It has been a day to forget for owners of one ASX 200 tech stock.
In morning trade, it has crashed to a new 52-week low following the release of a trading update after the market close on Tuesday.
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Which ASX 200 tech stock?
The stock in question is investigative analytics and intelligence software provider Nuix Ltd (ASX: NXL).
Its shares were down as much as 25% to $1.78 in early trade. They have recovered a touch since then but remain down 18% at the time of writing.
Investors have been rushing to the exits on Wednesday after responding negatively to the release of its trading update last night.
The ASX 200 tech stock notes that it has previously advised of a lengthening of the procurement cycle associated with larger and more complex transactions and the increase in uncertainty and volatility in the geopolitical and global economic landscape.
Unfortunately, these trends continued through the month of April.
Management notes that while its deal pipeline remains strong, a level of uncertainty in customer decision making means that closure times around specific transactions have become more difficult to predict, particularly by the end of this current financial year.
In light of the broadened range of potential outcomes by the end of the financial year, the ASX 200 tech stock believes it is prudent to withdraw its guidance for FY 2025.
As a reminder, it was targeting annualised contract value (ACV) growth of 11% to 16% in constant currency. It has also withdrawn the strategic targets relating to revenue growth and underlying cash flow.
Commenting on current trading conditions, the ASX 200 tech stock's chief executive officer, Jonathan Rubinsztein, said:
This is a question of timing of deal closures, not the quality of Nuix's pipeline, which remains strong. The recent rise in uncertainty in the geopolitical landscape has made predicting the timing of contract executions, including some large individual transactions, more difficult, broadening the range of potential outcomes for this financial year.
Rubinsztein remains positive on the future, though. Particularly given the new Nuix Neo offering. He adds:
We are still in the early stages of Nuix's growth journey. We remain confident that the strategic steps we are taking, including with Nuix Neo, position us well for further innovation and growth.
Following today's weakness, the company's shares are down 70% since the start of the year.
