Nuix shares dive as it forecasts lower EBITDA
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More news: Nuix shares tanked in early trading as it announced that its statutory EBITDA was likely to be 7% to 19% lower compared to the prior corresponding period.
Nuix shares were down 24.6% to $4.07 by 10:40am AEDT, having surged more than 170% over the last 12 months.
The company said the fall in EBITDA would be mostly driven by a "significant decrease" in the capitalised component of its research and development spend.
However, the tech group forecasted a jump in first-half revenue and annualised contract value.
Nuix to report growth in first-half revenue, contract value
The news: Technology group Nuix expects to report a boost to first-half revenue and annualised contract value (ACV) for the six months to 31 December.
The numbers: Nuix said it is due to report statutory revenue between $104 million and $106 million for the half-year period, up 6% to 8% compared to the prior corresponding period.
ACV is due to fall between $215 million and $217 million, up 8% to 9% year over year. Nuix said it continues to target 15% ACV growth for FY25, with the company currently tracking full-year growth of 11% to 16%.
However, Nuix's statutory EBITDA for the first half is likely to be 7% to 19% lower compared to the prior corresponding period, mostly driven by a "significant decrease" in the capitalised component of its research and development spend.
The context: The intelligence software group noted that growth is expected to be weighted towards the second half of the fiscal year, with some pipeline deals moving from completion in the first half to the second half.
Also, the increasing size and complexity of a number of contracts, together with the shift from component to platform, is contributing to longer procurement cycles for some clients, the company said.
Nuix will release its full half-year results on 24 February.
The source: ASX announcement
