Why did the Nuix (ASX:NXL) share price hit an all-time low today?

Saturday will mark the end of Nuix’s first 12 months on the ASX, and what a time it’s been.

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Nuix Ltd (ASX: NXL) is about to celebrate the completion of its first year as a listed company, but its share price is dampening the festivities.

The company’s stock hit a record low in intraday trade today, swapping hands for just $2.14 apiece.

At market close, it has slightly recovered to trade at $2.16, 4.42% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) finished Wednesday down 0.28%.

Let’s take a look at what might be weighing on the software company.

Nuix share price tumbles on Wednesday

The Nuix share price fell to its lowest point ever today, the day after it dropped 11.7% on the back of a trading update.

As The Motley Fool reported yesterday, Nuix announced its statutory revenue had increased 10% over the first 4 months of financial year 2022, but its new customer revenue dropped 40%.

Its annual contract value has remained flat year on year, while its earnings before interest, tax, depreciation, and amortisation (EBITDA) has fallen 27%.

To top it off, the company’s expenses have increased. They’ve been driven higher by product development and the enhancement and growth of its sales distribution capability, as well as a tough labour market and increased legal costs.

Saturday will mark the end of Nuix’s first 12 months on the ASX, and what a time it’s been.

Nuix’s turbulent first year on the ASX

Upon listing, Nuix was heralded the ASX’s newest market darling.

The Nuix share price finished its first day on the ASX trading at $8.01. It has since plunged 72.9%.

Its first major slump came after it downgraded its guidance in April, then again in May.

It faced a huge amount of media scrutiny when a series of investigative reports were published. They claimed the company was poorly managed and had a history of questionable reporting.

The media campaign also seemingly unearthed a strange options package given to the company’s founder. It has since been the subject of an Australian Federal Police investigation.

Additionally, an investigation into Nuix was launched by the Australian Securities and Investments Commission (ASIC). The watchdog was seeking to find if the company’s prospectus inflated its forecasts.

The company also announced its CEO and CFO were both stepping down in June. Its new CEO, Jonathan Rubinsztein will take up the reins next week, while its new CFO, Chad Barton is already at work, having stepped in as interim CFO.

Finally, the company was recently hit with a shareholder class action and is expecting to be served with a second shortly.

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Motley Fool contributor Brooke Cooper 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.

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