Australian global software company Nuix [ASX:NXL] announced today it has managed to wrangle a profit of $1.3 million.
This is a particularly good achievement, given the group was struck down with a loss of $2.3 million the same time last year.
Nuix also stated that its annualised contract value had climbed 3.4% and EBITDA improved 8.5%.
Shareholders were consequently upvoting the company’s stock price more than 6%, to the value of $1.13 each.
For the first few weeks of 2023, NXL has improved 82% in share price, but it’s still down 19% from the full year, and 21% below the wider market average:
Nuix profits moving up for FY23
Earlier on Monday, the software developer provided its half-year results for the period ending 31 December 2022, showing a fair boost to its profits for the period, totalling $1.3 million.
This was a vast improvement on the group’s previous results, when a whopping $2.3 million loss was taken in the prior year.
Nuix reported its annualised contract value (ACV) had taken an upswing of 3.4%, with ACV totalling $170 million.
Statutory revenue had also climbed 4.3% with $87.6 million, while EBITDA increased a whopping 51.6% on the first half of the year, with $20.9 million in earnings.
Nuix pointed out that legal costs linked to the group’s dealings with its former CEO, Edward Sheehy, were majorly consolidated in the previous period. This clarity has allowed the group to chase revenue growth and helped the group to manage its costs more effectively, pushing statutory EBITDA higher by the 51.6% reported above.
Underlying EBITDA was up 8.5% on the first half, while NPAT (net profit after tax) surged 153% at $1.3 million.
Nuix noted that customer churn was slightly higher over the full year, and figures were helped again by the rise in the net dollar retention rate, which rose 103.1%, which also bolstered the group’s upsell to customers while achieving certain currency benefits.
Group Chief Executive Officer Jonathan Rubinsztein commented:
‘We’ve previously articulated our strategic refresh agenda, involving a greater focus on customer centricity and initiatives across three key horizons. An enormous amount of strategic work occurred during the half, and we are seeing some early positive impacts on our financial results.’
Rubinsztein touched on Nuix’s Horizon 2 Project, which he said is progressing to expectations.
Nuix’s Unified Platform is also due for release in 1H FY24, and the FedRAMP Ready system has passed official partnership with the US Government, soon to be used for US sensitive and unclassified data storage.
‘Nuix is growing and evolving — we are excited about the changes we are implementing as a team and the early momentum evident in our financial results. There is still much to do, and the team is motivated and excited to take Nuix through the next stages of its evolution.’
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For The Daily Reckoning