Nuix rises on positive earnings and contract news
Investigative analytics and intelligence software developer Nuix (ASX: NXL) has released estimates that it will now achieve an increase of up to 189% in statutory earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $35 million.
It has also forecast a potential 61% increase in underlying EBITDA to $47 million, a 15% jump in annualised contract value (ACV) at up to $186 million and 20% increase in statutory revenue of up to $183 million.
The surge in forecast numbers was backed by a strong close to the company’s end of the financial year, with several key contracts executed in June.
The company also confirmed that its cash flow position had changed to positive in both the second half and over the full year after it previously stated its aim was to be underlying cash flow neutral for the year.
Nuix ended the financial year with cash on hand of $29.6 million and no debt.
Rampiva acquisition in place
Earlier this month Nuix revealed it had achieved financial close on the acquisition of Rampiva Global, LLC and Rampiva Technology.
The deal to purchase 100% of the shares in the workflow automation and job scheduling software provider was initially announced in late May.
A long-term Nuix technology partner, Rampiva was founded in 2016 to meet greater productivity demands for Nuix customers by automating their data processing tasks.
Notably, its technology is complementary to the Nuix Engine and the wider software platform, including Nuix Discover, and aligns well with Nuix’s strategic large enterprise market.
The initial cost of the acquisition was approximately $5.8 million in cash and Nuix newly issued shares. Up to a further $4.3 million in Nuix shares will be issued if Rampiva achieves ACV growth and cost management milestones in the three years post acquisition.
ASIC investigation in May
In an up and down year for the company, Nuix revealed in May that the Australian Securities and Investments Commission (ASIC) was conducting an investigation into the acquisition of Nuix shares by its chief executive officer in early September 2022 and the company’s response to an ASX enquiry, relating to those circumstances, released on 14 September 2022.
The company reported that the chief executive officer’s acquisition of its shares took place with prior approval and during an approved trading window.
In February, Nuix announced that it had successfully defended legal proceedings brought by a former chief executive officer.
The company revealed that the Federal Court of Australia had dismissed the claims of the former chief executive officer.