Credit: Dreamstime
Local software provider Nuix has seen its profit for 2021 sink by 107 per cent, causing it to end the financial year with a $1.6 million loss.
The Australian Securities Exchange (ASX)-listed software vendor made $23 million in profit last year, but this has now sunk despite steady revenue of $176.1 million for the year ended 30 June 2021.
Meanwhile, the company's pre-tax earnings (EBITDA) plummeted by half, falling from $62 million to $30.2 million. This comes despite having contracted 100 new customers in the last financial year, Nuix told shareholders.
The company claimed that its average new order value rose to $240,000, driven by higher value wins through a focus on enterprise sales.
The COVID-19 pandemic was said to have affected upsell opportunities, particularly in the United States.
In addition, the shift to consumption-based licences impacted the timing of revenue recognition, Nuix told shareholders.
“Although this transition weighs on customer upsell in the short term, the shift to consumption licenses, including software-as-a-service, allows Nuix to benefit more fully from growth in data volumes over time.”
The results come just months after Nuix was subjected to a search on its Sydney office, with authorities seeking documents in relation to an investigation into the affairs of an unnamed "individual”.
The warrant, executed on 24 June, came just days after the chief executive and chief financial officers of the software company resigned amid allegations concerning its $1.8 billion public listing.
In June, Nuix’s then-CEO Rod Vawdrey told shareholders via a statement lodged with the ASX that he had “given notice of his decision to retire”.
At the same time, CFO Stephen Doyle's employment was “terminated by mutual agreement”, according to a separate ASX notice.
Nuix chairman Jeff Bleich told shareholders the company now had a strong field of candidates for the CEO position and is now appointing two independent non-executive board members.
“Our technology is world-leading and unique,” he said. “Our customers have stuck with us in a competitive environment not out of sentimentality. It is because of the tremendous value our solutions bring to their operations.
“We recognise there are areas for improvement and necessary change. We must learn from recent challenges and ensure we address any underlying problems. We have been listening and we have been taking action. I’m confident we are in the process of emerging as a stronger business that can reach its incredible potential.”
