Insights

Nuix (ASX:NXL) share price sinks 7% following trading update

Here’s how Nuix is performing in FY 2022…
The post Nuix (ASX:NXL) share price sinks 7% following trading update appeared first on The Motley Fool Australia. –

The Nuix Ltd (ASX: NXL) share price is falling on Tuesday morning.

At the time of writing, the investigative analytics and intelligence software company’s shares are down 7% to $2.38.

Why is the Nuix share price falling?

Investors have been selling down the Nuix share price this morning following the release of a trading update at its annual general meeting.

According to the release, Nuix has re-signed a major advisory contract on a multi-year consumption licence, achieved other significant multi-year deals with existing customers, and completed a number of deals that were originally expected in FY 2021.

This has led to the company delivering a 10% increase in statutory revenue in both reported and constant currency during the first four months of FY 2022.

However, it has warned that its revenue profile is fluctuating and this revenue growth is not necessarily indicative of the remainder of the year. As a result, it is still too early to provide full year guidance.

It’s not all good news

Unfortunately, the 10% revenue growth is where the good news stops. Nuix revealed that its annual contract value (ACV) is flat year on year and its cost base has increased materially.

The latter is being driven partly by product development costs, which include accelerating the Engine as a Service offering. In addition, the enhancement of its sales and distribution capability, employee retention and recruitment, and legal expenses are weighing on its profit margins.

This has led to Nuix’s pro forma EBITDA falling 27% on the prior corresponding period during the first four months of FY 2022. As with its revenue, no real guidance has been given for its earnings for the full year. All management has said is that a large and ongoing increase in its cost base will impact EBITDA, with the benefits expected to flow in subsequent periods.

The post Nuix (ASX:NXL) share price sinks 7% following trading update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nuix right now?

Before you consider Nuix, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nuix wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Nuix (ASX:NXL) share price climbs despite second class action

Nuix (ASX:NXL)’s own shareholders are suing it

ASX 200 tech shares in focus as Nasdaq plunges 1.7%

Are these 2 beaten-up ASX tech shares now bargain buys?

Why are ASX 200 tech shares having such a lousy day?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!