Nuix share price sinks 15% after swinging to half-year loss

This tech stock is having a poor start to the week after releasing its results.

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The Nuix Ltd (ASX: NXL) share price is having a very disappointing start to the week.

At one stage, the investigative analytics and intelligence software provider's shares were down as much as 15% to $1.65.

This follows the release of the company's half-year results this morning.

Nuix shares sink on results day

  • Annualised contract value (ACV) up 17.3% to $199.6 million
  • Statutory revenue up 12.3% to $98.4 million
  • Statutory earnings before interest, tax, depreciation, and amortisation (EBITDA) down 17.6% to $17.2 million
  • Statutory loss after tax of $4.8 million (compared to $1.3 million profit)

What happened during the half?

For the six months ended 31 December, Nuix reported a 17.3% lift in ACV to $199.6 million. This was slightly above its guidance range and driven by strength in its existing customer base. All three key regions (North America, EMEA and Asia Pacific) reported double-digit ACV growth.

Things weren't quite as positive for its EBITDA, which fell 17.6% to $17.2 million largely because of legal costs. However, on an underlying basis, Nuix's EBITDA was up 12.8% to $28.4 million.

For the same reasons, Nuix recorded a net loss after tax of $4.8 million.

Nuix ended the half with cash on hand of $24 million and no debt. Though, to shore things up, it has announced a $30 million multicurrency revolving credit facility from HSBC.

Management commentary

Nuix CEO, Jonathan Rubinsztein, commented:

During the half, the Nuix team has not only delivered on further momentum in top line growth, but also made significant progress on our core strategic growth initiative, Nuix Neo. We have continued to drive growth in ACV and Statutory Revenue, while remaining focused on costs, contributing to further growth in Underlying EBITDA. Commercial relationships with our customers remain strong, as evidenced by further momentum in our NDR and generally low churn.

Outlook

Failing to stop the Nuix share price from sinking today is news that the company has reaffirmed its targets for FY 2024.

This includes ~10% ACV and statutory revenue growth in constant currency, revenue growth exceeding underlying cost growth, and being underlying cash flow positive for the year.

The Nuix share price is still up 58% over the last 12 months following today's weakness.

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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