Nuix share price tumbles following $23m loss in FY22

Nuix shares dropped into the red on Thursday…

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Key points

  • Nuix has released its full year results for FY 2022
  • The struggling tech company posted a big loss for the year
  • This followed a jump in costs and lower revenues during the 12 months

The Nuix Ltd (ASX: NXL) share price was out of form on Thursday.

The embattled investigative analytics and intelligence software provider's shares ended the day 3.5% lower at 68.5 cents.

This followed the announcement of a sizeable loss for FY 2022.

Nuix share price on FY 2022 results

  • Annualised contract value (ACV) down 2.3% to $162 million
  • Statutory revenue down 13.5% to $152.3 million
  • EBITDA down 82% to $12.1 million
  • Net profit after tax down 190.4% to a loss of $22.8 million

What happened during FY 2022?

For the 12 months ended 30 June, Nuix reported a 2.3% reduction in its ACV to $162 million. Management advised that this reflects a softer performance in North America and EMEA, which offset ACV growth in the Asia Pacific region.

Nuix's statutory revenue for the period was down 13.5% to $152.3 million. This was due to the lower value of multi-year contracts sold and lower new sales. Combined with an increase in costs, this led to a much lower EBITDA outcome for FY 2022.

And while Nuix saw an increase in customer churn to 5.4% in FY 2022, management feels this is a low level and notes that strong customer relationships have been maintained.

Incredibly, the company spent over one-third of its revenue on research and development activities during the 12 months. Nuix spent $58.3 million on these activities, which is an increase of 32% on the prior year. It notes that important progress was made on critical projects, including further development on the integrated SaaS platform and Natural Language Processing (NLP) integration.

Management commentary

The company's CEO, Jonathan Rubinsztein, appears optimistic on the future thanks to Nuix's strategic refresh initiatives.

We've been clear about the need for a refresh of strategic initiatives to drive growth. Our strategy revolves around a greater focus on customer centricity and initiatives across three key horizons. The team has been working exceptionally hard behind the scenes over the last half.

Nuix is a remarkable organisation making a meaningful difference in the world. We're putting the right people in the right roles to make sure Nuix is fit for growth. Our customer and partner relationships remain strong. Our Engine remains unparalleled and is central to our platform, underpinning our growth trajectory. And lastly, our strategy is clear and we're acting on it, with urgency and focus. I'm excited and optimistic about our future, and as an organisation, the Nuix team is mobilising to enact the changes required to drive growth.

The Nuix share price is now down 70% in 2022

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 Scott Phillips.

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