21 April 2021

Nuix revises FY21 forecasts

Sydney, Australia-Global software company Nuix Limited (‘Nuix’ or ‘the Company’; ASX: NXL) provides an update to its IPO Prospectus FY21 forecasts, as noted below, and provides commentary on recent trading conditions following completion of an internal quarterly management review.

• Pro Forma Revenue of $180m-$185m (vs $193.5m forecast in the IPO Prospectus)
• Annualised Contract Value (ACV) of $168m-$177m (vs $199.6m)
• Pro Forma EBITDA of $64.6m-$66.6m (vs $63.6m)
• Acceleration in customer transition to consumption and software as a service (SaaS) licenses impacts the revenue profile but delivers significant longer-term business model benefits
• Current operating climate has reducednear-term upsell opportunities, while revenue from renewals and new business remain in line with expectations
• Strong underlying business performance with substantial increases in new customers won, and total and average order values, compared to the same period in FY20

What's concerning:

• From 2020 Annual Report: "... On 19th October 2020 a former contractor to the Company filed a general protections claim under the Fair Work Act 2009 in the Fair Work Commission against the Company. The claim and subsequent correspondence seeks compensation and pecuniary penalties. Damages in the jurisdiction are uncapped and legal fees in defending such matters can be significant. The Company rejects the foundation of the claim but continues to assess its position given that the claim is not yet fully particularised and accordingly it is not possible to reliably estimate the potential financial impact of the claim. "
• Anthony Castagna is still a director after being convicted of the tax fraud even though the conviction has been overturned; reputational damage?? as the company works with law enforcement and security agencies around the world.
• Working capital down to negative $(81,091) as of June 2020 from $21,348,060 in 2019.