Agreed. Nuix has a very high customer retention rate so they don't lose a customer once they acquire them. In an interview Rubinsztein stated that their real customer retention rate is almost 100% as the only customers they lose is through acquisition (i.e. a current Nuix customer gets acquired by another company which uses a competitor software). The only other ASX software company which I have come across with a similar customer retention rate is Wisetech Global.
To increase top line growth overtime two things need to happen/will happen:
1) Tailwinds from existing customers rapidly transitioning to a consumption model and Nuix benefiting from their increased usage overtime as data under management grows perpetually.
2) Winning new customers and up-selling to existing customers. This is what the new management team is currently working on through an organizational revamp as Rubinsztein is essentially a veteran sales executive.
These are some excerpts from an article covering the Macquarie conference which Rubinsztein recently addressed:
This will all take some time to materialize as the new management team only commenced a few months ago and investors expecting a turnover overnight are living in a fantasy land.
NXL Price at posting:
$1.01 Sentiment: Hold Disclosure: Held
(20min delay)