Nuix shares collapsed to an all-time low on Friday as the intelligence software provider warned legal bills and falling revenue would plague the company during the first half of the year.
, said revenue was expected to come in between $82 million and $85 million for the six months ended December 31.Investors sent Nuix stock falling 20per cent on Friday, markingThe trading update was the first released by new chief executive officer Jonathan Rubinsztein, who started his role early in December and replaced Rod Vawdrey, who left after helming the company through its disastrous IPO.But it is the lack of customer sales that has spooked investors the most.
This is down more than 50 per cent from $31.6 million a year earlier. Nuix is guiding to a net loss after tax of $2 million to $3.5 million.“Legal bills aside, underlying earnings were already anaemic after adjusting for capitalised costs,” Mr Tynan said. “Significant investment needs to go back in before sustainable revenue growth and operating leverage can be achieved, and you’d hope this is what the new CEO is driving.”ASIC is set to release the results of its investigation into Nuix and its major investor Macquarie Bank into whether the prospectus contained material false and misleading statements in the financial accounts.
Management said it was reinvesting in sustainable revenue generation, including building a sales and distribution capability and increasing levels of investment in the product development pipeline.“But this has descended into a comedy of their own making, and a difficult proposition for investors given credibility and legal overhang.”
writes on technology, internet culture, cryptocurrencies and software from our Sydney newsroom. She has previously covered global capital markets and economics.