Nuix swings to profit as new AI data platform boosts earnings
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The news: Nuix shares rocketed at the start of trade on the ASX after the intelligence software group swung to profit in the 2024 financial year, boosted by double-digit growth in annualised contract value (ACV) and statutory revenue.
The numbers: Nuix shares were up 19.48% to $4.17 by 10:59am AEST, having gained nearly 200% over the last 12 months. However, its share price is well below its peak of $11.05 in January 2021.
The Sydney-based group reported statutory net profit after tax of $5 million, from an after tax loss of $5.6 million in FY23. The company's ACV rose 14% year on year to $211.5 million and statutory revenue grew 20.9% to $220.6 million.
Statutory EBITDA was up 60.2% to $55.9 million while underlying EBITDA, excluding non-operational legal costs, added 38.7% to $64.4 million. In June, Nuix lifted its full-year statutory EBITDA guidance to between $55 million and $60 million, from a previously guided range of $47 million to $52 million, following the "receipt of funds relating to an insurance claim made for non-operational legal costs associated with litigation".
Nuix ended the full year with cash on hand of $38 million, up 29% on the prior year, and up 59% on the first half.
The company outlined four strategic targets for FY25, comprising 15% ACV growth, continued successful rollout of Nuix Neo, revenue growth to exceed operating cost growth, and underlying cash flow positive for the full year.
The context: Nuix said its ACV growth during the year was underpinned by strength across its customer base, with North America a particularly strong diver of overall growth.
The company's result was boosted by the rollout of Nuix Neo, a new offering that turns complex data into actionable insights for businesses and enables artificial intelligence integration. Nuix said total ACV attributable to Nuix Neo totalled $12.1 million at 30 June, up 195% from the first half outcome of $4.1 million.
In April, the corporate regulator dropped allegations against Nuix's CEO Jonathan Rubinsztein after concluding there was not enough evidence to charge him with insider trading.
Nuix is awaiting the outcome of separate proceedings brought by the Australian Securities and Investments Commission in the Federal Court, alleging it misled the market by not disclosing financial underperformance after the company's initial public offering in December 2020.
What they said: "Nuix Neo is an innovative step change in our customer offering and provides the foundation for an exciting growth trajectory for Nuix," Rubinsztein said.
"Customer interest and take up has been particularly pleasing, as evidenced by the strong growth in Nuix Neo ACV over the year," he said.
The source: ASX announcement
