Why has the Nuix share price surged 95% in the past month?

This tech share has been making investors smile this month.

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The Nuix Ltd (ASX: NXL) share price has continued its positive run on Monday.

At one stage today, the investigative analytics and intelligence software company's shares were up a further 10% to a 52-week high of $1.66.

When the Nuix share price hit that level, it meant it was up an enormous 95% in July.

Why is the Nuix share price shooting higher this month?

Investors have been scrambling to buy the tech company's shares since the release of its preliminary full-year results.

Those results revealed a significant improvement in the company's performance, which underpinned a major re-rating of its shares after being in the doldrums for a couple of years.

Nuix revealed that it expects to report a 14% to 15% increase in annualised contract value (ACV) to $184 million to $186 million and a 19% to 20% lift in revenue to $181 million to $183 million. This was great news considering how the number of multi-year deals fell on the previous year.

But perhaps what got investors particularly excited was its earnings. Thanks to a combination of its top-line growth and cost discipline, Nuix's earnings grew at an even quicker rate. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to increase 51% to 61% (excluding one-offs) to $44 million to $47 million.

A final positive was that the company was cash flow positive in both the second half and over the full year (excluding one-offs). This was better than expected, with management previously aiming to just be underlying cash flow neutral for the year.

So, with a cash balance of $29.6 million, no debt, and positive cash flow, the risk of another capital raising has diminished significantly.

Overall, given the above, it isn't hard to see why the Nuix share price smashed the market this month.

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 no position in any of the stocks mentioned. 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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