Beleaguered analytics specialist Nuix (ASX:NXL)
has trimmed its annualised business guidance for the second time since its float in December, due to contractual uncertainty.
The data solutions provider has downsized its pro forma revenue outlook from between $180 million and $185 million to a range between $173 million and $182 million.
The $1.1 billion company has attributed the drop in forecast revenue to the uncertain nature of several major customer contracts, as Nuix’s prediction of yearly contract value has shed from prior forecasts of between $168 million and $177 million to $165 million and $172 million.
The company explained the difficulties regarding high-profile contracts, “There remains uncertainty in relation to both the structure and timing of a small number of large customer upsell opportunities, including whether these may result in multi-year deals during 2020-21”.
The company is resorting to more stringent cost control measures in order to maintain its EBITDA guidance between $64.6 million and $66.6 million.
Nuix has recently implemented changes to address concerns about corporate governance and financial well-being.
The company has installed an independent board review task force designed to enhance oversight and address issues recently raised by investors and market analysts. The body will operate in conjunction with external advisors and Nuix’s compliance division.
Additionally, the company has terminated a consultancy agreement and severed ties with former Chairman Tony Castagna, in light of the ongoing investigation into alleged violations of corporate laws to assess the legitimacy of Dr. Castagna’s $80 million pay day on the IPO.
The company has employed the services of an international recruitment agency to search for independent non-executive directors. The analytics and intelligence tech developer aims to replenish the ranks of Nuix’s board.
Shares in Nuix (ASX:NXL)
are trading 17.8 per cent lower at $2.77