The Nuix Ltd (ASX: NXL) share price is shooting the lights out, up 19.3% to 68 cents following the technology company's annual general meeting (AGM) today.
By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up just 0.27% and the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 0.35%.
Today's share price bounce is likely a result of the CEO reassuring shareholders that the company's "transformation" was on track, with "preliminary evidence of improvement … in our results for the four months to October".
Let's see what the Nuix leadership had to say at today's meeting.
Image source: Getty Images
FY23 trading update launches Nuix share price skyward
In his speech, Nuix Group CEO Jonathan Rubinsztein referred to what they're calling Nuix 2.0, a "transformation" of the company that is designed to "drive a clear shift in results by August 2023".
Rubinsztein said:
Annualised Contract Value (ACV) at the end of October was $169.5 million, up 4.6% from June of this
year.Net dollar retention, another important indicator of success with our existing customer base, rose to
101.9%, compared to 96.8% in June…Our customer relationships remain strong, with Churn at 5.5%, which is slightly higher than the
outcome of 5.4% at the full year result, however this is more than offset by the increase in upsell.We are also seeing encouraging signs of net new customers, which is contributing to the lift in ACV.
It's particularly pleasing to see these critical measures tracking positively at this early stage of our
refresh.
Rubinsztein said Nuix's balance sheet has a cash balance of $40.5 million and no debt. Additional metrics for the first four months of FY23 were shown in a presentation.
Helping companies combat cyber attacks
Nuix has just released a data privacy solution that Rubinsztein says "is the first example of how we position Nuix innovation to customer needs".
He said:
… I think we're all aware of how critical Data Privacy has become to large organisations.
With the Nuix Data Privacy offering, customers can identify and manage sensitive customer data.
Our software not only identifies risks in privacy data, but helps to map and locate sensitive data, meet retrieval obligations for regulatory and other requests, defensibly delete and decommission data where necessary, and optimise processing.
Rubinsztein added that Nuix has many other cybersecurity products in the pipeline "such as Fraud, Inquiry-Readiness and Cyber Breach Response".
Nuix share price down 76% in 12 months
Rubinsztein acknowledged that it "hasn't been an easy year" for shareholders and "I would understand if you were concerned".
But he encouraged shareholders to have faith in the changes being made in the business and the positive results seen so far in FY23.
He said he believed Nuix would become "an awesome purpose driven, profitable company."
He concluded:
At its core, Nuix has the potential to be a truly great Australian tech success, one that is played out on a world stage, and it is my job — and my commitment – to help realise this potential.
