Sun. Oct 2nd, 2022
    en flag
    nl flag
    et flag
    fi flag
    fr flag
    de flag
    he flag
    ja flag
    lv flag
    pl flag
    pt flag
    es flag
    uk flag

    Content Assessment: Down Under? Nuix FY22 Results and Strategic Refresh Update

    Information - 90%
    Insight - 89%
    Relevance - 92%
    Objectivity - 86%
    Authority - 90%

    89%

    Good

    A short percentage-based assessment of the qualitative benefit of the FY22 earnings results from global software provider, Nuix.

    Editor’s Note: From time to time, ComplexDiscovery highlights publicly available or privately purchasable announcements, content updates, and research from cyber, data, and legal discovery providers, research organizations, and ComplexDiscovery community members. While ComplexDiscovery regularly highlights this information, it does not assume any responsibility for content assertions.

    To submit recommendations for consideration and inclusion in ComplexDiscovery’s cyber, data, and legal discovery-centric service, product, or research announcements, contact us today.


    Background Note: The following announcement shares the FY2022 financial results for eDiscovery software provider Nuix and may be of interest to legal, business, and information technology professionals operating or investing in the eDiscovery ecosystem. Additionally, a recent post by Tomasz Tunguz, a venture capitalist with Redpoint, provides an interesting consideration that may be of relevance regarding the value of public software companies. The post, titled Growth is No Longer the Best Predictor of a Software Company’s Value, notes that profitability has surged as the most significant correlate and predictor of a public software company’s value. This revenue observation may also be of interest to individuals considering valuations in light of annual earnings results.

    Press Announcement and Investor Presentation

    Nuix Announces FY22 Results and Strategic Refresh Update

    Market Release

    Sydney, Australia – Global software company Nuix (ASX:NXL) announces its preliminary results for the financial year ending 30 June 2022 in line with the recent trading update. Nuix also today releases more detail on Strategic Refresh initiatives.

    FY22 Results

    • Annualized Contract Value $162.0m, down 2.3% on FY21
    • Statutory Revenue $152.3m, down 13.5% on FY21
    • EBITDA $12.1m, down 82.0% on FY21 (pro forma)
    • NPAT ($22.8m), down 190.4% on FY21 (pro forma)

    Annualized Contract Value (ACV), which seeks to remove volatility associated with multi-year deals, fell by 2.3% compared to the prior corresponding period (pcp). Subscription ACV, an important metric given its recurring nature, grew by 1.1%, representing 91.6% of ACV. Consumption-based ACV grew by 40.6%, continuing the trend seen in recent periods. Regionally, Asia Pacific ACV rose, while North America and EMEA ACV fell.

    As previously advised to the market the fall in statutory revenue occurred primarily due to a lower value of multi-year contracts sold and lower new sales. Lower revenue combined with an increase in costs led to a lower EBITDA outcome for the full year.

    Customer churn rose to 5.4% for the full year, although generally remains low, with strong customer relationships maintained. Net Dollar Retention (NDR) rose compared to the prior year, to 96.8%.

    As flagged in previous updates, Nuix increased Research and Development spend materially during the year, with a firm commitment to further investment in revenue generation. Research and Development spend for the year totaled $58.3m, an increase of 32% on the prior year. Important progress was made on critical projects, including further development on the integrated SaaS platform and Natural Language Processing (NLP) integration.

    Nuix finished the year with a total headcount of 475, an increase of 8% on the prior year. In line with experience elsewhere in the industry, Nuix is experiencing an increase in employee retention and recruitment costs.

    Before Topos acquisition costs and trading losses, as well as non-operational legal costs, Nuix recorded a small fall in underlying cash flow for the full year, and a positive underlying cash flow in the second half. The increased cash costs associated with Research and Development were funded from operational cash flow. Non-operational legal costs remain elevated and amounted to $13.8m for the full year. Nuix ended the financial year with a cash balance of $46.8m.

    Strategic Refresh Update

    Group Chief Executive Officer Jonathan Rubinsztein provided further detail on Strategic Refresh initiatives across the group, commenting:

    “We’ve been clear about the need for a refresh of strategic initiatives to drive growth. Our strategy revolves around a greater focus on customer centricity and initiatives across three key horizons. The team has been working exceptionally hard behind the scenes over the last half, and today I’m pleased to be able to share an update on our early progress. We’ve made good headway on key Horizon 1 initiatives, and work is already underway on Horizon 2 and 3 initiatives.

    We recently launched a new price book, providing greater alignment between pricing and the value added from the Nuix offering. A global sales process refresh program has been initiated to standardize our buyer experience. As this program comes to fruition it is expected to provide significant benefits in terms of improved win rates, higher customer retention and sales force efficiencies.

    A more rigorous renewal process is being implemented, with a strong focus on renewal metrics and processes to drive stronger NDR outcomes. We’re also upgrading our service offerings to customers, to help make sure that customers can optimize their Nuix experience, providing incremental revenue opportunities for our organization.

    Structure follows strategy, and we’ve made important changes to our organizational structure, including key hires at the leadership level, to drive our strategy forward. Across the company we’ve realigned performance incentives and KPIs to ensure better alignment between individual performance measures and the goals of the organization.

    Looking further out to Horizon 2, we are already building out our SaaS infrastructure and will increasingly integrate Nuix’s technology into a unified investigations platform. Releasing our Natural Language Processing capability will enable customers to ‘work smarter’, building new use cases and giving our customers an early opportunity to take advantage of the Nuix SaaS infrastructure. Over Horizon 3, our team is already working on new, high-value, repeatable use case solutions.

    Nuix is a remarkable organization making a meaningful difference in the world. We’re putting the right people in the right roles to make sure Nuix is fit for growth. Our customer and partner relationships remain strong. Our Engine remains unparalleled and is central to our platform, underpinning our growth trajectory. And lastly, our strategy is clear and we’re acting on it, with urgency and focus. I’m excited and optimistic about our future, and as an organization, the Nuix team is mobilizing to enact the changes required to drive growth.”

    Results Webcast

    Jonathan Rubinsztein, Group Chief Executive Officer, and Chad Barton, Chief Operating Officer & Chief Financial Officer, will present the FY22 results via webcast at 10.30 am (AEST).

    To access the webcast, please use the following link:

    https://webcast.openbriefing.com/8909/

    A replay of the webcast will also be made available on the investor section of the Nuix website shortly after the event:

    https://investors.nuix.com/investor-centre/

    This announcement has been authorized by the Nuix Board.

    About Nuix

    Nuix Limited is a leading provider of investigative analytics and intelligence software, with the vision of “finding truth in a digital world”. Nuix helps customers to process, normalize, index, enrich and analyze data from a multitude of different sources, solving many of their complex data challenges. The Nuix platform supports a range of use cases, including criminal investigations, financial crime, litigation support, employee and insider investigations, legal eDiscovery, data protection and privacy, and data governance and regulatory compliance.

    For further information, please visit investors.nuix.com

    Read the original release.


    Read the Complete FY22 Financial Results Investor Presentation (PDF) – Mouseover to Scroll

    Nuix FY22 Financial Results Investor Presentation

    Additional Reading

    Source: ComplexDiscovery

     

     

    Have a Request?

    If you have information or offering requests that you would like to ask us about, please let us know and we will make our response to you a priority.

    ComplexDiscovery is an online publication that highlights cyber, data, and legal discovery insight and intelligence ranging from original research to aggregated news for use by cybersecurity, information governance, and eDiscovery professionals. The highly targeted publication seeks to increase the collective understanding of readers regarding cyber, data, and legal discovery information and issues and to provide an objective resource for considering trends, technologies, and services related to electronically stored information.

    ComplexDiscovery OÜ is a technology marketing firm providing strategic planning and tactical execution expertise in support of cyber, data, and legal discovery organizations. Focused primarily on supporting the ComplexDiscovery publication, the company is registered as a private limited company in the European Union country of Estonia, one of the most digitally advanced countries in the world. The company operates virtually worldwide to deliver marketing consulting and services.

    Data Corpus Minimization? IDC Recognizes DISCO as Early Case Assessment Software Leader

    “As innovation continues to impact and disrupt the legal world, we’ve...

    Building a Cybersecurity Workforce? The European Cybersecurity Skills Framework

    According to ENISA's Executive Director, Juhan Lepassaar, "The future security of...

    Leaning Forward? The CISA 2023-2025 Strategic Plan

    The purpose of the CISA Strategic Plan is to communicate the...

    Continuous Risk Improvement? Q3 Cyber Round-Up From Cowbell Cyber

    According to Manu Singh, director of risk engineering at Cowbell, "Every...

    eDiscovery Mergers, Acquisitions, and Investments in Q3 2022

    From HaystackID and Relativity to Exterro and TCDI, the following findings,...

    Allegations and Denials? Nuix Notes ASIC Enforcement Proceedings

    The recent investor news update from Nuix on 29 September 2022,...

    Revealing Response? Nuix Responds to ASX Request for Information

    The following investor news update from Nuix shares a written response...

    Revealing Reports? Nuix Notes Press Speculation

    According to a September 9, 2022 market release from Nuix, the...

    On the Move? 2022 eDiscovery Market Kinetics: Five Areas of Interest

    Recently ComplexDiscovery was provided an opportunity to share with the eDiscovery...

    Trusting the Process? 2021 eDiscovery Processing Task, Spend, and Cost Data Points

    Based on the complexity of cybersecurity, information governance, and legal discovery,...

    The Year in Review? 2021 eDiscovery Review Task, Spend, and Cost Data Points

    Based on the complexity of cybersecurity, information governance, and legal discovery,...

    A 2021 Look at eDiscovery Collection: Task, Spend, and Cost Data Points

    Based on the complexity of cybersecurity, information governance, and legal discovery,...

    Five Great Reads on Cyber, Data, and Legal Discovery for September 2022

    From privacy legislation and special masters to acquisitions and investigations, the...

    Five Great Reads on Cyber, Data, and Legal Discovery for August 2022

    From AI and Big Data challenges to intriguing financial and investment...

    Five Great Reads on Cyber, Data, and Legal Discovery for July 2022

    From lurking business undercurrents to captivating deepfake developments, the July 2022...

    Five Great Reads on Cyber, Data, and Legal Discovery for June 2022

    From eDiscovery ecosystem players and pricing to data breach investigations and...

    Bubble Trouble? eDiscovery Operational Metrics in the Fall of 2022

    In the fall of 2022, 89 eDiscovery Business Confidence Survey participants...

    Cooler Temperatures? Fall 2022 eDiscovery Business Confidence Survey Results

    Since January 2016, 2,874 individual responses to twenty-eight quarterly eDiscovery Business...

    Inflection or Deflection? An Aggregate Overview of Eight Semi-Annual eDiscovery Pricing Surveys

    Initiated in the winter of 2019 and conducted eight times with...

    Changing Currents? Eighteen Observations on eDiscovery Business Confidence in the Summer of 2022

    In the summer of 2022, 54.8% of survey respondents felt that...

    A Significant Operational Defeat? Ukraine Conflict Assessments in Maps (September 27 – October 1, 2022)

    According to a recent update from the Institute for the Study...

    Perception and Reality? Ukraine Conflict Assessments in Maps (September 22 – 26, 2022)

    According to a recent update from the Institute for the Study...

    Nuclear Options? Ukraine Conflict Assessments in Maps (September 17 – 21, 2022)

    According to a recent update from the Institute for the Study...

    Mass Graves and Torture Chambers? Ukraine Conflict Assessments in Maps (September 12 – 16, 2022)

    According to a recent update from the Institute for the Study...