Nuix (ASX:NXL) on track for second worst trading day

Company News

by Michael Luu

Data science specialist Nuix (ASX:NXL) was tracking as the worst performer at midday, with the company’s shares hitting the lowest point since Nuix’s listing on the ASX in December 2020.

A 15 per cent plummet by midday occurred on the back of the company’s confirmation that it is projected to fail its prospectus objectives and miss revenue targets for FY21. The company has been forced to revise its guidance, as users have downgraded ‘all you can eat’ fixed-term services to consumption and SaaS products.

The 30%-Macquarie-owned data analyst suffered a record single-day fall of 32 per cent in February, as a result of fears over rising bond yields.

The company’s institutional users have transferred to lower-cost contracts due to the under-utilisation of the previous comprehensive contracts during coronavirus-induced social restrictions.

Nuix’s CFO Stephen Doyle attempted to calm nerves and called for “some courage and patience for the short-term headwinds, insisting the investors should consider the switch from fixed-term contracts to consumption and SaaS deals as a “positive trend” to yield long term results.

Shares in Nuix (ASX:NXL) are trading 16.1 per cent lower at $4.26

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