The Nuix Ltd (ASX: NXL) share price was one of the worst performers on the S&P/ASX 200 Index (ASX: XJO) for a second month in a row in June.
The investigative analytics and intelligence software provider's shares followed up a 33% decline in May with a disappointing 20% decline in June.
This means the Nuix share price is now down 73% since the start of the year.
Image source: Getty Images
Why did the Nuix share price crash lower in June?
Investors were heading to the exits in their droves last month following yet another series of disappointing developments.
The first actually happened on 31 May but continued to hang over the company in the early stages of June. That development was yet another downgrade to its guidance.
Nuix revealed that it is now expecting pro forma revenue of $173 million to $182 million in FY 2021. This compares to its 21 April guidance of $180 million to $185 million. Similarly, it is now forecasting annualised contract value (ACV) in the range of $165 million to $172 million. This is down from its previous guidance of $168 million to $177 million.
Management blamed this on the timing of the closure of some upsell opportunities and new potential customers. In addition, it notes that there remains uncertainty in relation to both the structure and timing of deals with a small number of large customers.
What else weighed on its shares?
Also weighing on the Nuix share price was the exit of several executives and news of police raids on its offices. Those police raids later led to a criminal investigation into insider trading allegations by its departed chief financial officer Stephen Doyle.
The court papers show that Doyle and his brother are accused of trading Nuix shares with knowledge of inside information over January and February this year. This was before the Nuix share price crashed lower following its shock guidance downgrade.
Nuix chair, Jeffrey Bleich, said: "We are genuinely disturbed by the allegations concerning Mr Doyle and will fully assist ASIC in getting to the bottom of that matter."
