ASX 200 dips, Corporate Travel flies, Nuix sinks

The S&P/ASX 200 Index (ASX:XJO) dropped today. Nuix Ltd (ASX:NXL) sank heavily after disappointing investors with a sales forecast downgrade.

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The S&P/ASX 200 Index (ASX: XJO) dropped by 0.3% today to 6,997 points.

Many ASX blue chips were actually down much in early trading after a rough night in overseas shares. However, there was a steady recovery throughout today.

Here are some of the highlights from the ASX:

white arrow dropping down representing the 10 most shorted shares on the ASX

Image source: Getty Images

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel share price was one of the best performers today in the ASX 200 rising by around 3.5%.

The travel business said that it broke even in March and expects to be generating positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the fourth quarter of FY21. This will be led by the UK, European and ANZ regions of the business.

There has been strong domestic demand in the ANZ region, with total client activity climbing to 85% of FY19 booking levels as of last week. New Zealand continues to be a standout, with trading at more than 160% of FY19 booking levels.

It has won significant clients in the UK and European region despite the lockdowns, which are contributing to profitability because of the essential nature of that travel. The US is also seeing positive signs of an activity recovery.

Management also pointed out that it could be on course for a good recovery because 70% of pro forma revenue was generated from the US and the UK, where vaccination efforts are advanced.

Nuix Ltd (ASX: NXL)

The Nuix share price fell around 15% today after revising its FY21 forecasts.

During April, a significant and larger-than-expected number of Nuix's customers, including one of its largest, elected to transition from module-based subscription licenses to consumption and software as a service (SaaS) license models, resulting in a shift in both revenue and ACV profiles.

It has reduced its forecast revenue to a range of $180 million to $185 million, down from $193.5 million which was forecast in the IPO prospectus.

Annualised contract value (ACV) is now expected to be in a range of $168 million to $177 million (down from $199.6 million).

Pro forma EBITDA is expected to be $64.6 million to $66.6 million, up from a forecast of $63.6 million.

Management said that an acceleration in customer transition to the new models impacts the revenue profile, but delivers significant longer-term business model benefits.

The current operating environment has reduced near-term upselling opportunities. Revenue from renewals and new business remain in line with expectations.

Despite that, Nuix said that there has been strong underlying business performance with substantial increases in new customers won, and total and average order values, compared to the same period in FY20. One new win has been an Australian state government.

BHP Group Ltd (ASX: BHP)

The BHP share price went down around 0.5% after revealing its report for the period ending March 2021.

For the ASX 200 share's all-important iron ore division, production for the nine months to March 2021 increased by 4% to 188 million tonnes. Guidance for FY21 remains unchanged at between 245 million tonnes to 255 million tonnes.

Looking at the same year to date to March 2021 period, copper production was down 6%, petroleum production was down 8%, metallurgical coal production was down 2% and energy coal production was down 26%.

BHP chief executive officer Mike Henry said:

We are reliably executing our major projects, bringing on new supply in copper, petroleum and iron ore. The Spence growth option and Samarco are ramping up and West Barracouta, in petroleum, started production this month. First production from petroleum's Roby project is expected in the coming weeks and South Flank, with its higher grade and lump proportion, is on track to begin production in the middle of the year.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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