualised Contract Value , while relatively flat, continued to see a marked shift away from module-style licences to consumption licences.

In line with the AGM update, Nuix experienced materially higher costs in the half than in the prior corresponding period, as legal costs remain high. In addition, the company continues to try and reinvest in sustainable revenue generation, including building sales and distribution capability and increasing levels of investment in the product development pipeline.

As a result, pro forma EBITDA is expected to be materially below the prior corresponding period.