Legal fees haunt Nuix (ASX:NXL) earnings with revenue to fall

Company News

by Lauren Evans

Legal costs have haunted software firm Nuix (ASX:NXL) which expects to report a substantial fall in earnings for the first half of financial year 2022.

Existing customers have helped buoy the company’s revenue while earnings from new customers are lower. Revenue is set to come in 3.5 per cent lower at $82 million to $85 million compared to the prior corresponding period. 

Annualised contract value could exceed the previous corresponding period, targeted at $161 million to $164 million against $161.8 million. However, pro-forma earnings before interest, taxes, depreciation and amortisation are expected to be materially lower, coming in at $13 million to $15 million against $31.6 million.

Statutory earnings will be positive at $13 million to $15 million from a loss of $4.4 million, while Nuix's profit after tax loss is at $2 million to $3.5 million from $16.6 million.

Shares in Nuix (ASX:NXL) are trading 15.3 per cent lower at $1.74. 

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