Nuix shares plunge after guidance is withdrawn
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The news: Nuix shares plummeted in early trading after the company withdrew its estimated annualised contract value (ACV) target and strategic targets, citing uncertainty and volatility in the geopolitical and global economic landscape.
The numbers: Nuix shares had plunged 22.57% to $1.84 by 10:21am AEST. Over the last 12 months its shares are down 15.67%.
The context: The analytics and intelligence software company said late Tuesday that it had withdrawn its ACV range of 11% to 16% in constant currency, along with strategic targets relating to revenue growth and underlying cash flow.
It said that while “deal pipeline remains strong”, it had become difficult to predict closure times around specific transactions due to uncertainty in customer decision making.
What they said: Nuix chief executive 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," he said.
The source: ASX
